FISCAL NOTE
Date Requested: January 10, 2020
Time Requested: 03:36 PM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1430 |
Introduced |
HB4050 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
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 counties with a population of 25,000 or greater have a Division of Motor Vehicles office location within the county unless there is a Division of Motor Vehicles office location within 25 miles from the county seat; require counties with a population of less than 25,000 install a Division of Motor Vehicles Now kiosk unless the county seat is within 25 miles of a Division of Motor Vehicles office location; establishing the maximum amount of Division of Motor Vehicles office locations in this state; prescribing the maximum amount of Division of Motor Vehicles Now kiosks to be determined at a later date; and requiring the provisions of this code be implemented by July 1, 2022.
The purpose of this bill is to required counties with a population 25,000 or greater have a Division of Motor Vehicles office location within in the county unless there is a Division of Motor Vehicles office location within 25 miles from the county seat; require counties with a population of less than 25,000 install a Division of Motor Vehicles Now kiosk unless the county seat is within 25 miles of a Division of Motor Vehicles office location; establishing the maximum amount of Division of Motor Vehicles office locations in this state; prescribing the maximum amount of Division of Motor Vehicles Now kiosks to be determined at a later date; and requiring the provisions of this code be implemented by July 1, 2022.
The stated purpose above is a direct quote from the bill submitted to the Division for review however, the statement “establishing the maximum amount of Division of Motor Vehicles office locations in this state” is not applicable as there is no language in the legislation establishing such limit.
The annual cost of each kiosk is $44,100, less $3 per transaction paid by the customer. The Division estimates the new Kiosks will produce, on an annual basis, an average of 640 transactions. This estimate is based upon FY19 activity at the Kiosk located in Wheeling WV and is adjusted to allow for reduced population of the counties in which the new Kiosks are to be located. This reduces the Division’s overall cost for each unit by $1,920 ($3 x 640) for a net annual expense of $42,180 per kiosk. The Division estimates the addition of 14 DMV Now kiosks at an average annual net expense $42,180 for a total annual expense of $590,520 (14 x $42,180). These kiosks would most likely be in the communities of Glenville, Grantsville, Middlebourne, Marlinton, Webster Springs, Harrisville, West Union, Madison, Clay, Hinton, Weston, Philippi, Saint Marys, and New Martinsville.
Functionality of units placed in Clay and Webster counties would be limited as these counties do not have property tax records on-line which is a requirement for renewing a vehicle registration through a kiosk.
The Division is currently responsible for the operation of 8 Kiosk’s across the state. The Agency in not incurring any fees on these units as the Division is still in the pilot phase of the program. Should more Kiosks be added the pilot phase would terminate and the Division would be responsible for the costs of 8 kiosk for a total of $282,297.
Under the provisions of the bill the Division would be required to open an office if a county with less than 25,000 residents, and a county seat is more than 25 miles from an existing office, experiences population growth causing the county’s population to exceed 25,000. Approximate costs to open such an office would be as follows: Initial costs for furniture, fixtures and equipment, $95,000, annual operating costs (current expense) of $135,000, and personal services of $400,000.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
872,817 |
872,817 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
872,817 |
872,817 |
| 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):
$ 42,180 Net Cost per Kiosk
14 # of Kiosk
$ 590,520 Total Expense for Additional Kiosks
$ 282,297 Costs to be Incurred on Existing Kiosks
$ 872,817 Total Current Expense
Memorandum
The current demand for technical expertise and support on the Division exceeds our current resource level. This bill will require additional technical expertise and support. Therefore, the Division needs to add an Information Systems Manager 1 position at an estimated annual cost of $79,500 (Salary and Benefits) and a Programmer Analyst 3 position at an estimated annual cost of $75,000 (Salary and Benefits).
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov