Assigned to TRANS & APPROP                                                                                                    FOR COMMITTEE

ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

FACT SHEET FOR H.B. 2556

motorcycle safety fund

Purpose

            Removes the requirement that monies deposited in the Motorcycle Safety Fund (MSF) in excess of $150,000 annually revert to the State Highway Fund.

Background

In 1996, the Legislature established a Motorcycle Education Fund to implement a motorcycle testing program and fund a motorcycle safety program. One dollar of each motorcycle registration fee was redirected from the State Highway Fund to the Motorcycle Education Fund.  A year later, the Legislature eliminated the Motorcycle Education Fund and redirected the registration fee deposits back to the State Highway Fund.  Laws 2001, Chapter 316 established the MSF and redirected one-dollar from the nine-dollar motorcycle registration fee collected by the Arizona Department of Transportation’s Motor Vehicle Division (MVD) to the MSF.  The Director of the Governor’s Office of Highway Safety, after consultation with the state Motorcycle Safety Advisory Council, is required to use monies deposited in the MSF to implement and support voluntary motorcycle safety education, awareness and other programs, including covering the cost of materials for these programs.

Annual deposits into the MSF are currently capped at $150,000 and any excess amount reverts to the State Highway Fund. In 2003, the MSF exceeded its cap and reverted $10,100 to the State Highway Fund.  According to the Joint Legislative Budget Committee (JLBC), this was the only year a reversion occurred; however, the MSF is projected to grow as Arizona’s population increases and more motorcycles are registered. According to MVD, 118,070 motorcycles are currently registered in Arizona.

There is no anticipated fiscal impact to the state General Fund associated with this legislation. Any growth in motorcycle registrations will benefit the MSF instead of the State Highway Fund.

Provisions

1. Removes the requirement that any monies in excess of $150,000 deposited annually in the Motorcycle Safety Fund (MSF) revert to the State Highway Fund.

2. Becomes effective on the general effective date.

House Action

TRANS           2/16/06            DP       9-0-0-0-0

APPROP(P)    2/22/06            DP       10-0-0-5-0

3^rd Read           3/6/06                          55-0-5-0

Prepared by Senate Research

March 17, 2006

DG/RD/ac