FISCAL NOTE

Date Requested: February 01, 2018
Time Requested: 02:58 PM
Agency: Motor Vehicles, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
2059 Amendment - H GO HB4015
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, programming at $772, license plates at $70,350, processing (labor) costs of $21,000, and postage of $2,688, for a total of $96,653.
    
    It is estimated that each year 80% of the vehicles will be renewed at an annual cost of $19,372 and 20% will be replaced at a cost of $19,176 for a total annual cost of $38,548.
    
    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 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
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 96,653 38,548
Personal Services 0 21,000 21,000
Current Expenses 0 75,653 17,548
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 $772.50
    
    Per Transaction Cost
     Units *
    Title & Reg. Card $0.17545 10,500 $1,842.23
    Front & Rear Plates $6.70000 10,500 $70,350.00
    Labor Cost $2.00000 10,500 $21,000.00
    Mail Cost $2.56000 1,050 $2,688.00
    
    Sub Total $11.43545 $95,880.23
    
    Total $96,652.73
    
    Cost Per Year After Implementation
    
    Annual vehicle Renewal
     Units**
    Decal Cost $0.14000 8,400 $1,176.00
    Registration Card $0.12615 8,400 $1,059.66
    Mail Cost $0.40000 840 *** $336.00
    Labor $2.00000 8,400 $16,800.00
    
    Sub Total $19,371.66
    
    Vehicle Replacement
    
    Title & Reg. Card $ 0.17545 2,100 $368.45
    Front & Rear Plates $ 6.70000 2,100 $14,070.00
    Labor Cost $ 2.00000 2,100 $4,200.00
    Mail Cost $ 2.56000 210 *** $537.60
    
    Sub Total $19,176.05
    
    Total $38,547.71
    
    * The above estimate is based upon 10,500 state owned vehicles.
    ** Renewal cost based on estimated life of state owned vehicle as 5 years.
    *** The above estimates assume that 80% will require US Postal Service Delivery.
    



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.



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