2003-03-05                     House Journal                      Page 0447
HB 173                                                                                            
HOUSE BILL NO. 173 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to a fee on studded tires; and providing for an                               
     effective date."                                                                               
                                                                                                    

2003-03-05                     House Journal                      Page 0448
was read the first time and referred to the Transportation and Finance                              
Committees.                                                                                         
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec 18, of the Alaska Constitution, I am                           
transmitting a bill that would impose a fee on the purchase and use of                              
studded tires in Alaska.                                                                            
                                                                                                    
                                                                                                    
According to a 1996 report by the Alaska Department of                                              
Transportation and Public Facilities, the use of studded tires in Alaska                            
causes approximately $5 million damage to our roads per year.  Most                                 
of this damage occurs in our high traffic urban centers in the form of                              
rutting.  It is a particular problem in our urban centers where rutting is                          
often severe and causes unsafe driving conditions.                                                  
                                                                                                    
                                                                                                    
The worst of this damage is repaired by the department.  Due to                                     
limited maintenance funding, much of it is added to the State's                                     
deferred maintenance backlog.  This bill would impose a fee of $10                                  
for each studded tire sold, resulting in $2 million in increased                                    
revenues.  This proposal represents a modest, user-pays approach to                                 
paying for studded tire damage.                                                                     
                                                                                                    
                                                                                                    
New tire technology has been developed in the last ten years to create                              
studless winter tires.  These tires use softer rubber compounds and                                 
specific tread patterns to improve their performance in snow and ice                                
conditions.  This technology has continued to improve and is widely                                 
available as an alternative to studded winter tires.                                                
                                                                                                    

2003-03-05                     House Journal                      Page 0449
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"