04/22/1998 09:22 AM Senate FIN

                                                                               
 HOUSE BILL NO. 231                                                            
                                                                               
"An Act relating to regulation of snowmobiles."                                
                                                                               
                                                                               
EDDIE GRASSER, staff to Representative Beverly Masek was                       
invited to join the committee.  He explained the bill was                      
introduced on behalf of the Alaska State Snow Machine                          
Association and the Anchorage Economic Development                             
Corporation.  The requirement for registering a snow                           
machine has been in the statutes since 1968 and currently                      
is in Title V.  The bill would now put the registration of                     
snow machines in the Division of Motor Vehicles and would                      
allow dealers to do a point of sale registration.  He said                     
one of the main reasons for this bill was that the formula                     
to receive monies out of the National Recreational Trails                      
Fund was based on the number of machines registered rather                     
than numbers of machines sold.  Monies for this fund come                      
from a national tax on gasoline and is based on a formula                      
on how many gallons of gasoline sold was actually used by                      
off-road vehicles or non-highway vehicles.  Representative                     
Masek's interest was that Alaska receives the trail funds                      
so that there were places for individuals to ride.  A good                     
example was in Anchorage where one was no longer able to                       
snow machine due to city ordinances.  In receiving these                       
trail funds it would enable them to preserve some corridors                    
and snow machine trails through Anchorage or the Matanuska                     
Valley.  There is currently a trail between Fairbanks and                      
Anchorage being worked on.  Representative Masek also felt                     
this would help promote tourism in the State.                                  
                                                                               
Senator Parnell referred to page four of the bill.  Mr.                        
Grasser identified that the correct bill should be the                         
Labor and Commerce version now before this committee.  He                      
said the House Finance Committee removed the equipment                         
requirements regarding off-market products and eliminated                      
that portion of the bill.  Senator Parnell asked about                         
regulations as to noise and where the machines could be                        
ridden.  Mr. Grasser said one of the discussions regarding                     
the off-market products was tuned mufflers that could be                       
put on the machine.  However, outside of State parks he did                    
not believe there were many regulations that applied to                        
snow mobilers on public land in Alaska.                                        
                                                                               
Senator Donley asked the fee for the registration and Mr.                      
Grasser indicated that the fee already set in Division of                      
Motor Vehicles was in the amount of $10 on a bi-annual                         
basis.  He said there had been an amendment in Labor and                       
Commerce, which allowed an individual the option to                            
register the machine for more than a two-year period and up                    
to six years if they so chose.  That would be a $30                            
registration fee for six years.  Senator Donley asked that                     
Ms. Hensley be called before the committee.                                    
                                                                               
JUANITA HENSLEY, Director, Division of Motor Vehicles was                      
invited to join the committee.  Senator Donley asked her to                    
explain the two, four, six-year option to register                             
provision.  Ms. Hensley indicated the division had no                          
objection to the provision as requested by Senator Halford                     
to be put into the bill.  She said this was strictly an                        
option the Legislature chose.  Senator Donley asked if                         
there would be any administrative problems and Ms. Hensley                     
indicated there would be no more burden to register the                        
machine under the provisions.  She said there was a fiscal                     
note attached to the bill in order to have one position to                     
do the auditing and monitoring of the dealers that would be                    
doing the point of sale registration for the division.                         
                                                                               
Senator Donley asked for an explanation on the intent of                       
the bill to capture federal funds for trails.  Mr. Grasser                     
said this was one of the main reasons for the bill.                            
Senator Donley asked approximately how much money could be                     
captured.  Mr. Grasser said currently the National                             
Recreational Trail Funds puts about $165,000 per year into                     
the trails program.  The requirement under federal law is                      
that they depend on the number of machines registered                          
rather than purchased.  According to current figures there                     
is approximately 70,000 snowmobiles in Alaska with about                       
only 14,000 registered.  Therefore approximately 60,000                        
machines were missing on the registered list which would be                    
used towards the formula as set out by the federal                             
government to send trail monies to Alaska.                                     
                                                                               
Senator Phillips asked if the Alaska Snow Machine                              
Association endorsed the bill?  Mr. Grasser indicated they                     
did, along with several banks, private industries, the                         
Anchorage Economic Development Corporation, along with                         
several visitors' and convention bureaus.                                      
                                                                               
Senator Parnell informed the committee that it had been                        
pointed out to him by the department that mufflers,                            
throttles, brakes, lights and reflectors and other                             
equipment was regulated by the State, along with city and                      
municipality ordinances.  He said there were plenty of                         
regulations!                                                                   
                                                                               
Senator Adams MOVED SCS CS HB 231 (L&C) with individual                        
recommendations and the accompanying fiscal note.  WITHOUT                     
OBJECTION it was REPORTED OUT with individual                                  
recommendations and accompanying fiscal note from the                          
Department of Administration, Division of Motor Vehicles in                    
the amount of $76.5.