8. Summary of Factual Data and Analytical Methodologies Used and How Any Related Findings Support the Regulatory Approach Chosen: The grant programs from other states were examined along with the department’s existing ATV grant program. The department did not conduct any further analysis since the rule is primarily intended to implement a grant program rather than to regulate small businesses.
9. Analysis and Supporting Documents Used to Determine the Effect on Small Business or in Preparation of an Economic Impact Report: As the rule does not regulate small businesses in any way, the department expects that this rule will have no negative fiscal effect on small business.
Positive Economic Impact of the OHM Grant Program in Wisconsin
Due to the recent origin of the OHM program, the department does not have a great deal of information on the potential impacts of the OHM grant program. During the registration year ending on March 31, 2019, there were approximately 4,000 OHMs registered in Wisconsin. Income produced from registration varies year to year due to the two-year registration cycle. Thus far, the program has produced approximately $36,000 in FY 2017, $60,000 in FY 2018, and $41,500 in FY 2019. However, no grants have been given as of April 2019. The results of the proposed grant program are difficult to predict. However, the Wisconsin Statewide Outdoor Recreation Plan (SCORP) use survey from June 2017 showed that 7% of Wisconsin residents participated in riding motorcycles on trails and routes at least once per year. The testimony of the Wisconsin Off-Highway Motorcycle Association at the legislative hearing in support of 2015 Wis. Act 170, which created s. 23.335, Wis. Stats., cited a Colorado study, “Economic Contribution of Off-highway Vehicle Recreation in Colorado,” which indicates that average state resident household day trip expenditures for off-highway vehicle (OHV) users were about $111 and overnight trip expenditures about $315. A March 2004 executive summary of the report, “Economic & Demographic Profile of Wisconsin’s ATV Users,” by the Wisconsin Department of Tourism in conjunction with the Wisconsin ATV Association (WATVA) and the University of Wisconsin – Madison Extension Department of Urban & Regional Planning, showed $295.3 million was spent by ATV trail users during the period of June through October 2003. The report showed that 86% of ATV trail users were from Wisconsin. The total annual spending in Wisconsin by out-of-state ATV users was $34.7 million. While dated, these numbers still show that motorized off-highway recreation has a significant economic impact in Wisconsin.
10. Effect on Small Business (initial regulatory flexibility analysis): Off-highway motorcycle grants assist with the cost of construction, development, and maintenance of specific trails and facilities. Those trails draw riders and their disposable income. Small businesses located in the area of OHM trails benefit when trail users make purchases such as: fuel and other items at convenience stores; retail items; accommodations or lodging; sales of replacement vehicle parts; repair or maintenance of OHMs; rider clothing, protective gear, and accessories; food and drink at restaurants and other establishments.
11. Agency Contact Person:
Department of Natural Resources
Attn: Brigit Brown, Bureau of Recreation Management – PR/6
101 S. Webster Street
Madison, WI 53707
Phone: (608) 266-2183
12. Place where comments are to be submitted and deadline for submission:
Written comments may be submitted at the public hearings, by regular mail, or email to:
Department of Natural Resources
Attn: Brigit Brown, Bureau of Recreation Management – PR/6
101 S. Webster Street
Madison, WI 53707
Phone: (608) 266-2183
Section 1 NR 45.03 (16) is repealed and recreated to read:
NR 45.03 (16) “Off-highway motorcycle” has the meaning given in s. 23.335 (1) (q), Stats. Section 2 NR 45.05 (3) (h) is amended to read:
NR 45.05 (3) (h) All-terrain and off-highway motorcycle routes. In accordance with ss. 23.33 (4) (b) and 23.335 (19) (a), Stats., the department may establish all-terrain vehicle routes and off-highway motorcycle routes on department lands over highways as defined in s. 340.01 (22), Stats., owned by the department or under the management, supervision, and control of the department, but not including designated trails, that are: 1. Specified as an allowed use in a department master plan under ch. NR 44. 2. Signed in accordance with ss. NR 64.12 and 65.09. Section 3. NR 65.01 is repealed and recreated to read:
NR 65.01 Purpose. This chapter establishes standards for the implementation of the off-highway motorcycle program under s. 23.335, Stats. Section 4. NR 65.02 is repealed and recreated to read:
NR 65.02 Definitions. In this chapter:
(1) “Acquisition costs” means the fair market value of the interest in land and reasonable costs related to the purchase of the property, but limited to the costs of appraisals, legal fees associated with closing up to a maximum of $1,000, land surveys, title and gap insurance costs, title company closing costs, recording fees, historical and cultural assessments required by the department, the cost of environmental inspections and audits. It does not include environmental clean-up costs, brokerage fees paid by the buyer, real estate transfer taxes, or any other cost not identified in this subsection.
(2) “Activity icon” means a pictogram symbol used on maps and signs to provide a common, nonverbal language to transmit that off-highway motorcycle use is allowed. A red slash over the icon indicates the prohibition of the activity.
(3) “Applicant” means the unit of government or agency applying for a grant under this chapter.
(4) “Department” means department of natural resources.
