HB699: relative to discounts for OHRV and snowmobile registration.

HB 699-FN - AS INTRODUCED

2019 SESSION

19-0187

04/05

HOUSE BILL 699-FN

AN ACT relative to discounts for OHRV and snowmobile registration.

SPONSORS: Rep. Spillane, Rock. 2; Rep. Bershtein, Rock. 2; Rep. Verville, Rock. 2; Rep. Potucek, Rock. 6; Sen. Reagan, Dist 17

COMMITTEE: Fish and Game and Marine Resources

ANALYSIS

This bill removes the discounts for OHRV and snowmobile registrations for members of a nonprofit OHRV or snowmobile club. The bill also provides for the sale of an OHRV or snowmobile decal with proceeds from the sale being forwarded to OHRV or snowmobile clubs responsible for trail maintenance.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0187

04/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to discounts for OHRV and snowmobile registration.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Off Highway Recreational Vehicle; Registration. Amend RSA 215-A:21, X to read as follows:

X. The executive director shall issue to a person applying therefor a 14-month registration to include the months of May and June for a registration of an OHRV under RSA 215-A:23, provided that the prorated registration fee and the appropriation from each fee shall be as follows:

(a) For an individual resident registration-[$79] $49 for each 2-wheeled trail bike registration or [$90] $60 for each other OHRV registration upon presentation of a valid driver's license issued to a New Hampshire resident 18 years of age or older. [An individual resident registering a 2-wheeled trail bike or OHRV who provides proof, at the time of registration, that the individual is a member of an organized New Hampshire nonprofit OHRV club which is a member of the New Hampshire Off Highway Vehicle Association, shall pay $49 for each 2-wheeled trail bike registration or $60 for each other OHRV registration.]

(1) The first [$38.16] $8.16 of each 2-wheeled trail bike registration or [$49.16] $19.16 of each other OHRV registration [registered by an individual who does not, at the time of registration, provide proof of membership in an organized New Hampshire nonprofit OHRV club, or $8.16 of each 2-wheeled trail bike or $19.16 of each other OHRV registration registered by an individual who provides proof of membership in an OHRV club] shall be appropriated to the department of natural and cultural resources for the bureau's grant-in-aid program pursuant to RSA 215-A:23, VI.

(2) From the balance, $17.86 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in RSA 215-A:23, VII, and $22.98 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of fish and game for the purposes listed in RSA 215-A:23, VIII.

(b) For an individual nonresident registration-[$102] $72 for each 2-wheeled trail bike registration or [$112] $82 for each other OHRV registration. [An individual nonresident registering a 2-wheeled trail bike or OHRV who provides proof, at the time of registration, that the individual is a member of an organized New Hampshire nonprofit OHRV club which is a member of the New Hampshire Off Highway Vehicle Association, shall pay $72 for each 2-wheeled trail bike registration or $82 for each other OHRV registration.]

(1) The first [$46] $16 of each 2-wheeled trail bike registration or [$56] $26 of each other OHRV registration [registered by an individual who does not, at the time of registration, provide proof of membership in an organized New Hampshire nonprofit OHRV club, or $16 of each 2-wheeled trail bike or $26 of each other OHRV registration registered by an individual who provides proof of membership in an OHRV club] shall be appropriated to the department of natural and cultural resources for the bureau's grant-in-aid program pursuant to RSA 215-A:23, VI.

(2) From the balance, $19.95 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in RSA 215-A:23, VII, and $36.05 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of fish and game for the purposes listed in RSA 215-A:23, VIII.

2 Off Highway Recreational Vehicles; Registration Fees. Amend RSA 215-A:23, I-III to read as follows:

I. Individual resident registration-[$72] $42 for each 2-wheeled trail bike registration or [$81] $51 for each other OHRV registration upon presentation of a valid driver's license issued to a New Hampshire resident 18 years of age or older. [An individual resident registering a 2-wheeled trail bike or OHRV who provides proof, at the time of registration, that the individual is a member of an organized New Hampshire nonprofit OHRV club which is a member of the New Hampshire Off Highway Vehicle Association, shall pay $42 for each 2-wheeled trail bike registration or $51 for each other OHRV registration.]

(a) The first [$37] $7 of each 2-wheeled trail bike registration or [$46] $16 of each other OHRV registration [registered by an individual who does not, at the time of registration, provide proof of membership in an organized New Hampshire nonprofit OHRV club, or $7 of each 2-wheeled trail bike or $16 of each other OHRV registration registered by an individual who provides proof of membership in an OHRV club] shall be appropriated to the department of natural and cultural resources for the bureau's grant-in-aid program pursuant to paragraph VI.

(b) From the balance, $15.30 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VII, and $19.70 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of fish and game for the purposes listed in paragraph VIII.

II. [Repealed.]

II-a. Resident antique all terrain vehicle permanent registration-$46.50 for each registration upon presentation of a valid New Hampshire driver's license issued to a person 18 years of age or older. From each fee collected pursuant to this paragraph:

(a) The first $26.50 shall be appropriated to the department of natural and cultural resources for administration of the bureau's grant-in-aid program pursuant to paragraph VI.

