Rebate checks to be mailed in late September

Friday, July 29, 2005 | 9:25 a.m.

CARSON CITY -- The $300 million in rebate checks to Nevada motorists will be put in the mail on one day in late September, it was revealed Thursday.

David McTeer, manager of the program to process the slightly less than 2 million checks, said the one-day mailing will "minimize the risk of fraud."

A temporary telephone call center will be set up to answer questions.

McTeer outlined the program Thursday to the state Board of Examiners, which approved a $1.4 million contract with Bank of America to print and mail the contracts. The bank will subcontract with Moore Wallace to issue the checks. Moore Wallace is the largest mailing company in the world and has successfully conducted similar programs in Washington and Minnesota. Gov. Kenny Guinn, chairman of the board, said the process is speeded up by two to three months by selecting the bank that already has an existing contract with the state, rather going out for formal bids.

The state received about 12 inquiries from firms interested in handling the job, but state Budget Director Perry Comeaux said Bank of America was selected because it already was the state's banker, had conducted similar programs in other state and this "would jump start" the process because the existing contract could be modified.

State Treasurer Brian Krolicki told the Examiners Board that the state has received a better price for handling the rebate than was charged in the other states.

The 2005 Legislature approved Guinn's plan to rebate anywhere from $75 to $275 based on automobile registration fees charged in 2004.

Those 65 years and older, who don't have a registered vehicle, will receive a $75 rebate check if they have a valid identification card from the state Department of Motor Vehicles.

The Legislature set aside $2 million for the handling of the checks. McTeer said the $1,385,409 is the maximum that Bank of America will receive. There will be other costs including the establishment of the telephone call center that will be set up several days before the checks are mailed.

McTeer said the estimated cost per check is 10.75 cents, and the mailing cost will be 28 cents because of the bulk mail.

Some won't get checks. Those who owe money to the DMV for bad checks won't get a rebate until they settle their debt. An estimated 2,500 names have been turned over to the office of state Controller Kathy Augustine to track down those people.

Those motorists who have moved and not changed their address with the DMV will not receive a check. The check will be mailed to the old address and will not be forwarded because of the reduced bulk mail postage rate

Excluded from the rebate will be utility trailers, vehicles weighing more than 26,000 pounds and rental car fleets. Taxicab companies and other businesses that have big fleets will qualify for the rebate.