COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1413H.07T Bill No.:Truly Agreed To and Finally Passed HCS for SS for SCS for SB 398 Subject:Consumer Protection; Merchandising Practices; Motor Vehicles; Department of
Revenue; Transportation; Civil Procedure; Administrative Law
Type:Original Date:June 15, 2023Bill Summary:This proposal modifies provisions relating to motor vehicles.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026
General Revenue
($412,397)
Could exceed
($93,634)
Could exceed
($114,562)
Total Estimated Net Effect
on General Revenue
($412,397)
Could exceed
($93,634)
Could exceed
($114,562)
Numbers within parentheses: () indicate costs or losses. L.R. No. 1413H.07T
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ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Conservation Commission
Fund*
$0 or Up to ($253,656)$0 or Up to ($304,387)$0 or Up to ($304,387)Highway Fund $0$50,882$101,760Motor Vehicle Financial
Responsibility Verification
and Enforcement Fund
$0
Less than ($30,677) to
could exceed $100,723
Less than ($61,353) to
could exceed $201,447
Missouri Office of
Prosecution Services
Fund** $0$0$0
Parks, Soils and Water
Fund*
$0 or Up to ($202,925)$0 or Up to ($243,510)$0 or Up to ($243,510)School District Trust
Fund*
$0 or Up to
($1,014,623)
$0 or Up to
($1,217,548)
$0 or Up to
($1,217,548)
State Road Bond Fund*$0 or Up to
($3,043,870)
$0 or Up to
($3,652,644)
$0 or Up to
($3,652,644)
State Road Fund*$0 or Up to
($3,043,870)
$0 or Up to
($3,652,644
$0 or Up to
($3,652,644)
Various State Funds
$0
Less than
$125,000
Less than
$250,000
Total Estimated Net
Effect on Other State
Funds
$0 or Up to
($7,558,944)
More or Less than
($8,794,128 to
$8,92,528)
More or Less than
($8,517,526 to
$8,882,086)
*Current law allows (may) motor vehicle dealers to collect and remit sales taxes (dealers already
have this ability). This proposal requires motor vehicle dealers (as soon as technologically
possible following the development and maintenance of a modernized, integrated system) to
collect and remit sales tax. This may increase the amount of sales taxes paid to the state
(assuming some are not actually paying sales tax and registering their vehicles). However,
dealers would be allowed to retain the 2% timely-filed discount (which are the estimates above).
**Revenue and costs are anticipated to net to zero by the Missouri Office of Prosecution
Services L.R. No. 1413H.07T
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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 or Up to
($9,273,657)
More or Less than
($10,986,429)
More or Less than
($10,844,469) L.R. No. 1413H.07T
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FISCAL ANALYSIS
ASSUMPTION
§§144.020 & 144.070 – Dealers to Remit Sales Tax
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
§144.070.11
As soon as the Department's Motor Vehicle and Driver Licensing System integration and
modernization is completed, this provision requires all Missouri licensed dealers to collect and
remit the sales tax on all motor vehicles that the dealer sells. When collecting and with timely
remittance the dealer gets to keep two percent of taxes collected.
Administrative Impact
Motor Vehicle Bureau
The implementation of this legislation will be coordinated with the integration of the
Department’s Motor Vehicle and Driver Licensing software system approved and passed by the
General Assembly in 2020 (Senate Bill 176). Dealers collecting tax is a part of the new system
requirements. The administrative impact for this bill is inclusive within the Department’s
development and implementation of the new system.
Compliance and Investigations Bureau (CIB)
The proposal will have an impact on CIB as well. If dealers are collecting and remitting sales
tax, this will increase the responsibilities of CIB to ensure appropriate tax collection. Additional
resources will be requested through the appropriations process, if needed.
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.
Revenue Impact
DOR notes the following estimates have been made using data from FY 2022 state and local
sales tax collected on motor vehicles if the 2% timely discount is allowed for dealers that
remit sales tax.
Total amount of state sales tax collected for motor vehicles sold by dealers in FY 2022
= $417,111,230 x 2% = $8,342,225 - Estimated Loss in MV State Sales Tax L.R. No. 1413H.07T
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Total amount of local
= $340,659,669 x 2% = $6,813,193 - Estimated Loss MV Local Sales/Use Tax
Estimated loss of revenue annually = $15,155,418 ($757,770,899 x 2%)
This would be a decrease to state, city, and county funds
Dealers collecting sales tax at the time of purchase should result in an unknown increase in
Motor Vehicle sales tax collections. This increase should mitigate/offset the loss in sales tax
collections resulting from the 2% collection fee dealers will be able to retain.
