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.