Legislature(2019 - 2020)BARNES 124
03/26/2019 01:00 PM House TRANSPORTATION
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| Audio | Topic |
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| Start | |
| HB23 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 26, 2019
1:05 p.m.
MEMBERS PRESENT
Representative Louise Stutes, Co-Chair
Representative Adam Wool, Co-Chair
Representative Matt Claman
Representative Harriet Drummond
Representative Andi Story
Representative Dave Talerico
Representative Sara Rasmussen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 23
"An Act relating to registration fees for snowmobiles and off-
highway vehicles."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 23
SHORT TITLE: SNOWMOBILE REGISTRATION FEES
SPONSOR(s): REPRESENTATIVE(s) NEUMAN
02/20/19 (H) PREFILE RELEASED 1/7/19
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) TRA, FIN
03/13/19 (H) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
03/13/19 (H) READ THE FIRST TIME - REFERRALS
03/13/19 (H) TRA, FIN
03/26/19 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE MARK NEUMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor of SSHB 23, introduced his
staff to present the bill.
WILLIAM GAMBLE, Staff
Representative Mark Neuman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SSHB 23 on behalf of
Representative Neuman, prime sponsor.
VICTORIA GROSS
Wasilla, Alaska
POSITION STATEMENT: Testified during the hearing on SSHB 23.
STEVE CLEARY, Executive Director
Alaska Trails
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
MICHELE STEVENS, President
Petersville Community Non-Profit
Petersville, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
ZACK RUSSELL
Denali Borough, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
STEVE CHARLES
Willow Trail Committee
Willow, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
FREDDIE POLLARD
Kenai, Alaska
POSITION STATEMENT: Testified during the hearing on SSHB 23.
GARY ANDERSON
Ninilchik, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
KEN COLEMAN
Kenai, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
SUSIE SEIBERT
Petersville, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
DAN MAYFIELD
Matsu Borough Assembly
Big Lake, Alaska
POSITION STATEMENT: Testified in support of SSHB 23.
CRISTIN ROEHL-EASTHAM, President
Snomads Snowmachine Club ("Snomads")
Homer, Alaska
POSITION STATEMENT: Testified during the hearing on SSHB 23.
RICKY GEASE, Director
Division of Parks and Outdoor Recreation (DPOR)
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on
SSHB 23.
ACTION NARRATIVE
1:05:11 PM
CO-CHAIR ADAM WOOL called the House Transportation Standing
Committee meeting to order at 1:05 p.m. Representatives
Rasmussen, Drummond, Talerico, Story, and Wool were present at
the call to order. Representative Stutes and Claman arrived as
the meeting was in progress.
HB 23-SNOWMOBILE REGISTRATION FEES
1:05:40 PM
CO-CHAIR WOOL announced that the only order of business would be
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 23, "An Act relating to
registration fees for snowmobiles and off-highway vehicles."
1:06:10 PM
REPRESENTATIVE MARK NEUMAN, Alaska State Legislature, as prime
sponsor of SSHB 23, introduced his staff to present the bill.
1:06:42 PM
WILLIAM GAMBLE, Staff, Representative Mark Neuman, Alaska State
Legislature, presented SSHB 23 on behalf of Representative
Neuman, prime sponsor. He stated that the intent of SSHB 23 was
to raise registration fees for snowmobiles to increase receipts
for the Division of Motor Vehicles (DMV), which would fund a
Snowmobile Trails Program [within the Division of Parks &
Outdoor Recreation (DPOR), within the Department of Natural
Resources (DNR)], which has seen an annual decrease of funding
over the last several years. He explained that the sponsor
substitute before the committee would remove the three-year
sunset language from the original bill version.
1:08:16 PM
MR. GAMBLE directed attention to the sectional analysis included
in the committee packet, which read as follows [original
punctuation provided]:
Section 1. Deletes "snowmobile" from a paragraph in
statute (AS.28.10.421(d)(7) and leaves off-highway
vehicles at the current $10 registration fee.
Section 2. Adds "snowmobile" to AS.28.10.421(d)(26) in
statute and would set the biennial (two year)
snowmobile registration fee at $20.
Section 3. Amends statute (AS.28.39.020)(e) to set the
six-year snowmobile registration fee at $50.
1:09:16 PM
CO-CHAIR WOOL asked for a history of the trail structure and
related fees.
1:09:42 PM
REPRESENTATIVE NEUMAN noted legislation had been introduced in
1998 to help promote a [snowmobile] program and trail safety
throughout Alaska. He indicated that under SSHB 23 there would
be three options for fees: a two-year fee of $10; a four-year
fee of $20; and a six-year fee of $40. The six-year fee offers
a savings and benefits the workload of the DMV. He pointed out
that snowmobiles are used not only recreationally but also for
search and rescue. In response to a follow-up question from Co-
Chair Wool, he confirmed that registering and paying the fee are
voluntary.
1:12:01 PM
REPRESENTATIVE DRUMMOND asked for clarification regarding the
revenue projections of the fiscal note.
REPRESENTATIVE NEUMAN stated that it is a zero fiscal note.
Under the proposed legislation, more money would go to the
program. He reiterated that there would be an incentive to
paying six-years at a time.
1:14:38 PM
MR. GAMBLE, in response to Representative Drummond, explained
that he and the bill sponsor did not have the same fiscal note
as the one to which Representative Drummond was referring.
REPRESENTATIVE DRUMMOND specified that the fiscal note she was
looking at was from the Department of Administration, with
Office of Management & Budget (OMB) component number 2348. She
stated her assumption that the fees reflected on the second page
are those that would be going to the department.
REPRESENTATIVE NEUMAN stated that the registration fees are
collected from the DMV. All related costs are covered by the
program [fees], including the costs associated with the
Department of Natural Resources (DNR). He offered his
understanding that $34,000 of "half a position" is paid from the
fees to ensure the cost to the state is covered.
REPRESENTATIVE DRUMMOND said she did not understand "how you get
to this revenue picture" when less is made on more years paid at
a time.
REPRESENTATIVE NEUMAN surmised it had something to do with those
already registered not registering the next year. In response
to Representative Drummond, he concurred that this issue could
be addressed with the Department of Administration.
1:17:46 PM
REPRESENTATIVE CLAMAN offered his understanding that owners of
four-wheelers must register.
1:17:56 PM
REPRESENTATIVE NEUMAN stated his belief that [registration of
four-wheelers] was fully voluntary, and he said that would not
be adjusted under SSHB 23.
REPRESENTATIVE CLAMAN asked why there is not a mandatory
requirement for registration of snowmobiles and four-wheelers.
REPRESENTATIVE NEUMAN stated that he does understand the desire
to register vehicles to aid in recovery of stolen property. He
related that he registers his own snowmobiles but not his four-
wheelers. He said registration is required in order to use a
vehicle in any state park. He suggested Representative Claman
may wish to ask "the department" to verify that.
1:19:12 PM
REPRESENTATIVE RASMUSSEN, regarding the question asked by
Representative Drummond, offered her understanding that "the
numbers on the fiscal note" relate to the numbers of
registrations of snowmobiles, separated by the multi-year
optional for registration. She observed that there are fewer
vehicles registered for the six-year option.
REPRESENTATIVE NEUMAN agreed with Representative Rasmussen. He
indicated that fiscal note [2348] shows an estimated [17,668]
snowmobiles would be registered for [two years]; 5,665 would be
registered for [four years]; and [4998] would be registered for
[six years].
1:20:43 PM
CO-CHAIR WOOL indicated that the amount of [$133,325] shown on
the fiscal note is the additional revenue per year. He asked
for confirmation that the numbers on the fiscal note reflect the
number of snowmobiles registered - not the total number existing
in Alaska.
MR. GAMBLE confirmed that is correct.
1:21:14 PM
REPRESENTATIVE STORY stated that registration would be necessary
in order to insure a vehicle. She asked to what the money
collected from registrations would be applied.
1:21:50 PM
REPRESENTATIVE NEUMAN answered trail grooming. He said
historically snowmobile users have been taxing themselves for
this benefit. He surmised there were many people ready to
testify to the value of this expense.
1:23:01 PM
REPRESENTATIVE RASMUSSEN asked if there was a provision for
people who have purchased registrations but sell their
snowmobiles before the end of the registration term.
REPRESENTATIVE NEUMAN offered his understanding that the
registration "follows" the snowmobile, because a sticker is put
on it. The new owner would have to go to the [DMV] to put the
vehicle into his/her name.
1:23:44 PM
CO-CHAIR WOOL opened invited testimony on SSHB 23.
1:24:00 PM
VICTORIA GROSS testified that snowmobile users realize that the
fee they pay grooms trails, and they are willing to up the fee
to cover increased costs. She said the grooming creates safe
trails that may otherwise be unsafe. Groomed trails allow small
businesses along the trail corridor to remain open during
winter. She said tourism on snowmobiles is growing, and having
reliable trails is helpful to that end. Ms. Gross related that
she is a search and rescue dog handler, and groomed trails aid
in getting to avalanche sites more quickly.
1:25:57 PM
STEVE CLEARY, Executive Director, Alaska Trails, said Alaska
Trails promotes sustainable trails across the state. He said
the program being affected under SSHB 23 is unique and impacts
all users. He said the fees have not been raised in a while.
He noted areas of the state with trails and said the program
promotes safety, signage, grooming, and winter recreational
activity. He emphasized that when people get out to use the
trails, they may stop for a meal or lodging or to partake in
"other economic activity" that is "a real shot in the arm in the
wintertime."
1:28:13 PM
MICHELE STEVENS, President, Petersville Community Non-Profit,
testified that Petersville and other communities she represents
are in favor of the fee increase. She noted that the fee has
not been increased since its inception in 1998, while over the
past twenty years the trails have increased from 200 miles to
well over 1,000 miles, the cost of fuel and equipment has
increased, and more communities are applying for the grant. She
continued:
At the time the Snow Track Program was into play, ...
[snowmobile riders] were proliferating for recreation,
transportation, and subsistence use. There were very
few marked or maintained trails. The consequences
were: high accident rates; lost ... [snowmobiles],
which is a cost of the State of Alaska; winter
conflicts among trail users; and conflicts of private
property owners.
MS. STEVENS said the program has been successful; the
communities that have received program funding have achieved all
the intended goals of the program. Safety programs, maps,
signs, and information about snowmobiles are readily available.
She said people are getting to businesses and remote cabins
safely, and they are buying and hauling supplies. She said more
land is being purchased and cabins built as the trail are being
groomed. She said snowmobile riders spend thousands of dollars
in an economy that would otherwise be slow. She said winter
tourism is on the rise because of the safe, groomed trails, and
that in turn adds fuel to the economy. Ms. Stevens related that
a study done by Earth Economics in 2013 found that for every
dollar spent in open public space in the Matanuska-Susitna (Mat-
Su) Borough, there is a $5.31 return on the investment. She
said groomed trails have helped keep the state's search and
rescue costs to a minimum, because with signs and groomed
trails, riders are less likely to get lost. She said the trail
system has been critical for first responders to access the
backcountry to perform rescues. She said she has witnessed this
herself.
MS. STEVENS related that [groomed trails] benefit the following
user groups: dog teams, snow mobile riders, hikers, fat tire
bikers, and skiers. She said she represents 16 clubs, 20
businesses, 39 lodges, 15 snowmobile dealers, 10 dog mushing
races - including the Iditarod, 24 snowmobile events, and more
than 40,000 registered snowmobile owners. She said Petersville
Nonprofit Corporation maintains 150 square miles of trails. The
Snow Track Program benefits all Alaskans. She summarized that
the program saves lives, promotes safety, stimulates the
economy, and creates jobs. She asked the committee to support
SSHB 23.
