COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3777-01

Bill No.: SB 1037

Subject: Cities, Towns, and Villages; Fees; Utilities

Type: Original

Date: January 21, 2004




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 STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 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 of the Department of Economic Development, Public Service Commission (PSC)

and the Office of the Public Counsel (OPC), Missouri Department of Conservation, and the Office of Administration, Design & Construction state this bill does not significantly affect their agencies.



Officials of the Department of Natural Resources (DNR) assume this act modifies Section 67.1846, RSMo, allowing franchise fees to be used as credits for any public utility right-of-way users along with business license taxes or gross receipts taxes. DNR would not anticipate a direct fiscal impact from this proposal.



Department of Transportation officials assume this proposal would not fiscally impact their agency.



Officials from the City of Springfield assume this bill will impact revenues for cities and counties. It requires for the first time a credit for franchise fees paid against franchise fees.

Franchise fees are the rental paid to cities for use of their rights-of-way. Springfield does not have a linear foot charge like the one the statute is speaking of and would not be impacted by this legislation.





ASSUMPTION (continued)



The City of Kansas City (CKC) officials state CKC is not a grand-fathered political subdivision within the terms of proposed Section 67.1846, RSMo. Therefore, the legislation does not affect CKC, and no revenue would be received or costs incurred by passage of this bill.



The City of St. Louis and the County of St. Louis did not respond to our fiscal note request.



Oversight will show the impact of this legislation as a negative unknown to various cities and counties.





FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0





FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
Loss - Various cities and counties
Credit for franchise fees (Unknown) (Unknown) (Unknown)
TOTAL ESTIMATED NET EFFECT ON LOCAL GOVERNMENT



(UNKNOWN)


(UNKNOWN)


(UNKNOWN)


FISCAL IMPACT - Small Business



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





DESCRIPTION



This proposal allows credit for franchise fees paid by a public utility right-of-way user to a political subdivision. Under current law, credit is only allowed for business license taxes

and gross receipts taxes.





DESCRIPTION (continued)



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 Economic Development

Public Service Commission

Office of the Public Counsel

Department of Natural Resources

Department of Transportation

Missouri Department of Conservation

Office of Administration

Design & Construction

City of Springfield

Kansas City



NOT RESPONDING:

City of St. Louis

County of St. Louis











Mickey Wilson, CPA

Director

January 21, 2004