FISCAL NOTE
Date Requested: February 10, 2021 Time Requested: 04:49 PM |
Agency: |
Motor Vehicles, WV Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1443 |
Introduced |
HB2250 |
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CBD Subject: |
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FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to make certain changes to the requirements for the issuance or renewal of a driver’s license. The bill requires that persons seeking the waiving of certain licensing fees by individuals as being legally blind must have been diagnosed as being legally blind by a U.S. licensed optometrist or ophthalmologist. The bill also provides that proof that a person seeking a driver’s license is a veteran need only be provided upon the initial application and is not required for subsequent renewals. And, bill further provides that veterans over 65 years of age be granted a lifetime driver’s license for a fee of $50 subject to an eye examination every five years.
There are approximately 327,000 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 24,000 (316,000 x 7.3% (rounded)) drivers, age 65 and older would be eligible for the lifetime license. The Division estimates that 50% of those drivers (24,000 x 50% = 12,000) would select the lifetime license upon their next drivers’ license renewal. The standard West Virginia drivers’ license is on a 5-year renewal cycle so the number of those age 65 and older selecting the lifetime license would be 2,400 (12,000 / 5). Additionally, there are approximately 22,000 drivers entering the eligible age group each year. Of this group the Division estimates that 800 (22,000 x 7.3% x 50%(rounded)) drivers will select the lifetime license. The total number of drivers selecting the lifetime license for each of the first 5 years would be 3,200 (2,400 + 800).
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 $40,000 (800 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 change in revenue of -$40,000 ($40,000 - $80,000).
Current expenses consist of mainframe programming $57,600, cash register programming to accept the new fee, $3,450, and mailing reminder notices for the 5-year eye examination $1,834.
The lifetime license will not apply to the issuance of a Commercial Driver License or a Federally Compliant license as federal law prohibits the issuance of these licenses for periods greater than 8 years.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2021 Increase/Decrease (use"-") |
2022 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
61,050 |
1,834 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
61,050 |
1,834 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
80,000 |
-40,000 |
Explanation of above estimates (including long-range effect):
$57,600 Mainframe Programming
3,450 Cash Register Programming
$61,050 Total Current Expense
Revenue
$80,000 Increase
Full Implementation
$1,834 Mailing Costs
$1,834 Total Expenses
Revenue
-$40,000 Decrease
Memorandum
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov