This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0599 - Children under age 18 must attend school to have a driver's license
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2631-01
BILL NO. SB 599
SUBJECT: Educational Requirements for Driver's License
TYPE: Original
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Highway Fund | ($15,884) | $14,451 | $13,653 |
| General Revenue | ($0 to $15,448,625) | ($0 to $15,912,084) | ($0 to $16,389,446) |
| Total Estimated
Net Effect on All State Funds |
($15,884 to $15,464,509) | $14,451 to ($15,897,633) | $13,653 to ($16,375,793) |
|
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 |
| Cities | $8,168 | $9,801 | $9,801 |
| County Aid Road Trust Fund | $5,445 | $6,534 | $6,534 |
| School Districts | $0 to ($7,110,600) | $0 to ($7,323,918) | $0 to ($7,543,636) |
| Total Estimated Net Effect on Local Funds | $13,613 to ($7,096,987) | $16,335 to ($7,307,583) | $16,335 to ($7,527,301) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
The Office of State Courts Administrator (CTS) would expect a few more cases to be filed in the associate circuit courts, but the CTS would not expect a significant impact on the workload of the judiciary.
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 submitting false information to the Department of Revenue regarding driver's education. 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 Office of Prosecution Services (OPS) does not expect a direct fiscal impact. The proposal creates a class C felony for knowingly furnishing false information regarding educational requirements needed for obtaining a driver's license so local prosecutors could be impacted. However, the fiscal impact would not be substantial.
The Department of Revenue (DOR) assumes that this proposal would have a direct fiscal impact. The DOR assumes that the schools would furnish documentation of enrollment status on a form provided by the DOR in order to ensure that all data relative for license withdrawal/reinstatement is received. An SR-22 insurance certificate would not be a prerequisite for reinstatement. According to DESE, in FY96-97 there were 8,465 sixteen and seventeen year olds who withdrew from school. The number of students who withdrew and were licensed drivers is not known, but it is assumed that 90% would have been licensed. The DOR assumes that it would need 1.25 FTE (i.e., Clerk Typist II) in order to process correspondence, suspensions, reinstatements, reinstatement fee accounting, telephone inquiries, special driving privileges and walk-in customer services. In addition, costs would be incurred for forms and postage and programming modifications in order to change the over-the-counter system. The verification sheet and issuance screen would need to be modified to include an edit for age and school graduation/attendance information. It was assumed that it would take 170
programming hours at a cost of $125 per hour to complete the change. Oversight eliminated the rental costs based on the assumption that the 1.25 FTE would be accommodated in existing office space.
The proposal would also result in the generation of revenue as a result of the $20 reinstatement fee. DOR assumed that 3,267 (8,465 x 38.6% reinstatement percentage) individuals would be reinstated and pay the $20 fee, resulting in annual revenue of $65,340. The revenue would be disbursed to the Highway Fund, Cities and County Aid Road Trust Fund.
ASSUMPTION (continued)
The Department of Elementary & Secondary Education (DESE) assumes it would experience an increase in the cost to fully fund the foundation formula due to an increase in attendance. Based on 1990 census, DESE assumes there are approximately 13,000 students affected by increasing the compulsory attendance age to 18. The average cost per pupil is $3,650 and it was assumed that 50% of students would stay in school to get or keep their driver's license.
DESE assumes that local school districts would incur costs (i.e., for $1,680 per student for support services and $3,650 from increased state aid) as well. There would also be a cost for completion of verification of enrollment status forms; however, this could be done with existing resources.
Oversight assumes, based on FY 96-97 DESE data used by DOR, that only 8,465 sixteen and seventeen year olds dropped out of school. Furthermore, it was assumed from DESE's information that 50% of the students would stay in or return to school order to qualify for a driver's license. Oversight ranged the following calculations from zero, since 50% of dropouts would be considered the maximum increase in attendance resulting from the proposal.
Increase in Foundation Formula
8,465 dropouts x $3,650 (average state cost per pupil) x 50% (attendance) = $15,448,625
Total Costs to School Districts
8,465 dropouts x ($3,650 + $1,680) x 50% (attendance) = $22,559,225
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| HIGHWAY FUND | |||
| Income | |||
| Reinstatement Fee | $40,838 | $49,005 | $49,005 |
| Costs-Department of Revenue (DOR) | |||
| Personal Service (1.25 FTE) | ($17,200) | ($21,156) | ($21,685) |
| Fringe Benefits | ($4,816) | ($5,924) | ($6,072) |
| Expense and Equipment | ($34,706) | ($7,474) | ($7,595) |
| Total Costs-DOR | ($56,722) | ($34,554) | ($35,352) |
| ESTIMATED NET EFFECT ON | |||
| HIGHWAY FUND | ($15,884) | $14,451 | $13,653 |
| GENERAL REVENUE | |||
| Costs-Department of Elementary | |||
| & Secondary Education (DESE) | |||
| Fully Funded Foundation Formula | |||
| Related to Increased Attendance | ($0 to | ($0 to | ($0 to |
| $15,448,625) | $15,912,084) | $16,389,446) | |
| ESTIMATED NET EFFECT ON | |||
| GENERAL REVENUE FUND | ($0 to | ($0 to | ($0 to |
| $15,448,625) | $15,912,084) | $16,389,446) | |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| LOCAL | |||
| Income-Cities | |||
| Reinstatement Fee | $8,168 | $9,801 | $9,801 |
| Income-County Aid Road Trust Fund | |||
| Reinstatement Fee | $5,445 | $6,534 | $6,534 |
| Income-School Districts | |||
| Funds from Foundation | |||
| Formula for Increased Attendance | $0 to | $0 to | $0 to |
| $15,448,625 | $15,912,084 | $16,389,446 | |
| Costs-School Districts | |||
| Increased Attendance | ($0 to | ($0 to | ($0 to |
| $22,559,225) | $23,236,002) | $23,933,082) | |
|
ESTIMATED NET EFFECT ON |
|||
| LOCAL FUNDS | $13,613 to | $16,335 to | $16,335 to |
| ($7,096,987) | ($7,307,583) | ($7,527,301) | |
FISCAL IMPACT - Small Business
The proposal would not have a direct fiscal impact on small businesses.
DESCRIPTION
The proposal would prohibit the Department of Revenue (DOR) from issuing an operator's license or temporary permit to an individual less than eighteen years of age without a diploma, other certification of graduation or documentation of enrollment and attendance in a state school, private school, home school or an approved course leading to a GED being provided. The proposal would outline who is responsible for providing verification of enrollment status to the DOR.
The parent would be responsible for notifying the DOR when a child sixteen or older withdraws from a home school program, and the DOR would within five days of receipt of the notice, send a notice of suspension. The suspension would occur unless documentation of compliance with the provisions is provided within the 30 day period. The DOR could charge a reinstatement fee. These requirements would not be applicable to transfer situations. Any person who knowingly submits false information would be guilty of a class C misdemeanor. Procedures would be established to allow for special driving privileges
This legislation is not federally mandated, would not duplicate any other program, would not require additional capital improvements or rental space, but would impact total state revenue.
SOURCES OF INFORMATION
Department of Revenue
Office of State Courts Administrator
Department of Elementary & Secondary Education
Office of Prosecution Services
State Public Defender
Jeanne Jarrett, CPA
Director
January 19, 1997