FY 2024 (6
months)
FY 2025FY 2026Conservation($123,406)($246,811)($246,811)Parks, Soils & Water($98,725)($197,449)($197,449)School District Trust Fund($493,623)($987,246)($987,246)State Road Bond Fund($1,480,868)($2,961,737)($2,961,737)State Road Fund($1,480,868)($2,961,737)($2,961,737)Locals($493,623)($987,245)($987,245)Total($4,171,113)($8,342,225)($8,342,225)
Officials from the Office of Administration - Budget and Planning (B&P) assume the
following regarding this proposal:
Section 144.070
This proposal would require motor vehicle dealers to collect and remit sales taxes, rather than
applying the sales tax to the purchaser at the time of titling a vehicle. Motor vehicle dealers are
to begin collecting and remitting the sales tax after the development of DOR’s integrated motor
vehicle system.
B&P notes that motor vehicle dealers would be eligible for the 2% timely filing discount under
Section 144.140. Therefore, B&P estimates that this provision may reduce revenues to state and
local taxing jurisdictions.
B&P also notes that the 3% tax on motor vehicles is deposited into the State Road Bond Fund
(50%); the State Road Fund (36.5%); the State Transportation Fund (1%); and the Fuel Local
Deposit Fund (FLOYD) (12.5%) which is then distributed to local jurisdictions.
In addition to the 3% general tax, a tax of 1% is levied for education, 0.125% for Conservation,
and 0.1% for Parks, and Soil and Water. L.R. No. 1413H.07T
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In FY 2022, state 3% MV sales tax collections were $365,264,400. Based on the 3% amount,
B&P estimates that total taxable sales were $12,175,480,006. Therefore, B&P estimates that
granting the 2% timely filing discount to MV dealers would reduce state tax collections by up to
$9,070,733 (includes state sales tax minus FLOYD distributions) annually. In addition, B&P
estimates that this would reduce local sales tax collections by up to $11,128,389 (includes both
local sales tax plus FLOYD distributions) annually.
Table 1 shows the impact by fiscal year by impacted fund. B&P notes that the estimated impact
is “up to” the amounts shown as not all MV businesses may choose to actually collect and remit
the sales tax and not all businesses may qualify for the timely filing discount throughout a full
fiscal year.
Table 1: Impact by Fund and Fiscal Year FY 2024FY 2025FY 2026+State Funds
Education$0 or Up to($1,014,623)$0 or Up to($1,217,548)
Up
to($1,217,548)Conservation$0 or Up to($253,656)$0 or Up to($304,387)
Up
to ($304,387)DNR$0 or Up to($202,925)$0 or Up to($243,510)
Up
to ($243,510)
State Road Bond
Fund$0 or Up to($3,043,870)$0 or Up to($3,652,644)
Up
to($3,652,644)State Road Fund$0 or Up to($2,962,700)$0 or Up to($3,555,240)
Up
to($3,555,240)
State Transportation
Fund$0 or Up to($81,170)$0 or Up to($97,404)
Up
to ($97,404)
Loss to All State
Funds$0 or Up to($7,558,944)$0 or Up to($9,070,733)
Up
to($9,070,733)
Local Funds Fuel Local Deposit
(FLOYD)$0 or Up to($1,014,623)$0 or Up to($1,217,548)
Up
to($1,217,548) L.R. No. 1413H.07T
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Sales Tax$0 or Up to($8,259,034)$0 or Up to($9,910,841)
Up
to($9,910,841)
Loss to All Local
Funds$0 or Up to($9,273,657)$0 or Up to($11,128,389)
Up
to($11,128,389)
Oversight does not have information to the contrary and therefore, Oversight will reflect the
revenue loss estimates as provided by B&P. In addition, Oversight will reflect an “Unknown”
increase in revenue as indicated by DOR for the potential increase in sales tax collections due to
motor vehicle dealers having the ability to collect the sales tax at the time of sale – if those sales
taxes would not have otherwise been collected.
Oversight notes, DOR has indicated that the average estimated time to implement the new
integrated system is between three and five years; therefore, Oversight will reflect the fiscal
impact as $0 (new system has not been implemented yet) up to the estimates indicated by B&P
(new system has been implemented).
Officials from the Missouri Highway Patrol
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for the Missouri Highway Patrol.
Officials from the Missouri Department of Transportation defer to the DOR for the potential
fiscal impact of this proposal.
§§303.420 – 303.440 – Motor Vehicle Financial Responsibility Verification and Enforcement
Program
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
Administrative Impact
The proposal requires the Department to establish and maintain a web-based system for online
insurance verification. The system’s goal is to identify uninsured motorists in the most effective
way. To establish the objectives, details, and deadlines for the system, the Department must
create an advisory council, which consists of representatives from the insurance industry who
will also serve as voting members. To implement and enforce the program and to require real-
time reporting, administrative rules will be promulgated. L.R. No. 1413H.07T
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The proposal allows the Department to contract or consult with a third-party vendor who has
implemented a similar program in other states to create the web-based system; however, there is
no initial funding provided in the proposal to fund a third-party vendor. As such, OA-ITSD will
be responsible for the development, implementation, and maintenance of the system, unless
funding becomes available. The OA-ITSD cost will be shown later in this response.
An online “real-time” insurance verification system will allow law enforcement to verify
compliance with the Financial Responsibility Law at the time of roadside-traffic stops and motor
vehicle crash investigations. This will result in an increase in the number of “no insurance”
citations being issued by law enforcement to motor vehicle operators or owners.
Missouri currently has approximately 7.1 million registered vehicles. The uninsured vehicle rate
in Missouri is believe to be approximately 13 percent. This equates to 923,000 uninsured
vehicles possibly being operated on Missouri roadways, not including out-of-state vehicles. It is
unclear how many citations will be issued annually and of those, how many will result in a court
conviction. According to statics maintained by the Missouri Attorney General’s Office, in 2019,
there were 1,524,640 traffic stops in this state. This shows 21% of the motor vehicles registered
are stopped annually (1,524,640/7,100,000 = 21%). This may result in the Department receiving
193,830 convictions (923,000 x 21%) annually.
A court sends the conviction either electronically or by paper to the Department to post to the
driver record and assess four points. (§303.025.3). The Department receives 14% of convictions
by paper. (193,830 x 14% = 27,136). An Associate Customer Service Representative (ACSR)
can key 350 paper convictions daily.
27,136 Number of paper convictions received annually
252 Number of working days per year
108 Convictions received daily
350 Convictions processed per day
0. 31
This process will be absorbed by current FTEs. If the increase is more significant than
anticipated or additional laws are passed that impact the staff who process these court orders,
additional FTEs may be requested through the appropriations process.
The Department is required to issue point warning notices when a person accumulates four
points on their driver record. No insurance convictions result in the assessment of four points.
As such, each of these convictions will result in a point warning notice or a suspension notice for
those individuals who have already accumulated points on their record prior to this point
assessment.
193,830 Number of notices issued by the Department
X $.038 Cost per letter
$7,366 Total Annual Cost for letter
2 Half of FY 2025 after law becomes effective L.R. No. 1413H.07T
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$3,683 FY 2025 Letter Cost (6 months only)
$7,366 FY 2026 Letter Cost
$7,366 FY 2027 Letter Cost
193,830 Number of envelopes issued by the Department
X $.068 Cost per envelope
$13,180 Total Annual Cost for envelopes
2 Half of FY 2025 after law becomes effective
$6,590 FY 2025 Envelope Cost (6 months only)
$13,180 FY 2026 Envelope Cost
$13,180 FY 2027 Envelope Cost
193,830 Number of notices issued by the Department
X $.55 Cost for postage
$106,607 Total Annual Cost for postage
2 Half of FY 2025 after law becomes effective
$ 53,304 FY 2025 Postage Cost (6 months only)
$106,607 FY 2026 Postage Cost
$106,607 FY 2027 Postage Cost
In summary, Oversight notes the following costs for mailings:
FY 2024FY 2025 (6 Mos.)FY 2026Mailings$0$63,577$127,153
DOR notes this online system will also allow the Department and contract offices to verify
insurance at the time a vehicle is registered or a registration is renewed both in-person and
online. The registration or renewal will be denied if insurance is not confirmed.
The proposal allows the Department to suspend registration of a vehicle if it has reason to
believe a vehicle is uninsured. Currently, the Department enforces compliance with the insurance
law in the following ways:
renewal of registration is denied;
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Department pursuant to §303.040, the driver’s operating privilege and the owner’s
vehicle registration is suspended.
The court also has the ability to enter an order suspending the driving privilege, pursuant to
§303.025.3. In CY 2022, the Department received four court-ordered suspensions. The
Department does not have available data to determine an estimated volume of increase, but
assumes it will be minimal enough to be absorbed by current FTE. If the increase is more
significant than anticipated or additional laws are passed that impact the staff who process these
court orders, additional FTE may be requested through the appropriations process.
