FISCAL NOTE

Date Requested: March 29, 2017
Time Requested: 11:34 AM
Agency: Transportation, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1619 Comm. Sub. HB2363
CBD Subject: Motor Vehicles


FUND(S):



Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


Proposed HB2363, as amended, prohibits all state and local governmental entities from using the federal exemption from medical examinations for their employees that hold CDL’s as a job requirement. Upon certification by a physician, an employee may be granted a medical waiver under the federal law for certain conditions. A medical examination is required every two years when the license is renewed. The DOH currently has 2,673 employees who are required as a condition of employment to have a CDL. Taking an average cost of $80 for each medical examination, DOH would be responsible for reimbursing the employees a total of $213,840 every two years for the cost of the examinations. It will take 7.5 minutes to process each properly completed form for reimbursement. It will take three central office employees to process the forms. Taking an average salary and additive rate of 83%, the processing cost for the central office will be $8,290 to process reimbursement for 2,673 employees. The aggregate cost in time and money for the district offices processing the reimbursement requests will also be $8,290. Additionally, DOH estimates an average of 3.5 hours per employee for travel to and from the examination, wait time, and examination time at the average salary plus additive rate for a cost of $118.47 per employee for a total cost of $316,670. The total cost to DOH in the first year and each renewal would be $547,690 upon implementation of HB2363 July1, 2017. The cost in fiscal year 2018 would be for new employees or employees transferring to a position that requires a CDL. Upon full implementation in fiscal year 2018 and every two years thereafter as the CDL’s are renewed the agency cost would be $547,090 or greater as the cost of services raise.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost -547,090 0 -547,090
Personal Services -333,250 0 -333,250
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other -213,840 0 -213,840
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


Federal law does not require employees of government agencies to obtain a medical certification in order to hold a commercial drivers license. This bill requires DOH and other state and local government agencies to have a medical certification for all of their drivers who are required to have a CDL. Each agency will be responsible for the cost of obtaining a medical examination for each CDL holder. This will include the cost of the examination, time off work to obtain the examination, and employee time at the district and central office levels to process the reimbursement request. It is difficult to estimate the cost of obtaining CDL medical examinations for fiscal year 2018 because the examination is required every two years upon renewal of the CDL. If all employees are examined in 2017 there would not be any renewals until 2019. Only new hires or employees transferring to a position that required a CDL would need a medical examination in 2018. Other ($213,840) in the above estimates is the cost of the medical examination (averaged for charges around the state at $80) for the 2673 DOH employees currently required to have a CDL.



Memorandum


The Fiscal Note that was completed on introduced version would be the same impact as the CS for HB2363. Fiscal Note submitted 3-3-17 by DOH. The CS impacted county, city and local government employees with commercial driver's licenses have valid and current medical evaluation certification statuses and, if applicable, medical waivers.



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov