From: bicyclealaska@aol.com
Sent: Tuesday, March 08, 2011
9:41 PM
To: Rep. Peggy Wilson; Rep.
Lance Pruitt; Rep. Eric Feige; Rep. Craig Johnson; Rep. Cathy Munoz; Rep. Max
Gruenberg; Rep. Pete Petersen
Cc: denny.dewitt@nfib.org
Subject: House
Transportation: Please Vote No on HB 57
FROM: Peter Roberts, Owner
Downtown Bicycle Rental, Inc., Anchorage.
TO: Members of the House
Transportation Committee
RE: HB 57, Bicycle Program
For the following reasons, I urge members of the House
Transportation Committee to vote NO on HB 57 – "The Bike Bill."
The
Undisputed Benefits of Bikes & Small Business
No thinking person can dispute the many benefits of bicycles.
People who bike instead of drive improve their health and save gas. The
community benefits because when there is one less car on the road, there is
cleaner air, less traffic, and less wear and tear on expensive-to-maintain
roads. When people bike more and drive less, everybody wins.
No thinking person can dispute the many benefits of small
businesses. After investing their time and risking their money, entrepreneurs
sometimes manage to earn a profit and make a living. The community benefits
because when businesses compete, the quality of goods and services goes up, and
prices go down. Businesses pay salaries and taxes. When businesses thrive,
members of the community work more and ask their government for less. Everybody
wins.
The High
Cost of No Price
Cognizant of the many benefits of bicycles, Representatives Seaton
and Gruenberg have introduced HB 57. The purpose of this bill is "to
encourage the safe use of bicycles as a mode of transportation. . . ." See
Sec. 1, Article 2. To that end, HB 57 asks that a "fund" be established
from "appropriations by the legislature," "federal money"
and "other sources" so that "municipalities and nonprofits"
can fund the "purchase, maintenance, and repair of bicycles, bicycle
helmets, bicycle facilities, and bicycle trailers by residents of the community
where the grantee is located." See Sec 2 Article 1A.
While the goal of HB 57 is laudable, in towns that already have
bike shops, passage will have the opposite of the intended effect. The
statutory scheme proposed by this bill takes profits earned by
small businesses and gives it to nonprofits and government agencies so the
latter can give away the same products and services taxed businesses are trying
to sell. Successful bike businesses will actually be subsidizing their own
demise. Outsourcing to municipalities and nonprofits what private employers
already provide will sabotage the tax base and put people out of work.
It is axiomatic that people will not buy what they can get down
the street for free. As businesses go under and taxes dry up, government will
either have to raise taxes on everyone else, go deeper into debt, cut other
(core) government services, or reduce grants from the fund. When the race to
the bottom finally ends, not only will no one be selling, renting or fixing bikes,
the government will be out of money. While HB 57 targets only a certain line of
products and services, if such a scheme were extrapolated to the rest of the
economy, no thinking person can dispute what would happen: Blight.
Bikes
Don’t Commute, People Do
In the previous legislative session, Senator Seaton likened this
bill’s progenitor (HB 132 which thankfully died in House Finance) to the
Energy Rebate Grant Program. As you know, that program reimburses homeowners up
to $10,000 if they improve the energy efficiency of their home. At first blush,
the comparison sounds apt, but if you think about it, that program and the one
proposed by HB 57 are really very different.
The energy rebate program begins at the bottom and works up.
The program imagined in the Bike Bill starts from the top and "works"
down. One program reimburses citizens that buy products and services from
businesses; the other program gives products and services to citizens that
businesses are trying to sell. There are other differences. One program builds
a tangible, permanent improvement that keeps people warm for less money; the
other gives away a quickly depreciating vehicle with many moving parts. The
hope for HB 57 is that it will enable utility bicycle use -commuting. But
bikes are also used for recreation. Insulating a house is one thing, changing
people’s behavior is another. Bikes don’t commute, people do. People must want
to change.
Instead of spending precious tax dollars trying to fix people, the
government should shift its focus and fix broken bike paths and make other
tangible, permanent improvements that make bike commuting safer and more
likely. When HB 132 was discussed by this committee two years ago, Kristi Wood,
representing the Bicycle Commuters of Anchorage testified that the "[T]he
number one excuse she hears from people who do not commute by bicycle is that
they do not believe they have a safe route. . . . She emphasized the need for
more bicycle lanes, and bicycle paths." (HB 132 Minutes at 2:48:39 PM.
March 19, 2009.) Like HB 132, HB 57 puts the cart before the horse. This time
around, I urge all members of the Transportation Committee
to weigh-in on the bill's true merits (or lack of them) and vote no.
(03-23-2009, House Journal, 0546: Do pass (2): Gruenberg,
Wilson. No recommendation (3): Johansen, Munoz, Doogan)
Cash for
Clunkers/Bucks for Bikes
In defense of HB 57, some say there are people who would
commute by bike if they afford one. Fair enough. Draft a closely-tailored bill
that targets such a person. Food stamps help people eat. "Bike
vouchers" can help people commute. The pool of people that currently
qualify for home heating assistance or a free monthly bus pass would likely
also qualify for a bike voucher. Voucher applicants could be required to first
pass an online safe bike operation and/or basic bike maintenance test. Vouchers
for commuter bikes could be redeemed by businesses in the community that are
already positioned to meet each individual’s unique biking needs. Instead of
creating a program that empowers a government agency, why not create a program
that empowers people?
