COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:2041H.01I Bill No.:HB 894 Subject:Motor Vehicles; Business and Commerce Type:Original Date:February 14, 2023Bill Summary:This proposal modifies provisions relating to the Motor Vehicle Franchise Practices Act. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 2041H.01I Bill No. HB 894 Page 2 of February 14, 2023 KB:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total 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 2024FY 2025FY 2026Local Government$0$0$0 L.R. No. 2041H.01I Bill No. HB 894 Page 3 of February 14, 2023 KB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Revenue (DOR) assume the following regarding this proposal: Administrative Impact To implement the proposed legislation, the Department will be required to: • Update the Missouri titling manual; • Make changes to procedures, correspondence letters, forms, and the Department website; • Provide License Offices and stakeholders these changes as applicable; and • Train staff FY 2024- Motor Vehicle Bureau Associate Research/Data Analyst 40 Hrs @ $19.90 = $796 Lead Admin Assistant 20 Hrs @ $17.05 = $341 Administrative manager 5 Hrs @ $26.96 = $135 FY 2024 Strategy and Communications Office Associate Research/Data Analyst 10 Hrs @ $19.90 = $199 Total Cost =$1,471 The Department anticipates that they will be able to absorb these costs and that there will be minimal impact. If multiple bills are passed that require department resources, FTE may be requested through the appropriations process. Oversight assumes DOR is provided with core funding to handle a certain amount of activity each year. Oversight assumes DOR could absorb the costs related to this proposal. If multiple bills pass which require additional staffing and duties at substantial costs, DOR could request funding through the appropriation process. Officials from the Attorney General’s Office assume the proposal will have no fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note. Officials from the Office of Administration did not respond to Oversight’s request for fiscal impact for this proposal. L.R. No. 2041H.01I Bill No. HB 894 Page 4 of February 14, 2023 KB:LR:OD FISCAL IMPACT – State GovernmentFY 2024 (10 Mo.) FY 2025FY 2026$0$0$0FISCAL IMPACT – Local GovernmentFY 2024 (10 Mo.) FY 2025FY 2026$0$0$0 FISCAL IMPACT – Small Business Small motor vehicle franchises could be impacted 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 Department of Revenue Attorney General’s Office Julie MorffRoss StropeDirectorAssistant DirectorFebruary 14, 2023February 14, 2023