Fiscal Note - SB 0091 - Requires Evidence of Insurance to be Shown at the Time of Motor Vehicle Registration
L.R. NO. 0403-01
BILL NO. SB 91
SUBJECT: Licenses - Motor Vehicle
TYPE: Original
DATE: January 13, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Highway Fund ($45,463) ($22,689) ($23,079)
Total Estimated
Net Effect on All
State Funds ($45,463) ($22,689) ($23,079)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
No fiscal impact would be expected on the budgets of the Department of Public
Safety (DPS), Missouri Highway Patrol (MHP), State Public Defender (SPD), or
Office of Prosecution Services (OPS).
Officials from the Office of State Courts Administrators (CTS) are unable to
estimate the number of prosecutions for filing a false declaration that may
result from this proposal. In most cases CTS would expect the charge to be
an additional charge which could result from an accident. There would be
some increase in workload in the circuit courts. Any budgetary impact would
be reflected in future budget requests.
The Department of Revenue (DOR) - Motor Vehicle Bureau (MVB) expects
additional rejection notices as a result of the applicant not forwarding the
insurance identification card to the MVB at the time of registration. During
FY 96, the MVB Central Branch Section processed 57,700 registrations which
could potentially be affected by this proposal. It was estimated that during
FY98 approximately 80% of the 57,700 would be rejected; 40% in FY99; and 30%
in FY2000. A 2% growth rate was assumed in the number of transactions. DOR
assumes, based on current production standards, that 3 Clerk Typist II's
would be required in FY98, 2 in FY99; and 1 in FY2000.
Oversight assumes that DOR's estimate of the percentage of registrations
which would be rejected annually is high based on the assumption that
instructions, forms, etc., are mailed to applicants explaining what documents
are required prior to making application for registration. Oversight would
not anticipate an appreciable increase in rejections due to this legislation,
therefore 3 clerk typists and related expense and equipment have been removed
from the fiscal note.
Of the 4.6 million registrations, DOR expects 1% to call in to the Central
Office with questions regarding the registration application. MVB would need
2 FTE Telephone Information Specialists (TIS) the first year and would reduce
to 1 TIS for FY99 and FY2000.
DOR assumed the only form that must contain the bold colored print is the
renewal notice. DOR stated there would be a forms printing cost for the
title and licensing applications in order to record the declaration in the
amount of $49,800.
Oversight assumes the current forms inventory could be allowed to deplete,
resulting in very little excess printing costs, and that a supplemental form
could be inserted temporarily or current forms could be stamped if needed at
a cost of $5,000.
For purposes of this fiscal note, Oversight has reduced DOR's request to the
following: Motor Vehicle Bureau, 2 Telephone Information Specialist at
$16,488 for FY98, 1 TIS for FY99 and FY2000 along with related expense and
equipment.
Should workloads increase more than Oversight anticipates, DOR could request
additional resources through decision items in the normal budget process.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
HIGHWAY FUND
Costs - Department of Revenue (DOR)
Personal Service (2-1-1 FTE) ($28,167) ($17,323) ($17,161)
Fringe Benefits ($8,036) ($4,942) ($4,896)
Expense and Equipment ($9,260) ($424) ($427)
Total Costs - DOR ($45,463) ($22,689) ($22,484)
ESTIMATED NET EFFECT ON
HIGHWAY FUND ($45,463) ($22,689) ($22,484)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would require that every vehicle owner must present
proof that the vehicle is insured at the time of a motor vehicle registration
renewal. Motor vehicle owner must sign a declaration stating that insurance
coverage will be maintained during the period of licensure. The declaration
shall state clearly that a false declaration is a crime.
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 Public Safety
Missouri Highway Patrol
State Public Defender
Prosecution Services
State Courts Administrator
This Fiscal Note is not an official copy and should not be quoted or cited.