FISCAL NOTE

Date Requested: February 01, 2018
Time Requested: 02:58 PM

2059	Amendment - H GO	HB4015
Agency:	Motor Vehicles, WV Division of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Finance and Administration

FUND(S):

Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

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 require that all state vehicles are registered with the DMV, are registered annually, always display currently registered plates, and are recorded as fixed assets in the State’s accounting system. The DMV shows 10,500 vehicles titled to state agencies. Implementation of this bill will consist of title and registration cards at $1,842, license plates at $70,350, processing (labor) costs of $52,500, and postage of $21,504, for a total of $149,796. It is estimated that each year 80% of the vehicles will be renewed at an annual cost of $46,924 and 20% will be replaced at a cost of $29,239 for a total annual cost of $76,163. The above estimate is based upon the 10,500 vehicles the DMV currently lists as “State Vehicles” in it’s records. The estimate assumes a 5-year vehicle life and replacement of registration plates. The estimate further assumes 20% of all transactions will not incur postage because they will be delivered to the spending unit by a delivery method other than US Postal Service. This bill places additional burden on an Agency that is already short staffed. The above estimate does not include the cost to implement the provision located in Section §17A-3-23, page 18, lines 33 to 35, which reads: The commissioner shall verify the vehicle is a state asset recorded in the central accounting system as maintained by the Enterprise Resource Planning Board before issuing any motor vehicle registration plates. The cost to implement this provision was not included as the ability to execute this function does not exist. Upon discussion with council for the House Government Organization Committee it was agreed to change the requirement to read as follows: The spending unit shall provide to the commissioner an affirmative statement under the penalty of perjury that the vehicle is a state asset recorded in the central accounting system as maintained by the Enterprise Resource Planning Board before the commissioner is required to issue any motor vehicle registration plates: Provided, That for leased vehicles, the spending unit shall affirm to the commissioner that the vehicle is leased and not required to be recorded in the state central accounting system.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2018 Increase/Decrease (use"-")	2019 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	149,796	76,163
Personal Services	0	52,500	52,500
Current Expenses	0	97,296	23,663
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	0	0

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

Year of Implementation Costs Programming Cost $ 3,600.00 Per Transaction Cost Units* Title $ 0.15890 10,500 $ 1,668.45 Front Plate $ 3.35000 10,500 $ 35,175.00 Rear Plate $ 3.35000 10,500 $ 35,175.00 Registration Card $ 0.01655 10,500 $ 175.78 Labor $ 5.00000 10,500 $ 52,500.00 Postage $ 2.56000 8,400 $ 21,504.00 Sub Total $ 14.43545 10,500 $ 146,196.23 Total $ 149,796.23 Cost Per Year After Implementation Annual Vehicle Renewal Units** Decal $ 0.14000 8,400 $ 1,176.00 Registration Card $ 0.12615 8,400 $ 1,059.66 Labor $ 5.00000 8,400 $ 42,000.00 Postage $ 0.40000 6.720 $ 2,688.00 Vehicle Replacement Title $ 0.15890 2,100 $ 333.69 Front Plate $ 3.35000 2,100 $ 7,035.00 Rear Plate $ 3.35000 2,100 $ 7,035.00 Registration Card $ 0.01655 2,100 $ 34.76 Labor $ 5.00000 2,100 $ 10,500.00 Postage $ 2.56000 1,680 $ 4,300.80 Total $ 76,162.91

Memorandum

Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov