Date Requested:March 13, 2013
Time Requested:12:51 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2013R2488 Introduced SB511
CBD Subject: "VETERAN'S AUXILIARY FUND"
FUND(S)
Road Fund
Sources of Revenue
Other 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 create a Veterans Auxiliary Fund to assist with the mission of the Department of Veteran’s Assistance and to provide for donations to the fund by income tax return check off and by contributions facilitated by motor vehicle registration renewal forms.
    
     The current vendor responsible for mailing renewals estimates changes to add a check box on the renewal application would cost around two hundred dollars ($200). Internal accounting costs will be approximately $800 per year. Transaction costs, based on 1.3 million renewals and assuming 15 percent would inquire and 5 percent would donate, would cost approximately $282,100 annually.
    
     This fund will need to be separated on cash register tape receipts and deposits. Programming will be needed for our cash register system. The current vendor has given us a cost of $6,750 to implement these changes.
    
     Currently all revenues collected by the Division of Motor Vehicles, excepted only by specific provision, are designated for the State Road Fund. A Constitutional Amendment was required to allow for fees collected by the Division of Motor Vehicles to be sent to the Division of Natural Resources for the additional revenues generated by sales of the Deer and Bird plates.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 289,850 289,850 282,900
Personal Services 282,900 282,900 282,900
Current Expenses 6,950 6,950 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    Total Annual Renewals 1,300,000
    Inquiries (15%) Actual Contributions (5%)
     195,000 65,000
    Time required for explaining Time required for entering
     program (minutes) 5 donation (minutes) .50
    
     Total Minutes 975,000 32,500
    
    CSR Cost (minutes) .28 .28
    
    Cost of Fund
    Inquiry/Donation 273,000 $ 9,100
    
    Annual Renewal Cost $282,100
    
    One time cost for revising
    renewal form $ 200
    
    One time cost for mailing
     $ 6,750
    
    One time cost for internal
     accounting changes $ 800
    
    TOTAL COST FIRST YEAR $289,850
    
    TOTAL COST THEREAFTER $282,900
    


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