FISCAL NOTE
FUND(S):
Motor Vehicle Fees 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.
Senate Bill 394
The purpose of this bill is to authorize the Division of Motor Vehicles to utilize an electronic insurance verification program to identify uninsured motor vehicles.
Passage of this legislation will enable the Division of Motor Vehicles to engage a vendor to electronically check vehicles titled in West Virginia for proper insurance coverage as required by law. The vendor will compare the insurance information provided by the vehicle owner to insurance company databases. The vendor will also monitor insurance cancellations to ensure continued coverage. This will increase the detection of uninsured motorists as the Division is currently dependent upon traffic stops and accident reports to detect the uninsured motorists. All motorists failing to carry the required insurance will be subject to suspension. The new system is expected to increase the revenue from reinstatement fees by $4,625,000 per year. Expenses to administer the program will approximate $2,138,097 in the year of implementation and $2,125,797 thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
2,138,097 |
2,125,797 |
| Personal Services |
0 |
110,280 |
110,280 |
| Current Expenses |
0 |
2,014,617 |
2,014,617 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
13,200 |
900 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
4,625,000 |
4,625,000 |
Explanation of above estimates (including long-range effect):
Personal Services consists of:
Salaries $ 65,532
Benefits $ 44,748
Total Personal Services $ 110,280
Current Expenses are broken down as follows:
Payment to vendor for services $ 2,000,000
Mainframe Usage $ 12,000
Space Occupied by Additional Employees $ 1,867
Supplies for Additional Employees $ 750
Total Current Expenses $ 2,014,617
Equipment is broken down as follows:
Cubicles $ 10,500
Computers $ 2,100
Printers $ 600
Total Equipment $ 13,200
ESTIMATED TOTAL COSTS $ 2,138,097
Revenue
Estimated Annual Reinstatements 25,000
Reinstatement Rate $ 200
Estimated Annual Reinstatement Revenue $ 5,000,000
The estimated annual revenue of $5,000,000 replaces the current annual revenue of $375,000. The net increase in revenue would be $4,625,000.
Memorandum
Person submitting Fiscal Note: Rick Johnston
Email Address: Rick.M.Johnston@wv.gov