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Economic Impact Study Complete

This document analyzes the potential economic impacts of modifying Michigan's mandatory motorcycle helmet law. It begins with an overview of the goals and format of the report. It then provides historical context on helmet laws, noting that Michigan is now in the minority of states that require adult helmet usage. The proposed legislation would require helmets only for riders under 21 or without experience. The main section analyzes how increasing sales and tourism through modified helmet laws has benefited other states. In summary, this report aims to consider the economic case for changing Michigan's restrictive helmet law in light of national trends toward adult choice.

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0% found this document useful (0 votes)
59 views18 pages

Economic Impact Study Complete

This document analyzes the potential economic impacts of modifying Michigan's mandatory motorcycle helmet law. It begins with an overview of the goals and format of the report. It then provides historical context on helmet laws, noting that Michigan is now in the minority of states that require adult helmet usage. The proposed legislation would require helmets only for riders under 21 or without experience. The main section analyzes how increasing sales and tourism through modified helmet laws has benefited other states. In summary, this report aims to consider the economic case for changing Michigan's restrictive helmet law in light of national trends toward adult choice.

Uploaded by

seymourward
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Section IV

ECONOMIC IMPACTS OF MODIFICATION TO


MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

CHAPTER ONE
PURPOSE AND FORMAT
MISSION
Legislation is pending in the Michigan legislature to modify the present
mandatory motorcycle helmet law. The mission of this report is to consider a
sometimes ignored aspect of law modification---the economic impacts that
potentially will be created by the increases in sales and tourism.
The document analyzes the likely increases in motorcycle registrations, sales
and ownership, retention of tourism dollars of Michigan motorcycle enthusiasts,
and attraction of visitors from other states. The analysis is based upon Michigan
data, results in other states, and discussions with those involved with
motorcycle events and sales.
The report places the proposed modifications to the Michigan law in its proper
context compared to other states. As the narrative discusses, the impetus to
modify the Michigan law follows a national trend. Even though at one time
during the past thirty-five years essentially all states had some form of
mandatory helmet legislation on the books, at present Michigan is one of only
nineteen that still do. All of the states bordering Michigan, Ohio, Indiana,
Wisconsin, plus Illinois no longer have mandatory helmet requirements for
adults. Even if passed, by requiring helmet usage by those under twenty-one,
and by those without recent training and experience, the Michigan law will still
be more restrictive than many if not most states.
PREVIOUS FOCUS ON OTHER ASPECTS
In the past, advocates for modifying the law have focused their position on the
rights or freedom of choice of adult motorcycle operators. Advocates have
also argued that better training of motorcycle and automotive drivers would
have a higher impact on safety than any helmet law mandate. Some supporters
of helmet freedom of choice question the actual safety benefits of helmets and
believe that the results of state helmet laws are less than clear when all factors
of usage, training and operator age are considered.

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MICHIGAN CONSULTANTS
PAGE 1

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

The arguments and debates are often passionate, and have been the subject of
a wealth of previous legislative testimony in Michigan and at the national level.
Even though the rights, and training and safety issues will continue to be key
elements of the position of law modification advocates, the economic impact
issues also merit inclusion in the discussion.
This document, for the purposes of proper context, also provides summary
information on other elements of the overall debate, but the primary focus of the
material and findings is the economic impacts.
FORMAT
Section One describes the mission and identifies the past focus of helmet law
modification advocates.
Section Two provides an overview of the modifications being proposed, and
reviews the trends in others states.
Section Three is the heart of the document, analyzing and estimating the
economic impacts from increased sales and tourism that will likely ensue from a
modification to the present law.
Section Four offers brief summaries of the other issues that in the past been the
dominant elements of the helmet law modification. The summaries are provided
solely for context. Other studies and legislative testimony address those
concerns in much greater detail.