(5) “Development” includes the planning of a new trail or facility, including bridges, and construction of a trail or facility, including grading, signing, and bridges.
(6) “Final payment” means the last payment from the department to the grantee for a grant awarded under this chapter after the project has been completed to the satisfaction of the grant agreement or contract.
(7) “Final report” means a written account of project activities, accomplishments, and any obstacles encountered, along with all data collected.
(8) “Fringe benefits” means employers’ contributions or expenses for social security, employee life and health insurance plans, unemployment insurance coverage, workers compensation insurance, pension retirement plans, and employee benefits in the form of regular compensation during authorized absences from the job.
(9) “Grant advance” means the portion of the grant award paid to the grantee after returning a signed grant agreement and prior to project implementation.
(10) “Grant agreement” means a contract between the grantee and the department detailing project scope, grant award, grant period, department cost share, project products, reimbursement process, and conditions that restrict actions of the grantee during the life of the project and during the operation and maintenance phase once the final payment has been issued by the department.
(11) “Grant award” means the dollar amount awarded to the grantee by the department and available to the grantee for reimbursement of eligible project costs.
(12) “Grant period” means the time period stated in the grant agreement during which the grantee may expend grant program funds for the project.
(13) “Grantee” means an eligible organization that receives a grant from the department under this chapter.
(14) “Hybrid trail” means an off-highway motorcycle trail and route combination that allows limited use off-highway motorcycles and motor vehicles to utilize the same linear surface and the combination is used as a trail connector.
(15) “Interest in land” includes fee title, easement, and lease.
(16) “Maintenance” means the activities associated with establishing and keeping a trail safe and enjoyable for use.
(17) “Major rehabilitation” means repair projects on a larger scale than annual or routine maintenance and which requires additional funds above the mileage rate allowed under s. NR 65.15 (1) (a). (18) “Off-highway motorcycle facility” has the meaning given in s. 23.335 (20) (b) 2., Stats., but does not include a trail, hybrid trail or route. (19) “Project” means the practices or activities for which funds are applied under this chapter.
(20) “Project period” means the period of time specified in the project agreement during which all work shall be completed.
(21) “Project scope” means the part of the grant agreement that succinctly describes the extent or range of what the project will accomplish.
(22) “Regulatory sign” means a sign placed under the authority of a unit of government which limits the operation of an off-highway motorcycle.
(23) “Trail connector” means an off-highway motorcycle trail that connects one trail to another trail or services.
Section 4m. NR 65.025 is created to read:
NR 65.025 Definitions. As used in s. 23.335, Stats.: (1) “Brake” means an operational device for stopping a vehicle.
(2) “Headgear approved by the department” means headgear of the type required by s. 347.485 (1) (a), Stats. Section 5. NR 65.03 is repealed and recreated to read:
NR 65.03 Registration.
(1) Registration Exemptions.
(a) An off-highway motorcycle that is not registered pursuant to s. 23.335 (2) (a), Stats., or is not exempt from registration under s. 23.335 (2) (b) 3., Stats., or s. NR 65.03 (1) par. (b) is exempt from out of state registration while operating on an off-highway motorcycle corridor if the off-highway motorcycle displays a current Wisconsin off-highway motorcycle nonresident trail pass and has not been in Wisconsin for more than 15 consecutive days. (b) All of the following off-highway motorcycles are exempt from registration and trail pass requirements in s. 23.335 (2), Stats. when used for maintenance, enforcement, or emergency purposes: 1. Any off-highway motorcycle owned or leased by the United States, another state, or a political subdivision thereof, provided the name of the owner or lessee is displayed in a visible manner on the exterior of the off-highway motorcycle.
2. Owned or leased by the state or a political subdivision of the state.
Note: Wisconsin Department of Transportation registration requirements may still apply for highway use.
(c) Department-owned or leased motorcycles may be registered at no cost.
(d) All off-highway motorcycles are exempt from the trail pass requirements until April 1 following the effective date of this rule . . . [LRB inserts date].
(2) Expiration. A temporary operating receipt issued under s. 23.335 (4) (c) 4., Stats., and a temporary trail use receipt issued under s. 23.335 (6) (e), Stats., shall be valid only during the term stated on the receipt. Note: Off-highway motorcycles owned by nonresidents and operated in Wisconsin on a designated off-highway motorcycle route are required to be registered. If their home state does not offer off-highway motorcycle registration, the off-highway motorcycle must be registered in Wisconsin.
Section 6. NR 65.04 is repealed and recreated to read:
NR 65.04 Operating rules.
(1) No person may operate an off-highway motorcycle contrary to a regulatory sign.
(2) No operator or passenger of an off-highway motorcycle may possess any bottle or receptacle containing alcoholic beverages or nitrous oxide if the bottle or receptacle has been opened, the seal has been broken or the contents of the bottle or receptacle have been partially removed or released while the off-highway motorcycle is being operated.
(3) No operator or owner may deny inspection or refuse to operate his or her off-highway motorcycle in a manner prescribed by a law enforcement officer who reasonably suspects a violation of off-highway motorcycle equipment requirements found in s. 23.335 (17), Stats.
