COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION


FISCAL NOTE

 

L.R. No.:         4521-02

Bill No.:          Perfected HB 1104

Subject:           Elections; Secretary of State

Type:              Original

Date:               February 7, 2012




 

Bill Summary:            This proposal establishes photo identification requirements for voting.


FISCAL SUMMARY


ESTIMATED NET EFFECT ON GENERAL REVENUE FUND

FUND AFFECTED

FY 2013

FY 2014

FY 2015

General Revenue

$0 or Unknown to (Unknown greater than $7,027,921)

$0 or Unknown to (Unknown greater than $3,649,437)

$0 or Unknown to (Unknown greater than $6,267,554)

Total Estimated

Net Effect on

General Revenue

Fund

$0 or Unknown to (Unknown greater than $7,027,921)

$0 or Unknown to (Unknown greater than $3,649,437)

$0 or Unknown to (Unknown greater than $6,267,554)


ESTIMATED NET EFFECT ON OTHER STATE FUNDS

FUND AFFECTED

FY 2013

FY 2014

FY 2015

Children’s Trust Fund

$0 or Unknown

$0 or Unknown

$0 or Unknown

Endowed Care Cemetery Audit Fund

$0 or Unknown

$0 or Unknown

$0 or Unknown

MO Public Health Service Fund

$0 or Unknown

$0 or Unknown

$0 or Unknown

Total Estimated

Net Effect on Other

State Funds

$0 or Unknown

$0 or Unknown

$0 or Unknown


Numbers within parentheses: ( ) indicate costs or losses. This fiscal note contains 14 pages.




ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED

FY 2013

FY 2014

FY 2015

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on All

Federal Funds

$0

$0

$0



ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)

FUND AFFECTED

FY 2013

FY 2014

FY 2015

General Revenue

0 or 5 FTE

0 or 5 FTE

0 or 5 FTE

 

 

 

 

Total Estimated

Net Effect on

FTE

0 or 5 FTE

0 or 5 FTE

0 or 5 FTE


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).


ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED

FY 2013

FY 2014

FY 2015

Local Government

$0 or Unknown

$0 or Unknown

$0 or Unknown







FISCAL ANALYSIS


ASSUMPTION


Section 115.427 Personal Id requirement to vote

In response to similar legislation filed this year, SB 442, officials at the Budget and Planning assume the photo identification requirements will result in additional costs to General Revenue.


Officials at the Department of Health and Senior Services assume Section 115.427 of the proposed legislation requires voters to establish their identity and eligibility to vote by providing a form of personal identification to election officials. If an individual does not possess a valid form of personal identification, it may require them to obtain a copy of his/her certified birth certificate to acquire a driver's or non-driver's license. For individuals whose birth has not been recorded, it may cause them to apply for a delayed birth certificate. It is unknown and difficult to estimate the number that might be required to apply to the Bureau of Vital Records for these records.


The proposed legislation also requires the state to provide at least one form of identification required to vote at no cost to any qualified citizen who does not already possess such identification and desires to do so to vote. The proposed legislation does not appear to exempt the Department of Health and Senior Services from collecting the necessary fees for copies of certified birth certificates as set forth in Section 193.265.1, RSMo. The proposed legislation could result in an unknown increase in revenue to General Revenue, the Children's Trust Fund, the Endowed Care Cemetery Audit Fund, and the Missouri Public Health Service Fund. The proposed legislation could also result in an unknown impact to the Bureau of Vital Records to issue the increased demand for birth certificate records.


Officials at the Department of Revenue (DOR) assume for the purpose of the fiscal note all costs would be appropriated from the general revenue fund. DOR assumes the administrative impact of this proposal is as follows:


DOR assumes the nondriver license transaction fee and processing fee allowed under section 136.055 would be waived. The actual total cost of the nondriver identification ($6.00) will be paid for by the state of Missouri which will need to be appropriated.


To determine an estimated number of potential applicants who may be eligible for a nondriver (photo identification) at no cost, the DOR compared the voter records on file with the Secretary of State to the current document holders on record with DOR. This comparison was completed in March 2009. According to the Secretary of State on January 6, 2012, the 2009 numbers have not statistically changed. The next major change is estimated to occur in 2013.