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MICHIGAN CONSULTANTS
PAGE 2

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

SECTION TWO
HISTORICAL PERSPECTIVE AND
OVERVIEW OF PROPOSED LEGISLATION
MICHIGAN SITUATION
How Michigan compares to other states is seen as vital information. Michigan
is now in the minority of states that mandate helmet usage by adults.
None of the three states with land bordering Michigan (Ohio, Indiana,
Wisconsin) require helmet usage by adults (neither do Illinois or
Minnesota).
The reality that Michigan has very restrictive helmet usage laws, while the
national trend has been to allow adult choice, has several ramifications for this
study. It means that data from states with similar geographic and demographics
can be used for statistical analysis of modifications to the existing law. It also
means that there are direct differences in the attractiveness of states for
motorcycle tourism.
Understanding Michigan in the national context also places the modification
issue into one of reasonableness. It is fair to suggest that helmet law
modification advocates of two decades ago were not always taken seriously in
Lansing, regardless of the legitimacy of their positions. This may have been due
to the colorful characterization that was placed upon them by outsiders, or
even sought after by the enthusiasts themselves. Regardless, the reality is that
adult choice for helmet usage is now the common position of the majority of
states, and that the average age and income of motorcycle owners has been
steadily increasing. Motorcycle users come from all age, income, and education
attainment levels. Simply put, the views of the individuals who actually
operate motorcycles, many for decades, merit valid consideration.
NATIONAL TREND
The impetus for the original passage of mandatory usage in most states,
including Michigan, was created in 1966 when the United States Department of
Transportation threatened that federal highway funds would be withheld from
states that did not enact such legislation. Michigan, along with forty-eight
additional states (the exception at the time was California) relatively soon had
some form of helmet usage requirement enacted into law.

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MICHIGAN CONSULTANTS
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Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

The past federal pressure as the impetus for mandatory helmet laws is a
valuable historical note. The attitudes and reasoning of legislators over twentyfive years ago cannot be viewed with certainty. Yet, there obviously is reason
to believe that the pressures for the Michigan law stemmed to a
significant degree from the federal funding requirement, rather than any
perceived safety analysis. It was also part of a national trend, one that has
since gone in the opposite direction.
Even though the federal Department of Transportation never reduced funding to
any states dues to the policy, the power do to so was challenged by several
states as well as motorcycle groups. By 1976, the United States Congress took
action to formally invalidate any power the DOT had to hold back funds. Since
that time, a majority of states have significantly modified or repealed their
mandatory helmet use laws. At present, Michigan is one of only 19 states that
mandate helmet usage by adults. None of the four states bordering Michigan
mandate helmet usage by adults.
Pennsylvania was the most recent state to modify their motorcycle helmet law,
with the change becoming effective in September, 2003.
KEY PARTS OF THE LEGISLATION AS NOW PROPOSED
Other documents are available that detail the proposed legislation. Obviously,
the specifics of the actual language under consideration in legislative
committee, and perhaps eventually for a vote of the legislature, may go through
a series of refinements. The legislation being supported by ABATE (American
Bikers Aiming Toward Education) of Michigan incorporates the following
primary characteristics.
Operators 20 years of age or younger would be required to wear
helmets.
Operators of any age with limited experience would need to wear
helmets.
Operators 21 years of age or older with experience would have
freedom of choice regarding helmet usage.
It is important to note that if passed as proposed, Michigan would still
have more restrictions than over one-half of the states.

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MICHIGAN CONSULTANTS
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Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

The proposed modifications do not change the existing Michigan requirements


involving brakes, mirrors, headlights, passenger seats, and other features.

PRESENT USAGE AND GROWTH


Nationally
Motorcycles have enjoyed renewed popularity in the United States. In 1998
there were 6.57 million motorcycles (including off-road cycles) in use by
approximately 5.7 million owners. Nationally, motorcycle registrations increased
every year during the eleven year period through 2002, the last year for which
totals are available.
A key influence has been the aging baby boomers, now with more disposable
income, returning to motorcycle enjoyment. The median age for motorcycle
owners was 38.0 in 1998, and the mean age 38.1 years. These figures
represent dramatic increases from a few decades ago. In 1980, for example,
the median age was 24.0 years and the mean age was 26.9 years.
In the report America at Leisure, June, 2001 As Bear, Sterns & Co. Inc. noted
we believe that the strong industry sales that weve seen since the mid 1990s
and are currently experiencing should continue for the better part of this
decade, if any credence is to be given to the demographics argument.
Rather than the old stereotype of societal outcasts, motorcycle owners are now
more likely to be mainstream America. Within the findings of the 1998 Survey
of Motorcycle Ownership and Safety conducted for the Motorcycle Industrial
Council (MIC) by Irwin Broth & Associates, the following characteristics were
found:
Median income of motorcycle owners was over $44,000.
Almost three-fifths were married.
Over one-half had attended college or technical school after
graduation from high school.
Professional/technical was the most frequently reported category of
occupation (this category was third in a similar 1980 survey, behind
mechanic/craftsman and laborer/semi-skilled).

