SB 0647 - Fiscal Note

Fiscal Note - SB 0647 - Validation Stickers Replace License Plate Tabs

L.R. NO.  2590-01
BILL NO.  SB 647
SUBJECT:  Validation stickers replace license plate tabs
TYPE:     Original
DATE:     January 19, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Highway Fund                    $0            $106,465          $218,206

Total Estimated
Net Effect on All
State Funds                     $0            $106,465          $218,206

                   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

No fiscal impact would be expected on the Department of Corrections (DOC).

Officials from the Department of Revenue (DOR), Motor Vehicle Bureau (MVB)
assume that when the license plate registration is transferred from one
vehicle to another, DOR must issue a new validation sticker, as it is assumed
the sticker would be made of a material not conducive to transfer.  Therefore
DOR would incur validation sticker costs in FY98 of $15,080 and in FY99 costs
of $30,764.

A set of tabs currently costs $0.14.  The cost of the proposed sticker would
be $0.08.  Under this proposal DOR would realize savings of $0.06 per
registration.

Beginning January 1, 1997, the Director of Revenue plans to do a total
license plate reissuance.  Because the new plate would be indicative of the
fees paid, no tabs would be necessary, therefore, no costs or savings would
be incurred in FY97.

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

HIGHWAY FUND

Department of Revenue
  Cost Savings                          $0  $130,529  $266,278

Costs to Department of Revenue
  Equipment & Expense                   $0 ($24,064) ($48,072)

ESTIMATED NET EFFECT ON
HIGHWAY FUND                            $0  $106,465  $218,206


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

                                        $0        $0        $0




DESCRIPTION

The proposed legislation provides that validation stickers would replace
license plate tabs as evidence of the annual payment of motor vehicle
registration fees.  The validation stickers would be placed on the inside of
the driver's side of the windshield.

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

Department of Revenue
Department of Corrections