(b) From the balance, $10 shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VII, and $10 shall be appropriated to the department of fish and game for the purposes listed in paragraph VIII.

II-b. Resident antique trail bike permanent registration-$46.50 for each registration upon presentation of a valid New Hampshire driver's license issued to a person 18 years of age or older. From each fee collected pursuant to this paragraph:

(a) The first $26.50 shall be appropriated to the department of natural and cultural resources for administration of the bureau's grant-in-aid program pursuant to paragraph VI.

(b) From the balance, $10 shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VII, and $10 shall be appropriated to the department of fish and game for the purposes listed in paragraph VIII.

III. Individual nonresident registration-[$91] $61 for each 2-wheeled trail bike registration or [$100] $70 for each other OHRV registration. [An individual nonresident registering a 2-wheeled trail bike or OHRV who provides proof, at the time of registration, that the individual is a member of an organized New Hampshire nonprofit OHRV club which is a member of the New Hampshire Off Highway Vehicle Association, shall pay $61 for each 2-wheeled trail bike registration or $70 for each other OHRV registration].

(a) The first [$43] $13 of each 2-wheeled trail bike registration or [$52] $22 of each other OHRV registration [registered by an individual who does not, at the time of registration, provide proof of membership in an organized New Hampshire nonprofit OHRV club, or $13 of each 2-wheeled trail bike or $22 of each other OHRV registration registered by an individual who provides proof of membership in an OHRV club] shall be appropriated to the department of natural and cultural resources for the bureau's grant-in-aid program pursuant to paragraph VI.

(b) From the balance, $17.10 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VII, and $30.90 from each 2-wheeled trail bike or other OHRV registration shall be appropriated to the department of fish and game for the purposes listed in paragraph VIII.

III-a. The executive director shall create and offer for sale an OHRV club decal at a cost of $35, which shall be distinct from a registration decal, and which may be purchased by any individual resident holding a valid OHRV registration. The decal shall be displayed on the OHRV in a manner that does not obstruct the registration plate or decal. The executive director shall collect and forward proceeds from the sale of OHRV decals to the organized New Hampshire nonprofit OHRV club responsible for OHRV trail maintenance in the city or town in which the OHRV owner resides.

3 Snowmobiles; Registration. Amend RSA 215-C:39, I-III to read as follows:

I. Individual resident registration-[$90] $60 for each snowmobile registration upon presentation of a valid driver's license issued to a New Hampshire resident 18 years of age or older. [An individual resident registering a snowmobile who provides proof, at the time of registration, that the individual is a member of an organized New Hampshire nonprofit snowmobile club which is a member of the New Hampshire Snowmobile Association shall pay $60 for each snowmobile.]

(a) The first [$63.30] $33.30 for each snowmobile registration [registered by an individual who does not, at the time of registration, provide proof of membership in an organized New Hampshire nonprofit snowmobile club, or $33.30 of each snowmobile registration registered by an individual who provides proof of membership in a snowmobile club as provided for in paragraph I of this section,] shall be appropriated to the department of natural and cultural resources for the bureau's grant-in-aid program pursuant to paragraph VII.

(b) From the balance, $13.70 from each snowmobile registration shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VIII, and $13 from each snowmobile registration shall be appropriated to the department of fish and game for the purposes listed in paragraph IX.

II. Resident antique snowmobile permanent registration-$46.50 for each registration upon presentation of a valid New Hampshire driver's license issued to a person 18 years of age or older. From each fee collected pursuant to this paragraph:

(a) The first $26.50 shall be appropriated to the department of natural and cultural resources for administration of the bureau's grant-in-aid program pursuant to paragraph VII.

(b) From the balance, $10 shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VIII, and $10 shall be appropriated to the department of fish and game for the purposes listed in paragraph IX.

III. Individual nonresident registration-[$110] $80 for each snowmobile registration. [An individual nonresident registering a snowmobile who provides proof, at the time of registration, that the individual is a member of an organized New Hampshire nonprofit snowmobile club which is a member of the New Hampshire Snowmobile Association, shall pay $80 for each snowmobile.]

(a) The first [$78.20] $48.20 of each snowmobile registration [registered by an individual who does not, at the time of registration, provide proof of membership in an organized New Hampshire nonprofit snowmobile club, or $48.20 of each snowmobile registration registered by an individual who provides proof, at the time of registration, of membership as provided for in paragraph III of this section] shall be appropriated to the department of natural and cultural resources for the bureau's grant-in-aid program pursuant to paragraph VII.

(b) From the balance, $16 from each snowmobile registration shall be appropriated to the department of natural and cultural resources for administration of the bureau for the purposes listed in paragraph VIII, and $15.80 from each snowmobile registration shall be appropriated to the department of fish and game for the purposes listed in paragraph IX.