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MICHIGAN CONSULTANTS
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Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

Given the national increase in income from 1998 and 2003 the median income
of motorcyclists today very possibly exceeds $50,000 annually.
Michigan
In 2002, the State reported total motorcycle registrations of 197,735. Even a
modest growth of 6% for the entire period covering 2003 and 2004 will bring the
total to approximately 209,600 for the year 2004. This number serves as a base
to calculate potential growth induced if the law is modified. The MIC estimates
that in 1998 the motorcycle population in Michigan 266,700, with 203,200 being
used on-highway (at some time) and 82,000 being used off-highway at some
time.
A survey sponsored by the MIC estimated that in 2002 there were 528
motorcycle retail outlets in Michigan, with 5,624 employees. Of the outlets, 256
were classified as franchised and 272 were classified as non-franchised.
The total payroll at motorcycle outlets in 1998 was estimated to exceed $138.9
million annually in Michigan and over $3.55 billion nationally.
Even these substantial figures do not include the economic activity generated at
multi-purpose retail and automotive supply stores that sell motorcycle related
fluids, parts, cleaning materials, tools, and other products.
Michigan usage compared to other states
After the State of Florida eased their helmet restrictions a significant increase in
total registrations quickly occurred. ABATE of Florida, using state data; found
that a 20.4% increase in total registrations occurred over the previous year.
Would such an increase happen in Michigan?
Total registrations in Michigan can be compared on a per capita basis with the
other Great Lakes states. As noted, Michigan is the only one of these six states
to require helmet usage by adults.
Table A provides comparisons for registrations and population for the six
states.

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MICHIGAN CONSULTANTS
PAGE 6

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

TABLE A
COMPARISONS OF REGISTRATIONS IN GREAT LAKES STATES
2000 motorcycle
registrations

2000 population

Illinois

196,000

12,419,293

15.78

Indiana

118,000

6,080,485

19.41

Minnesota

143,000

4,919,479

29.07

Ohio

255,000

11,353,140

22.46

Wisconsin

180,000

5,363,675

33.56

5 state total

892,000

40,136,072

22.22*

Michigan

184,000

9,938,444

18.51

State

Registration per
1,000 residents

* Weighted average, simple average is 24.06

Per capita motorcycle registrations in the other five states, using a


weighted average, were 20.1% higher than in Michigan during the year
2000. Four of the five states have registration figures significantly higher than
Michigans. Using an unweighted average for the five states generates a figure
of 24.06 registrations per 1000 residents, or over 29% higher than that of
Michigan.
If Illinois was excluded from the data the percentage difference between
Michigan and its four land border states would be ever greater.
The total Motorcycle population estimates for each state can also be used for
comparison, although registrations are viewed as more appropriate. This
alternative data still yields the finding that motorcycle sales in Michigan are
significantly below neighboring and similar states.
Michiganders are known for their enjoyment of motor vehicles, and have a
similar or above level of household income compared to neighboring states.
Therefore it is reasonable to suggest that if the law is modified, allowing
freedom of choice for adults, overall registration could increase by at least 20%.
This may not occur in the first year as it did in Florida, but over time (and
perhaps quickly) a level of equilibrium would be reached consistent with
neighboring states.