1:32:19 PM
CO-CHAIR WOOL opened public testimony on SSHB 23.
1:32:36 PM
ZACK RUSSELL testified in support of SSHB 23. He said one of
the businesses he runs is trail grooming, where, on the Cantwell
side of Denali National Park and Preserve, he maintains 123
miles of trail. Before the trail was groomed, the trail was
rough and difficult to use, and business owners along the trail
were suffering. He said the fee needs to increase. He said
when he applied for the program, that put "a hit on everybody
else."
1:34:22 PM
STEVE CHARLES, Willow Trail Committee, emphasized the importance
of winter trails to the Willow Trail Committee. He said it
could be argued that in the winter, it is not the Parks Highway,
but rather a 12-foot wide groomed trail that is the main street
of the town. He said volunteers offer a minimum of 15 hours per
week to groom 72 miles of trail, using a Snow Cat and four "snow
machines." Private donations go toward reflective trail markers
every 40 yards and instructional and safety signs. He said
local businesses rely on the revenue from events and visitors in
the winter. He talked about reduced state funding and the
minimal coverage from private funding. He indicated that
[without sufficient maintenance], trails can become bumpy,
accidents can happen, and people on the trails can get lost.
Restoring the funding, as would happen under SSHB 23, would
result in successful trail maintenance statewide. He said a fee
increase of $5-$10 annually for registering a snowmobile is like
buying a couple gallons of gasoline, which he opined is a small
price to pay for safe trails. He encouraged the committee to
support SSHB 23.
1:37:17 PM
FREDDIE POLLARD told the committee that he has a snowmobile
lodge up in Caribou Hills, and he belongs to Caribou Hills Cabin
Hoppers - a snowmobile club. He said previous testifiers
"pretty much covered the whole thing," and he opined that the
availability of funds should continue. He said a lot of people
use snowmobiles rather than cars to get down to the highway
system. He stated appreciation for the committee's
consideration of SSHB 23.
1:39:18 PM
GARY ANDERSON said he lives in the Caribous Hills area of
Ninilchik and knows "everything that everybody has just said is
true." He talked about the money dwindling, because more is
being done for less. Therefore, he stated his wholehearted
support of SSHB 23. In terms of the voluntary aspect of the
fee, he opined that the registration of motorized vehicle should
be mandatory. He talked about safety issues and importance of
quick and safe rescue of individuals. He indicated that those
applying for the grant money are grateful for receiving even
less than they may ask for, but he emphasized that it still less
[than what may be needed]. He expressed appreciation for the
committee's time and effort on the issue.
1:41:21 PM
KEN COLEMAN said he is a member of the Caribou Hills Cabin
Hoppers Club and coordinates the grooming of the vast area of
Caribou Hills. He said there are about 400 people in the club,
which operates two large groomers to maintain a little over 170
miles of trails weekly through voluntary effort. There has been
a drop in grant money over the years to the point where the
efforts are just 50 percent funded. He echoed previous
testimony regarding the types of users on the trails including
runners, skiers, fat tire bicycle riders, snowmobile riders, and
dog mushers. He asked the committee to pass SSHB 23. He
mentioned there are first responders that live in the hills and
the benefit of safely using the trails for rescue operations.
1:45:03 PM
SUSIE SEIBERT said Petersville is known for its snowmobiles and
groomed trails, which provide safety and security and the
confidence in parents to bring their children along to ride.
She emphasized that groomed trails cut down on search and rescue
efforts. She stated her support for the increase in
registration fees and urged the committee to support SSHB 23.
The increase in fees would help pay for grooming and ensure that
"everyone gets to their destination safely." She opined that
the Snowmobile Trails Advisory Council (SnowTRAC), [which is
responsible for reviewing and recommending funding for the
Snowmobile Trails Program], goes hand in hand with raised fees,
and she asked the committee to reinstate the program along with
the raised fees.
