No. 43415 (Amendment): Rule R651-406. Off-Highway Vehicle Registration Fees

(Amendment)

DAR File No.: 43415
Filed: 11/28/2018 02:39:37 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

During the 2018 General Session, H.B. 143 was passed which provides a shift in funding directed towards the Off-Highway Vehicle (OHV) Restricted Account. H.B. 143 directs the additional funding, from registration fee restructuring, to be allocated for motorized vehicle opportunities with county, state, and federal agencies, and non-profit OHV club/organizations, which is distributed through a fiscal assistance grant process. The state of Utah does not benefit from the change.

Summary of the rule or change:

Annual OHV registration fees are currently set at $18 per off-highway motorcycle, and Type I and Type II OHVs (this fee also includes those that are street legal) OHV owners must also pay an age-based fee in lieu of property tax assessment to their county of residence prior to registering an OHV. The additional funding provided from the passage of H.B. 143 (2018) with the increase to $35 will be utilized, through a fiscal assistance grant process, for items identified within Subsections 41-22-19(1)(a) and (b). In addition, this updated rule would meet the requirements set forth in H.B. 143 (2018).

Statutory or constitutional authorization for this rule:

• Section 41-22-8

Anticipated cost or savings to:

the state budget:

This rule is being updated due to H.B. 143 (2018). H.B. 143 (2018) mandates an increase of $17 for registration fees of OHVs and a maximum of $72 for street legal vehicles, which is actually a decrease from the current amount of $80.50. The Division of Parks and Recreation receives only the amount of $18 from both the OHV registration and the street legal all-terrain registrations currently. The $35 registration fee will go into effect on January 1, 2019. However, the fees collected are then reallocated in the form of fiscal assistance grants, so there is no benefit or cost to state government because the money would be distributed to local governments, small businesses, and non-small businesses which include non-profit organizations through that grant process.

local governments:

Savings to local governments could occur because a local government may apply and be awarded a fiscal assistance grant to maintain OHV trails or OHV trail related infrastructure. The savings are inestimable because it is not known if they would apply or receive a fiscal assistance grant.

small businesses:

Savings to the small businesses could occur if they apply and receive a grant, if they are partnering with a local government agency. The savings are inestimable because it is not known if they would apply or receive a fiscal assistance grant.

persons other than small businesses, businesses, or local governmental entities:

The current registration fee for an OHV is $18. The current registration fee for a street legal all-terrain vehicle is currently $80.50. Due to H.B. 143 (2018), the new registration fee will increase to $35 for OHVs and will go into effect on January 1, 2019, which results in an increase of $17 to the OHV owner. The registration fee for the street legal all-terrain owner could result in a decrease of $8.50. There are approximately 202,000 total registered owners. Of that total, 176,000 are registered as OHVs. The remaining 26,000 are registered as street legal all-terrain vehicles. The total fee increase for OHV owners could be $2,992,000 for fiscal years 2020 and 2021. The total decrease for street legal all-terrain vehicle owners could be $221,000 for fiscal years 2020 and 2021. The total amount for the increase for OHV owners for fiscal year 2019, is $1,496,000. Since the law goes into effect on January 1, 2019, half way through the fiscal year, the amount is decreased by 50%. The same applies to the decrease (savings) for the street legal all-terrain vehicle owners for fiscal year 2019. The amount of $221,000 is decreased by $110,500.

Compliance costs for affected persons:

There could be an increase in compliance costs for affected persons if they choose to register and/or their OHVs and street legal all-terrain vehicles. The numbers are approximate based on 2017 registration numbers from the Department of Motor Vehicles. The current registration fee for an OHV is $18. The current registration fee for a street legal all-terrain vehicle is currently $80.50. Due to H.B. 143 (2018), the new registration fee will increase to $35 for OHVs and will go into effect on January 1, 2019, which results in an increase of $17 to the OHV owner. The registration fee for the street legal all-terrain owner could result in a decrease of $8.50. There are approximately 202,000 total registered owners. Of that total, 176,000 are registered as OHVs. The remaining 26,000 are registered as street legal all-terrain vehicles. The total fee increase for OHV owners could be $2,992,000 for fiscal years 2020 and 2021. The total decrease for street legal all-terrain vehicle owners could be $221,000 for fiscal years 2020 and 2021. The total amount for the increase for OHV owners for fiscal year 2019, is $1,496,000. Since the law goes into effect on January 1, 2019, half way through the fiscal year, the amount is decreased by 50%. The same applies to the decrease (savings) for the street legal all-terrain vehicle owners for fiscal year 2019. The amount of $221,000 is decreased by $110,500.

Comments by the department head on the fiscal impact the rule may have on businesses:

No expected impact on businesses.

Michael R. Styler, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Natural Resources
Parks and RecreationRoom 116
1594 W NORTH TEMPLE
SALT LAKE CITY, UT 84116-3154

Direct questions regarding this rule to:

• Tammy Wright at the above address, by phone at 801-538-7359, by FAX at 801-538-7378, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/16/2019

This rule may become effective on:

01/23/2019

Authorized by:

Jeff Rasmussen, Acting Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$1,496,000

$2,992,000

$2,992,000

Total Fiscal Costs:

$1,496,000

$2,992,000

$2,992,000

Fiscal Benefits

State Government

$0.00

$0.00

$0.00

Local Government

$0.00

$0.00

$0.00

Small Businesses

$0.00

$0.00

$0.00

Non-Small Businesses

$0.00

$0.00

$0.00

Other Persons

$110,500

$221,000

$221,000

Total Fiscal Benefits:

$110,500

$221,000

$221,000

Net Fiscal Benefits:

- $1,385,500

- $2,771,000

- $2,771,000

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

These proposed amendments to Rule R651-406 are not expected to have any fiscal impact on non-small businesses' revenues or expenditures, because there are no services required from them in order to implement the rule.

 

The head of the Department of Natural Resources, Michael Styler, has reviewed and approved this fiscal analysis.

 

 

R651. Natural Resources, Parks and Recreation.

R651-406. Off-Highway Vehicle Registration Fees.

R651-406-1. Annual Registration Fee.

(1) The annual All-terrain Vehicle and off-highway motorcycle registration fee is [$18]$35. The annual snowmobile registration fee is $22. The annual street-legal all-terrain fee is $72.

(2) An annual fee of $2 shall be collected to fund the off-highway vehicle safety and education program in addition to each off-highway vehicle registration.

 

R651-406-2. Fee For Duplicate Registration.

The fee for a duplicate certificate of registration is $3.

 

R651-406-3. Fee For Duplicate Numbered Stickers.

The fee for duplicate numbered stickers is $5.

 

KEY: off-highway vehicles

Date of Enactment or Last Substantive Amendment: [February 21, 2018]2019

Notice of Continuation: January 7, 2016

Authorizing, and Implemented or Interpreted Law: 41-22-8

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