FISCAL NOTE
FUND(S):
Road Fund
Sources of Revenue:
Special 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 make several changes to the State Code as it pertains to the issuance of a driver’s license.
● Eliminates the requirement that an out-of-state driver’s license surrendered by an applicant who is applying for a WV driver’s license be sent back to the issuing state. The issuing state would be notified electronically that the license was turned in.
The Division estimates that eliminating this process could save $10,783 per year in labor and postage.
● Allows an applicant two attempts at passing the written instruction permit test or three attempts at passing the driver’s skill test. After two attempts, the applicant would be required to pay $5. The bill also increases the time an instruction permit is valid from 60 days to 90 days. The Division feels that by charging for additional tests, students would study; increasing the number of applicants who pass on the first or second attempt.
The Division estimates that $14,600 in additional revenue would be generated the first year and possibly $5,548 could be saved.
● Provide a penalty for violating the conditions of a Level I or II drivers license.
● Provide exceptions allowing that some applicants could use an address other than their address of principal residence.
● Restrict a GDL Level I or II to the operation of a passenger vehicle only.
● Allow an applicant to use a valid US Passport as a document for verifying age and identity.
● Allow the Division to issue an identification card to an applicant who already holds a valid WV driver’s license. Revenue generated would be $12.50 for an ID card issued for 5 years. The cost to issue the identification is approximately $5 per card.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-17,871 |
0 |
| Personal Services |
0 |
-9,243 |
0 |
| Current Expenses |
0 |
-7,058 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
14,605 |
7,302 |
Explanation of above estimates (including long-range effect):
COST SAVINGS ASSOCIATED WITH ELIMINATING SENDING BACK OUT-OF STATE DRIVER’S LICENSE:
Total number of mailings per year 504
Labor in the Regional Offices
(collecting, assembling, mailing) 1 hr./month/office
Average labor rate $ 14.33/hr.
Labor cost per year
for Regional Offices $ 3,995.00
Labor cost for Mail Room
(collecting, assembling, mailing) 30.75 hrs./month
Average labor rate $ 14.33/hr.
Labor cost $ 5,288.00
Total Labor $ 9,243.00
Office supplies, postage, envelopes $ 1,540.00
Total Estimated Annual Savings $ 10,783.00
ESTIMATED SAVINGS REALIZED BY CHARGING $5 AFTER AN APPLICANT FAILS THE WRITTEN PART OF AN INSTRUCTION PERMIT TWICE AND/OR THE SKILLS PART THREE TIMES:
Number of tests failed during 2007 48,683
Percent that fail 1 time 40% 19,473
Percent that fail 2 or more times 15% 2,921
Fee $ 5.00
Total Revenue $ 14,605.00
Subsequent Years’ Revenue $ 7,302.50
ESTIMATED SAVINGS BY CHARGING A FEE:
Percent that fail 2 or more times 15% 2,921
Estimated number that might study and pass
on the first attempt 50% of 2,921 1,460
Estimated cost to give a test $ 3.80
Estimated Savings $ 5,548.00
ESTIMATED REVENUE GENERATED FROM ISSUING ID CARD TO HOLDERS OF A DRIVER’S LICENSE:
Identification Cards are issued for 5 years at a charge of $2.50 per year
Total Revenue would be $ 12.50
Cost to issue an Identification Card $ 5.00
Memorandum
Person submitting Fiscal Note: Rick Johnston
Email Address: rjohnston@dot.state.wv.us