4 New Paragraph; Snowmobiles; Registration. Amend RSA 215-C:39 by inserting after paragraph III the following new paragraph:

III-a. The executive director shall create and offer for sale a snowmobile club decal at a cost of $35, which shall be distinct from a registration decal, and which may be purchased by any individual resident holding a valid snowmobile registration. The decal shall be displayed on the snowmobile in manner that does not obstruct the registration plate or decal. The executive director shall collect and forward proceeds from the sale of snowmobile decals to the organized New Hampshire nonprofit snowmobile club responsible for snowmobile trail maintenance in the city or town in which the snowmobile owner resides.

5 Effective Date. This act shall take effect 60 days after its passage.

LBAO

19-0187

1/17/19

HB 699-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to discounts for OHRV and snowmobile registration.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

[ ] General [ ] Education [ ] Highway [ X ] Other - Fish and Game Fund and Grant-In-Aid Program (RSA 215-A:23, VI)

METHODOLOGY:

This bill eliminates the $30 discount offered for OHRV and snowmobile registrations for members of organized New Hampshire nonprofit OHRV or snowmobile clubs and applies the discounts to all OHRV and snowmobile registrations. It adds a requirement for the Executive Director of the Fish and Game Department to develop and sell club decals at a cost of $35 for OHRVs and snowmobiles. Such decals may be purchased by any individual resident holding a valid OHRV or snowmobile license. Proceeds from the sale of such decals shall be remitted by the Fish and Game Department to the organized New Hampshire nonprofit OHRV or snowmobile club responsible for trail maintenance in the city or town in which the OHRV or snowmobile owner resides.

Estimating the net impact to state revenue from this bill would be dependent on how many Snowmobile and OHRV operators would elect to purchase the $35 decal. In determining the impact of this bill on expenditures, the Fish and Game Department assumed the nearly 33,900 current resident club members with registered snowmobiles and OHRVs would potentially utilize the decal system. However, it is estimated that the voluntary decal system would produce markedly lower revenue than the current donation system, due to the voluntary nature of the program.

While the revenue gained from the decal system cannot be predicted, the Department of Natural and Cultural Resources (DNCR) estimated a $653,400 loss to grant-in-aid program due to the application of the $30 discount to all operators, instead of only to club members. The DNCR’s estimates are based on FY 2018 actual snowmobile registrations from non-club members and FY 2019 assumed registrations for OHRVs under the assumption 50% are non-club members.

Snowmobiles

6,724 registrations at non-club member rate

($30)

($201,720)

Estimated OHRV

15,000 registrations at non-club member rate

($30)

($450,000)

Total Revenue Loss

21,724 registrations at non-club member rate

($30)

($651,720)

The Fish and Game Department states the new decal requirement would necessitate tracking and administrative costs to implement. For the registration year ending June 30, 2018, the Department reported the following:

Total Registrations Combined Snowmobile & OHRV

77,467

Resident Registrations (27,850 Snowmobile + 23,386 OHRV)

51,236

Non-Resident Registrations (15,146 Snowmobile + 11,085 OHRV)

26,231

Resident Club Member Registrations

33,858

The Department would incur the following additional costs to create, staff, and administer this new voluntary decal program as follows:

FY 2020

FY 2021

FY 2022

FY 2023

Point of Sale contractor computer programming

$34,000

unknown maintenance cost

unknown

maintenance cost

unknown maintenance cost

Salary and benefits for Administrator I (LG 19, step 1)

$67,000

$70,000

$73,000

$77,000

Salary and benefits for Account Clerk I (LG 12, step 1)

$56,000

$58,000

$61,000

$64,000

Print 50,000 decals at $0.462 each

$23,100

$23,100

$23,100

$23,100

Mailing costs for assumed 20,000 by mail sales

$8,200

$8,200

$8,200

$8,200

Indirect overhead for department staff, office expense and equipment @17.22% of direct costs above ($188,300)

$32,425

$32,425

$32,425

$32,425

Costs allocated by NH Dept. of Information Technology for other computer services

unknown

unknown

unknown

unknown

Point of sale vendor transaction fee @$2.00 each

unknown

unknown

unknown

unknown

Credit card fees @2% per transaction

unknown

unknown

unknown

unknown

Total expenses, not including unknowns

$220,725

$191,725

$197,725

$204,725

The Department is unable to forecast growth in registrations for either snowmobiles or OHRVs due to economic and seasonal variables. The Department is also unable to estimate how many registrants are actual owners as there is no title system for these machines. Furthermore, there is no guarantee that such funds could be properly distributed or distributed without dispute if there is no club or no trail to maintain or if multiple clubs provide such services where residents live. The proposed decal system is limited to residents only and does not permit the purchaser to direct funds to a preferred club or club servicing the area where such resident uses his or her machine. There are approximately 103 snowmobile clubs and 23 OHRV clubs that may qualify under this program. The Department would be required to maintain relationships with all of them, monitor their non-profit status, establish and maintain banking relationships to facilitate the transfer of funds, and require reporting to facilitate department financial and performance auditing. As none of these procedures for direct reporting relationships currently exist, the Department will be required to work with staff leadership of the clubs, many of whom are volunteers.

AGENCIES CONTACTED:

Fish and Game Department and Department of Natural and Cultural Resources