SB 0411 - Fiscal Note

Fiscal Note - SB 0411 - Separate circuit clerks and recorders in certain counties; recorders' fees

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1699-01

BILL NO.: SB 411

SUBJECT: Courts: Circuit Clerks, Recorder of Deeds

TYPE: Original

DATE: February 15, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

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	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Office of State Courts Administrator (CTS) stated that this proposal would have no appreciable cost or savings to the state budget of the courts.

The Callaway County Clerk assumes no fiscal impact.

Long Range Impact:

Oversight assumes that any fiscal impact resulting from this proposal would not occur until January 1, 2003, which is beyond the scope of this fiscal note. Therefore, this proposal will show a zero fiscal impact.

Counties that currently have Circuit Clerks serving as Ex-Officio Recorder of Deeds would incur the cost of salaries, fringe benefits, equipment and expenses of operating and maintaining an office of Recorder of Deeds.

The proposal provides for a new recording fee of ten dollars on certain recording of instrument transactions to offset the cost of separating the Recorder of Deed's Office from the Circuit Clerk's Office. Three dollars of the ten dollars recording fee would go directly to the Recorder's Fund; five dollars would go to the County's general revenue fund; one dollar to the Missouri Housing Trust Fund established pursuant to subsection 2 of section 59.319; and one dollar to a special fund in the state treasury to be known as the "Statutory County Recorders Fund." Any unexpended balance in any amount over $100,000 would be refunded equally to the general revenue fund of any contributing county.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(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

This proposal separates the offices of Circuit Clerk and Recorder of Deeds where these offices are combined. Current law limits separate recorders to just first, second and certain third

classification counties. The difference will only affect third classification counties where the Office of Recorder and Circuit Court are combined.

Current law requires voter approval before these third classification counties can separate the Circuit Clerk's office from that of the recorder. This act mandates separation by December 31, 2002.

A charge of $10 on every recorded instrument is imposed. $3 is designated into the Recorder's Fund; $5 goes to the County General Revenue Fund; $1 to the Missouri Housing Trust Fund; and $1 to a newly created fund that will subsidize third classification counties that do not collect $65,000 through their $3 and $5 portions. The subsidy will raise them up to the $65,000 level.

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

State Courts Administrator's Office

Callaway County Clerk

NOT RESPONDING: State Treasurer's Office, the Circuit Clerks of: Andrew, Atchison, Berry, Barton, Bollinger, Camden, Christian, Greene, Howard, Stone, Taney, Marion, St. Louis, Jackson, Boone, Cole, Callaway, Jasper, Cape Girardeau, St. Charles, Franklin, Jefferson, and Buchanan Counties.

Jeanne Jarrett, CPA

Director

February 15, 1999