COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4557H.01I Bill No.:HB 1878 Subject:Licenses - Driver's Type:Original Date:February 8, 2022Bill Summary:This proposal modifies provisions for voter identification. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 4557H.01I Bill No. HB 1878 Page 2 of February 8, 2022 SAK:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on FTE 000 ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0$0$0 L.R. No. 4557H.01I Bill No. HB 1878 Page 3 of February 8, 2022 SAK:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Office of the Secretary of State (SOS) assume 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 $5,000. 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 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 require additional resources. Officials from the Department of Revenue (DOR) state: §115.427.2(1) The proposed change removes the language requiring the individual to sign a statement certifying the individual has no other form of personal identification that meets the current requirements of §115.427.2(1) when applying for a Nondriver identification card for voting transactions. Administrative Impact Currently the Department is required to have the individual who is applying for a Nondriver license for voting purposes, sign a statement at time of application, certifying under penalty of perjury that they have no other form of personal identification that would meet the current requirements of §115.427.2(1). To implement the proposed change, the Department would be required to: • Update policies, procedures, and the Uniform License Issuance Manual (ULIM); • Update forms, manuals, and the Department website; • Complete business requirements and design documents to modify the Missouri Electronic Driver License (MEDL) issuance system; • Complete programming and user acceptance testing of the Missouri Electronic Driver License (MEDL) issuance system; • Train staff. L.R. No. 4557H.01I Bill No. HB 1878 Page 4 of February 8, 2022 SAK:LR:OD FY 2023 - Driver License Bureau Research/Data Assistant 220hrs. @ $16.30 per hr. =$3,586 Research/Data Analyst 260hrs. @ $24.29 per hr. =$6,315 Administrative Manager 80 hrs. @ $26.37 per hr. =$2,110 Total $12,011 FY 2023 - Personnel Services Bureau Associate Research/Data Analyst 20 hrs. @ $19.47 per hr. =$389 Associate Research/Data Analyst 10 hrs. @ $19.47 per hr. =$195 Total $584 Total Costs $12,595 Oversight notes that IT costs according to DOR are contracted at $95 per hour. This proposal would result in $2,873 (30.24 hours x $95) in FY 2023. Revenue Impact DOR state currently persons who already hold an acceptable identification for voting are not allowed the no cost nondriver for voting since they cannot complete the required affidavit statement. The removal of this limitation may allow persons who already have a valid driver license or other eligible document to apply for the no cost nondriver for voting. The estimated number of potential applicants who may have a current acceptable identification document for voting and yet request an NDL for voting purposes is 53. This number was determined by reviewing the maximum office denial count statewide in 2021. The estimated loss of revenue below reflects the office transaction fee and office processing fee since currently the offices are reimbursed for processing fees related to no fee nondriver for voting transactions not collected at the time of issuance. Potential annual loss of NDL Transaction Fee = $6.00 x 53= $318 10 months (FY23) = $265 Total Loss of State General Revenue FY 24, FY 25 and on-going $318 Potential savings from General Revenue by removing reimbursement of processing fees to license offices for current issuance volumes of nondriver for voting documents would be: $12.00 x 1,001(948 annual NDL Voting issuance + 53 denials) = $12,012 potential revenue savings. Vendor per card cost including postage for NDL $2.44112 x 53 = $129 annually FY 24, 25 and on-going (this is assuming thee applicants would not have completed application today if fee not waived). L.R. No. 4557H.01I Bill No. HB 1878 Page 5 of February 8, 2022 SAK:LR:OD This impact could potentially increase on election years when more citizens will utilize the provisions. **Oversight notes that there may be a potential increase in loss of revenue during an election year when more citizens will utilize the provisions. According to DOR, the denial count statewide out of 182 offices was 1,442 persons YTD in 2020 (Presidential Election Year). The loss of revenue is reflected below: NDL Transaction Fee (Loss) = $6.00 x 1,442= ($ 8,652) Office Processing Fee (Savings) = $12.00 x 1,442= $17,304 Total Effect on State General Revenue FY 23, FY 24 and on-going $8,652 Oversight assumes that Department of Revenue will be able to accomplish the requirements of §115.427.2(1) with existing resources; however, during presidential election years, the cumulative impact may require additional appropriations. Oversight also assumes the effects on the General Revenue Fund would not be material. Officials from the Attorney General’s Office, Missouri Office of Prosecution Services, and Office of the State Courts Administrator each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. Officials from the Platte County Board of Elections, Jackson County Election Board, St. Charles County Board of Elections, Daviess County Clerk’s Office, and St. Louis County Board of Elections each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these organizations. Oversight only reflects the responses received from state agencies and political subdivisions; however, other local election authorities and county clerks were requested to respond to this proposed legislation but did not. A general listing of political subdivisions included in Oversight’s database is available upon request. FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025$0$0$0 L.R. No. 4557H.01I Bill No. HB 1878 Page 6 of February 8, 2022 SAK:LR:OD FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025$0$0$0 FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION The proposed legislation appears to have no direct fiscal impact. 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 the Secretary of State Attorney General’s Office Department of Revenue Missouri Office of Prosecution Services Office of the State Courts Administrator Jackson County Board of Elections Platte County Board of Elections St. Louis County Board of Elections St. Louis City Board of Elections Daviess County Clerk Julie MorffRoss StropeDirectorAssistant DirectorFebruary 8, 2022February 8, 2022