Date Requested:March 06, 2012
Time Requested:02:37 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2012R1997 Comm. Sub. SB519
CBD Subject: SUSPENSION/REVOCATION OF DRIVERS LICENSE
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 require the Division of Motor Vehicles (DMV) to establish a Driver’s License Restoration Program. This bill amends the WV Code by adding a new section. 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.
    
    Currently, the DMV reinstates approximately 30,000 driver’s licenses each year. Revenue generated from reinstating those 30,000 is $1,500,000.
    
    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% of the 120,000, or 30,000, will reinstate their driver’s license at a rate of $25 generating revenue of $750,000; 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 $2,100,000.
    
    
    Current Reinstatements 60,000 (75%) = 45,000 x $25 = $ 1,125,000
    
    1-5 year old Suspensions 120,000 (25%) = 30,000 x $25 = $ 750,000
    6-10 year old Suspensions 90,000 (10%) = 9,000 x $25 = $ 225,000
    
     Total Revenue from Reinstatements/Suspensions $ 2,100,000
    
    Revenue generated under the amnesty program will generate approximately $2,100,000 for the one year amnesty period, and the current program generates approximately $1,500,000 annually. The total one-time increase in revenue generated by this bill is $600,000.
    
    There are approximately 4,000 individuals convicted of driving suspended each year. This legislation eliminates the revocation and; therefore, reinstatement fees of $200,000. This potential revenue loss is not shown in the net revenues displayed in the calculation table.
    
    There appears to be a conflict with the language in this Committee Substitute concerning the fee. This fiscal note is based on the proposed fifty percent reduction in the current $50 reinstatement fee and if different, it would alter the fiscal note presentation.
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 600,000 600,000 600,000
3. Explanation of above estimates (including long-range effect):
    REVENUE GENERATED UNDER CURRENT LAW:
    
     # That Will Reinstate
    Current Suspensions In Current Year Reinstatement Fee Total
    
    60,000 30,000 (50%) $50 $1,500,000
    
    REVENUE GENERATED UNDER 1 YEAR AMNESTY PERIOD:
    
    Current Suspensions # That Will Reinstate Reinstatement Fee Total
    
    60,000 45,000 (75%) $25 $1,125,000
    120,000 (1-5 yrs. old) 30,000 (25%) $25 $ 750,000
    90,000 (6-10 yrs. old) 9,000 (10%) $25 $ 225,000
    
     Total Revenue $2,100,000
    
    TOTAL INCREASE IN REVENUE GENERATED BY THIS BILL: $ 600,000


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