03/27/2003 01:32 PM House TRA

HB 173-FEE FOR STUDDED TIRES                                                                                                  
                                                                                                                                
Number 1518                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK  announced that the  next order of  business would                                                               
be  HOUSE BILL  NO. 173,  "An Act  relating to  a fee  on studded                                                               
tires; and providing for an effective date."                                                                                    
                                                                                                                                
CO-CHAIR MASEK  informed the committee that  public testimony had                                                               
been closed on HB 173.                                                                                                          
                                                                                                                                
The committee took an at-ease from 2:05 to 2:10 p.m.                                                                            
                                                                                                                                
CO-CHAIR MASEK  clarified that the proposed  committee substitute                                                               
(CS) for  HB 173,  Version D,  had been  adopted in  the previous                                                               
meeting [3/18/03].  Therefore, Version D [work draft 23-                                                                        
GH1127\D, Kurtz, 3/12/03] was before the committee.                                                                             
                                                                                                                                
Number 1600                                                                                                                     
                                                                                                                                
CO-CHAIR HOLM offered Amendment 1, 23GH1127\D.2, Kurtz, 3/27/03,                                                                
which read as follows:                                                                                                          
                                                                                                                                
     Page 1, line 1:                                                                                                            
     Delete "studded"                                                                                                         
                                                                                                                                
     Page 1, line 7:                                                                                                            
     Delete "Studded tire"                                                                                                    
     Insert "Tire"                                                                                                            
     Delete "$10"                                                                                                               
     Insert "$2.50"                                                                                                             
                                                                                                                                
     Page 1, line 8:                                                                                                            
     Delete "studded"                                                                                                           
                                                                                                                                
     Page 1, lines 9 - 10:                                                                                                      
     Delete all material.                                                                                                       
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 1, line 12:                                                                                                           
     Delete "or service"                                                                                                        
                                                                                                                                
     Page 1, lines 13 - 14:                                                                                                     
     Delete "or of the installation of studs"                                                                                   
                                                                                                                                
     Page 2, line 2:                                                                                                            
     Delete "or installation"                                                                                                   
                                                                                                                                
     Page 2, line 8:                                                                                                            
     Delete "or services"                                                                                                       
                                                                                                                                
     Page 2, line 11:                                                                                                           
     Delete "(1)"                                                                                                               
                                                                                                                                
     Page 2, lines 11 - 12:                                                                                                     
      Delete "studded tires or a person who installs studs                                                                      
     on motor vehicle tires for a fee;"                                                                                         
     Insert "tires."                                                                                                            
                                                                                                                                
     Page 2, lines 13 - 15:                                                                                                     
     Delete all material.                                                                                                       
                                                                                                                                
Number 1702                                                                                                                     
                                                                                                                                
CO-CHAIR HOLM explained the changes  addressed in Amendment 1 and                                                               
also told the  committee that the amount of $2.50  was revised to                                                               
$2.00  [on page  1,  line 7,  of  the  bill].   He  said that  in                                                               
response  to  previous  testimony indicating  problems  with  the                                                               
bill's initial taxation efforts,  and from hearing Representative                                                               
Fate's  concerns with  not wanting  to encourage  people to  take                                                               
chances with  their safety,  the idea behind  Amendment 1  was to                                                               
tax  all  of  the  tires  to  help  to  produce  monies  for  the                                                               
maintenance of  the highways.   He referred  to the  "Annual Tire                                                               
Purchases  in  the  State," included  in  the  committee  packet,                                                               
pointing out  that there are  annual purchases of  $1,250,000 and                                                               
also that the governor's request is for several million dollars.                                                                
                                                                                                                                
Number 1738                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  clarified  that  the  $2.50  amount  was  a                                                               
suggestion, not from  him, but from a witness who  testified at a                                                               
previous meeting.                                                                                                               
                                                                                                                                
CO-CHAIR HOLM informed  the committee that if  this amendment was                                                               
adopted, about $2.5 million would be added to the general fund.                                                                 
                                                                                                                                
Number 1760                                                                                                                     
                                                                                                                                
REPRESENTATIVE KAPSNER  asked if subsection (b)  would be deleted                                                               
in its entirety.                                                                                                                
                                                                                                                                
CO-CHAIR  MASEK  confirmed that  there  would  be a  deletion  of                                                               
subsection (b) [page 1, lines 9-10,  of the bill] which reads: "A                                                               
fee of $10 a  tire is imposed on the installation  of studs for a                                                               
fee on a motor vehicle tire in the state."                                                                                      
                                                                                                                                
Number 1813                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK  asked [if there  was any objection]  to Amendment                                                               
1.  There being no objection, Amendment 1 was adopted.                                                                          
                                                                                                                                
Number 1843                                                                                                                     
                                                                                                                                
CO-CHAIR  HOLM moved  to report  CSHB  173, Version  23-GH1127\D,                                                               
Kurtz,  3/12/03, as  amended, out  of  committee with  individual                                                               
recommendations and the accompanying fiscal note.                                                                               
                                                                                                                                
Number 1854                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOHRING  objected.   He  said  that this  was  an                                                               
example  of  putting the  "cart  before  the horse"  regarding  a                                                               
revenue measure proposed by the  governor.  He told the committee                                                               
that before  consideration of  such measures,  there should  be a                                                               
careful evaluation  of governmental expenditures and  a review of                                                               
how those expenditures could be  cut, so that those savings could                                                               
be used  towards such things as  road maintenance.  He  said that                                                               
in addition  to having  a philosophical concern  with HB  173, he                                                               
was also  concerned for his  constituents because of  their being                                                               
charged for  studded tires  as well  as being  charged additional                                                               
monies for motor fuel.                                                                                                          
                                                                                                                                
Number 1913                                                                                                                     
                                                                                                                                
A roll  call vote  was taken.   Representatives Fate,  Ogg, Holm,                                                               
and Masek  voted in favor  of reporting  CSHB 173, Version  D, as                                                               
amended,  from committee.   Representatives  Kapsner and  Kohring                                                               
voted against it.   Therefore, CSHB 173(TRA) was  reported out of                                                               
the House Transportation Standing Committee by a vote of 4-2.