Date Requested:January 13, 2011
Time Requested:06:10 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2011R1686 Introduced HB2225
CBD Subject: OUT-OF-STATE WORTHLESS CHECKS
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 suspend the driver’s license of an out of state resident who writes a bad check in West Virginia and then does not make good on the check after proper notice.
    
     The Division of Motor Vehicles can not directly suspend the driving privileges of a person licensed by another state. It can only suspend the driver’s privileges to operate a motor vehicle in this state. There is no requirement under any interstate agreement that a state honor another state’s suspension action on a non traffic related offense.
    
     In order to effectuate the provisions of this bill, the Division would create a driver’s license record for the offender. In order to create this record, the Division normally would require the person’s name, address, and date of birth and social security number. This record would be available to all states through the National Problem Driver Point System.
    
     The WV suspension would be effective if the offender returned to WV and if a law enforcement officer ran a drivers license check or when the driver was renewing their driver’s license. At the time of renewal, the issuing state would check the Problem Driver Point System and if WV has listed a drivers license with a suspension, the home state could choose not to renew the license until the WV suspension has been lifted.
    
     The Division has surveyed other state agencies and banks to try to estimate the number of worthless checks from out of state residents the Division would be handling. A conservative estimate is 12,000 worthless checks written each year and for which the check writer does not respond to making the check good or to a summons from a WV court.
    
     A survey conducted by the Division has shown that the information needed to create a driver record is not included on the check. The Division conducted a survey of West Virginia resident checks returned for non-sufficient funds. Although all checks surveyed had the bearers name and most had the address, none of the surveyed checks had the bearers date of birth. All of this information is needed to make positive identification. On 43% of the checks surveyed, the bearer’s address was different from the address the Division has in its data base.
    
     To attempt to identify 12,000 check writers, and establish driver records will require approximately 8 additional employees full time making phone calls and doing research. The Division estimates that probably only 10% of the check writers could be identified to the point that a driver record could be established and a suspension of driving privileges in WV.
    
     The Division estimates the cost to implement this bill to be $355,098.
    
     Estimated new revenue generated would be approximately $60,000. (12,000 x 10% x $50.00 reinstatement fee)
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 355,098 355,098 355,098
Personal Services 277,696 277,696 277,696
Current Expenses 16,800 16,800 16,800
Repairs and Alterations 0 0 0
Assets 60,000 60,000 60,000
Other 0 0 0
2. Estimated Total Revenues 60,000 60,000 60,000
3. Explanation of above estimates (including long-range effect):
    Estimated Cost
     Personnel 8 Clerical X $19,000 $152,000
     Benefits $125,698
     Current Expenses $ 16,800
     Equipment $ 60,000
    Total Cost $355,098
    
    Estimated Revenue
     Number of Checks 12,000
     Collection 10%
     1,200
     Reinstatement Fee $ 50.00
    Total Revenue $60,000
    


Memorandum
Person submitting Fiscal Note:
Jerry L. Conrad, Director
Email Address:
Jerry.L.Conrad@wv.gov