OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

http: //www. cga. ct. gov/ofa

sHB-5806

AN ACT CONCERNING ALL-TERRAIN VEHICLES.

OFA Fiscal Note

State Impact:

Note: GF=General Fund; TF=Transportation Fund

Municipal Impact:

Explanation

There are currently 3,207 ATVs and 2,005 snowmobiles registered with the Department of Motor Vehicles (DMV) which provide $104,240 biennially in revenue to the Transportation Fund.

The bill increases the biennial registration fee for ATVs from $20 to $75. The bill transfers all revenue from such registration fees to the All Terrain Vehicle Account (ATV) of the Conservation Fund of the Department of Environmental Protection (DEP). Therefore there is a biennial revenue loss of $64,140 to the Transportation Fund and biennial revenue gain of $240,525 to the All Terrain Vehicle Account (ATV).

Section 2 of the bill also exempts all-terrain vehicles used for farm or forest work from registration requirements which results in a minimal revenue loss, less than $10,000, to the Transportation Fund.

The industry estimates that there may be as many as 65,000 ATVs and snowmobiles in Connecticut. Assuming 10% of these as the base, 1,288 additional ATV vehicles could now be registered; there would be a biennial revenue gain of $96,600 to the All Terrain Vehicle Account (ATV) of the Conservation Fund of the Department of Environmental Protection (DEP).

Additional registrations are anticipated due to eliminating current exemptions in the registration law and the potential availability of recreational facilities and trails for ATV use. The funds deposited into the ATV account must be used for costs incurred by both the DEP and DMV in administration and enforcement of ATV laws and regulations, damage from ATVs, ATV safety, education, patrols and training and planning, design, acquisition construction and maintenance of ATV facilities. Other uses of the funds, including grants under the National Recreation Trails program are permitted if additional funds remain in the account.

The cost to DMV to be paid from the ATV account to register ATVs is approximately $7 per transaction. This includes costs for processing and issuance of the safety plates and registration stickers and associated other expenses. Assuming 1,288 new ATV registrations, the increased costs for first time registrations would be $9,016. Costs to renew the licenses would be approximately 70 cents per renewal two years after the initial registration.

The revenue gain due to the establishment of safe all terrain vehicle certificates needed to operate an ATV on State land is indeterminate at this time. The fee for the certificate will be established through regulation. Assuming the fee is similar to the safe boating certificate, $25, and one quarter of the new registrants obtain one, the initial revenue gain will be approximately $8,050 to the Conservation Fund. The certificates would be valid for the life of the person it is issued to.

The bill authorizes $1. 5 million in General Obligation (GO) bonds effective 7/1/06. The interest cost to bond this amount for 20 years, assuming a 5% interest rate, is $0. 8 million.

Section 1 of the bill increases the fine (from $75 to $250) that may be imposed on any person for operating a snowmobile or all-terrain vehicle without valid registration. It requires that $100 of the fine is to be payable to the municipality in which the arrest was made unless the arrest was made by a conservation officer, special conservation officer or patrolman appointed by the Commissioner of Environmental Protection, in which case the $100 would be payable to the Commissioner. About 375 such fines are imposed annually under current law. The gross revenue increase attributable to raising the fine could therefore be as high as $65,625. The actual amount of revenue is likely to be less, however, since more fines would be contested under the bill which could result in the imposition of fewer fines overall or for amounts less than the bill establishes.

The Judicial Department would initially incur a minimal cost (i. e. , less than $50,000) to modify its computer and accounting systems in order to remit payments to municipalities in accordance with the bill. The ongoing processing of these remittances could be accommodated by the Judicial Department within budgeted resources.

Section 3 provides for a fine to be imposed on any person who operates a snowmobile or all-terrain vehicle on any state-owned land not designated for all-terrain vehicle use. This change is expected to generate minimal revenue to the General Fund on an annual basis.

In addition, various municipalities could incur an increase in personal property tax revenue due to the registration of these vehicles with the DMV. The exact impact is unknown at this time.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

The annualized ongoing fiscal impact for the principal and interest payments over 20 years ranges between $. 15 million in FY 08 and $0. 08 million in FY 27 if the bonds are issued 7/1/06.