ORV ON HIGHWAY/FREE ORV DAYS                                                           S.B. 50 (S-2):

                                                                                                      FLOOR SUMMARY

Senate Bill 50 (Substitute S-2 as reported by the Committee of the Whole)

Sponsor:  Senator Tom Casperson

Committee:  Natural Resources, Environment and Great Lakes

CONTENT

The bill would amend Part 811 (Off-Road Recreation Vehicles) of the Natural Resources and Environmental Protection Act to do the following:

-- Prohibit the Department of Natural Resources (DNR) from requiring a permit merely for organized group recreational off-road vehicle (ORV) riding on Department land, or for an ORV event on the frozen surface of public waters.

-- Require the DNR, within 90 days after the bill took effect, to develop and establish policy criteria for determining circumstances under which notice to the Department or a permit was required for ORV events on Department land.

-- Authorize the DNR to enter into a reciprocal agreement with another state to waive the ORV licensure requirement.

-- Require the DNR to designate at least two days each year as free ORV-riding days, during which ORV licensure would not be required.

The bill would repeal Section 81102, which contains several exemptions to ORV licensure requirements, and reenact those exemptions elsewhere in Part 811.  The bill also would repeal Section 81128, which established a citizens review board to make recommendations to the Legislature regarding the State's ORV trail system and required the board to disband after submitting its report.

MCL 324.81101 et al.                                                     Legislative Analyst:  Julie Cassidy

FISCAL IMPACT

The bill could have a minimal fiscal impact on the Michigan Department of Transportation (MDOT).  The potential costs to MDOT depend on the number of ORVs that participate on the free ORV riding days.

The bill would likely have a minimal effect on the amounts received for ORV licenses by the Department of Natural Resources.  It is likely that residents of Michigan who own ORVs already purchase annual licenses for them, as the licenses are a relatively small marginal cost when compared to the cost of fuel, maintenance, and insurance and the fixed cost of acquisition of an ORV.  It is likely, then, that the only impact the bill would have on the DNR is that people from out of State could come and use Michigan's trails for free on free ORV riding days.  The amount of revenue lost would likely be small, however, as many of the out-of-State ORV users who would take advantage of the free ORV riding days would likely not purchase an annual ORV license otherwise.

Date Completed:  6-13-13                                                    Fiscal Analyst:  Joe Carrasco

Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.