COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3562-03

Bill No.:          SCS for HB 1384 & HB 2157

Subject:           Crimes and Punishment; Victims of Crime; Law Enforcement Officers and Agencies; Consumer Protection

Type:              Original

Date:               April 18, 2008

Bill Summary:            This proposal modifies certain provisions relating to protection of consumers against fraudulent practices.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Insurance, Financial Institutions and Professional Registration, Office of the Secretary of State, Department of Public Safety - Director’s Office and Highway Patrol each assume the proposal would not fiscally impact their respective agencies.

Officials from the Office of the State Courts Administrator assume the proposal would not fiscally impact the courts.

Officials from the Department of Corrections (DOC) state this proposed legislation modifies certain provisions relating to protection of consumers against fraudulent practices. The penalty provision component of the bill resulting in potential fiscal impact for the DOC, is for a class C felony.

DOC states that currently, they cannot predict the number of new commitments which may result from the creation of the offense(s) outlined in this proposal. An increase in commitments depends on the utilization by prosecutors and the actual sentences imposed by the court.

If additional persons are sentenced to the custody of the DOC due to the provisions of this legislation, the DOC will incur a corresponding increase in operational cost either through incarceration (FY07 average of $41.21 per inmate, per day or an annual cost of $15,040 per inmate) or through supervision provided by the Board of Probation and Parole (FY07 average of $2.43 per offender, per day or an annual cost of $887 per offender).

In summary, supervision by the DOC through probation or incarceration would result in additional unknown costs to the department. Seven (7) persons would have to be incarcerated per fiscal year to exceed $100,000 annually. Due to the narrow scope of this new crime, it is assumed the impact would be less than $100,000 per year for the DOC.

In response to a similar proposal from this year (SB 712), the Office of the Attorney General assumed any potential costs associated with the proposal could be absorbed with existing resources.

Officials from the Springfield Police Department and the Boone County Sheriff’s Department each assume the proposal would not fiscally impact their agencies.

ASSUMPTION (continued)

Officials from the Office of the State Public Defender, Office of Prosecution Services, St. Charles Police Department, St. Louis Metropolitan Police Department, Kansas City Police Department, and the Independence Police Department did not respond to our request for fiscal impact.

FISCAL IMPACT - Small Business

This proposal may have a fiscal impact on small businesses that sell products with rebates. In addition, the proposal could have a negative impact on small businesses that need to conduct credit checks and find out a consumer has placed a security freeze on his/her account.

FISCAL DESCRIPTION

A person commits a class C felony if he or she manufactures or possesses five or more fictitious or forged means of identity with the intent to distribute to others for the purpose of committing a crime.

FISCAL DESCRIPTION (continued)

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 Public Safety

Office of the State Courts Administrator

Department of Corrections

Office of the Attorney General

Department of Insurance, Financial Institutions and Professional Registration

Office of the Secretary of State

Springfield Police Department

Boone County Sheriff’s Department

NOT RESPONDING:

Office of the State Public Defender

Office of Prosecution Services

St. Charles Police Department

St. Louis Metropolitan Police Department

Kansas City Police Department

Independence Police Department

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 18, 2008