ASSUMPTION (continued)

 

253,496           Estimated number of individuals registered to vote who do not have photo identification on file with the Department of Revenue as of March 2009.

125,795           Estimated number of individuals with an expired photo identification document on file with the Department of Revenue, who may need to obtain an updated nondriver license for voting purposes

379,291           Total estimated number of those who may be eligible for a nondriver license (photo identification) document at no cost.

x 50%         Estimated number of individuals who would apply for a nondriver license for voting purposes (based on average voter turnout for Missouri (derived from 2006 information).

189,645           Potential nondriver license applicants in the first year of implementation FY 13

189,646           Remaining number of registered voters who may be eligible for a photo identification document after first year of implementation. Based on 2009 counts.

÷ 2

  94,823            Estimated number of registered voters who may apply during subsequent fiscal years (FY2014 and FY2015).


In addition, because the language allows a person to apply for a nondriver license at no cost by signing an affidavit indicating they do not have a valid photographic identification document, applicants who have held a document previously and have lost it, allowed it to expire, or other reasons, may now obtain a nondriver license at no cost.


171,509           Total new, renewal and duplicate nondriver licenses issued in FY 2011

x 25%           Estimated number of applicants with prior document on file that would utilize the

affidavit for a new, renewal or duplicate nondriver license, indicating they do not have any other acceptable form of photographic identification for voting purposes, making them eligible for a nondriver license at no cost to the applicant.

42,877             Estimated annual nondriver license applicants with prior document on file.


Licensing Cost


FY 2013

189,645           Potential nondriver license applicants first year of implementation FY2012

 42,877             Estimated annual nondriver license applicants (previous document)

232,522           Total

x $2.23           Per document vendor cost for licensing material

$518,524         Total estimated vendor cost FY 2013 for licensing material


ASSUMPTION (continued)


FY 2014 and FY 2015

 94,823             Estimated number of current registered voters who may apply during subsequent fiscal years FY 2013 and FY 2014

 42,877             Estimated annual nondriver license applicants (previous document)

137,700           Total

x $2.23

$307,071         Total estimated vendor cost FY 2014 and FY2015 for licensing material


Direct Public Inquiries


While the Secretary of State is responsible for notifying individuals of the requirement to obtain photo identification for voting purposes, it is assumed that the majority of inquiries would be directed to the DOR as the document issuing agency.


Estimating a 50% potential applicant inquiry, DOR assumes that approximately 123,622 (28,800 + 94,823) inquiries through the central office will be received during the first implementation year and approximately 76,200 (28,800 + 47,400) calls in subsequent years. To provide the best call-in service for Missouri citizens DOR will need to add 5 FTE to handle the additional telephone inquiries.


123,622                       Total potential applicants/inquiries first year of implementation.

÷ 264                        Total days of service per annual period

      468

÷ 100                         Estimated # of calls expected per TIO

      5                             Estimated # of TIO's required to handle increased call volume FY 2013


Oversight has, for fiscal note purposes only, changed the starting salary for the Revenue Processing Technician I to correspond to the second step above minimum for comparable positions in the state’s merit system pay grid. This decision reflects a study of actual starting salaries for new state employees over the last six months of FY 2010 and policy of the Oversight Subcommittee of the Joint Committee on Legislative Research.


Driver License Bureau (DLB)


The proposed changes will require:

Drafting updates to web site information related to nondriver licenses for voting purposes.

            Updating office procedures.


ASSUMPTION (continued)


            Develop format for nondriver license for voting purposes affidavit.

            Development of Missouri Electronic Driver License (MEDL) system change requirements documents to define changes to issuance periods for a no cost driver license or nondriver license for voting and completion of end-user testing by our internal staff. This will require overtime from existing staff in order to perform the testing. See below.


