Decision yet to be made on delivery of rebate checks

Friday, June 17, 2005 | 9:44 a.m.

CARSON CITY -- More than a dozen private companies have expressed interest in processing the nearly two million checks it will take to rebate $300 million to registered car owners.

So far there's no decision whether the state will do the job or farm it out. And the checks may not start rolling out until September.

A meeting was held Thursday of key state agencies involving representatives of the governor's office, controller, treasurer, Department of Motor Vehicles and the state Administration Department.

"It was a brainstorming session of all the issues," said Michael Hillerby, Gov. Kenny Guinn's chief of staff. Guinn signed the bill Wednesday.

Hillerby said issues discussed included security, returned checks and whether the checks should be sent first class or by cheaper pre-sorted mail.

Several hundred people have already called wondering about their rebates after the Legislature approved the bill on the closing day of the session earlier this month, state officials said.

The rebate was a major part of the governor's legislative agenda and comes from a budget surplus.

The refunds will range from $75 to $275 for each vehicle registered last year. In addition, those persons 65 and older who don't have a car but do have an identification card from the motor vehicle department will qualify for a $75 check.

Kim Huys, acting chief deputy state controller, said there are still options being explored whether the state would process the checks or it be farmed out to private business. "We're investigating the best possible solution," she said.

Tom Jacobs, public information officer for the motor vehicle department, said this was a "complicated project" and another meeting will be held next week to further iron out details.

State Controller Kathy Augustine said it may be September before the checks are mailed because the database of the motor vehicle department listing the owners may not be ready until then.

Hillerby also said it may be Sept. 1 before the final list is ready from the motor vehicle department and the check cutting can begin.

Michael Kuckenmeister, chief of the materials and management section in the state Purchasing Division, said the state received 15 letters of interest from private companies that might want to handle the processing. He called it a "fishing expedition" and said the division was looking for information.

Hillerby said some companies from Nevada and others from out-of-state expressed preliminary interest to handle the cutting and mailing of the refunds.

Once the plan is settled, the state intends to establish a call center for people to inquire if they don't get their checks or when they can expect them.

Hillerby said there will be calls from people who have changed their address since last year and those checks will be returned to the state. When the person inquires, the check can be resent to the new address.

There will be a tracking system so when a person calls in and complains, a worker will be able to tell the person when and where the check was mailed to and if it was cashed and who signed it.

The interest from the private companies has come in different forms, Hillerby said. Some have just submitted an e-mail while others forwarded a detailed plan for processing the checks. These are just preliminary correspondence from companies who are interested. And if the state decides to hire a private firm, there will be a formal request for proposals.

Augustine's office has offered to do the job but it will need additional speedy printing machines to handle the chore.

The governor's office estimated it would cost $2 million to process the $300 million in rebate checks.