Date Requested:January 20, 2011
Time Requested:04:25 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2011R1024 Introduced SB7
CBD Subject: MOTORCYCLE SAFETY EDUCATION FEE/HELMET EXCEPTION
FUND(S)
Road Fund; Motorcycle Safety Fund
Sources of Revenue
Special Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The purpose of this bill is to provide a motorcycle helmet exemption to motorcyclists who meet certain safety and health insurance requirements. The bill sets age, experience, safety training and health insurance requirements for motorcycle operators to qualify for a helmet exemption.
    
     To qualify for the helmet exemption the bill requires a rider to be at least 21 years of age and have held a motorcycle operator’s license or endorsement for 2 years or completed a motorcycle safety training class. The motorcycle operator must also have health insurance with $10,000 in medical benefits.
    
     Grandfathered in the bill are those motorcycle operators who are at least 21 years of age, hold a motorcycle endorsement on or before June 30, 2011 and meet the health insurance requirement.
    
     The Division of Motor Vehicles’ Annual Report for FY 2010 shows 51,004 registered motorcycles in West Virginia. The Division’s Motorcycle Safety Program estimates that about 25,000 of those individuals who own motorcycles will opt to be grandfathered in to the helmet exemption.
    
     The Motorcycle Safety Coordinator estimates that an additional 750 individuals will enroll each year in the motorcycle safety classes in order to receive the exemption. To cover the cost of the additional enrollees, this bill increases the motorcycle safety fee attached to the Class G motorcycle registration fee from $6.50 to $10. The revenue collected is deposited to the Motorcycle Safety Special Revenue Account.
    
     To offset the cost of issuing the helmet exemption sticker this bill authorizes a $5 fee to be collected for each sticker. The sticker will expire 2 years after being issued. Revenue collected from the sticker will be deposited to the Road Fund.
    
     The Division estimates the cost to issue the sticker to be approximately $221,470 the first year and an estimated $159,970 each year thereafter. Revenue generated from the sale of the sticker would be $128,750 the first year and $3,750 the second year.
    
     Annual increase in the collection of Motorcycle Safety fees would be $178,514. For each student attending the Motorcycle Safety Classes the State pays $95 per student. 750 additional students per year would cost $71,250.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 292,720 292,720 231,220
Personal Services 149,470 149,470 149,470
Current Expenses 138,250 138,250 76,750
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 5,000 5,000 5,000
2. Estimated Total Revenues 307,264 307,264 182,264
3. Explanation of above estimates (including long-range effect):
    REVENUES FIRST YEAR SECOND YEAR
    
    Sticker Fee $ 5.00 $ 5.00
    Stickers sold during
     grandfathering period 25,000
    Estimated sales during 750 750
     the year
    REVENUE FROM STICKERS $128,750 $ 3,750
    
    
    COST TO ISSUE HELMET
     EXEMPTION STICKER FIRST YEAR SECOND YEAR
    
    Personal Services
     (5 X $20,760) $103,800 $103,800
    Benefits (5 x 9,134) $ 45,670 $ 45,670
    Sticker 50,000 x .55;
     10,000 x .55 $ 27,500 $ 5,500
    Printed Material $ 5,000 $ 5,000
    Administrative Cost $ 39,500 $ 0
    TOTAL COST $221,470 $159,970
    
    
    REVENUE FROM INCREASE FIRST YEAR SECOND YEAR
     IN MOTORCYCLE SAFETY FEE
    
    Icrease in the fee $ 3.50 $ 3.50
    Number of Registrations 51,004 51,004
    INCREASED REVENUE $178,514 $178,514
    
    COST FOR INCREASED ENROLLMENT FIRST YEAR SECOND YEAR
     IN MOTORCYCLE SAFETY CLASS
    
    Estimated Increase in Enrollees 750 750
    State’s cost per enrollee $ 95.00 $ 95.00
    TOTAL COST $ 71,250 $ 71,250
    
    


Memorandum
Person submitting Fiscal Note:
Jerry L. Conrad, Director
Email Address:
Jerry.L.Conrad@wv.gov