FY 13

Update Web Page - Administrative Analyst III           10 hrs @ $22.00 = $ 220

Develop Affidavit - Management Analysis Spec I       40 hrs @ $20.00 = $ 800

Develop Procedures - Management Analysis Spec I       40 hrs @ $20.00 = $ 800

                                                                                                                 Total = $1,820


Requirements and procedures development and end user testing by DLB: 

            Administrative Analyst -                    160 hrs @ $24 00(1 1/2) per hr = $3,840

            Management Analyst Specialist II -    240 hrs @ $23.00 per hr = $5,520

            Revenue Band Manager -                   40 hrs @ $30.00 per hr = $1,200

                                                                                                               Total = $10,560


Officials at the OA- Information Technology Services Division assume DOR’s response to a proposal similar to or identical to this one in a previous session indicated the Department planned to absorb the administrative costs to implement the proposal. Due to budget constraints, reduction of staff and the limitations within the Department's driver license legacy systems, changes cannot be made without significant impact to the Department's resources and budget. Therefore, the IT portion of the fiscal impact is estimated with a level of effort valued at $1,060. The value of the level of effort is calculated by a Missouri Electronic Driver License CI (MEDL-CI) (State employee) at $26.50 per hour for 40 hours.


Revenue Impact


Officials at the DOR assume the revenue impact of this proposal states "the total cost associated with nondriver's license photo identification under this subsection shall be borne by the state of Missouri from funds appropriated to the department of revenue for that specific purpose". This money would have to be appropriated to the Department for distribution to the license (fee) offices as required.

 

For purposes of this fiscal note the Department assumes this includes only the nondriver license (NDL) cost under Section 302.181 and the processing fee allowed under Section 136.055 for the license (fee) offices. Depending on the definition of 'total cost", the revenue impact could be


ASSUMPTION (continued)


increased or decreased.


FY 2013

232,522                       Total Estimated NDL applicants FY 2013

x $6.00                      Nondriver License Fee

$1,395,132                  Total estimated potential loss of revenue in FY 2013


FY 2014 and 2015

137,700                       Total estimated NDL applicants FY 2014 and 2015

x $6.00                      Nondriver License Fee

$826,200                     Total estimated potential loss of revenue in FY 2014 and 2015


Fee Office Processing Fees to be reimbursed to contracted license offices


FY 2013

232,522                       Total Estimated NDL applicants FY 2013

x $5.00                      Nondriver License Processing Fee

$1,162,610                  Total estimated potential loss of revenue in FY 2013


FY 2014 and 2015

137,700                       Total estimated NDL applicants FY 2014 and 2015

x $5.00                      Nondriver License Processing Fee

$688,500                     Total estimated potential loss of revenue in FY 2014 and 2015


Officials at Lawrence County and Platte County Board of Election Commission responded to Oversight’s request for impact but did not indicate an impact.


Officials at the Office of the Secretary of State (SOS) assume this proposal requires the SOS to provide advance notice of the personal ID documents required to vote. The advance notice provided by the SOS must include at a "minimum the use of advertisements and public service announcements in print, broadcast television, radio, and cable television media."


For fiscal year 2013 advance notice advertisements will be provided upon approval by the voters of a constitutional amendment enacting section A of this proposal and prior to the April 2013 election. For fiscal year 2014 advance notice advertisements will be provided to voters prior to the April 2014 election. For fiscal year 2015 advance notice advertisements will be provided to voters prior to the August 2014 and November 2014 elections. For all subsequent years advance notice advertisements will be provided to voters prior to each federal primary and general


ASSUMPTION (continued)


election.


Assumptions include:

            Production of radio and TV public service announcements- $2,000

            Print ad to run twice before an election-                                 $203,284

            Cable television ad to run twice everyday for eight weeks-   $299,472

            TV and Radio ad to run through broadcast media-                 $497,311

Total- $1,002,067


Upon the bill becoming effective, the SOS will send a mailer to all registered voters to notify them of the new identification requirements at a cost of $1,756,095. A similar mailer will be sent before the 2014 Primary Election. For all other elections, the SOS's office will send mailings to newly registered voters prior to each election. Based on the estimated 375,680 newly registered voters in 2010, this mailer could cost $161,542.


Assumptions include:

            Mailing to all registered voters:

            4,083,942 registered voters x $0.43 postage, printing and processing= $1,756,095

Mailing to newly registered voters prior to each election:

            375,680 new registered voters x $0.43 postage, printing and processing = $161,542


The photo id requirements of this bill are not limited to statewide elections but will affect every election. The cost per fiscal year will vary based on the number of elections held. In addition to the general municipal election each April and the primary and general elections in August and November of even numbered years, there are additional days available for public elections in February and in August and November of odd numbered years, which are used only as needed.


FY 2013

February 2013

$ 1,756,095

   1,002,067


April 2013

   1,002,067

$ 3,760,229     FY 2013 TOTAL





ASSUMPTION (continued)


FY 2014

August 2013

$ 161,542


November 2013

     161,542


February 2014

     161,542


April 2014

  1,002,067

     161,542

$ 1,648,235     FY 2014 TOTAL


FY 2015

August 2014

$ 1,756,095

   1,002,067

   

November 2014

      161,542

   1,002,067

   

February 2015

     161,542


April 2015

     161,542

$ 4,244,855     FY 2015 TOTAL


Officials from the Office of the Secretary of State (SOS) state many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact for this fiscal note to the SOS for Administrative Rules is less than $2,500. The SOS recognizes that this is a small amount and does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the


ASSUMPTION (continued)


General Assembly in a given year and that collectively the costs may be in excess of what the office can sustain with the core budget. Therefore, the SOS reserves the right to request funding for the cost of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the governor.


Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process.


Oversight assumes the notice required to be provided to citizens informing them of the personal id requirements to vote, is to be included in the election authority’s notice they are already required to send. Therefore Oversight assumes that provision would have no fiscal impact.


Oversight assumes this proposal requires a vote of the people to become effective. Oversight assumes that election will be held in November 2012 at the next regularly scheduled general election and therefore the earliest elections affected by this proposal, if passed, are in FY 2013.


Oversight assumes that since the proposal requires the State to pay the legally required fees for a person to get a nondriver's license photo identification then general revenue will make the fee payments to the Highway Fund, Cities and Counties. Oversight is showing the cost of the nondriver's license fee as a cost to general revenue. The nondriver's license fee is split between the State Highway Fund, Cities and Counties.


Oversight assumes if this proposal should be approved by the voters of Missouri, certain state departments would realize fiscal impact. Therefore Oversight has shown the impact as "zero or Unknown".


Oversight assumes the proposal states that "the state shall provide at least one such form of the personal identification required to vote at no cost to any otherwise qualified citizen who does not already possess such identification and who desires the identification in order to vote."


Oversight assumes no cost to local governments from this proposal. The legislation specifically states that if no money is appropriated for the funding of the photo id requirement to vote that it shall not be enforced.


Officials at the following board of election commissions: Kansas City Board of Election Commission, St. Louis City Board of Election Commission, Clay County Board of Election


ASSUMPTION (continued)


Commission, Jackson County Board of Election Commission and St. Louis County Board of Election Commission did not respond to Oversight's request for fiscal impact.


Officials at the following counties: Andrew, Barry, Bates, Boone, Buchanan, Butler, Callaway, Camden, Cape Girardeau, Carroll, Cass, Clay, Cole, Cooper, DeKalb, Franklin, Greene, Hickory, Holt, Jackson, Jasper, Jefferson, Johnson, Knox, Laclede, Lafayette, Lincoln, Marion, Miller, Moniteau, Monroe, Montgomery, New Madrid, Nodaway, Ozark, Pemiscot, Perry, Phelps, Platte, Pulaski, Scott, St. Charles, St. Louis, St. Francois, Taney, Texas, Warren, and Webster did not respond to Oversight's request for fiscal impact.


FISCAL IMPACT - State Government

FY 2013

(10 Mo.)

FY 2014

FY 2015

GENERAL REVENUE

 

 

 

 

 

 

 

Revenue - Dept. of Health

 

 

 

     Birth certificate fees (115.427)

$0 or Unknown

$0 or Unknown

$0 or Unknown

 

 

 

 

Cost - Dept of Revenue/OA-ITSD computer programming changes

$0 or ($1,060)

$0

$0

 

 

 

 

Cost- Dept of Revenue

     licensing materials

$0 or ($518,524)

$0 or ($307,071)

$0 or ($307,071)

 

 

 

 

Cost - Dept of Revenue

     reimbursement of the NDL fee paid to the Highway fund, Cities and counties that the State must pay


$0 or ($1,395,132)


$0 or ($826,200)


$0 or ($826,200)

 

 

 

 

Cost - revenue office processing fee reimbursement

$0 or ($1,162,610)

$0 or ($688,500)

$0 or ($688,500)

 

 

 

 

Cost - Dept of Revenue

 

 

 

     Personal Service

$0 or ($190,366)

