Date Requested: January 29, 2015
Time Requested: 12:03 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2576 Introduced SB356
CBD Subject: Motor Vehicles


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.


    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 Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 351,515 287,265 287,265
Personal Services 180,515 180,515 180,515
Current Expenses 163,500 99,250 99,250
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 7,500 7,500 7,500
2. Estimated Total Revenues 337,110 199,610 199,610


Explanation of above estimates (including long-range effect):


    REVENUES FIRST YEAR SECOND YEAR
    
     Sticker Fee $ 5.00 $5.00
     Stickers sold during 27,500
     grandfathering period
     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
     Sticker
     (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
    
    



Memorandum


    



    Person submitting Fiscal Note: Jerry Conrad
    Email Address: jerry.l.conrad@wv.gov