1:47:20 PM
DAN MAYFIELD, Matsu Borough Assembly, said he is a member of the
Mat-Su Borough Assembly and president of Big Lake Trails, Inc.
[Due to technical difficulties, Mr. Mayfield's testimony was cut
off.]
1:48:49 PM
CRISTIN ROEHL-EASTHAM, President, Snomads Snowmachine Club
("Snomads"), indicated that Snomads works with "the Cabin
Hoppers" on a section of the trail system. She talked about
groomed trails and a marking system, and said the number of
search and rescues have decreased because of them. She
indicated that [Snomads] has no problem with the increase in
fees for registration, and a lot of its members support it;
however, she echoed the previous testifier's note that the
increase in fees should go hand in hand with the reinstatement
of the [Snowmobile Trails] Program.
1:51:09 PM
CO-CHAIR WOOL closed public testimony on SSHB 23.
1:51:35 PM
REPRESENTATIVE NEUMAN, in response to an earlier question from
Representative Drummond, offered his understanding that the
terms "snow machine" and "snow-go" and "snowmobile" are
interchangeable in Alaska, although [technically] a snow machine
is something that makes snow. He then talked about a map
program made by the Division of Land, Mining & Water, which
shows trails, and he said a person could go from Denali National
Park and Preserve to Big Lake on the groomed trails. He talked
about the critical piece of the issue being search and rescue.
He said numbers could be put on the maps to correlate with
businesses along the trails. He mentioned plastic coated maps
and making maps available for all users.
1:54:22 PM
REPRESENTATIVE STORY asked for information about the [Snowmobile
Trails] Program.
1:54:38 PM
RICKY GEASE, Director, Division of Parks and Outdoor Recreation
(DPOR), Department of Natural Resources (DNR), stated there are
two components [of the program]: registration fee being
considered under SSHB 23, and authorization of the [Snowmobile
Trails] Program, which goes through DMV and is remitted to DPOR,
which has [an advisory council, SnowTRAC] that evaluates
proposals it receives. The [advisory council] gathers the grant
requests and figures out the percentage based on the total funds
coming from the DMV. Currently there are over $400,000 of
potential projects that could be done, and the [advisory
council] has been giving out just under $200,000 over the last
three to four years.
REPRESENTATIVE STORY asked what the cost of reinstating the
program would be.
MR. GEASE answered that the program was not funded under
governor's proposed budget; therefore, it would take legislative
action to reintroduce the program. In response to follow-up
questions, he explained that the fee would be collected; the
issue is authorizing the program as a receipt authority from the
DMV snowmobile registration. He said, "The registration is
going to be mandatory no matter what. You're still going to
have to pay the fee. Compliance with that registration fee - if
there's not a SnowTRAC's program - may likely go down." He said
there is a cost taken from the fees to administrate the program,
"but if that program doesn't exist, then we're not administering
it."
1:56:58 PM
CO-CHAIR STUTES said she understands that the program is not
included in the governor's proposed budget, but asked if it
would continue or sunset.
1:57:16 PM
MR. GEASE offered his understanding that there is no sunset;
therefore, the program would continue.
CO-CHAIR STUTES concluded, "So, there is a potential that ...
that program could continue then, at this point."
MR. GEASE replied that he believes that is accurate. He added,
"If it's put back into the department."
CO-CHAIR STUTES asked, "But it's in the governor's proposed
budget, correct?"
MR. GEASE answered no. He said some testifiers were talking
about putting the program back into the budget through
legislative action.
1:58:07 PM
REPRESENTATIVE DRUMMOND asked whether the program had been put
back into the budget by a budget subcommittee responsible for
doing so.
1:58:20 PM
MR. GEASE stated that he did not know.
CO-CHAIR WOOL offered his understanding that the program exists
but is not in the governor's proposed budget, yet that does not
mean it could not be in an upcoming budget. He said he has been
receiving letters of support for the program. He offered his
understanding that it is not a budgetary issue, because "the
money's already been collected." He said it sounds like the
administrative aspect is covered by the DMV. He said it sounds
like the program is a good one and people support it, yet the
paying of fees may decline if people learn that those fees are
not going towards the trail program. He questioned whether,
historically, the program has had to be reintroduced in the
budget annually.
