SB 0547 - Fiscal Note

Fiscal Note - SB 0547 - Revises the titling procedures for rebuilt motor vehicles

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2477-01

BILL NO. SB 547

SUBJECT: Rebuilt Motor Vehicles

TYPE: Original

DATE: January 7, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
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 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Office of Prosecution Services (OPS) does not expect any direct fiscal impact. No fiscal impact is expected on local prosecutors since the proposal does not create a new crime only clarifies an existing one.

The Department of Insurance (INS), State Treasurer (STO) and Missouri Highway Patrol (MHP) do not expect to be fiscally impacted.

The Office of State Courts Administrator (CTS) assumes that after a period of adjustment that there would not be any appreciable increase in civil or criminal caseloads.

The State Public Defender (SPD) assumes that existing staff would be able to handle the 15-20 anticipated cases arising where indigent persons where accused of failure to apply for a salvage certificate of title. However, the passage of more than one similar proposal could result in the SPD requesting an increase in its appropriation in order to cover the cumulative effect of representing the indigent accused

The Department of Revenue (DOR) expects to need additional FTE (i.e., Branch Office Clerk and Telephone Information Operator I) in order to implement this proposal. This proposal would create a new function for DOR, requiring the DOR to issue titles for stolen vehicles which insurance companies, dealers, lienholders, etc. were not able to recover. If the vehicle is recovered at a later date, the title could be changed to a reconstructed or salvaged title, but initially a stolen vehicle title would be issued. The Division of Motor Vehicle and Licensing estimates that there are 25,000 vehicles stolen annually. The Branch Office Clerk would be responsible for pre-editing, taking title applications, data entry, etc. The Telephone Operator I would be handling incoming calls and performing research. The DOR anticipates numerous calls since this would be a new type of title available. The Operator may at times also take a manual title application. According to DOR, all branded titles (i.e., stolen, reconstructed, salvage, etc), must be processed in Central Office. The branch and fee offices are not allowed to process such titles.

Oversight assumes this proposal would result in a shifting of workload from issuing one type of title to another. Oversight has not included costs for new staff and related expenses. However, if workload increases more than anticipated, DOR may request additional overtime and/or staffing through the normal budget process.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
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 proposed legislation would revise the definition of salvage vehicles and the method for titling vehicles which were previously salvage vehicles. A person owning a salvage vehicle would be required to forward to the director of the Department of Revenue (DOR) the current title within 10 working days of the declaration or repair along with proper application for title and a $8.50 fee. Salvage vehicles older than seven years would only need to be titled if the vehicle is rebuilt or purchased or transferred for rebuilding. When rebuilt, the vehicle could be examined, titled and registered as a "prior salvage vehicle". Full disclosure that the vehicle is a salvage motor vehicle would be required. Insurance companies would be required to provide information to Department of Revenue when title to a vehicle is acquired under a claim of insurance. Numerous other provisions relating to "salvage vehicles" are included.

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

State Treasurer

Department of Insurance

State Public Defender

Office of Prosecution Services

Missouri Highway Patrol

Department of Public Safety

Jeanne Jarrett, CPA

Director

January 7, 1998