COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.: 5223-01

Bill No.: HB 1918

Subject: Licenses - Driver's; Motor Vehicles; Revenue Department

Type: Original

Date: March 14, 2006

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

ASSUMPTION

Officials from the Department of Revenue (DOR) state the proposal would require modifications to the Missouri Driver License system and the Over The Counter license issuance systems in the central and contract offices to exempt applicants who have held a Missouri driver or nondriver license or permit for fifteen or more years.

DOR assumes the proposal would have an administrative impact to two bureaus.

DOR's Customer Services Division - Driver License Bureau (DLB) state this legislation will require programming changes to the Missouri Electronic Driver License (MEDL also referred to as Over The Counter -OTC) software and supporting applications. These programming changes will need to be designed and tested. Administrative Rule(s), procedures, website and other documents listing required documents for proof of lawful presence and identity must be revised.

Driver License Bureau

FY 2007

80 Estimated hours for project completion (requirements and system testing)

X $23.21 Hourly rate for a Computer Information Technologist III (CITIII)

$1,849 Total

ASSUMPTION (continued)

DOR's Information Technology Bureau state programming changes will need to be completed for Missouri Electronic Driver License (MEDL) to not require entry of lawful presence verification for applicants who have held a driver or nondriver license or permit for fifteen or more years.

FY 2007

160 Hours of overtime programming

x $23.21 Hourly overtime rate for a Computer Information Technologist III (CIT III)

$3,714 Total overtime programming cost

FY 2007

16 Estimated contract programming hours

X $100 Hourly rate for Keene-contract programming

$1,600 Total Cost for Contract Programming

In summary, DOR assumes programming charges of $7,163 will be incurred in FY 2007.

Oversight assumes DOR can absorb the costs estimated in the proposal within existing resources. However, the addition of similar proposals would cause DOR to request additional funding to cover the cumulative impact of the proposals.

Officials from the Department of Health and Senior Services (DOHSS) state the proposal would have the impact of potentially reducing revenues since persons 31 years and over would not need a birth certificate. Also, potentially less people would order copies of divorce statements and marriage statements, resulting in a revenue loss for DOHSS and Local Public Health Agencies.

DOHSS states because it is not possible to estimate the number of individuals who will no longer need to prove lawful presence. DOHSS assumes an unknown revenue loss to the following state funds: General Revenue, Missouri Public Health Services Fund, the Endowed Cemetery Audit Fund, and the Children's Trust Fund.

Oversight assumes this proposal will allow persons who have previously held their license for 15 years or more to renew their drivers license without having a valid birth certificate and possibly a marriage certificate(s). Oversight assumes this additional revenue has not been collected by the state or by Local Public Health Agencies for this specific purpose in the past. SB 1233 in 2004 added the requirement, beginning July 1, 2005, that the applicant for a driver's license be "lawfully present in the United States". Therefore, Oversight will assume that the

ASSUMPTION (continued)

birth certificate and marriage license revenue that the state and locals will generate from this added requirement was not collected previously, and therefore, the elimination of this requirement (from persons who have held their license for 15 years or more) will not reduce revenue that had been collected in the past. For the fiscal note, Oversight will assume this proposal will not reduce revenues that had previously been collected. Therefore, Oversight will assume no fiscal impact from the proposal.

FISCAL IMPACT - Small Business

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

DESCRIPTION

This proposal allows a person who has previously held a noncommercial driver's license, noncommercial instruction permit, or nondriver's license for fifteen years or more is exempt from showing proof of lawful presence to the Department of Revenue.

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 Health and Senior Services

Mickey Wilson, CPA

Director

March 14, 2006