COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 4559-01

Bill No.: SB 1309

Subject: Higher Education, Privacy

Type: Original

Date: March 15, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
General Revenue * $0 (Unknown) (Unknown)
Total Estimated

Net Effect on

General Revenue

Fund *

$0 (Unknown) (Unknown)

* expected to be greater than $100,000.

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

Net Effect on Other

State Funds

$0 $0 $0



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 * $0 (Unknown) (Unknown)

* expected to be greater than $100,000.



FISCAL ANALYSIS



ASSUMPTION



Officials from Lincoln University, the Department of Higher Education, Truman State University, the University of Missouri, Southwest Missouri State University, and Central Missouri State University assume this proposal would have no fiscal impact to their organization.



Officials from the Metropolitan Community Colleges assume the proposal could result in significant losses to their organization from an inability to collect overdue student accounts and delinquent student loans.



Oversight assumes that the use of a Social Security Number for internal tracking and debt collection would be permissible under the proposal.



Officials from the St. Louis Community College System assume it would cost in excess of $20,000 to comply with the proposal's requirements.







ASSUMPTIONS (continued)



Officials from Moberly Area Community College assume this proposal would have an unknown impact on their organization, with an estimated conversion cost of $5,000 to $10,000 for the first year.



Officials from Missouri Southern State University-Joplin assume that full compliance with the requirements of this proposal would result in estimated expenditures of approximately $60,000.



Officials from Harris-Stowe State College, Missouri Western State College, Northwest Missouri State University, Southeast Missouri State University, State Fair Community College, and Three Rivers Community College did not respond to our request for information.



Oversight has shown unknown annual costs in excess of $100,000 beginning in FY 2006 for the state's public higher education institutions to comply with this proposal's requirements. Although the proposal allows the institutions to continue using the Social Security Number if it notifies students of this practice, the proposal would require institutions to eliminate the Social Security Number at the request of a student. These costs have been shown in the state General Revenue Fund. Oversight has also shown unknown costs in excess of $100,000 beginning in FY 2006 for community college districts.



FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
GENERAL REVENUE FUND
Cost - Higher Education Institutions
Data processing * $0 (Unknown) (Unknown)
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND *



$0


(Unknown)


(Unknown)
* expected to be greater than $100,000.




FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
COMMUNITY COLLEGE DISTRICTS
Cost - Higher Education Institutions
Data processing * (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON COMMUNITY COLLEGE DISTRICTS *





(Unknown)




(Unknown)




(Unknown)

* expected to be greater than $100,000.



FISCAL IMPACT - Small Business



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



DESCRIPTION



This proposal would prohibit public institutions of higher education from posting student social security numbers; requiring electronic transmission of social security numbers unless the connection is secured or password protected, and from using social security numbers on certain mailings unless state or federal law requires the number to be on such document. An institution may continue to use the social security number for student identification providing it notifies students of this practice annually, but an institution must stop such use at the request of any student. The proposal would become effective July 1, 2006.



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 Higher Education

Metropolitan Community Colleges

Lincoln University

Truman State University

University of Missouri

Central Missouri State University

St. Louis Community College System

Moberly Area Community College

Southwest Missouri State University

Missouri Southern State University-Joplin



NOT RESPONDING



Harris-Stowe State College

Missouri Western State College

Northwest Missouri State University

Southeast Missouri State University

State Fair Community College

Three Rivers Community College







Mickey Wilson, CPA

Director

March 15, 2004