Sources of Revenue:

Special Fund

Legislation creates:

A New Fund

Fiscal Note Summary

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

The purpose of this bill is to consolidate six special revenue accounts assigned to the Division of Motor Vehicles into one special revenue account and to transfer five special revenue accounts to the State Road Fund. The Division maintains revenue and expenditures for the State Road Fund, a Federal Account and thirteen special revenue accounts. The special revenue accounts have all been created by legislation. The Division is proposing to transfer five accounts to the State Road Fund. All future program expenses would be budgeted from the Road Fund and all future program revenues would be deposited to the Road Fund. These accounts would include: Special Registration Plates Inspection of Reconstructed Vehicles Insurance Certificate Fees Motorboat License Fees Returned Check Fees These five funds have a combined cash balance as of the beginning of February 2007 of $2,895,000. This cash balance would be transferred to the State Road Fund. The accounts being transferred to the State Road Fund were selected because their program objectives parallel those objectives funded on a much larger scale by the Road Fund. The Division is also proposing to transfer six special revenue accounts and combine them into one account that would be named the Motor Vehicle Fund Account. The accounts to be combined are: DUI Hearing Fees Commercial Drivers License Fees Driver Reinstatement Fees Driver Rehabilitation Fees Motorcycle License Examination Fund Motor Vehicle Salesperson License Fund Account cash balances would be transferred to the new account. All future expenses would be paid from the new account and all future revenues would be deposited to this account. The purpose for combining all eleven accounts is to reduce the number of accounts and to simplify the accounting and tracking of these accounts and reduce cost. No program services will be affected by this transfer, nor are any fees being increased. The Division will still be able to provide detailed cost accounting for each fund, as well as provide project statistics. The Division estimates that by combining these accounts the total labor saved would be approximately $20,000 a year plus an estimated $4,000 benefits. Included in this is the reduction in time for developing budgets, transferring of funds from one account to another, accounting, depositing revenue, accounts payable and the time spent by the legislative staff in reviewing and recommending the budgets.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2007 Increase/Decrease (use"-")	2008 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	0	0
Personal Services	-20,000	0	0
Current Expenses	-4,000	0	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	-24,000	0	0

Explanation of above estimates (including long-range effect):

Estimated reduction in labor $ 20,000.00 Estimated reduction in benefits $ 4,000.00 Total estimated reduction $ 24,000.00

Memorandum

Person submitting Fiscal Note: Rick Johnston
Email Address: rjohnston@dot.state.wv.us