FISCAL NOTE
Date Requested: January 18, 2019
Time Requested: 01:41 PM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2303 |
Introduced |
HB2516 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to make easier the renewal of driver license with the designation of “Veteran” and to provide a lifetime license for veterans over age 65 with some qualifications.
There are approximately 316,000 driver’s that are age 65 and over in West Virginia. National statistics place the number of people who have served in the military at 7.3%. Therefore, approximately 23,000 (316,000 x 7.3%) drivers, age 65 and older would be eligible for the lifetime driver’s license. The Division estimates that 50% of those drivers (23,000 x 50% = 11,500) would select the lifetime license upon their next driver’s license renewal. The standard West Virginia driver’s license is on a 5-year renewal cycle so the number of those age 65 and older selecting the lifetime license would be 2,300 (11,500 / 5) per year. Additionally, there are approximately 24,000 drivers entering the eligible age group each year. Of this group the Division estimates that 900 (24,000 x 7.3% x 50%) drivers will select the lifetime driver’s license. The total number of drivers selecting the lifetime driver’s license for each of the first 5 years would be 3,200 (2,300 + 900).
Fees generated by the lifetime license would total $160,000 (3,200 x $50). The fees that would have been collected using the standard 5-year license term would be $80,000 (3,200 x 25) for a net increase in revenue of $80,000 ($160,000 - $80,000) for each of the first 5 years.
After the first 5 years the annual revenue would be reduced to $45,000 (900 new licenses sold x $50). The loss in revenue by drivers not renewing under the 5-year plan would be $80,000, as stated above, for a net loss in revenue of $35,000 ($45,000 - $80,000).
Current expenses consist of mainframe programming $121,000, cash register programming to accept the new fee, $3,500, and mailing reminder notices for the 4-year eye examination $1,834.
The lifetime driver’s license will not apply to the issuance of Commercial Drivers Licenses or Federally Compliant licenses as federal law prohibits the issuance of these licenses for periods greater than 8 years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
125,100 |
1,834 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
125,100 |
1,834 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
80,000 |
-35,000 |
Explanation of above estimates (including long-range effect):
$121,600 Mainframe Programming
$3,500 Cash Register Programming
$125,100 Total Programming Costs
Revenues
$80,000 First 5 Years Increase
-$35,000 After 5 Years Decrease
Memorandum
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov