COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0103-01
Bill No.: SB 4
Subject: Motor Vehicles; Licenses-Motor Vehicles; Revenue Dept.
Type: Original
Date: January 15, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | ($60,000) | $0 | $0 |
| Total Estimated
Net Effect on General Revenue Fund |
($60,000) | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Highway Fund | ($5705) | $625 | $625 |
| Anti-Terrorism Fund | $2,083 | $2,500 | $2,500 |
| Total Estimated
Net Effect on Other State Funds |
($3,622) | $3,125 | $3,125 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 6 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $313 | $375 | $375 |
ASSUMPTION
Officials with the Department of Transportation and Office of Administration assume this legislation would have no fiscal impact on their organization.
Officials from Department of Revenue (DOR)- Division of Motor Vehicle and Drivers Bureau (DVSB) assume this proposal could have fiscal impact on their organization.
The DVSB cannot determine the number of plates that will be issued as a result of this legislation. Therefore, the revenue impact is based on the issuance of 100 plates. If the volume of applications for this plate type substantially exceeds 100, the department could require additional appropriations. Income is generated from a $15 plate fee and a $25 contribution to the Anti-Terrorism fund.
FY 04 Income
Highway $938
Cities $188
Counties $125
Anti-terrorism fund $2,083
Total $3,334
FY 05 Income
Highway $1,125
Cities $225
Counties $150
Anti-Terrorism Fund $2500
Total $4,000
FY 06 Income
Highway $1,125
Cities $225
Counties $150
Anti-Terrorism Fund $2500
Total $4,000
DVSB notes that prior to last year specialty plates were developed, designed and provided to DOR by the Missouri Vocational Enterprises. The Missouri Vocational Enterprises recently contracted with a vendor to now provide all Missouri specialty plates. The costs will be shown for all specialty license plate bills accordingly.
This contract requires DOR to pay:
-$250 new plate design set-up fee
-$50 per modification for a new plate design
-$80 per revision to existing plate designs
-$4.50 per plate for freight shipping to DOR
Additional postage is required to mail the plates from DOR to the offices.
Officials with DOR- Information and Technology Bureau (ITB) assume that implementing this proposal could require 180 hours of overtime programming to modify the special plate reservation program, the renewal pull program for fees and the Uniform Field Office System.
There are also additional cost for storage at the state data center.
FY 04 Cost
Procedures, Forms and Envelopes $652
Includes Plate design
Postage = $ 796
Plates and Tabs = $ 474
Programming Salaries $4,221
Storage $500
Total $6,643
FY 05 Cost
Storage $500
FY 06 Cost
Storage $500
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 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.
This limitation is found in Section 226.200.3, RSMo. It places a cap on the highway funding available to state departments other than the Department of Transportation. The total amount of highway funds appropriated to these other state departments (including DOR) cannot exceed the total amount of their fiscal year 2001 highway appropriations. This cap limits the highway funds that will be available for the implementation of this legislation.
If highway funds are not available, then another source of funding must be identified to pay for the cost of implementing this legislation.
Officials with the State Treasurer's Office (STO) assume this proposal could require a sub-account to be set up in the state accounting system. Currently, sub-accounts are not feasible and STO cannot distribute interest below the fund level. To re-configure the interest distribution system to distribute at the sub-account level of a fund, STO could incur programming and consulting fees of approximately $60,000.
The Office of Homeland Security assume an unknown fiscal impact on their office. Oversight assumes the office could have an increase in available funds due to the Anti-terrorism Fund; however, no additional cost or income other then those mentioned by DOR would be anticipated.
This proposal could increase total state revenue through plate fees.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE | |||
| Cost-State Treasure Office | |||
| Programming and Consulting | ($60,000) | $0 | $0 |
| ESTIMATED NET EFFECT ON GENERAL REVENUE |
($60,000) |
$0 |
$0 |
| HIGHWAY FUND | |||
| Income- Department of Revenue | |||
| Plate fees | $938 | $1,125 | $1,125 |
| Cost- Department of Revenue | |||
| Salaries | ($4,221) | ||
| Equipment and Expense | ($2,422) | ($500) | ($500) |
| Total Cost-DOR | ($6,643) | ($500) | ($500) |
| ESTIMATED NET EFFECT ON HIGHWAY FUND |
($5,705) |
$625 |
$625 |
| ANTI-TERRORISM FUND | |||
| Income-Department of Revenue | |||
| Plate Fee | $2,083 | $2,500 | $2,500 |
| NET ESTIMATED NET EFFECT ON ANTI-TERRORISM FUND |
$2,083 |
$2,500 |
$2,500 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| Income-Cities | |||
| Plate Fees | $188 | $225 | $225 |
| Income- Counties | |||
| Plate Fees | $125 | $150 | $150 |
| ESTIMATED NET EFFECT ON LOCAL FUNDS |
$313 |
$375 |
$375 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would create a new special license plate, "FIGHT TERRORISM." and the $25 contribution per application would be deposited into the "Antiterrorism Fund". The contribution would be made directly to the Missouri Office of Homeland Security or to the Director of Revenue.
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
Office of Administration
Department of Transportation
Office of Homeland Security
State Treasurer's Office
Mickey Wilson, CPA
Director
January 15, 2003