The Department has no data that would help to determine how much of an increase in hearing
requests the Department will receive, but assumes it will not cause additional FTE. If the
increase in hearing requests is more significant than anticipated or additional laws are passed that
affect the staff who mediate these hearings, additional 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.
To implement the proposed legislation, DOR states it will be required to:
a minimum of nine months, per bill provisions
system
FY 2025 – Driver License Bureau (DLB)
Associate Research/Data Analyst 450 hrs. @ $20.54 per hr. = $9,243
Research/Data Analyst 175 hrs. @ $25.63 per hr. = $4,485
Administrative Manager 60 hrs. @ $27.82 per hr. = $1,669
$15,397
This legislation will result in an unknown increase in hearings the Department will conduct in
regards to appeals. If the increase in hearings is significant, the Department will request
additional FTE through the appropriations process. L.R. No. 1413H.07T
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Oversight will reflect an “Unknown” cost to DOR for the administration of Sections 303.420 to
303.440, RSMo, in the Motor Vehicle Financial Responsibility Verification and Enforcement
Fund.
Oversight assumes DOR will use existing staff and will not hire additional FTE to conduct these
activities; therefore, Oversight will not reflect the administrative costs DOR has indicated on the
fiscal note.
DOR notes OA-ITSD services will be required at a cost of $354,996 in FY 2024 (3,736.80 hours
x $95 per hour) and $35,500 in FY 2025 and FY 2026 (373.68 hours x $95 per hour).
Oversight does not have any information to the contrary in regards to DOR’s assumptions;
therefore, Oversight will reflect DOR’s OA-ITSD costs on the fiscal note.
Revenue Impact
DOR states if a no insurance conviction subsequently results in a point accumulation suspension,
the individual will be required to pay a $20 reinstatement fee. With a presumption that 10% of all
convictions received will result in a suspension, the reinstatement fees collected would be:
193,830 Number of annual convictions
X 10% presumed percent of suspensions
19,383 Number of annual point suspensions
X 35% Percent that reinstate annually
6,784 Number of annual reinstatements from these suspensions
X $20 Reinstatement fee per suspension
$135,680 Reinstatement fees collected annually
12 Number of months in a year
$11,307 Increase in reinstatement fees collected monthly
X 6 Number of months in FY 2025 after law becomes effective
$67,842 Fees Collected in FY 2025 (6 months only)
Fees collected will be distributed 75% Highway Fund, 15% Cities, and 10% Counties.
FY 2025
$67,842 x 75% = $50,882 Highway Fund
$67,842 x 15% = $10,176 Cities
$67,842 x 10% = $ 6,784 Counties
FY 2026
$135,680 x 75% = $101,760 Highway Fund
$135,680 x 15% = $20,352 Cities
$135,680 x 10% = $13,568 Counties
L.R. No. 1413H.07T
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FY 2026
$135,680 x 75% = $101,760 Highway Fund
$135,680 x 15% = $20,352 Cities
$135,680 x 10% = $13,568 Counties
The fiscal impact estimated above is based on changes in the current Department’s Motor
Vehicle and Driver Licensing system environment. The implementation of this legislation will be
coordinated with the integration of the Department’s Motor Vehicle and Driver Licensing
software system approved and passed by the General Assembly in 2020 (Senate Bill 176). To
avoid duplicative technology development and associated costs to the state, it is recommended a
delayed effective date be added to this bill to correlate with the installation of the new system.
Oversight also notes this proposal creates the “Motor Vehicle Financial Responsibility
Verification and Enforcement Fund”, which shall consist of money collected under Sections
303.420 to 303.440, RSMo. Oversight notes fees from the pretrial diversion program being
established will be deposited into this fund.
Oversight notes the following misdemeanor convictions for violations of ⸹303.025:
FY 2022 7,573
FY 2021 6,478
FY 2020 5,662
Average 6,571
There is no way to determine how much revenue will be collected as a result of this provision;
however, Oversight will estimate that 5% to 25% of violators will participate in the diversion
program.
6,571 x 5% = 329 x $200 (diversion participation fee) = $65,800
6,571 x 25% = 1,643 x $200 (diversion participation fee) = $328,600
Oversight notes because this is a diversion program, offenders may choose this option instead of
paying a normal fine, which will result in a decrease in fine revenue to schools; therefore,
Oversight will reflect an “Unknown” loss to schools. For simplicity, Oversight will not reflect
the possibility that fine revenue paid to school districts may act as a subtraction in the foundation
formula in following years.
