SB 0536 - Fiscal Note

Fiscal Note - SB 0536 - Prohibits Sale of Motor Fuel Below Cost

L.R. NO.  1993-01
BILL NO.  SB 536
SUBJECT:  Motor Fuel Merchandising Practices
TYPE:     Original
DATE:     January 15, 1996



                              FISCAL SUMMARY


                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

General Revenue             ($53,747)       ($57,930)      ($59,440)


Total Estimated
Net Effect on All
State Funds                 ($53,747)       ($57,930)      ($59,440)


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None


Total Estimated
Net Effect on All
Federal Funds                      $0              $0             $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Local Government                   $0              $0             $0



                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Attorney General (AGO) assume they would need
one FTE Assistant Attorney General I ($30,000 per year) and one FTE
Investigator ($25,000 per year), equipment and operating expenses to carry
out the provisions of this proposal with an estimated cost of approximately
$115,000 per full fiscal year to the General Revenue Fund.  AGO expects the
"intent or effect" language would result in hundreds of reports from outside
agencies or individuals that would require investigation.  As a result of the
investigations, AGO would expect to file at least 50 complaints, five to ten
of which would result in protracted litigation.

Based on the fact that AGO investigated 35 complaints and litigated two cases
during FY 93 under the "intent or effect" language contained in the proposed
legislation, Oversight assumes that .50 FTE Assistant Attorney General I and
.50 FTE Investigator would enable AGO to effectively carry out the provisions
of this proposal.

Officials from the Office of State Courts Administrator, the Office of
Prosecution Services, the Office of State Public Defender, the Department of
Revenue, and Department of Public Safety assume the proposed legislation
would have no fiscal impact on their respective budgets.


FISCAL IMPACT - State Government     FY 1997     FY 1998     FY 1999
                                    (10 Mo.)
GENERAL REVENUE FUND
Costs - Office of Attorney General (AGO)
   Personal Service (2.0 FTE)      ($29,961)   ($36,853)   ($37,774)
   Fringe Benefits                   (7,045)     (8,665)     (8,882)
   Equipment and Expense            (16,741)    (12,412)    (12,784)

Total Costs - AGO                  ($53,747)   ($57,930)   ($59,440)

ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND               ($53,747)   ($57,930)   ($59,440)


FISCAL IMPACT  - Local Government    FY 1997     FY 1998     FY 1999
                                    (10 Mo.)

                                          $0          $0          $0


DESCRIPTION

This proposal would make it unlawful to sell motor fuel below cost if the
intent or effect of the sale is to injure competition.  Currently, it is only
unlawful to sell motor fuel below cost if the intent of the sale is to injure
competition.  This proposal would reenact Section 416.640, repealed in 1995,
allowing a prima facie case to be shown by proof of sale below cost and
injury to competition.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Office of State Courts Administrator
Office of Attorney General
Department of Revenue
Department of Public Safety
Office of Prosecution Services
Office of State Public Defender