SB 0522 - Fiscal Note

Fiscal Note - SB 0522 - Creates crime of fraudulent use of a debit device

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0656-01

BILL NO.: SB 522

SUBJECT: Debit Services

TYPE: Original

DATE: March 18, 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 Department of Economic Development - Divisions of Finance and Credit Unions, Office of State Courts Administrator, and the Department of Social Services assume the proposal would have no fiscal impact on their agencies.

Officials of the Office of State Public Defender assume that existing staff could provide representation for 50-100 indigent persons charged with the new crime of fraudulent use of a debit device. However, passage of more than one similar bill would require the state public defender system to request increased appropriations to cover the cumulative cost of representing the indigent accused in the additional cases.

Officials of the Department of Corrections (DOC) indicate that they cannot predict the number of new commitments which may result from the creation of the offense(s) outlined in the proposal. An increase in commitments would depend on the utilization by prosecutors and the actual sentences imposed by the court. If additional persons were to be sentenced to the custody of DOC due to this proposal, the DOC would incur a corresponding increase in operational costs either through incarceration (average of $35 per inmate, per day) or through supervision provided by the Board of Probation and Parole (average of $3.50 per offender, per day). However, DOC has assumed that the fiscal impact to the department would be $0 or a minimal amount that could be absorbed within existing resources due to the following assumptions:

• The narrow scope of the crime will not encompass a large number of offenders.
• The low felony status of the crime enhances the possibility of plea-bargaining or imposition of a probation sentence.
• The probability exists that offenders would be charged with a similar but more serious offense.

The Office of Prosecution Services did not respond to a request for estimate of fiscal impact.

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

The proposal would create the crime of fraudulent use of a debit device. The crime would be classified as a class A misdemeanor for thefts of less than $150 and a class D felony for thefts of $150 or more.

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 Corrections

Office of State Public Defender

Office of State Courts Administrator

Department of Economic Development - Divisions of Finance and Credit Unions

Department of Social Services

NOT RESPONDING: Office of Prosecution Services

Jeanne Jarrett, CPA

Director

March 18, 1999