SB 0539 - Fiscal Note

Fiscal Note - SB 0539 - Automatically closes personal information in motor vehicle records

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2113-02

BILL NO. SB 539

SUBJECT: Motor Vehicle Public Records

TYPE: Original

DATE: January 30, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Highway Fund	($1,123,728)	($678,870)	($694,699)
Information Fund	($575,000)	($575,000)	($575,000)
Total Estimated Net Effect on All State Funds	($1,698,728)	($1,253,870)	($1,269,699)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Insurance (INS) and Department of Transportation (DHT) do not expect to be fiscally impacted.

The Department of Revenue (DOR) assumes that this proposal would render obsolete the procedures implemented on September 13, 1997, to implement SB 19 and the federal Driver's Privacy Protection Act. As a result, the DOR would be required to revamp its procedures and current system; thus, resulting in substantial costs. The DOR assumes that, in essence, its electronic system would no longer be utilized and all transactions would have to be processed manually since each request must be accompanied by written authorization from the record holder.

The Driver's License Bureau receives approximately 1.0 million requests for driver's records through the Electronic Driver Record System. This proposal would prohibit the DOR from accepting these requests without written authorization. The DOR assumes that as a result of this requirement, 800,000 requests would now have to be processed manually. Based on production standards, the DOR assumes it would need an additional 27 Clerk Typist II's to process approximately 30,000 requests per year per FTE.

The Motor Vehicle Bureau indicates that it would need two Clerk Typist II's to gather information on title histories, title checks and other motor vehicle records.

The Field Services Bureau assumes that it could modify the current procedures utilized in the field for the Driver's Privacy Protection Act (DPPA) to accommodate the provisions of this proposal. The DOR requested 10 FTE for the implementation of the DPPA which has not been finalized as of yet. If the FTE request is granted the DOR would not need additional resources as a result of this proposal. The DOR assumes that the appropriations will be received; thus, the fiscal impact to the Bureau would be minimal. However, if the FTE are not appropriated then the DOR indicates that its response to this fiscal note would be modified. Oversight assumes that if the current request is not approved that the DOR would make a future budgetary request for this purpose.

The Information Systems Division would incur costs for programming, unit testing, system testing, implementation and documentation since the Driver's License and General Registration Computer Systems would need extensive modifications. To accommodate these modifications, the division would incur State Data Center costs o f $10,821.

ASSUMPTION (continued)

This proposal would also result in a decrease in revenue. As the proposal would require the written permission of the record holder to accompany the request for the driver's and motor

vehicle record, the DOR anticipates that the Information fund would lose approximately $175,000 in record sales processed by the Division of Motor Vehicle & Driver's Licensing as well as approximately $400,000 in record sales processed by the Information Systems Division.

The Missouri Highway Patrol (MHP) does not expect to be fiscally impacted. Under Chapter 123, Section 2721 (b)(11)(12) of Title XIX of federal regulations, law enforcement agencies would be permitted access to this type of information.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
HIGHWAY FUND
Costs-Department of Revenue (DOR)
Personal Service (29 FTE)	($399,040)	($490,820)	($503,090)
Fringe Benefits	($111,731)	($137,430)	($140,865)
Expense and Equipment	($612,957)	($50,620)	($50,744)
Total Costs-DOR	($1,123,728)	($678,870)	($694,699)
ESTIMATED NET EFFECT ON
HIGHWAY FUND	($1,123,728)	($678,870)	($694,699)
INFORMATION FUND
Loss
Record Sales	($575,000)	($575,000)	($575,000)
ESTIMATED NET EFFECT ON
INFORMATION FUND	($575,000)	($575,000)	($575,000)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0

FISCAL IMPACT - Small Business

This proposal would not have a direct fiscal impact on small businesses.

DESCRIPTION

The Department of Revenue (DOR) would be prohibited from disclosing personal information obtained unless the person gives permission. Notice that personal information is prohibited from disclosure without permission and that the individual has the right to disclose personal information must be printed on all forms for issuance or renewal of motor vehicle titles and registrations and forms for issuance or renewal or motor vehicle operator's permits, licenses and personal identification cards. The DOR can provide bulk disclosures of information only if the individuals have notified the department that they want the information disclosed. Pursuant to Title 18 of the United States Code, the DOR can disclose personal information only with the written consent of the individual whose record or personal information is requested.

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

SOURCES OF INFORMATION

Department of Revenue

Department of Insurance

Department of Transportation

Department of Public Safety

Missouri Highway Patrol

Jeanne Jarrett, CPA

Director

January 30, 1998