COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0325-02
Bill No.: SB 259
Subject: Boards, Commissions, Committees, Councils; Cities, Towns, and Villages; Fire Protection; Public Safety; Taxation and Revenue
Type: Original
Date: February 19, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| General Revenue | ($373,000) | ($378,500) | ($378,500) |
| Fire Education | $0 | $0 | $0 |
| Fire District Equipment | $0 | $0 | $0 |
| Missouri Fire Education Trust | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($373,000) | ($378,500) | ($378,500) |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Office of State Treasurer and the Department of Insurance assume this proposal would not fiscally impact their agencies.
Office of Secretary of State (SOS) officials state this proposal creates the Fire District Equipment fund which will supply grants to qualifying fire departments. The Division of Fire Safety would promulgate rules to implement this proposal. SOS states that based on experience with other divisions, the rules, regulations, and forms issued by the Division of Fire Safety could require as many as 10 pages in the Code of State Regulations. For any given rule, roughly half again as many pages are published in the Missouri Register in the Code because cost statements, fiscal notes, and the like are not repeated in Code. These costs are estimated. The estimated cost of a page in the Missouri Register is $23. The estimated cost of a page in the Code of State Regulations is $27. The actual cost could be more or less than the numbers given. The fiscal impact of this proposal in future years in unknown and depends upon the frequency and length of rules filed, amended, rescinded, or withdrawn.
Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.
Officials from the Department of Revenue, the Department of Public Safety, and Office of Administration did not respond to our fiscal note request. However, in responding to a similar request last session they assume no fiscal impact.
The Governor's Budget for FY 2002 shows General Revenue Insurance Tax receipts of $147,315,302 in FY 2000 and estimates receipts of $149,200,000 for FY 2001 and $151,400,000 for FY 2002. One-half of these collections are retained by the General Revenue Fund. This proposal would allow transfers to the Fire Education Trust Fund of approximately $373,000 in FY 2002 and $378,500 in FY 2003. Oversight assumes receipts would remain constant at $151,400,000 per year, subsequently.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| GENERAL REVENUE FUND | |||
| Transfer Out - Office of State Treasurer | |||
| Premium taxes to Fire Education Fund | ($373,000) | ($378,500) | ($378,500) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
($373,000) |
($378,500) |
($378,500) |
| FIRE EDUCATION FUND | |||
| Transfer In - Office of State Treasurer | |||
| Premium taxes to Fire Education Fund | $373,000 | $378,500 | $378,500 |
| Transfer Out - Office of State Treasurer | |||
| To Fire District Equipment Fund | ($93,250) | ($94,625) | ($94,625) |
| Transfer Out - Office of State Treasurer | |||
| To Missouri Fire Education Trust Fund | ($74,600) | ($75,700) | ($75,700) |
| Costs - Department of Public Safety - Division of Fire Safety | |||
| Fire education programs | ($205,150) | ($208,175) | ($208,175) |
| ESTIMATED NET EFFECT ON FIRE EDUCATION FUND |
$0 |
$0 |
$0 |
| FIRE DISTRICT EQUIPMENT FUND | |||
| Transfer In - Office of State Treasurer | |||
| From Fire Education Fund | $93,250 | $94,625 | $94,625 |
| Costs - Missouri Fire Education Commission | |||
| Grants | ($93,250) | ($94,625) | ($94,625) |
| ESTIMATED NET EFFECT ON FIRE DISTRICT EQUIPMENT FUND |
$0 |
$0 |
$0 |
| MISSOURI FIRE EDUCATION TRUST FUND | |||
| Transfer In - Office of State Treasurer | |||
| From Fire Education Fund | $74,600 | $75,700 | $75,700 |
| Costs - Office of State Treasurer | |||
| Appropriations for fire education programs |
($74,600) |
($75,700) |
($75,700) |
| ESTIMATED NET EFFECT ON MISSOURI FIRE EDUCATION TRUST FUND |
$0 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $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 would transfer 5/10 of 1 percent of the premium taxes collected from insurance companies to the Fire Education Fund. The amount placed in the fund could not exceed $1,500,000 in each fiscal year. This proposal would establish the Fire District Equipment Fund as a subaccount of the Fire Education Fund. This subaccount would be funded with 25% of the money transferred into the Fire Education Fund. Moneys in the Fire District Equipment Fund would be used to assist fire departments earning less than ten thousand dollars in revenue per year, fire protection districts earning less than ten thousand dollars per year, and volunteer fire protection associations serving an area having a population of less than ten thousand. The Missouri Fire Education Commission and the Division of Fire Safety would approve spending from the subaccount. The Division of Fire Safety would have rulemaking authority. Fire departments, fire protection districts, and volunteer fire protection associations, would comply with Section 320.271, RSMo, in order to be considered for any funds from the Fire Education Fund or Fire District Equipment Fund. Section 320.271 would require fire departments, fire DESCRIPTION (continued)
protection districts, and volunteer fire protection associations to annually file with the State Fire Marshall their name and address.
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 State Treasurer
Department of Insurance
Office of Secretary of State
NOT RESPONDING: Department of Revenue, Department of Public Safety, Office of Administration
Jeanne Jarrett, CPA
Director
February 19, 2001