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MICHIGAN CONSULTANTS
PAGE 7

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

SECTION THREE
DISCUSSION AND ESTIMATION OF ECONOMIC IMPACTS
INTRODUCTION
This Section utilizes the potential impact of a 20% increase in registrations and
generates estimates of the economic impact within the states. Tourism impacts
are then calculated, including both the retention within Michigan of the tourism
spending of Michigan motorcycle enthusiasts, and the attraction of motorcycle
tourism to Michigan. The overall totals are presented in terms of economic
activity, payroll, direct and indirect jobs, and state revenues.
ECONOMIC IMPACTS OF SALES/REGISTRATION GROWTH
Increased sales and sales tax
Sales growth will mirror growth in registrations. If modification to the law creates
a 20% growth, this represents an increase in registrations of 41,920. This figure
is additive to whatever growth or decline would have otherwise occurred based
on such factor of the economy, aging of America, and consumer trends.
The national average sales price for an on-highway motorcycle in 2001 was
approximately $10,140. Given price inflation, and the likelihood that the new
cycle purchases induced by law modification would be in the higher engine
displacements, the price for the vehicle purchases induced by the law
modification in Michigan would probably average at least $11,000. Using the
$11,000 figure, the additional sales of new vehicles could represent $461
million in direct economic activity. The 6% sales tax on these vehicles could
total $27.7 million.
In addition to the new and used vehicle purchases, the increased number of
owners will result in increases in annual purchases of accessory items.
Nationally in 2001, Parts, Accessories, & Riding Apparel and Service labor
and Other Motorcycle Related Sales (excluding purchases of new and used
vehicle) averaged over $611 per operator. Former owners returning to
motorcycling may spend even more.

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MICHIGAN CONSULTANTS
PAGE 8

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

For estimation purposes, a $625 per year average for the 41,920 new sales is
suggested as appropriate when the impact of the modification takes complete
effect and is responded to in the marketplace. This represents over $26.2
million in annual activity and over $1.5 million in state sales tax. These are
annually recurring items that will rise with inflation.
The increase in registrations and sales will also energize the resale market.
Firm figures from other states are not available, but it is prudent to assume that
a 20% increase in sales can result in at least a 10% increase in resales. This
would be a recurring item, and may further increase as the number of
registrations and existing vehicles increased. Using the existing base of
209,600, a 10% increase in resales, at an average price of $6,000, generates
an estimates direct impact of $125.8 million, and sales tax revenues of over
$7.54 million.
Even though not included in any monetary estimates, it is possible that the new
and used sales figures will be further heightened by more people from
neighboring states purchasing their vehicles in Michigan. Such sales are of
particular economic benefit by bringing out-of-state dollars into Michigan.
Employees and payroll
The increase in registration will create an increase in employment and payroll.
A factor of 15% is chosen, less than the 20% sales factor because the
management and facility system is reasonably well-established. An estimated
6,406 positions were involved in motorcycles retail sales and maintenance
during 2003. This does not include individuals involved with motorcycle services
that are listed in other employment categories or operate on a cash-only basis.
A 15% increase represents 961 direct jobs. Use of a conservative multiplier of
1.8 to represent induced jobs created by sequential rounds of spending by
individuals in the direct jobs increases the gross employment impact to 1,730
jobs. The direct total payroll would increase by over $20.8 million, with the
impact on the state income tax directly being $730,000, with the multiplier effect
further increasing the overall impact.

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MICHIGAN CONSULTANTS
PAGE 9

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

TOURISM IMPACTS
Background
A variety of stories have appeared in the media pertaining to the incredible
popularity, and economic impact, of major motorcycle rallies in other states. It
cannot be predicted that in the near future Michigan will duplicate such success.
Yet, as long as the helmet law restrictions continue, it is certain that many
Michigan motorcyclists will decide to vacation in other states, and the full
potential of attracting motorcycle tourists to Michigan will be restricted.
A popular magazine of avid motorcyclists is Horse Backstreet Choppers. It is
published in Sterling Heights, Michigan.
They sponsor a motorcycle
rally/event each year---but never in Michigan. The most recent event, in
Salesbury, North Carolina, attracted over 30,000 individuals. The majority used
hotel/motel rooms in the area. The function has probably outgrown the area,
and new sites are being considered.
In an interview with the event sponsors, it was unequivocally stated that
Michigan locations would not be considered due to the present helmet
law. Simply put, a Michigan location would attract fewer people.
Some motorcycle rallies/events are held in Michigan each year, but nothing of
the magnitude of the major events held in other states. Typically, Michigan
events do not attract many motorcycle enthusiasts from others states. Meridian
Entertainment, organizers of an event in West Branch each year called the Hog
Rendezvous provided insight into the situation. In 2003, of 5,157 paying
attendees at the Hog Rendezvous, only 57 (or 1.1%) were from out-of-state.
The percentage was 1.25% in 2002 and 1.9% in 2001. The organizers strongly
believe that a modified helmet law allowing adult choice would significantly
increase the number of out-of-state visitors.
Estimation of tourism impacts
Increased tourism spending will occur through two interrelated aspects:
Retention of the spending of Michigan motorcyclists.
Attraction into Michigan of motorcycle tourists from other states.
Modest factors are utilized to estimate the economic impacts.

