FISCAL NOTE
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
| 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 |
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