|Date Requested:March 06, 2012
Time Requested:02:37 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The purpose of this bill is to require the Division of Motor Vehicles (DMV) to establish a Driver’s License Restoration Program. This bill amends the WV Code by adding a new section. The bill provides for a 1 year grace period for drivers to clear unpaid ticket files without paying associated court costs, and provides for a 50% reduction in the driver’s license reinstatement fee.
Currently, the DMV reinstates approximately 30,000 driver’s licenses each year. Revenue generated from reinstating those 30,000 is $1,500,000.
Under the proposed amnesty program, it is assumed that 75%, or 45,000, of the 60,000 current year suspensions will reinstate their driver’s license at the rate of $25 generating revenue of $1,125,000. Of the 1 - 5 year old suspensions, it is projected that 25% of the 120,000, or 30,000, will reinstate their driver’s license at a rate of $25 generating revenue of $750,000; and of the 6 - 10 year old suspensions, it is projected that 10%, or 9,000, will reinstate their driver’s license at a rate of $25 generating revenue of $2,100,000.
Current Reinstatements 60,000 (75%) = 45,000 x $25 = $ 1,125,000
1-5 year old Suspensions 120,000 (25%) = 30,000 x $25 = $ 750,000
6-10 year old Suspensions 90,000 (10%) = 9,000 x $25 = $ 225,000
Total Revenue from Reinstatements/Suspensions $ 2,100,000
Revenue generated under the amnesty program will generate approximately $2,100,000 for the one year amnesty period, and the current program generates approximately $1,500,000 annually. The total one-time increase in revenue generated by this bill is $600,000.
There are approximately 4,000 individuals convicted of driving suspended each year. This legislation eliminates the revocation and; therefore, reinstatement fees of $200,000. This potential revenue loss is not shown in the net revenues displayed in the calculation table.
There appears to be a conflict with the language in this Committee Substitute concerning the fee. This fiscal note is based on the proposed fifty percent reduction in the current $50 reinstatement fee and if different, it would alter the fiscal note presentation.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||600,000||600,000||600,000|
3. Explanation of above estimates (including long-range effect):
REVENUE GENERATED UNDER CURRENT LAW:
# That Will Reinstate
Current Suspensions In Current Year Reinstatement Fee Total
60,000 30,000 (50%) $50 $1,500,000
REVENUE GENERATED UNDER 1 YEAR AMNESTY PERIOD:
Current Suspensions # That Will Reinstate Reinstatement Fee Total
60,000 45,000 (75%) $25 $1,125,000
120,000 (1-5 yrs. old) 30,000 (25%) $25 $ 750,000
90,000 (6-10 yrs. old) 9,000 (10%) $25 $ 225,000
Total Revenue $2,100,000
TOTAL INCREASE IN REVENUE GENERATED BY THIS BILL: $ 600,000