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MICHIGAN CONSULTANTS
PAGE 10

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

Retention of Michigan motorcycle tourists


ABATE members and other Michigan motorcycling enthusiasts report that they
typically choose other states for motorcycle based vacations due to the helmet
restrictions in Michigan. This creates a substantial loss of spending for Michigan
tourism based firms.
The 197,735 motorcycle registrations in Michigan are estimated to represent
179,759 individual owners, using a factor of 1.1 cycles per owner. If the change
in the helmet law is able to retain one vacation trip in the state for only 20% of
the owners, this represents almost 36,000 trips. For calculation purposes, a
modest figure of $600 per trip is used to derive an estimate of $21.6 million in
retained spending in Michigan. This also would create $1.3 million in state sales
taxes, plus additional state and local taxes on such things as motel rooms,
alcohol, gasoline, and even tobacco products, plus and income and other taxes
paid by the employees in the jobs created.
Increased attraction of out-of-state motorcycle tourists
The modifications to the law will attract more out-of-state motorcycle
enthusiasts to take vacations in Michigan. The trips may range from relatively
short one day visits to areas near the borders, to extended week long journeys.
The number of trips into Michigan can modestly be estimated to at least equal
the number retained by Michigan residents. The 35,952 figure is viewed as
conservative. In addition to the independent trips, even a handful of modest
motorcycle events can attract much of the figure. If one or two major events
were to be located in Michigan, they alone could approach much of the number.
Using a figure of $900 per trip by out-of state residents generates an attracted
spending figure of $32.4 million and sales taxes of $1.9 million. Other forms of
tax revenues would also accrue to the state and local governments.
It is reiterated that the out-of-state tourism potential is far higher than the
modest estimates used here. Michigan is known for fine roads, beautiful
shorelines, and northern scenery. There is a pent-up demand by motorcycle
enthusiasts to visit Michigan. The change in the law is very likely to
encourage sponsors of existing or potential motorcycle events to market
heavily to tourists of other states.

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MICHIGAN CONSULTANTS
PAGE 11

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

As an ultimate reference point, researchers at the University of New Hampshire


estimated that the economic impacts of the famous Laconia Motorcycle Race
Week that takes place annually in the state pumps $200 million into the
regions economy. Findings of similar magnitude can be found for the famous
motorcycle events in Daytona, Florida, Milwaukee, Wisconsin, and Sturgis,
South Dakota. It is not suggested that Michigan will ever replicate events of
such size, but the potential clearly exists to reap significant tourism dollars from
motorcycle events located in Michigan.
Tourism totals
Added together, the retention and new attraction calculations total $53.9 million
in new tourism spending in Michigan, and $3.2 million in sales taxes. Other
forms of tax revenues, elusive to quantify, will also be generated.
It is possible to translate the revenue figures into job estimates. Using a factor
of one job created for each $60,000 in tourism spending generates a direct job
increase estimate of 539. These jobs also create additional jobs in the
community through sequential rounds of spending. This multiplier effect will be
at least 1.8 or .8 induced jobs created for each direct job. This brings the total
tourism job impact to 970.
OTHER CONSUMER AND BUSINESS EXPENDITURES
There are other aspects as well. For example, registration fees to the state
would be increased proportionately. National advertising from motorcycle
companies and local motorcycle businesses would increase. Major motorcycle
events attract national sponsorship money. A portion of the new employees
hired may now be receiving State income maintenance benefits, thus relieving
the state of that cost.
IMPACT TOTALS
The impacts from the increased sales and tourism activities are summarized
below:
.

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MICHIGAN CONSULTANTS
PAGE 12

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

Economic activity--direct
New sales .............................................................. $461.2 million
Resales increased.................................................... 124.8 million
Accessory sales increased ......................................... 27.7 million
Tourism ..................................................................... 53.9 million
Total direct ...................................................... $667.0 million
Impact including ripple effect ............................... $1.2 Billion
Sales tax direct ..................................................... $40.0 million
Employment
Direct (sales and tourism) jobs ............................. 1,500 new jobs
Total jobs, including from multiplier ........... 2,700 new jobs
A significant portion of the economic impacts will be annually recurring, as well
as the majority of the employment. As repeated several times, the actual
potential for motorcycle tourism is far higher than the modest figures used in
this report. Florida found that dramatic impacts occurred the first year
after the modifications in their law were enacted. The speed of the impacts
in Michigan may or may not differ, probably relating more to the regional
economy than the ultimate results. It is clear that the law is appealing to a
segment of the economy with disposal income and an interest in travel. It is
also a segment that is certain to grow due to the graying of the baby boom
generation.

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MICHIGAN CONSULTANTS
PAGE 13

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

SECTION FOUR
NOTES ON RELATED CONCERNS
REITERATION OF MISSION
As stated at the beginning, the mission of this study is to analyze the economic
benefits of modification of the existing law that will stem from increased vehicle
sales and tourism. This beneficial impact has been an under-appreciated
element in past debates. It is not claimed that the economic benefits identified
in this report should be viewed as dominant considerations in the legislative
deliberations; but they merit inclusion in the discussions.
Given that other elements have usually been central to the debate, it is useful to
at least identify within this document those aspects in order to provide a context
for the economic impacts discussion. A wide variety of material and testimony
has previously been submitted by various groups and researchers pertaining to
these other aspects. The narrative below simply provides capsule summaries.
NOTES ON ADULT CHOICE
The past focus of modification proponents, at least as reported by the media,
has been that an adult should have the right to choose whether or not to use a
helmet. Even in states that allow adult choice, many still decide to use a helmet
at all times or during inclement weather. Some motorcyclists believe that their
vision is improved without a helmet, and thus are safer---while some will always
use helmets, seek out the best ones for their needs, and wear them correctly.
For most proponents of modification, it is not a matter of being anti-helmet, but
the fundamental right of an adult to choose.
It is important to repeat that even if the modifications are enacted, Michigan
would still be one of the more restrictive states in the nation. All operators
under the age of 21 would still need to use a helmet. Even adult operators
without experience (as proposed the length is two years) would need to use a
helmet. The law would also enhance training requirements.

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MICHIGAN CONSULTANTS
PAGE 14

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

NOTES ON CRASH DATA


It is not the mission of the study to analyze in depth motor vehicle crash
statistics. Proponents of modification point to a variety of data that suggests the
value of a helmet in crashes is of little consequence, while opponents claim
there is a safety benefit. Given that in a major accident with a fatality there likely
are a variety of critical injuries, the applicability of common crash data can be
questioned by analysts on both sides of the issue.
It is valuable to place the motorcycle crash figure in a proper context. Table B
provides the motorcycle fatality figures in the State of Michigan for a 10 year
period. In 2002, there were 82 fatalities involved in 81 crashes involving
motorcycles.
TABLE B
MOTORCYCLE CRASHES AND FATAL CRASHES
MICHIGAN--1993 THROUGH 2002
Year

All Crashes

Fatal Crashes

1993

2,768

51

1994

2,982

66

1995

2,651

80

1996

2,468

61

1997

2,465

63

1998

2,931

52

1999

2,820

80

2000

3,180

82

2001

3,228

94

2002

3,030

81

All accidental deaths are tragic. On purely a comparative statistical basis,


however, the 82 fatalities are not a large figure, particularly considering that
there were over 1,279 fatalities in motor vehicle related accidents in Michigan,
and an overall population that now exceeds 10,000,000. Pedestrian deaths
represented more than twice the number of fatally-injured motorcyclists.
Motorcycles simply are not a major component of the vehicles safety
challenges faced in Michigan or any other state.

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MICHIGAN CONSULTANTS
PAGE 15

Section IV
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MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

It is noteworthy that the number of fatalities changes significantly each year.


The figure of 94 in 2001 was more than 80% higher than the 1998 figure, but
then the 2002 figure dropped by 14%. Therefore, attempting to predict the
absolute change in fatalities from a modification in the helmet law is extremely
problematic. Claims of a 5% or 10% increase or decrease in fatalities due to
any change in law or state programs simply are overwhelmed by the statistical
chaos in the yearly data.
Furthermore, the proposed modification actually involves only a subset of the
motorcycling operating population. As noted, those under 21 and operators
without significant experience would still be required to use a helmet. Thus,
statistically, the purported protection provided by a helmet would continue to
apply to those most at risk and less able to make an informed personal
judgment. Moreover, many adults would continue to use a helmet.
Advocates for forcing usage of helmets claim they save lives and prevent
serious injury. This has never been accepted as an established fact by many
motorcyclists. The official standards for a helmet only require that it must
withstand a crash of a speed of 13 miles per hour or less. This also assumes
that the helmet is appropriately chosen to fit snugly and worn correctly.
NOTES ON EDUCATION AND STATE PRIORITIES
The reality is that the State of Michigan has not made motorcycle operator
training a priority, nor has it made motorcycle awareness by automobile
operators an integral part of training and licensing. Passage of the legislation
should enhance cooperation between the State and ABATE and other
motorcycle groups, thus serving to place a higher and potential more effective
emphasis on driver education and training.
The training component of the proposed legislation would emphasize the
problem of drinking and driving of all vehicles, a major factor in both automotive
and motorcycle accidents.

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MICHIGAN CONSULTANTS
PAGE 16

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

INFORMATION SOURCES
A wide variety of sources were reviewed during the preparation of this study.
Those of most direct relevance to the findings are identified below.
American Motorcycle Network, statement of Louisiana Governor Mike
Foster, October, 2003.
Bear Stearns & Co. Inc. America at Leisure, 2001.
Biker Rights Online, States and Helmet Laws (list).
Greater Milwaukee Convention and Visitors Bureau, website, information
on impacts of National Motorcycle Rally.
Michigan Department of Education, Traffic Safety Education Program,
2003.
Michigan State Police, Michigan Office of Highway Safety Planning, 2002
Michigan Traffic Crash Facts.
Michigan Secretary of State, Motorcycle License Information Website.
Motorcycle Industry Council, Statistical Annual 2002.
National Highway Traffic Safety Administration, Evaluation of the Repeal
of the Motorcycle Helmet Laws in Kentucky and Louisiana.
National Highway Traffic Safety Administration, National Center for
Statistics and Analysis, Vehicles, Crash Data Report, 1990-1999.
National Highway Traffic Safety Administration, National Center for
Statistics and Analysis, Motorcycles, Crash Data Report, 1990-1999.

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MICHIGAN CONSULTANTS
PAGE 17

Section IV
ECONOMIC IMPACTS OF MODIFICATION TO
MICHIGAN MANDATORY HELMET LAW
____________________________________________________________________________________

National Highway Traffic Safety Administration, National Center for


Statistics and Analysis, Traffic Safety Facts, 2001.
National Highway Traffic Safety Administration, National Center for
Statistics and Analysis, Fatality Analysis Reporting System, Web Based
Encyclopedia.
Standard & Poors, Harley-Davidson STARS Report.
SYSTAN, Under contract with the California Highway Patrol, California
Motorcyclist Safety Program,
United States Census Bureau, County Business Patterns, Michigan,
Employees, Payroll, and Establishments by Industry, 2001.
United States Census Bureau, American Fact Finder, Motorcycle,
Bicycle, & Parts Manufacturing.
University of New Hampshire, Robert Gittell, Project Director, Economic
Benefits of New Hampshire Primary (includes references to Laconia
Motorcycle Race Week).
University of Wisconsin-Madison, Wayne Bigelow, Wisconsin CODES
Project, Motorcycle Crashes in Wisconsin, 1994-1998.
A variety of material appearing on the WebPages of the various state
ABATE associations throughout the country.
A variety of testimony given to state legislatures in other parts of the
country both from those advocating mandatory helmet laws and those
advocating adult choice.
A variety of media reports on motorcycle helmet legislation in other
states.
A variety of media reports on economic impacts of motorcycle
rallies/events in other states.

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MICHIGAN CONSULTANTS
PAGE 18

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