COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1017-02

Bill No.: SB 317

Subject: Housing; Manufactured Housing; Department of Economic Development

Type: Original

Date: February 5, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Manufactured Housing Fund $128,400 $128,400 $128,400
Total Estimated

Net Effect on All

State Funds

$128,400 $128,400 $128,400



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 to (unknown) $0 to (unknown) $0 to (unknown)

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



The Department of Economic Development-Office of Public Counsel assumes the proposal will have no fiscal impact on the agency.



Officials with the Department of Elementary and Secondary Education assume the proposal would have no effect on their agency, but note that there could be an increased cost at the school district (purchaser) level if modular units used as classrooms are required to meet higher construction standards. This would tend to pressure acquisition costs upward. The actual fiscal impact to school districts cannot be determined.



Officials from the Department of Economic Development-Public Service Commission assume the proposal would result in increased registration fees from manufactured/modular housing dealers of $56,400 and from manufacturers of $72,000. These figures are based on an increase from $50 to $200 in the dealer registration fee for 376 dealers, and an increase from $250 to $750 in the manufacturer registration fee for 144 manufacturers.



Note: These figures differ from the fiscal note for similar legislation from the prior session due to the inclusion of the increased fee for manufacturers. For that proposal, Oversight was unable to provide an estimate for the increased revenue resulting from the manufacturer registration fee.



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
MANUFACTURED HOUSING FUND
Income-PSC
Increased Registration Fees $128,400 $128,400 $128,400



FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
Costs-Local School Districts

Purchase of Higher Quality Units

$0 to (unknown) $0 to (unknown) $0 to (unknown)



FISCAL IMPACT - Small Business



This proposal would have a direct fiscal impact on small businesses operating as manufactured or modular home dealers and manufacturers.





DESCRIPTION



This act exempts used manufactured homes and certain used modular units from complying with the manufactured housing chapter. Under the act, no person shall sell a new modular unit or used modular unit used for educational purposes without bearing a seal signifying that the unit complies with the code. No person shall alter any new manufactured home, new modular unit or used modular unit used for educational purposes if such alteration would violate the code. It is a misdemeanor to rent, lease, sell, or offer to sell a new manufactured home, new modular unit, or used modular unit used for educational purposes that does not bear a seal. It is also a misdemeanor to fail to correct a code violation within 90 days on a new manufactured home, new modular unit, or a used modular unit used for educational purposes.



This act raises the initial registration and renewal fees for a dealer from $50 to $200. The initial registration and renewal fees for a manufacturer are raised from $250 to $750. This act also authorizes the Public Service Commission to suspend or revoke a manufacturer's or dealer's license if that entity fails to pay necessary fees and assessments.



This act is similar to SB 849 (2000).



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 Economic Development

Public Service Commission

Office of Public Counsel









Jeanne Jarrett, CPA

Director

February 5, 2001