COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2751-03

Bill No.: Perfected SCS for SB 771

Subject: Motor Vehicles; Roads Highways

Type: Corrected

Date: April 20, 2004

# Corrected Department of Transportation response




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Highway Fund*# (Unknown) Unknown Unknown
Total Estimated

Net Effect on Other

State Funds

(Unknown) Unknown Unknown

* Unknown income and associated cost are not expected to exceed $100,000.



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government Unknown Unknown Unknown




FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Public Safety assume this proposal would have no fiscal impact on their agencies.



Officials with the Department of Transportation (MoDOT) assume their agency may be required to erect signs on certain roadways prohibiting the operation of lower speed vehicles due to safety purposes. The number of signs is unknown.



#MoDOT officials, in a corrected response, assume this proposal would not necessitate the erection of additional signs, therefore, MoDOT assumes this proposal would have no fiscal impact on their agency.



Officials with the Department of Revenue (DOR) assume this proposal would allow drivers of low speed vehicles to operate on some highways. DOR cannot estimate the number of low speed vehicles which could be registered.



The DOR - Driver and Vehicle Services Bureau (DVSB) further assume they could incur cost for procedure modifications and the additional costs to title and register those vehicles that are not currently being titled and registered. The agency assumes it could require FTE and



ASSUMPTION (continued)



associated expenses for these FTE.



The DOR - Information Technology Bureau (ITB) assume they could incur programming costs to modify the existing registration and fee systems. The low speed vehicles do not always contain the same information and information formatting as normal motor vehicles; therefore, these programs will have to be modified to handle unique information from the low speed vehicles. The cost incurred for these modifications is unknown; however, the cost for programming is anticipated to be less than $20,000.



To implement this legislation, the 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.



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.



This proposal could increase state revenue through registration and licensing fees for low speed vehicles.



Oversight assumes there could be income and cost associated with the unknown number of applicants for low speed vehicle registration, however Oversight assumes that DOR could handle the request with existing personnel.

















FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
HIGHWAY FUND
Income-Department of Revenue
Licensing and title fees* Unknown Unknown Unknown
Cost-Department of Transportation
Road signs# $0 $0 $0
Cost-Department of Revenue
Forms, Procedures* (Unknown) $0 $0
Plates and tabs* (Unknown) $0 $0
Programming** (Unknown) $0 $0
Total Cost - DOR (Unknown) $0 $0
NET ESTIMATED EFFECT ON HIGHWAY FUND



(Unknown)


Unknown


Unknown

*Unknown income and associated cost are not expected to exceed $100,000.

** Unknown not expected to exceed $20,000.



FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
LOCAL FUNDS
Income-Cities
License and title fees* Unknown Unknown Unknown
Income-Counties
License and title fees* Unknown Unknown Unknown
ESTIMATED EFFECT ON LOCAL FUNDS



Unknown


Unknown


Unknown

*Unknown income not expected to exceed $100,000.



FISCAL IMPACT - Small Business



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





DESCRIPTION



This act allows operators of low-speed vehicles to use public highways under certain conditions. A low-speed vehicle shall not be operated on a street or highway with a posted speed limit greater than 35 mph. A low-speed vehicle shall be exempt from inspection and emission testing, but must comply with the federal standards. Every operator of a low-speed vehicle shall maintain financial responsibility as required under Chapter 303, RSMo. Every operator of a low-speed vehicle must have a driver's license. City and counties may promulgate ordinances which are more stringent than this act.



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#

Department of Public Safety











Mickey Wilson, CPA

Director

April 20, 2004