SB 0699 - Fiscal Note

Fiscal Note - SB 0699 - Regulates Alarm & Security Businesses

L.R. NO.  2667-01
BILL NO.  SB 699
SUBJECT:  Security Alarm Systems
TYPE:     Original
DATE:     January 22, 1996



                              FISCAL SUMMARY


                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Private Security
Alarm Business
Registration Fund                  $0              $0             $0

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


                   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 of the Department of Revenue assume that this proposal would have
minimal administrative impact to their agency which would be handled by
existing staff.

Officials of the Missouri Office of Prosecution Services and the State Public
Defender assume that there would be minimal fiscal impact to their agencies.

Officials of the State Courts Administrator assume that after a period of
adjustment, there would be no appreciable increase in litigation sue to this
proposal.

Officials of the Department of Public Safety - Division of Fire Safety assume
that this proposal would have no fiscal impact to their agency.

Officials of the Office of the Attorney General (AGO) assumed that they would
request .50 FTE (Assistant Attorney General I), and related equipment and
operating expenses to carry out the provisions of this proposal with an
estimated cost of $26,307 to General Revenue Fund.

Oversight assumes that fees charged alarm dealers would allow the Board
created to reimburse the Attorney General for his office's costs related to
presenting the Board.

Officials of the Department of Economic Development - Division of
Professional Registration (PR) estimated a cost of $3.00 per transaction to
receive, deposit and forward accompanying documentation to the Department of
Public Safety for processing.  Therefore, based on the number of estimated
alarm businesses submitted by the Department of Public Safety (400) in
response to a similar proposal in the previous legislative session, the cost
of this legislation would be approximately $1,200 (400 registrants x $3.00).
PR officials assumed that their division would be reimbursed  for its costs
by  the MO Private Security Alarm Business Registration Fund through
interagency billing.

Oversight assumes that there would be unknown expenses associated with the
Missouri Private Security Alarm Business Registration Board.  Oversight also
assumes that fees would be set at a level sufficient to cover administrative
costs of this proposal and have therefore reflected an unknown income to the
Private Security Alarm Business Registration Fund and a $0 net effect to the
same fund.


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

PRIVATE SECURITY ALARM BUSINESS
REGISTRATION FUND

Income-Department of Economic Development,
Division of Professional Registration (PR)
  Fees                               Unknown      Unknown      Unknown

Cost-Department of Economic Development-
Division of Professional Registration (PR)
  Transaction fee                   ($1,200)     ($1,200)     ($1,200)

Cost-Department of Public Safety
Division of Fire Safety
  Board expenses                   (Unknown)    (Unknown)    (Unknown)


ESTIMATED NET EFFECT ON PRIVATE
SECURITY ALARM BUSINESS
REGISTRATION FUND                        $ 0          $ 0          $ 0



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

                                           0            0            0


DESCRIPTION

This proposal would require anyone in the alarm business in Missouri to
obtain a certificate of registration.  This proposal would also prohibit an
alarm business from operating in Missouri unless at least one of the
principals active in the business or a person employed as a manager or
supervisor was registered as an alarm business manager.

This proposal would create the Missouri Private Security Alarm Business
Registration Board.  This Board would have the power and authority to perform
various tasks including the promulgation of rules, the examination of
applicants, and the registration of persons and entities engaged in the alarm
business.  It would also authorize the Board to set fees to cover
administrative costs and place those fees in the newly created Private
Security Alarm Business Registration Fund.  The Board would be allowed to
file a complaint with the Administrative  Hearing Commission for causes
outlined in this proposal and the Board could request the Attorney General to
seek injunctive relief in a court of competent jurisdiction.  This proposal
would provide whistle blower protection and would preempt most county and
local ordinances, rules and regulations.

Violations of this proposal would be a class A misdemeanor.

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 Public Safety
Department of Revenue
State Courts Administrator
Office of Prosecution Services
Office of the State Public Defender
Office of the Attorney General
Department of Economic Development - Professional Registration