COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4221-05
Bill No.: Perfected HS for HCS for HB 1285
Subject: Insurance - Automobile; Insurance - General; Merchandising Practices; Motor Vehicles
Type: Original
Date: April 21, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Road | Unknown less than $50,000 | Unknown less than $50,000 | Unknown less than $50,000 |
| Highway | Unknown less than $50,000 | Unknown less than $50,000 | Unknown less than $50,000 |
| Total Estimated
Net Effect on All State Funds |
Unknown less than $100,000 | Unknown less than $100,000 | Unknown less than $100,000 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Insurance and Department of Revenue assume the proposal will have no fiscal impact on their organizations.
Officials from the Office of Attorney General (AGO) state any potential costs arising from this proposal can be absorbed with existing resources, however, the proposal limits the penalties for violations of this subchapter of chapter 407 to $50 per violation with a $10,000 annual cap (current law allows $1,000 per violation). This could result in substantial forgone recoveries to the Merchandising Practices Revolving Fund.
Officials from the Missouri Department of Transportation (DOT) state House Amendment #1 removes the requirement that the insured by state employees and the vehicles be state-owned. This would result in DOT being more efficient and operations may be less costly. The DOT assumes the proposal would have an unknown positive impact of less than $100,000 annually.
House Amendment #2 would have no fiscal impact on the DOT.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| ROAD FUND | |||
| Savings - Missouri Department of Transportation | |||
| Reduced operations costs | Unknown less than $50,000 | Unknown less than $50,000 | Unknown less than $50,000 |
| ESTIMATED NET EFFECT ON ROAD FUND |
Unknown less than $50,000 |
Unknown less than $50,000 |
Unknown less than $50,000 |
| HIGHWAY FUND | |||
| Savings - Missouri Department of Transportation | |||
| Reduced operations costs | Unknown less than $50,000 | Unknown less than $50,000 | Unknown less than $50,000 |
| ESTIMATED NET EFFECT ON HIGHWAY FUND |
Unknown less than $50,000 |
Unknown less than $50,000 |
Unknown less than $50,000 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
A direct fiscal impact to small businesses could be expected as a result of this proposal.
DESCRIPTION
This proposal makes several changes in the laws regarding car rental contracts. The proposal:
(1) Changes the definition of "authorized driver" as it applies to car rental contracts to exclude employers, parking valets, and family members other than a spouse;
DESCRIPTION (continued)
(2) Revises the written notice that must appear on every car rental contract regarding the purchase of optional insurance coverage;
(3) Requires car rental companies to post a clear and conspicuous sign on the premises that informs the consumer about collision damage waiver, any other optional car rental insurance, and how the consumer's own auto insurance policy or credit card might already offer that protection;
(4) Makes a car rental company subject to a $50 fine for each violation, up to $10,000 in any calendar year, and
(5) Allows the state highways and transportation commission to provide liability insurance covering the operation of all motor vehicles and equipment used in the performance of official commission or department business by all authorized operators under the commission's self-insurance plan.
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 Attorney General
Department of Revenue
Missouri Department of Transportation
Department of Insurance
Mickey Wilson, CPA
Director
April 21, 2004