COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2805-01
Bill No.: SB 826
Subject: Education: Elementary and Secondary; Licenses: Driver's; Revenue Dept.
Type: Original
Date: February 6, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Highway | ($32,724) | $34,562 | $35,645 |
| Total Estimated
Net Effect on Other State Funds |
($32,724) | $34,562 | $35,645 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $13,805 | $17,052 | $17,560 |
ASSUMPTION
Officials with the Department of Elementary and Secondary Education (DESE) and Department of Public Safety - Missouri State Highway Patrol assume this proposal would have no fiscal impact on their agencies.
Officials with the Department of Revenue (DOR) - Division of Motor Vehicle and Drivers Bureau (DVSB) anticipate this proposal would have fiscal impact on their agency. Based upon enrollment and high school withdrawal statistics provided by DESE, DOR assumes in FY05 (10 months) a total of 6,130 school withdrawals, 50% of which will comply prior to suspension. Of the other 50%, DOR assumes 90% will apply for reinstatement. This will necessitate a half-time Clerk Typist II to process the workload. Additionally in FY05, required correspondence created by this legislation for suspension and reinstatement notice (and the necessary postage) will cost $4,469. DOR adjusts the total school withdrawals upward 3% in FY06 and FY07 to calculated the corresponding costs in those years.
Additional revenue will be generated as a result of the $20 reinstatement fee to be paid by reinstatement applicants. DOR assumes 2,759 reinstatements in FY05, 3,410 reinstatements in FY06, and 3,512 reinstatements in FY07. Of this revenue, 75% is dedicated to the Highway Fund, 15% to counties, and 10% to cities.
ASSUMPTION (continued)
This legislation will require changes and testing for the Over the Counter (OTC) driver license issuance system. Additionally, changes and testing will be required for the systems that support the OTC system, such as the Missouri Driver License (MODL) system, the Central Driver License Information System (CDIS), and the Missouri Taxation and Accounting System (MTAS).
For FY05, 480 hours of MODL/CDIS programming at an overtime rate of $25 per hour and 960 hours of MODL/CDIS programming at an overtime rate of $23 per hour will be required. Also required in FY 05 will be 100 hours of contracted OTC programming at a rate $100 per hour and 720 hours of testing at an overtime rate of $23 per hour.
This legislation would also require changes to the Missouri Driver Guide, the Uniform License Issuance Manual (ULIM), and the DOR web site, but DOR indicates that those changes could be made using existing resources.
FY 05
Reinstatement fee revenue $55,190
Salaries-Clerk Typist II (half-time) ($9,000)
Postage ($4,469)
Overtime-systems programming/testing ($50,640)
Contracted programming ($10,000)
Total ($18,919)
FY 06
Reinstatement fee revenue $68,207
Salaries-Clerk Typist II (half-time) ($11,069)
Postage ($5,524)
Total $51,614
FY 07
Reinstatement fee revenue $70,240
Salaries-Clerk Typist II (half-time) ($11,346)
Postage ($5,689)
Total $53,205
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| HIGHWAY FUND | |||
| Income-Department of Revenue | |||
| Reinstatement fees | $41,385 | $51,155 | $52,680 |
| Cost-Department of Revenue | |||
| Forms and postage | ($4,469) | ($5,524) | ($5,689) |
| Salaries and wages | ($59,640) | ($11,069) | ($11,346) |
| Contracted services | ($10,000) | $0 | $0 |
| Total Cost-DOR | ($74,109) | ($16,593) | ($17,035) |
| NET ESTIMATED EFFECT ON HIGHWAY FUND |
($32,724) |
$34,562 |
$35,645 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| Income-Cities | |||
| Reinstatement fees | $5,528 | $6,821 | $7,024 |
| Income-Counties | |||
| Reinstatement fees | $8,277 | $10,231 | $10,536 |
| NET ESTIMATED EFFECT ON LOCAL FUNDS |
$13,805 |
$17,052 |
$17,560 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This legislation states that the Director of Revenue shall not license and immediately deny driving privileges to any person under 18 years of age that cannot produce proof of graduation from high school or proof of current enrollment and satisfactory academic progress in an acceptable curriculum program. For purposes of this legislation, satisfactory progress means DESCRIPTION (continued)
maintaining a cumulative grade point average equal to or above 1.75 on a 4.0 scale.
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 Elementary and Secondary Education
Department of Public Safety - Missouri State Highway Patrol
Department of Revenue - Division of Motor Vehicle and Drivers Bureau (DVSB)
Mickey Wilson, CPA
Director
February 6, 2004