Officials from the Missouri Office of Prosecution Services (MOPS) assume the following
regarding this proposal:
If as contemplated in the bill, DOR enters into an agreement with MOPS to administer the
financial responsibility enforcement and compliance incentive diversion program created in
Section 303.425 [much like the MOPS equivalent in Oklahoma does] there will be fiscal impact. L.R. No. 1413H.07T
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First, there will be a positive fiscal impact to MOPS from its share of the diversion fees collected
but that amount is not able to be determined at this time. The positive financial impact will
depend on the number of diversion cases and the amount of the diversion fee MOPS is allowed
to retain for administering the diversion program. At a minimum, based on the success of the
Oklahoma program, the positive fiscal impact should cover the cost of administering the
diversion program and further replace revenue lost from significantly reduced bad checks
restitution which has severely declined over the past decade, which in turn has significantly
reduced the amount of revenue available to adequately fund the office in serving the state's
prosecutors and circuit attorney.
Second, while MOPS plans on developing and implementing the diversion program with existing
staff including the two FTEs (deputy general counsel and paralegal) added in the FY 2023
budget, there is the possibility of the need to add additional staff. MOPS will evaluate whether
additional staff is needed at the end of the first year of implementation of the diversion program.
Oversight notes that the proposal allows DOR to enter into an agreement with a third party other
than MOPS to administer the diversion program. For fiscal note purposes Oversight will assume
DOR will enter into an agreement with MOPS and will reflect an “Unknown” increase in
revenue for diversion fees and a “$0 or Unknown” cost to MOPS for administering the program.
Officials from the Missouri Department of Transportation (MODOT) defer to the DOR for
the potential fiscal impact of this proposal.
Officials from the Department of Commerce and Insurance, the Department of Corrections
the Missouri Highway Patrol, the 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.
In response to a previous version, officials from the Office of the State Public Defender
assumed the proposal would 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.
§304.822 – Siddens Bening Hands Free Law
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
§304.822.3
Current law already provides for convictions for commercial vehicle operators who operate
mobile phones or text while driving. L.R. No. 1413H.07T
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In fiscal year 2022, the Department added 59 convictions on record. The Department assumes
the new language would not result in a significant increase in these convictions.
The Department does not have available data to determine the potential increase, however
officials assume it to be minimal enough to not require additional FTE. If the increase is more
significant than anticipated, or additional laws are passed that impact the staff who process
expungements, additional FTE will be requested through the appropriations process.
Administrative Impact
To implement the proposed legislation, the Department would be required to:
• Work with Missouri State Highway Patrol to create new charge codes for the new convictions.
• Develop new conviction codes in the Missouri Driver License (MODL) system.
• Work with OA-ITSD to add the new felony conviction code to the commercial disqualification
routine.
• Work with OA-ITSD to create an evaluation routine for the increased point assessment for
subsequent convictions in a 24 month period, and add the new conviction codes into the current
point evaluation routine.
• Update commercial disqualification routines as required.
• Work with OA-ITSD to apply edits to the new convictions codes for violation date and non-
allowance of a driver improvement program.
• Complete system programming and user acceptance testing of MODL and the Missouri
Electronic Driver License (MEDL) system.
• Update interactive applications for automated responses to customers through telephone system
(current vendor Genesys) or online (DORA).
• Update forms, the Department website, and the Missouri driver guide.
• Work with the Public Service Bureau to develop a communication plan.
• Train internal staff and affected external agencies.
FY 2024 – Driver License Bureau
Associate Research/Data Analyst 520 hrs. x $20.54 per hr. = $10,681
Research/Data Analyst 560 hrs. x $25.63 per hr. = $14,353
Administrative Manager 280 hrs. x $27.82 per hr. = $7,790
Total = $32,824
FY 2024 – Public Service Bureau
Associate Research/Data Analyst 80 hrs. x $20.54 per hr. = $1,643
Total = $34,467
Oversight assumes DOR will use existing staff and will not hire additional FTE to conduct these
activities; therefore, Oversight will not reflect the administrative costs DOR has indicated on the
fiscal note. L.R. No. 1413H.07T
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DOR notes OA-ITSD services will be required at a cost of $33,653 in FY 2024 (354.24 hours x
$95 per hour).
Oversight does not have any information to the contrary in regards to DOR’s assumptions;
therefore, Oversight will reflect DOR’s OA-ITSD costs on the fiscal note.
