SB 0603 - Fiscal Note

Fiscal Note - SB 0603 - Eliminates the bulk disclosure of motor vehicle records by the Revenue Dept.

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2386-01

BILL NO. SB 603

SUBJECT: Release of Personal Information

TYPE: Original

DATE: January 7, 1998

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Highway Fund	($1,249,500)	($1,500,000)	($1,500,000)
Total Estimated Net Effect on All State Funds	($1,249,500)	($1,500,000)	($1,500,000)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
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	($249,900)	($300,000)	($300,000)
County Aid Road Trust Fund	($166,600)	($200,000)	($200,000)
Estimated Net Effect on Local Funds	($416,500)	($500,000)	($500,000)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Revenue (DOR) assumes that this proposal would have a significant impact on the Highway Fund. The proposal would eliminate the sale of bulk information by the DOR which constitutes 80% to 85% of actual sales. In FY97, the DOR distributed approximately $2.4 million to the Highway Fund. Therefore, the elimination of the sale of bulk information would result in a loss of $2.0 million annually.

The Department of Transportation (DHT) assumes that 85% of the revenue currently comes from the sale of bulk lists. Assuming an effective date of August 28, 1998, the Highway Fund would experience a decrease of $1,147,500 in FY99 and $1,530,000 in FY00 and FY01. Additionally, the proposal would result in a decrease to the local level (i.e., Cities and County Aid Road Trust Fund) of $382,500 in FY99 and $510,000 in FY00 and FY01.

For purposes of this fiscal note, Oversight has disbursed the $2.0 million estimated by the DOR to the Highway Fund, Cities and County Aid Road Trust Fund.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
HIGHWAY FUND
Loss
Sale of Bulk Information	($1,249,500)	($1,500,000)	($1,500,000)
ESTIMATED NET EFFECT ON
HIGHWAY FUND	($1,249,500)	($1,500,000)	($1,500,000)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
LOCAL
Loss-Cities
Sale of Bulk Information	($249,900)	($300,000)	($300,000)
Loss-County Aid Road Trust Fund
Sale of Bulk Information	($166,600)	($200,000)	($200,000)
ESTIMATED NET EFFECT ON
LOCAL FUNDS	($416,500)	($500,000)	($500,000)

FISCAL IMPACT - Small Business

This proposal would not have a direct fiscal impact on small businesses.

DESCRIPTION

The proposal would prohibit the Department of Revenue (DOR) from selling lists of personal information with exceptions under an act of Congress of the United States. The proposal would also eliminate the bulk disclosure of motor vehicle records by the DOR.

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

Department of Transportation

Jeanne Jarrett, CPA

Director

January 7, 1998