FISCAL NOTE
Date Requested: February 18, 2019
Time Requested: 11:49 AM |
| Agency: |
State Police, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3347 |
Introduced |
SB647 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
FUND(S):
6501 Appropriated Special Revenue
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
This piece of legislation affects the motor vehicle inspection program in that it would require vehicle inspection every two years instead of every year. Expected revenues are listed below for year one with additional projections in the explanation of estimates. Concerns are listed in the memorandum section of this fiscal note.
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 |
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 |
0 |
4,557,854 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Actual Revenues for the Motor Vehicle Inspection Program for FY2018 were $4,557,854. This piece of legislation would double the fee for an inspection sticker and therefore roughly double the amount of revenue received the first year of implementation, an increase of $4,557,854.
Since the stickers would be valid for two years instead of one, year two would show a marked decrease in revenue. In general, only newly purchased cars would need a sticker. We would anticipate revenue of approximately 1,500,000, which is a decrease in revenue (from current revenue anticipation) of $3,057,854.
It is estimated that eventually the annual revenue stream to this program would even out and be consistent from year to year.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
There are concerns with making this piece of legislation effective 90 days from passage or July 1, 2019 because many of the stations purchase their stickers for an entire year at a time. The quantity of refunds for one year stickers and exchange purchase of the two year stickers would be tremendous. Also, there is a relatively large lead time needed for production of stickers by the contracted vendor and our agency could potentially be charged considerably extra for a July 1 delivery (if it is even possible). An effective date of January 1, 2020 would be much cleaner in transition and much more manageable administratively.
Person submitting Fiscal Note: Connie E Gundy, Comptroller
Email Address: connie.e.gundy@wvsp.gov