DOR notes the fiscal impact estimated above is based on changes in the current system
environment. The implementation of this legislation will be coordinated with the integration of
the Department’s Motor Vehicle and Driver Licensing software system approved and passed by
the General Assembly in 2020 (Senate Bill 176).
To avoid duplicative technology development and associated costs to the state, it is
recommended a delayed effective date be added to this bill to correlate with the installation of
the new system.
Officials from the Department of Corrections (DOC) assume this proposal enacts provisions
relating to the operation of motor vehicles.
Section 304.822 is created to include restrictions on the use of electronic communication devices
while operating a motor vehicle. New penalties include a class D misdemeanor, a class B
misdemeanor, and a class D felony. Misdemeanor penalties are not under the purview of the
department.
For each new nonviolent class D felony, the department estimates three people could be
sentenced to prison and five to probation. The average sentence for a nonviolent class D felony
offense is 5 years, of which 2.8 years could be served in prison with 1.7 years to first release.
The remaining 2.2 years could be on parole. Probation sentences could be 3 years.
The cumulative impact on the department is estimated to be 8 additional offenders in prison and
22 additional offenders on field supervision by FY 2028.
# to
prison
Cost per
year
Total Costs for
prison
# to
probation
& parole
Cost per
year
Total cost
for
probation
and parole
Grand Total -
Prison and
Probation
(includes 2%
inflation)
Year 13($9,499)($23,748)5absorbed$0($23,748)Year 26($9,499)($58,134)10absorbed$0($58,134)Year 38($9,499)($79,062)16absorbed$0($79,062)Year 48($9,499)($80,643)19absorbed$0($80,643)Year 58($9,499)($82,256)22absorbed$0($82,256)Year 68($9,499)($83,901)22absorbed$0($83,901)Year 78($9,499)($85,579)22absorbed$0($85,579) L.R. No. 1413H.07T
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Year 88($9,499)($87,291)22absorbed$0($87,291)Year 98($9,499)($89,037)22absorbed$0($89,037)Year 108($9,499)($90,817)22absorbed$0($90,817)
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by DOC.
In response to a previous version, officials from the Office of the State Public Defender (SPD)
assumed the creation of a new offense under Section 304.822 would have an unknown fiscal
impact on SPD. It is unknown how many additional cases would be eligible for SPD
representation.
Oversight notes in FY 2022, the SPD was appropriated moneys for 53 additional FTE.
Oversight assumes this proposal will create a minimal number of new cases and that the SPD can
absorb the additional caseload required by this proposal with current staff and resources.
Therefore, Oversight will reflect no fiscal impact to the SPD for fiscal note purposes. However,
if multiple bills pass which require additional staffing and duties, the SPD may request funding
through the appropriation process.
Officials from the Missouri Highway Patrol
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for MHP.
Officials from the Department of Commerce and Insurance, Department of Elementary and
Secondary Education, Missouri Department of Transportation and Missouri Office of
Prosecution Services 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 Office of the State Courts Administrator assume there may be some impact
but there is no way to quantify that currently. Any significant changes will be reflected in future
budget requests.
Oversight notes, according to data provided by the Office of the State Courts Administrator,
there were 46 infractions (guilty pleas) in FY 2022 for the offense of 21 years of age and under
texting while driving and 39 infractions (guilty pleas) for operating a CMV while texting,
currently both with an approximate fine of $83 per ticket.
Of the $83 fine, $20.50 goes to local schools as fine revenue and the remaining $62.50 goes to
various state and local funds for court costs. L.R. No. 1413H.07T
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This proposal establishes fines for convictions starting at $150 (no prior conviction within the
preceding 24 months) up to $500 (conviction for violation that occurred in a work zone or school
zone). This proposal also establishes misdemeanor and felony classes for certain violations.
Oversight is unable to determine how many violations, and which class of violation, will occur
as a result of this proposal; therefore, Oversight will reflect an “Unknown, less than $125,000”
fiscal impact to the state. Oversight will reflect an unknown amount of fine revenue and court
costs to local political subdivisions.
Oversight will not show the fiscal impact until FY 2025 (6 months) as the proposal mandates
prior to January 1, 2025, law enforcement shall only issue a warning to noncommercial motor
vehicle drivers for any of these violations.
Additional fine revenue received by local school districts may count as a deduction in the
following year in determining their state aid apportionment, if the district is not a 'hold harmless'
district. For simplicity, Oversight will only reflect the increase in fine revenue as a positive
impact to local political subdivisions.
§§407.812 & 407.828 – Motor Vehicle Franchise Practices Act
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 L.R. No. 1413H.07T
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The Department anticipates absorbing 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 will use existing staff and will not hire additional FTE to conduct these
activities; therefore, Oversight will not reflect the administrative costs DOR has indicated on the
fiscal note.
Officials from the Attorney General’s Office, Office of Administration, Office of
Administration - Administrative Hearing Commission and Missouri Department of
Transportation 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.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note 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 its 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.
FISCAL IMPACT – State
Government
FY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE
FUND
Cost – DOR – OA-ITSD
services (⸹303.420 to 303.440)
p. 10($354,996)($35,500)($35,500) L.R. No. 1413H.07T
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Cost – DOR – OA-ITSD
services (§304.822) p. 14($33,653)$0$0
Cost – DOC – increase in
number of offenders due to
creation of a new felony for
distracted driving which
causes the death of another
person (§304.822) p. 15($23,748)($58,134)($79,062)
FISCAL IMPACT – State
Government (continued)
FY 2024
(10 Mo.)
FY 2025FY 2026Transfer Out – to the Motor
Vehicle Financial
Responsibility Verification and
Enforcement Fund – start-up
expenses before revenue
stream is established
(⸹303.420 to 303.440) p. 10$0
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT
ON THE GENERAL
REVENUE FUND($412,397)
Could exceed
($93,634)
Could exceed
($114,562)
HIGHWAY FUNDRevenue – reinstatement fees
(⸹303.420 to 303.440) p. 11$0$50,882$101,760
ESTIMATED NET EFFECT
ON THE HIGHWAY FUND$0$50,882$101,760
MOTOR VEHICLE
FINANCIAL
REPSONSIBILITY
VERIFICATION AND
ENFORCEMENT FUND L.R. No. 1413H.07T
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Transfer In – from General
Revenue to
303.440) p. 10$0
$0 or
Unknown
$0 or
Unknown
Revenue – money collected
(⸹303.420 to 303.440) p. 12$0
$32,900 to
$164,300
$65,800 to
$328,600
Cost – DOR to administer
program (303.420 to 303.440)
p. 10 $0(Unknown)(Unknown)
Cost – DOR – mailings p. 9$0($63,577)($127,153)FISCAL IMPACT – State
Government (continued)
FY 2024
(10 Mo.)
FY 2025FY 2026ESTIMATED NET EFFECT
ON THE MOTOR
VEHICLE FINANCIAL
RESPONSIBILITY
VERIFICATION AND
ENFORCEMENT FUND$0
Less than
($30,677) to
could exceed
$100,723
Less than
($61,353) to
could exceed
$201,447
MISSOURI OFFICE OF
PROSECUTION
SERVICES FUND (0680)
Revenue – MOPS – fees from
diversion program (⸹303.420
to 303.440) p. 12-13
$0UnknownUnknown
Cost – MOPS – costs to
administer program (⸹303.420
to 303.440)
p. 12-13
$0(Unknown)(Unknown)
ESTIMATED NET EFFECT
ON THE MISSOURI
OFFICE OF
PROSECUTION
SERVICES FUND$0$0$0 L.R. No. 1413H.07T
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VARIOUS STATE FUNDSRevenue - Court costs from
using an electronic wireless
communication device while
driving (§304.822) p. 15$0
Less than
$125,000
Less than
$250,000
ESTIMATED NET EFFECT
ON VARIOUS STATE
FUNDS $0
Less than
$125,000
Less than
$250,000
FISCAL IMPACT – State
Government (continued)
FY 2024
(10 Mo.)
FY 2025FY 2026CONSERVATION
COMMISSION FUND
(0609)
Revenue – potential increase in
sales tax collection due to
dealers having the ability to
collect sales tax at the time of
sale (§§144.020 & 144.070) p.
6$0 or Unknown $0 or Unknown $0 or Unknown
Loss – 2% timely fee possibly
being retained by dealerships
(§§144.020 & 144.070) p. 6
$0 or Up to
($253,656)
$0 or Up to
($304,387)
$0 or Up to
($304,387)
ESTIMATED NET EFFECT
ON THE CONSERVATION
COMMISSION FUND
$0 or Up to
($253,656)
$0 or Up to
($304,387)
$0 or Up to
($304,387)
PARKS, SOIL AND
WATER FUND (0613 &
0614)
Revenue – potential increase in
sales tax collection due to
dealers having the ability to
collect sales tax at the time of $0 or Unknown$0 or Unknown$0 or Unknown L.R. No. 1413H.07T
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sale (§§144.020 & 144.070) p.
