|Date Requested:March 29, 2005
Time Requested:10:26 AM
| FUND(S) |
Sources of Revenue
|Other Fund Road Fund|
Legislation creates:Neither Program nor Fund
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.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||3,500||3,500||3,500|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||8,250||8,250||8,250|
3. Explanation of above estimates (including long-range effect):
Number who fail multiple times 3,300
Estimated reduction in failures if a fee were charged 1,650
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