Date Requested:February 08, 2010
Time Requested:01:35 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2010R1481 Introduced SB394
CBD Subject: ELECTRONIC INSURANCE VERIFICATION PROGRAM
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
Over-all effect
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
3. 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