1:59:44 PM
REPRESENTATIVE NEUMAN agreed with Co-Chair Wool's assessment.
He said he has had conversations with legislators serving on
Finance committees, who have suggested their intent is to
include a funding mechanism in the operating budget.
2:00:20 PM
CO-CHAIR WOOL inquired about mandatory registration.
2:00:33 PM
MR. GEASE stated that under statute, registration is mandatory.
CO-CHAIR WOOL said if he bought a [snowmobile] from
Representative Neuman, he would need to register it with the
DMV. He surmised that "enforcement of that is probably scant at
the moment," but a person who cares about the trails might be
more inclined to register the snow mobile.
MR. GEASE responded, "Correct." He cited AS 28.39.010(a), which
read as follows:
Sec. 28.39.010. Snowmobile registration.
(a) Except as provided in this subsection, a
person may not operate a snowmobile within the state
unless the snowmobile has been registered and numbered
as required by this chapter. Registration under this
subsection is not required for a snowmobile owned by
the United States.
CO-CHAIR WOOL asked, "And what about four-wheelers. I'm getting
mixed information on that." He said he had information that
listed snowmobile or off-highway vehicle, and he inquired
whether a four-wheeler would be consider an off-highway vehicle.
2:01:35 PM
REPRESENTATIVE NEUMAN apologized for having misspoken. He
clarified that there is mandatory registration at point of sale.
That way the DMV has not only registrations but vehicle
identification numbers (VINs) in case they are lost. A person
who buys a used snowmobile can just show a letter to the DMV
showing proof of the sale.
2:02:33 PM
REPRESENTATIVE CLAMAN asked if the DMV then would issue a title
for the snowmobile.
2:02:51 PM
REPRESENTATIVE NEUMAN answered that he does not have a title for
any of his snowmobiles.
2:03:10 PM
CO-CHAIR WOOL talked about the multi-use of trails mentioned by
testifiers, such as dog mushing, cross-country skiing, fat tire
bicycle riding, and snowmobile riding. He asked if a person
applies for grant money in a proposal specifying how many miles
he/she will maintain and other details.
MR. GEASE answered that is correct.
CO-CHAIR WOOL asked if there are other trail programs similar to
the SnowTRAC program.
2:04:01 PM
MR. GEASE listed the Recreational Trail Program and the Land
Water Conservation Fund. He said there are other funds that
pertain to motorized and nonmotorized trails used mainly in the
summer. He said the SnowTRAC program is the program specially
targeting winter use, and snow grooming has become the primary
focus, because in addition to being an access issue, it is also
a safety issue, as many testifiers have stated.
2:04:39 PM
REPRESENTATIVE NEUMAN offered his understanding that all trail
programs go through the [Outdoor Recreational Trails Advisory
Board] (ORTAB), and groomers apply to the board.
2:05:22 PM
CO-CHAIR WOOL asked, "But as far as the registration fee for
snowmobiles, that's the only source of funding for the ...
[Snowmobile Trails] Program?"
MR. GEASE answered that is correct.
2:05:55 PM
CO-CHAIR WOOL requested further clarification on the fiscal note
at a future meeting, particularly to flush out the numbers
pertaining to the various options in length of registration
periods.
2:06:34 PM
REPRESENTATIVE NEUMAN indicated he was amenable to bringing
forward further information for discussion and consideration.
CO-CHAIR WOOL said the main takeaway is that it sounds like
people are supportive.
2:07:13 PM
REPRESENTATIVE TALERICO stated that he has previously been on
groomed trails, and he thinks there is "an army of enthusiasts
that are volunteers out there that actually go above and beyond
what they actually get from the program." He said he has always
been impressed by the efforts put forth by the people who use
the trails.
[SSHB 23 was held over.]
2:08:17 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:08
p.m.