Two years ago, the federal government stimulated the auto industry
with its "Cash for Clunkers" program. A better bike bill would
emulate the model. It could be called "Bucks for Bikes." If
government-stimulated demand for bikes and their maintenance exceeds supply,
the imbalance will be remedied by a resident who risks their capital, invests
their time and hires their neighbor to meet it. In other words, they will start
a small business. Everybody wins.
Past
Testimony to this Committee Acknowledged Unfair Competition by
Nonprofits
as a Legitimate Concern
In the last legislative session, when this committee heard public
testimony on the previous edition of this bill, the administration sent two
representatives from the Department of Transportation. Bob Laurie is the State
Bicycle Pedestrian Coordinator. Jeff Ottesen is Director of Program
Development." (No State gaming regulators were present.) The minutes from
the meeting show two legislators and four members of the public acknowledged
government-sponsored competition by a nonprofit as a legitimate concern.
Nevertheless, supporters urged passage because the bill, like the current one
instructs DOT to "develop regulations establishing criteria for issuing
grants to municipalities and nonprofit organizations. . . ." This
instruction kicks the can – a can filled with worms – down the road. Again. It
is not credible to expect an agency to adopt regulations to remedy a well-known
concern when the legislature declines to do it itself. After two
years, the following statements could have and should have produced a better
bill:
1:52:29 PM
REPRESENTATIVE JOHANSEN referred to page 1, line 14, of Version E
which reads "by municipal residents". He asked if the program will
only be allowed for municipal residents. He further asked how the program would
be monitored in a community like Ketchikan that has 9,000 tourists who
disembark from cruise ships in one day, who may also want to use bicycles. He
inquired as to how the mechanics of the program would work if the program is
limited to residents. He then asked specifically, "How are you going to
tell or is that your intent for it just to be residents?"
REPRESENTATIVE SEATON answered that this program would be
incorporated in a grant request from a municipality. "Another words, if a
municipality came in and said we want to have a program for tourists, not a
mode of transportation, but a visitor service." He explained that while HB
132 is intended to provide a mode of transportation to residents, nothing
restricts a municipality from allowing others to use the bicycles. However, the
intent of the bill is to provide a grant to communities so Alaskans will have
an alternate mode of transportation to use instead of motor vehicles. He said,
"That's what this bill is for, it's not for recreation, it's not meant to
compete with a business that would be renting out bicycles to the cruise ships,
if someone has a similar business." He added that HB 132 targets local
residents. Additionally, he said he hopes the program can help address obesity
rates by encouraging Alaska residents to get more exercise to improve their
health.
2:15:01 PM
SUE ELY, Legislative & Communications Manager, Alaska
Conservation Alliance (ACA), speaking on behalf of the ACA, offered support for
HB 132. . . . "We are here to testify in favor of this bill and I think
what I'd like to do is sing the praises of bicycles and talk about some of the
barriers that I think this bill addresses." She suggested that the bill
might include educating not just riders but also for motorists to better learn
to interact with bicycle users. She mentioned bicycle lanes and street plowing
are important to allow year round bicycle use. She said:
We want, like the bill sponsor said, we're not trying to get this
out here for tourists. This isn't for joy rides. This is for people who don't
have cars or don't want to use their car, or don't have appropriate transit or
want to make a good choice for the environment. These people aren't going out
there for joy rides.
2:29:02 PM
MATTHEW TURNER, Bicycle Friendly Sitka (BFS), speaking on behalf
of BFS . . . . He expressed concern that the DOT&PF needs to put into place
mechanisms to prevent competition with existing bicycle rental or repair shops.
He said:
My concern is to make sure that there are assurances that whatever
programs come about as a result of this bill are not competing with existing
bicycle shops, either rental businesses or repair businesses. And so, I know
there's some nuance there, because I hope that it's specific enough to prevent
government sponsored competition but still loose enough in its regulations and
writing that folks can respond innovatively with programs to get bicycles to
those in need.
He said he hopes the focus is to get bicycles in hands of those
who cannot afford to purchase a new one in a bicycle shop. He opined that the
long-term goal is to have those people become consumers of for-profit
organizations in the future.
2:34:42 PM
MS. WEST. . . . She pointed out that he was really glad to get
people out on bikes. She stated that it is not about competition, but is about
a healthy lifestyle and the "greenness" of riding bicycles.
2:39:32 PM
ROBERT SHIPLEY, Anchorage Trails and committee Coalition, speaking
on behalf of the ATGC, offered ATGC's support for HB 132. . . . He reiterated
prior testimony emphasizing that programs need to be directed to cyclists and
drivers. . . . He further suggested that the bill should be amended to include
support for outreach and education safety programs.
LOIS EPSTEIN, Engineer, and Director, Alaska Transportation
Priorities Project (ATPP), stated the ATPP is a statewide coalition consisting
of conservation organizations, businesses, individuals promoting sensible
transportation systems in Alaska. . . .She suggested that HB 132 may need to be
amended to clarify its focus on education grants as well as on bicycling
infrastructure.
Conclusion
Singing the undisputed praises of bicycles is not relevant
testimony. As is the case with most things that sound good on the surface, the
devil is in the details. If this bill becomes law, it will not change the
behavior of drivers; but it will change the behavior of people who patronize
bike shops.
For all of the foregoing reasons, I urge the Transportation
Committee to vote no on HB 57.
Respectfully submitted,
Peter Roberts
Owner
Downtown Bicycle Rental, Inc.
333 W. 4th Ave. , Anchorage, AK 99501
Tel: (907) 279-3334, Fax: 279-8338
bicyclealaska@aol.com
www.alaska-bike-rentals.com