SB 41-REPEAL STUDDED TIRE FEE    2:15:13 PM  CHAIR ELLIS announced SB 41 to be up for consideration. SENATOR WIELECHOWSKI, sponsor of SB 41, explained that the tire tax generated about $436,000 in 2005 and $446,000 in 2006. A final report commissioned by the legislature came out after the bill had been adopted called "The Socio-economic Effects of Studded Tire Use in Alaska" and found an overall positive impact on the Alaskan economy from the use of studded tires. Many studies from all over the world find the use of studded tires has an overall positive impact because they prevent accidents. They have better braking, traction, and acceleration. He said a professor from the University of Alaska testified against the previous bill when it was passed. He also said a Department of Transportation and Public Facilities (DOTPF) report in 1996 found that prohibiting studs would result in a significant increase in accidents. 2:18:30 PM SENATOR WIELECHOWSKI said discouraging the use of studded tires has another impact he found in talking to shop owners who said it was difficult for them to account for all their tires under this tax program. Some were fined because they couldn't figure out how to pay it. CHAIR ELLIS asked if he worked with the administration on its idea of deleting the program entirely. SENATOR WIELECHOWSKI responded that he had no objection to deleting the program entirely. DANA OWEN, staff to Senator Ellis, explained that the CS is identical to the governor's bill and removes all tire fees. JOHN BITNEY, Legislative Liaison, Office of the Governor, said the governor wants the tax repealed. 2:22:35 PM SENATOR STEVENS moved to adopt CSSB 41(L&C), version 25- LS0355\C. There being no objection, the motion carried. CHAIR ELLIS noted that the Administration has accounted for the loss of revenue in its FY'08 budget. 2:23:09 PM SENATOR STEVENS moved to pass CSSB 41(L&C), version C, from committee with individual recommendations and attached fiscal note. SENATOR BUNDE objected citing there is no free lunch and the user pay concept as reasons. He also pointed out that studs are effective only a small part of the year, but the rest of the time they cause wear and tear. 2:27:08 PM SENATOR HOFFMAN said that Senator Bunde has one false assumption and that is that all roads in Alaska are paved. He named several villages that have dirt roads - New Stuyahok and Ekwok. The tax is applied to many individuals in communities that are not causing any wear and tear. SENATOR BUNDE said that those roads are all maintained by the state and they should help pay for the costs they generate. This bill removes the whole tire tax program, not just the studded tax. 2:29:02 PM A roll call vote was taken. Senators Hoffman, Stevens, Davis, and Ellis voted yea; and Senator Bunde voted nay. So, CSSB 41(L&C) moved from committee.