COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1135-04

Bill No.: Truly Agreed To and Finally Passed HCS for SB 355

Subject: Licenses-Motor Vehicle; Revenue Dept.; Health Dept.

Type: Original

Date: May 21, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Organ Donor Fund $39,600 $39,600 $39,600
Highway Fund ($14,782) ($28,955) ($29,836)
Total Estimated

Net Effect on Other

State Funds

$24,818 $10,645 $9,764





Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 6 pages.









ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0


FISCAL ANALYSIS



ASSUMPTION



Officials with the State Treasurer's Office and Department of Transportation assume this proposal would have no fiscal impact on their agencies.



Section 194.220 of the proposal could allow a parent or guardian to sign the back of the minor's license for consent regarding health care decisions.



Officials with Department of Revenue (DOR) assume this section could eliminate the cost associated with programming the over the counter system which is necessary due to legislation enacted in 2002.



FY 04-Cost Avoidance

Contracted Programming (100 hours*$100) $10,000

Programming Salaries (704 hours*$21.25) $14,960

Total $24,960



Section 301.020 of this proposal could require the director of revenue to ask each applicant when registering a motor vehicle if they are interested in donating $1 for the Organ Donor Fund and to collect these funds and deposit them into the appropriate fund.





ASSUMPTION (continued)



Officials with the Department of Health and Senior Services (DHSS) assume there could be an increase in the funds distributed to the Organ Donor Fund. DHSS assumes that approximately $40,000 in additional collections through vehicle licensing could be expected.

Officials with DOR note that they cannot determine the amount of revenue that could be collected and deposited into the organ donor fund. For FY02, DOR collected $277,288 from the $1 donation program on the driver license transactions. For fiscal note purposes, Oversight will use the estimation of $40,000.



DOR could also incur cost for forms, revisions in procedures, envelopes and postage. DOR notes that it could incur an annual cost increase of $5.00 per 1,000 forms ordered for the title application (DOR-108) and $4.50 per 1,000 forms ordered for the renewal application (DOR-289). The $1 donation item could require movement of a desensitization area and spot tissue carbon and increase te size of the form. The current vendor has quoted the increased cost for these modifications as stated above. DVSB orders approximately 3,000,000 DOR-108 and 3,000,000 DOR-289 annually. Oversight notes that the current forms are congested and once the move is made to a larger form (see annual cost above) then other items can be added to the form with no additional charge.



DOR-Information Technology Bureau could incur programming cost to make modifications to the Uniform Field Office System (UFOS), the Missouri Transportation Accounting System and the Missouri On-Line Registration Exchange (MORE) to include a new $1 donation.



Oversight notes that the proposal does have provisions to allow DOR to receive 1% of the proceeds to offset administrative costs. Oversight has included the 1% for fiscal note purposes, however officials with DOR assume they could need legislative appropriations to distribute these funds.



To implement this legislation, DOR could require additional funds. In the past, the programs included in this legislation have been paid for with highway funds. This year, however, highway funds may not be available for this purpose as a result of legislation enacted by the General Assembly in 2000 that limits the use of highway funds.













ASSUMPTION (continued)



FY 04- Income and Cost

Income from organ donor contributions $40,000

DOR-108 at $5.00 per 1000 ($15,000)

DOR-289 at $4.50 per 1000 ($13,500)

Procedure and mailings ($530)

Programming Salaries ($11,112)

Total ($142)



FY 05 Income and Cost

Income from organ donor contributions $40,000

DOR-108 (3% growth) at $5.00 per 1000 ($15,450)

DOR-289 (3% growth)at $4.50 per 1000 ($13,905)

Total $10,645



FY 06 Income and Cost

Income from organ donor contributions $40,000

DOR-108 (3%) at $5.00 per 1000 ($15,913)

DOR-289 (3% )at $4.50 per 1000 ($14,322)

Total $9,765



This proposal could increase state revenue through the $1 donation to the Organ Donor Program Fund.



































FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
ORGAN DONOR FUND
Income-Department of Health
$1 donation to Organ Donor Fund $40,000 $40,000 $40,000
Cost-Department of Health
Reimbursement for cost incurred ($400) ($400) ($400)
ESTIMATED NET EFFECT ON ORGAN DONOR FUND



$39,600


$39,600


$39,600
HIGHWAY FUND
Income-Department of Revenue
Appropriations from Organ Donor Fund $400 $400 $400
Cost Avoidance- Department of Revenue
Programming Salaries $24,960 $0 $0
Cost-Department of Revenue
Programming Salaries ($11,112) $0 $0
Forms and Procedures ($29,030) ($29,355) ($30,236)
Total Cost- DOR ($40,142) ($29,355) ($30,236)
ESTIMATED NET EFFECT ON HIGHWAY FUND

($14,782)


($28,955)


($29,836)


FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0















FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



Section 194.220 could allow a parent or guardian to sign the back of the minor's license for consent regarding health care decisions.



Section 301.020 could require the director of revenue to ask each applicant when registering a motor vehicle if they are interested in donating $1 for the Organ Donor Fund and to collect these funds and deposit them into the appropriate fund.



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

State Treasurer's Office

Department of Health and Senior Services











Mickey Wilson, CPA

Director

May 21, 2003