| Date Requested:February 08, 2010 Time Requested:01:35 PM |
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| FUND(S) Motor Vehicle Fees Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| Special Fund | |||
Legislation creates:
Neither Program nor Fund | |||
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. |
| 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. |