|Date Requested:March 01, 2011
Time Requested:10:06 AM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
Com. Sub for Senate Bill 268
The purpose of this proposed Committee Substitute bill is to require the Division of Motor Vehicles (DMV) to establish a Driver’s License Restoration Program for persons whose driver’s license or privilege to operate a motor vehicle has been suspended or revoked. The bill repeals §17B-3-3a which requires the DMV to suspend driver’s licenses for reasons other than motor vehicle related offenses. The bill provides for a 1 year grace period for drivers to clear unpaid ticket files without paying associated court costs, and provides for a 50% reduction in the driver’s license reinstatement fee. The bill also provides for expedited reinstatement for drivers with DUI revocations more than 10 years old with no subsequent DUI offenses.
Currently, the DMV suspends approximately 60,000 driver’s licenses each year with a reinstatement rate of approximately 50%, or 30,000. Revenue generated from reinstating those 30,000 is $1,500,000.
We have two additional categories of unpaid ticket suspensions. The first category is individuals with suspensions of 1 - 5 years old, with approximately 20% reinstated on an annualized basis at the current rate of $50 for revenues of $400,000. The second is individuals with suspensions of 6 - 10 years old, with approximately 10% reinstated on an annualized basis at the current rate of $15 for revenue amounting to $13,500.
Under the proposed amnesty program, it is assumed that 75%, or 45,000, of the 60,000 current year suspensions will reinstate their driver’s license at the rate of $25 generating revenue of $1,125,000. Of the 1 - 5 year old suspensions, it is projected that 25%, or 40,000, will reinstate their driver’s license at a rate of $25 generating revenue of $1,000,000; and of the 6 - 10 year old suspensions, it is projected that 10%, or 9,000, will reinstate their driver’s license at a rate of $25 generating revenue of $225,000.
Current Reinstatements 60,000 (75%) = 45,000 x $25 = $1,125,000
1-5 year old Suspensions 160,000 (20%) = 40,000 x $25 = $1,000,000
6-10 year old Suspensions 90,000 (10%) = 9,000 x $25 = $ 225,000
Total Revenue from Reinstatements/Suspensions $2,350,000
Revenue generated under the amnesty program will generate approximately $2,350,000 for the one year amnesty period, and the current program generates approximately $1,913,500 annually. The total one-time increase in revenue generated by this bill is $436,500.
The appearance based on current numbers is revenue gain, however, the projected fifty percent reinstatement rate for 1-5 year old suspensions and the projected twenty percent reinstatement rate for 6-10 year old suspensions will be concentrated in the amnesty year and will likely be a one-time action. The subsequent years will see a decline in reinstatements based on the influx of the 1-5 and 6-10 year old suspensions under the amnesty program.
The bill eliminates unpaid citations based on non-motor vehicle related offenses.
The bill waives court costs for the 1-year grace period. Those court costs consist of the following:
$10 - Magistrate Court Fund
$ 5 - Court Security Fund
$40 - Regional Jail Fund
$10 - Crime Victim Compensation Fund
$ 2 - Law Enforcement Training Fund
$47.50 - Per Diem Regional Jail Fee
$10 - Community Correction Fee
$ 5 - Courthouse Improvement Fund
$30 - Regional Jail Fund
$159.50 - Subtotal
$ 5 - Counties With Teen Courts
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||436,500||436,500||0|
3. Explanation of above estimates (including long-range effect):
REVENUE GENERATED UNDER CURRENT LAW:
# That Will Reinstate Reinstatement
Current Suspensions In Current Year Fee Total
60,000 30,000 (50%) $50 $1,500,000
160,000 (1-5 yrs.
Total) 8,000 (20%) $50 $ 400,000
90,000 (6-10 yrs.
Total) 900 (10%) $15 $ 13,500
Total Current Revenue $1,913,500
REVENUE GENERATED UNDER 1 YEAR AMNESTY PERIOD:
Current Suspensions # That Will Reinstate Reinstatement Total
60,000 45,000 (75%) $25 $1,125,000
160,000 (1-5 yrs. old) 40,000 (25%) $25 $1,000,000
90,000 (6-10 yrs. old) 9,000 (10%) $25 $ 225,000
Total Revenue $2,350,000
TOTAL INCREASE IN REVENUE GENERATED BY THIS BILL: $ 436,500