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 0115 - Modifies provisions for issuance of retired military license plates and authorized sports license plates
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0284-01
BILL NO.: SB 115 with HCA 1
SUBJECT: Speciality License Plates - Professional Sports Teams and Veterans
TYPE: Original
DATE: April 19, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Highway Fund | $76,728 | $1,319,453 | $2,049,941 |
| Total Estimated
Net Effect on All State Funds |
$76,728 | $1,319,453 | $2,049,941 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $451,042 | $893,063 | $1,244,875 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Transportation (DOT) concurs with the Department of Revenues response to this proposal.
The Department of Correction and the Department of Public Safety assume they will not be fiscally impacted by this proposal.
The Department of Revenue (DOR) assumes this proposal creates a new speciality license plate for professional sports team. The applicant for these license plates would be required to pay an annual $35 emblem use authorization fee and pay and additional fee to the DOR.
The DOR was unable to obtain meaningful statistics to support how many applicants for this new license plate would be received. Therefore, the 5% of the 4.6 million registrations currently in circulation will apply for a Professional Sports Team license plate. The Motor Vehicle Bureau will require the services of two clerk typists and a half-time Stores Clerk in FY 2000 and one clerk typist and 592 hours of overtime for FY 2001 and 2002 to process the additional applications. In addition this bureau will incur equipment and expenses normally associated with full time employees.
The DOR anticipates there will be 230,000 applicants for the Professional Sports License plates. The DOR assumes this proposal mandates an additional $15 fee for the license plates. the DOR assumes that 100,000 will apply in FY 2000 and 65,000 in FY 2001 and 2002.
Oversight assumes the overtime costs in the second and third fiscal year could be accomplished with existing resources.
Oversight assumes this proposal requires a payment of $35 to be made to a sports team. The sports teams are allowed to keep 5% and remit the remainder to either the Jackson County Sports Authority or the St. Louis Regional Convention and Visitors Commission. The Jackson County Sports Authority or the St. Louis Regional Convention and Visitors Commission are allowed to keep 5% for administration. The balance is to be spent on advertising and promotions.
The specific amount of revenue to be earned by either the Jackson County Sports Authority or the St. Louis Regional Convention and Visitors Commission individually cannot be determined. Therefore, for purposes of the fiscal note, Oversight has combined the income and the costs for both organizations.
ASSUMPTION (continued)
The DOR also assumes this proposal eliminates the additional fee for special plates issued to retired military personnel.
The DOR issued 34 regular retired military plates with a $15 fee and 21 personalized retired military plates with a $30 fee. Therefore, the DOR estimates an annual decrease of revenue of $1,140 to be split between the Highway Fund, Cities and the County Aid Road Trust Fund.
The DOR assumes the expenses incurred for policy and procedure changes will be absorbed with the existing resources.
Oversight assumes the potential loss of revenue as a result of this portion of the proposal would be negligible.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| HIGHWAY FUND | |||
| Income - DOR | |||
| Specialty License Plate fee | $937,500 | $1,856,250 | $2,587,500 |
| Cost - DOR | |||
| Personal Service (2.5 FTE) | ($38,035) | ||
| Personal Service (1 FTE) | ($19,643) | ($20,134) | |
| Fringe Benefits | (11,369) | (5,871) | (6,018) |
| Expense and Equipment | (10,193) | (4,120) | (4,244) |
| Other Costs - DOR | |||
| Forms - printing and postage | (244,925) | (145,600) | (145,600) |
| Plates and tabs | (556,250) | (361,563) | (361,563) |
| Total Costs | ($860,772) | ($536,797) | ($537,559) |
| Estimated Net Effect on | |||
| HIGHWAY FUND | $76,728 | $1,319,453 | $2,049,941 |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| Cities and Counties | |||
| Income - $15 Additional Fee | |||
| Cities | $187,500 | $371,250 | $517,500 |
| County Aid Road Trust Fund | 125,000 | 247,500 | 345,000 |
| $312,500 | $618,750 | $862,500 | |
| Jackson County Sports Authority or | |||
| St. Louis Regional Convention and | |||
| Visitor's Center | |||
| Income - Emblem Use fee | $3,325,000 | $5,486,250 | $7,647,500 |
| Cost - Required Advertising | (2,632,292) | (5,211,938) | (7,265,125) |
| $138,542 | $274,313 | $382,375 | |
| Estimated Net Effect on | |||
| Local Funds | $451,042 | $893,063 | $1,244,875 |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
This bill allows for issuance of special license plates bearing professional team sports emblems.
To obtain such plates, a person must pay a $35 emblem-use authorization fee to a professional sports team in Missouri and present the authorization along with payment of the fee required for personalized license plates and other fees and documents required by law at the time of registration with the Department of Revenue.
A professional sports team receiving a $35 contribution will be required to forward the proceeds to the Jackson County Sports Authority or the St. Louis Regional Convention and Visitors Commission less 5% of the contribution for administrative cost. The bill spells out how the money will be used.
DESCRIPTION (continued)
This act exempts retired members of the United States Army, Navy, Air Force, Marines, or Coast Guard from paying the personalized license plate fee when purchasing "RETIRED MILITARY" license plates.
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 Transportation
Department of Corrections
Department of Public Safety
Jeanne Jarrett, CPA
Director
April 19, 1999