This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0905 - Eliminates the Missouri Motor Vehicle Commission
L.R. NO. 3390-01
BILL NO. SB 905
SUBJECT: Vehicles - Department of Revenue
TYPE: Original
DATE: February 23, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue
Fund $0 Unknown $0
Total Estimated
Net Effect on All
State Funds $0 Unknown $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
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 Motor Vehicle Commission (MVC) stated that currently MVC
collects $900,000 to $1,000,000 in dealer licensing fees, out of which is
appropriated salaries and operating expenses totaling approximately $705,000
in FY 97 request from the MVC fund. The proposal would eliminate the MVC
fund for FY 98 and transfer the duties to the Director of Revenue and the
remaining MVC funds to the General Revenue Fund.
Officials from the Department of Revenue (DOR) Information systems Division
(ISD) stated that systems modification would be performed with approximately
50 hours of overtime by existing personnel.
The Division of Motor Vehicle and Driver's Licensing would request 8 FTE to
perform the licensing and regulation of motor vehicle dealers and performance
of all duties now carried out by MVC.
The DOR, Office of General Counsel, would request one (1 FTE) that would be
responsible for reviewing laws, rules, and procedural requirements, consumer
complaints and provide legal advise to DOR on all issues related to motor
vehicle dealers.
DOR estimates there would be administrative costs to the General Revenue Fund
for FY 98 at $403,827 and $330,123 for FY 99.
Provisions of the proposal require that the fees collected would be
sufficient to offset operational expenses, therefore, Oversight assumes the
Director of DOR would comply, and costs would not exceed income to the
General Revenue Fund.
It should be noted that there would be an unknown amount of MVC funds
transferred to the General Revenue Fund on July 1, 1997.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Income:
Transfer from Motor Vehicle Commission Fund $0 Unknown $0
Income: Department of Revenue (DOR)
Fees (dealers) $0 $403,827 $330,123
Costs - Department of Revenue (DOR)
Personal Service (9 FTE) $0 ($173,024) ($177,350)
Fringe Benefits $0 ($53,153) ($54,482)
Expense and Equipment $0 ($177,650) ($98,291)
Total Costs to DOR $0 ($403,827) ($330,123)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND $0 Unknown $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
$0 $0 $0
DESCRIPTION
The proposed legislation would remove the Missouri Motor Vehicle Commission
from the statutes and replace it with the Director of the Department of
Revenue. The rules of the Commission would continue in effect, and the
licenses issued by the Commission would be valid until they expire (they
would expire in December, 1997). Moneys in the Motor Vehicle Commission Fund
would be transferred to General Revenue on July 1, 1997. The act has an
effective date of July 1, 1997.
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
Motor Vehicle Commission