COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1477-01

Bill No.: Perfected HB 491 with HCA 1

Subject: Licenses-Motor Vehicle, Motor Vehicles, Revenue Dept.

Type: Original

Date: March 19, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Highway Fund $0 $128,687 $53,106
Total Estimated

Net Effect on Other

State Funds

$0 $128,687 $53,106



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.















ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $32,873 $0




FISCAL ANALYSIS



ASSUMPTION



Officials with Department of Transportation and Department of Public Safety assume this proposal would have no impact on their organization.



Officials with the Department of Revenue (DOR) assume this proposal could allow biennial registration of driveaway permits and disabled placards. These biennial registrations could cause a shift in fee income for the registration. DOR assumes that in FY 05, half of the operators and holders of disabled placards would be offered biennial registration and half of those would accept. The revenue is based on an effective date of January 1, 2004. However, because the permits and placards are renewed in September and December respectively, there is not assumed to be any fiscal impact until FY 05.



DOR further assumes they could incur minimal cost for procedure changes and a savings for mailing renewals. Oversight assumes DOR could absorb the cost of the procedure changes. Oversight further assumes that the savings for mailing renewals could be an annual savings.



DOR- Information Technology Bureau (ITB) assumes they could need 425 hours to program the General Registration System.





ASSUMPTION (continued)



FY 05

695 Biennial Driveaway registration *$89 $61,855

695 Annual Driveaway registration reduction*$44.50 ($30,928)

78,567 Biennial Disabled Placards*$4 $314,268

78,567 Annual Disabled Placards*$2 ($157,134)

Programming Cost ($12,360)

Total $175,701



FY 06

695 Biennial Driveaway registration *$89 $61,855

1390 Annual Driveaway reduction*$44.50 ($61,855)

78,567 Biennial Disabled Placards*$4 $314,268

157,134 Annual Disabled Placards reduction*$2 ($314,268)

Administrative savings for renewals (79,262*$.67) $53,106

Total $53,106



FY 07

695 Biennial Driveaway registration *$89 $61,855

1,390 Annual Driveaway registration reduction*$44.50 ($61,855)

78,566 Biennial Disabled Placards*4 $314,268

157,132 Annual Disabled Placards reduction*2 ($314,268)

Administrative savings for renewals (79,262*$.67) $53,106

Total $53,106

































FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
HIGHWAY FUND
Income-Department of Revenue
Biennial Registration for Driveaway $0 $23,196 $0
Biennial Registration for Placards $0 $117,851 $0
Total Income-DOR $0 $141,047 $0
Cost Savings-Department of Revenue
Mailing of renewals* $0 $0 $53,106
Cost-Department of Revenue
Programming $0 ($12,360) $0
NET ESTIMATED EFFECT ON HIGHWAY FUND



$0


$128,687


$53,106

*This cost saving could be an annual savings.



FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
LOCAL FUNDS
Income-Cities
Biennial Registration for Driveaway $0 $4,639 $0
Biennial Registration for Placards $0 $23,570 $0
Total Income-Cities $0 $28,209 $0
Income-Counties
Biennial Registration for Driveaway $0 $3,093 $0
Biennial Registration for Placards $0 $1,571 $0
Total Income-Counties $0 $4,664 $0
NET ESTIMATED EFFECT ON LOCAL FUNDS



$0


$32,873


$0






FISCAL IMPACT - Small Business



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



DESCRIPTION



This proposal could allow biennial registration of Driveaway and Disabled Placards.



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 Revenue

Department of Transportation

Department of Public Safety













Mickey Wilson, CPA

Director

March 19, 2003