|Date Requested: January 29, 2015
Time Requested: 12:03 PM
||Highways, Division of |
Road Fund, Motorcycle Safety Fund
Sources of Revenue:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
AMENDED FISCAL NOTE
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 to have held a motorcycle operator’s license or endorsement for two 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, 2016, and meet the health insurance requirement.
The Division of Motor Vehicles’ Annual Report for fiscal year 2014 shows 55,960 registered motorcycles in West Virginia. The Division’s Motorcycle Safety Program estimates that about 27,500 of those individuals who own motorcycles will opt to be grandfathered into 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 $10.00. 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 two 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 $351,515 the first year, and an estimated $287,265 each year thereafter. Revenue generated from the sale of the sticker would be $337,110 the first year and $199,610 each year thereafter.
Annual increase in the collection of Motorcycle Safety fees would be $195,860. For each student attending the Motorcycle Safety Classes, the State pays $125 per student. 750 additional students per year would cost $93,750.
Fiscal Note Detail
|Effect of Proposal
|1. Estmated Total Cost
|Repairs and Alterations
|2. Estimated Total Revenues
Explanation of above estimates (including long-range effect):
REVENUES FIRST YEAR SECOND YEAR
Sticker Fee $ 5.00 $5.00
Stickers sold during 27,500
Estimated sales during year 750 750
REVENUE FROM STICKERS $141,250 $3,750
COST TO ISSUE HELMET
EXEMPTION STICKER FIRST YEAR SECOND YEAR
Personal Services (5 x $22,015) $110,075 $110,075
Benefits (5 x $14,088) $ 70,440 $ 70,440
(50,000 x $.55; 10,000 x $.55) $ 30,250 $ 5,500
Printed Material $ 7,500 $ 7,500
Administrative Cost (IT) $ 39,500 $ 0
TOTAL COST $257,765 $193,515
REVENUE FROM INCREASE
IN MOTORCYCLE SAFETY FEE FIRST YEAR SECOND YEAR
Increase in fee $ 3.50 $ 3.50
Number of Registrations 55,960 55,960
INCREASED REVENUE $195,860 $195,860
COST FOR INCREASED ENROLLMENT
IN MOTORCYCLE SAFETY CLASS FIRST YEAR SECOND YEAR
Estimated Increase in Enrollees 750 750
State’s cost per enrollee $ 125 $ 125
TOTAL COST $93,750 $93,750
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