OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-6495

AN ACT CONCERNING REVISIONS TO THE MOTOR VEHICLE STATUTES.

As Amended by House “A” (LCO 7655)

House Calendar No.: 248


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Motor Vehicle Dept.

TF - Cost

None

1,125,653

Motor Vehicle Dept.; Comptroller- Fringe Benefits1

TF - Cost

None

139,614

Judicial Dept.

GF - Potential Revenue Loss

None

See Below

Motor Vehicle Dept.

TF - Revenue Gain

None

1,539,000

Legislative Mgmt.; Various State Agencies

GF - Cost

less than 1,000

None

Municipal Impact:

Municipalities

Effect

FY 14 $

FY 15 $

Various Municipalities

Potential Revenue Gain

None

See Below

Explanation

It is anticipated that the Department of Motor Vehicles (DMV) will need eighteen additional staff positions to handle the increased caseload of issuing new motor vehicle operator licenses and adult permits to undocumented individuals living in Connecticut. As the bill is effective January 1, 2015, FY 15 costs are estimated to be approximately $1.3 million in FY 15 for personal services (including fringe benefits costs) and other expenses due to adding eighteen additional staff position for six months. Costs are anticipated to be $1.1 million in FY 16 and $1.2 million in FY 17. The bill is also anticipated to result in a revenue gain to the Special Transportation Fund of approximately $1.5 million in FY 15, $2.8 million in FY 16 and $769, 500 in FY 17.

DMV Costs

DMV is expected to require eighteen additional staff positions, twelve Motor Vehicle Examiners ($42, 855/Examiner) and six Motor Vehicle License Operator Agents ($49, 027/Agent) to handle the increased caseload of issuing new motor vehicle operator licenses and adult permits to undocumented individuals living in Connecticut. The table below presents the anticipated cost to the department for personal services and other expenses including one-time costs in FY 15 for information technology, computers and printers, office furniture and supplies.

Anticipated Cost to the Department of Motor Vehicles

 

Personal Services $

Other Expenses $

Total $

FY 15

543,825

721,442

1,265,267

FY 16

1,136,595

44,340

1,180 935

FY 17

1,187,742

44,340

1,232,082

FY 18

1,311,861

44,340

1,356,201

STF Revenue

It is anticipated that approximately 54, 000 licenses and permits will be issued over the next three years. The table below presents the anticipated revenue gain. The estimate assumes 30% of the eligible population will apply for a license/permit in FY 15, 55% in FY 16, and the remaining 15% in FY 17. The fee for a three year motor vehicle operator's license is $36 and the fee for an adult driving permit and test is $59.

Anticipated Revenue Gain to the Department of Motor Vehicles

 

MV License Revenue Gain $

MV Adult Permit Revenue Gain $

Total $

FY 15

583,200

955,800

1,539,000

FY 16

1,069,200

1, 752,300

2,821 500

FY 17

291,600

477,900

769,500

FY 18

583,200

-

583,200

It is also anticipated that by allowing undocumented individuals to obtain a motor vehicle operator's license there will be a reduction in the number of violations of driving without a license which will result in a revenue loss to the General Fund. In FY 12 there were 742 violations for driving without a license which generated $84, 000 in revenue.

To the extent that there is an increase in the amount of registered cars there will be a revenue gain to DMV due to the increased number of registration fees and an associated revenue gain to municipalities due to an increase in property tax collections.

Lastly, there may be a cost of less than $1, 000 to agencies participating in the task force to reimburse legislators and agency staff for mileage expenses.

House “A” struck the original bill and results in the fiscal impact as stated above.

The Out Years

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

FY 18 $

Motor Vehicle Dept.

TF - Cost

889,141

927,157

1,019,411

Motor Vehicle Dept.; Comptroller- Fringe Benefits

TF - Cost

291,794

304,925

336,790

Judicial Dept.

GF - Potential Revenue Loss

See Above

See Above

See Above

Motor Vehicle Dept.

TF - Revenue Gain

2,821,500

769,500

583,200

Legislative Mgmt.; Various State Agencies

GF - Cost

None

None

None

Municipal Impact:

Municipalities

Effect

FY 16 $

FY 17 $

FY 18 $

Various Municipalities

Potential Revenue Gain

See Above

See Above

See Above

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 34.54% of payroll in FY 14 and FY 15.