Date Requested:March 29, 2005
Time Requested:10:26 AM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2005R1663 Intro SB647
CBD Subject: Additional Fees for Third Time Testing
FUND(S)
Road Fund
Sources of Revenue
Other Fund Road Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The purpose of this bill is to require the applicants for an instruction permit to operate a motor vehicle who fail the written test two or more times to pay a fee of $5.00 for the third test and for each additional test taken.
    
    During fiscal year 2004, the Division of Motor Vehicles administered 40,780 written driving test.
    
    The Division's Driver Examine Section estimates that 40% of those who fail the test do so on their first test attempt and approximately 15% will fail the second and third attempts. During the 2004 fiscal year, 22,545 people failed the written test. Approximately 40% or 9,000 failed one time and 15% or 3,300 failed the test two or more times. The Division estimates that a $5.00 fee charged each time the test was taken after the second attempt would possibly inspire some to study harder and reduce the number of test that had to be administered. The Division estimates that half of the 3,300 that fail the test more than twice might be eliminated.
    
    The Division has estimated that the cost to administer a written test is $3.40 per test. Cost savings for the Division would amount to $5,610.
    
    Revenue generated by this bill would be $8,250.
    
    Cost associated with implementing this bill would be advertising and changes to the cash register system.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 3,500 3,500 3,500
Personal Services 0 0 0
Current Expenses 3,500 3,500 3,500
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 8,250 8,250 8,250
3. Explanation of above estimates (including long-range effect):
    Revenue
     Number who fail multiple times 3,300
     Estimated reduction in failures if a fee were charged 1,650
     Fee $5.00
     Number of multiple failures 1,650
    
    Total Revenue $8,250
    
    DMV reduction in expenses
     Reduction in number of test administered 1,650
     Estimated cost per test $3.40
    
    Total Cost Savings $5,610
    
    Cost to implement
     Advertising Cost $2,500
     Cash register changes $1,000
    
    Total Cost $3,500


Memorandum
Person submitting Fiscal Note:
Richard M. Johnston
Email Address:
rjohnston@dot.state.wv.us