$0 or ($112,777)

$0 or ($113,904)

     Fringe Benefits

$0 or ($49,261)

$0 or ($59,704)

$0 or ($60,301)

     Expense and Equipment

$0 or ($48,055)

$0 or ($6,950)

$0 or ($7,123)

Total Cost - Dept of Revenue

$0 or ($190,366)

$0 or ($179,431)

$0 or ($181,328)

     FTE Change - DOR

0 or 5 FTE

0 or 5 FTE

0 or 5 FTE

 

 

 

 

Cost- Secretary of State

   Advertising for the voter id requirement

$0 or ($2,004,134)

$0 or ($1,002,067)

$0 or ($2,004,134)

 

 

 

 

Cost- Secretary of State

   Mailed notice of the voter id requirement

$0 or ($1,756,095)

$0 or ($646,168)

$0 or ($2,240,721)

 

 

 

 

ESTIMATED NET EFFECT ON

 

 

 

GENERAL REVENUE

$0 or Unknown to (Unknown greater than $7,027,921)

$0 or Unknown to (Unknown greater than $3,649,437)

$0 or Unknown to (Unknown greater than $6,267,554)

 

 

 

 

Estimated Net FTE Change on

 

 

 

General Revenue

0 or 5 FTE

0 or 5 FTE

0 or 5 FTE

 

 

 

 

CHILDREN’S TRUST FUND

 

 

 

 

 

 

 

Revenue - Dept. of Health

 

 

 

     Birth certificate fees (115.427)

$0

$0 or Unknown

$0 or Unknown

 

 

 

 

ESTIMATED NET EFFECT ON

 

 

 

CHILDREN’S TRUST FUND

$0

$0 or Unknown

$0 or Unknown

 

 

 

 

ENDOWED CARE CEMETERY

 

 

 

AUDIT FUND

 

 

 

 

 

 

 

Revenue - Dept. of Health

 

 

 

     Birth certificate fees (115.427)

$0

$0 or Unknown

$0 or Unknown

 

 

 

 

ESTIMATED NET EFFECT ON

 

 

 

ENDOWED CARE CEMETERY

 

 

 

AUDIT FUND

$0

$0 or Unknown

$0 or Unknown

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MISSOURI PUBLIC HEALTH

 

 

 

SERVICE FUND

 

 

 

 

 

 

 

Revenue - Dept. of Health

 

 

 

     Birth certificate fees (115.427)

$0

$0 or Unknown

$0 or Unknown

 

 

 

 

ESTIMATED NET EFFECT ON

 

 

 

MISSOURI PUBLIC HEALTH

 

 

 

SERVICE FUND

$0

$0 or Unknown

$0 or Unknown

 

 

 

 



FISCAL IMPACT - Local Government

FY 2013

(10 Mo.)

FY 2014

FY 2015

LOCAL PUBLIC HEALTH

 

 

 

DEPARTMENT FUNDS

 

 

 

 

 

 

 

Revenue - Dept of Health

 

 

 

     Birth certificate fees

$0 or Unknown

$0 or Unknown

$0 or Unknown

 

 

 

 

ESTIMATED NET EFFECT ON

 

 

 

LOCAL PUBLIC HEALTH

 

 

 

DEPARTMENT FUNDS

$0 or Unknown

$0 or Unknown

$0 or Unknown

 

 

 

 

 

 

 

 


FISCAL IMPACT - Small Business


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


FISCAL DESCRIPTION


The act establishes identification requirements for voting. Voters shall produce a non-expired Missouri driver's license; a non-expired or non-expiring Missouri nondriver's license; any identification containing a photograph issued by the Missouri National Guard, the United States armed forces, or the United States Department of Veterans Affairs; or a document issued by the United States or the state of Missouri containing the name of the voter which substantially conforms to the most recent signature in the individual’s voter registration records, a photograph, and an expiration date or if expired, the expiration is after the date of the most recent general election.


FISCAL DESCRIPTION (continued)


The state shall provide at least one form of identification required to vote at no cost to the voter. All costs incurred by the election authority associated with implementing the new identification requirements shall be reimbursed from the general revenue upon appropriation.


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 Health and Senior Services

Department of Revenue

Lawrence County

Office of the Secretary of State

Platte County Board of Election Commission







                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 7, 2012