COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1325-02

Bill No.: SB 410

Subject: Alcohol; Fees; Licenses - Driver's; Mental Health Dept.

Type: Original

Date: February 18, 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
Mental Health Earnings Fund $15,407 $18,488 $18,488
Health Initiatives $1,531,601 $1,837,921 $1,837,921
Total Estimated

Net Effect on Other

State Funds

$1,547,008 $1,856,409 $1,856,409



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 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 from the Office of State Courts Administrator and Office of State Treasurer assume the proposal will have no fiscal impact on their organizations.



Officials from the Office of Administration - Division of Budget and Planning (BAP) state the proposal should not result in additional costs or savings to the BAP. However, the proposal will impact total state revenue.



Officials from the Office of Attorney General assume the costs of collecting delinquent payments can be absorbed with existing resources.



Officials from the Department of Mental Health (DMH) state the dollar amount is based on a fee of $125 (a $65 increase per client). Based on collecting 98% (100% less 2% administrative fee) of the fees from an estimated 29,143 persons, DMH would collect $1,856,409 in fees for the SATOP program ($65 X 98% X 29,143). These funds would be deposited in the Mental Health Earnings Fund.







ASSUMPTION (continued)



DMH officials state this legislation is proposed to allow the Division to set the offender fee. The Division will increase the fee for SATOP to replace a proposed reduction in Health Initiative Fund (HIF) funding.



Oversight assumes HIF funding will remain at constant levels for FY 05 and FY 06. The FY 04 Governor recommended HIF funding for the DMH is $1,837,921.



This proposal will result in an increase in Total State Revenue.



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
MENTAL HEALTH EARNINGS FUND
Income - Department of Mental Health
SATOP fees $1,547,008 $1,856,409 $1,856,409
Costs - Department of Mental Health
SATOP program expenses previously paid for with Health Initiatives Funds



($1,531,601)


($1,837,921)


($1,837,921)
ESTIMATED NET EFFECT ON MENTAL HEALTH EARNINGS FUND



$15,407




$18,488




$18,488
HEALTH INITIATIVES FUND
Savings - Department of Mental Health
SATOP program expenses $1,531,601 $1,837,921 $1,837,921
ESTIMATED NET EFFECT ON HEALTH INITIATIVES FUND

$1,531,601


$1,837,921


$1,837,921


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



This proposal authorizes the Department of Mental Health to establish the amount of supplemental fees that are paid by persons enrolled in the Substance Abuse Traffic Offender Program. Delinquent fees will have interest charged and will accrue at a rate not to exceed the established annual rates plus three percentage points.



The administrator of the Substance Abuse Traffic Offender Program must remit the supplemental fees to the Department on or before the fifteenth day of each month. Any administrator failing to remit the supplemental fees will be subject to a penalty equal to the amount of interest accrued on the supplemental fees. If the supplemental fees are not paid within six months, the Attorney General may initiate appropriate action.



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



Office of Administration -

Division of Budget and Planning

Office of Attorney General

Office of State Courts Administrator

Department of Mental Health

Office of State Treasurer









Mickey Wilson, CPA

Director

February 18, 2003