6
Loss – 2% timely fee possibly
being retained by dealerships
(§§144.020 & 144.070) p. 6
$0 or Up to
($202,925)
$0 or Up to
($243,510)
$0 or Up to
($243,510)
ESTIMATED NET EFFECT
ON THE PARKS, SOIL
AND WATER FUND
$0 or Up to
($202,925)
$0 or Up to
($243,510)
$0 or Up to
($243,510)
FISCAL IMPACT – State
Government (continued)
FY 2024
(10 Mo.)
FY 2025FY 2026SCHOOL DISTRICT
TRUST FUND (0688)
Revenue – potential increase in
sales tax collection due to
dealers having the ability to
collect sales tax at the time of
sale (§§144.020 & 144.070) p.
6$0 or Unknown$0 or Unknown$0 or Unknown
Loss – 2% timely fee possibly
being retained by dealerships
(§§144.020 & 144.070) p. 6
$0 or Up to
($1,014,623)
$0 or Up to
($1,217,548)
$0 or Up to
($1,217,548)
ESTIMATED NET EFFECT
ON THE SCHOOL
DISTRICT TRUST FUND
$0 or Up to
($1,014,623)
$0 or Up to
($1,217,548)
$0 or Up to
($1,217,548)
STATE ROAD BOND
FUND (0319)
Revenue – potential increase in
sales tax collection due to
dealers having the ability to
collect sales tax at the time of
sale (§§144.020 & 144.070) p.
6$0 or Unknown$0 or Unknown$0 or Unknown L.R. No. 1413H.07T
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Loss – 2% timely fee possibly
being retained by dealerships
(§§144.020 & 144.070) p. 6
$0 or Up to
($3,043,870)
$0 or Up to
($3,652,644)
$0 or Up to
($3,652,644)
ESTIMATED NET EFFECT
ON THE STATE ROAD
BOND FUND
$0 or Up to
($3,043,870)
$0 or Up to
($3,652,644)
$0 or Up to
($3,652,644)
FISCAL IMPACT – State
Government (continued)
FY 2024
(10 Mo.)
FY 2025FY 2026STATE ROAD FUND (0320)Revenue – potential increase in
sales tax collection due to
dealers having the ability to
collect sales tax at the time of
sale (§§144.020 & 144.070) p.
6$0 or Unknown$0 or Unknown$0 or Unknown
Loss – 2% timely fee possibly
being retained by dealerships
(§§144.020 & 144.070) p. 6
$0 or Up to
($3,043,870)
$0 or Up to
($3,652,644
$0 or Up to
($3,652,644)
ESTIMATED NET EFFECT
ON THE STATE ROAD
FUND
$0 or Up to
($3,043,870)
$0 or Up to
($3,652,644)
$0 or Up to
($3,652,644)
FISCAL IMPACT – Local
Government
FY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Revenue – potential increase in
sales tax collection due to dealers
having the ability to collect sales
$0 or Unknown$0 or Unknown L.R. No. 1413H.07T
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tax at the time of sale (§§144.020 &
144.070) p. 6
$0 or
Unknown
Revenue (Cities 15%) –
reinstatement fees (⸹303.420 to
303.440) p. 11$0$10,176$20,352
Revenue (Counties 10%) –
reinstatement fees (⸹303.420 to
303.440) p. 11$0$6,784$13,568
FISCAL IMPACT – State
Government (continued)
FY 2024
(10 Mo.)
FY 2025FY 2026Revenue – Schools Fine revenue
from expansion of using an
electronic wireless communication
device while driving (§304.822) p.
16 $0UnknownUnknown
Revenue - Court costs from using
an electronic wireless
communication device while
driving (§304.822) p. 16$0
Less than
$125,000
Less than
$250,000
Loss – (FLOYD) - 2% timely fee
possibly being retained by
dealerships (§§144.020 & 144.070)
p. 6
$0 or Up to
($1,014,623)
$0 or Up to
($1,217,548)
$0 or Up to
($1,217,548)
Loss – (local sales tax only) - 2%
timely fee possibly being retained
by dealerships (§§144.020 &
144.070) p. 6
$0 or Up to
($8,259,034)
$0 or Up to
($9,910,841)
$0 or Up to
($9,910,841)
Loss – Schools – decreased in fine
revenue for those who choose the
diversion program over paying the
standard fine (⸹⸹303.420 to
303.430) p. 12$0$0 or (Unknown)$0 or (Unknown) L.R. No. 1413H.07T
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ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or Up to
($9,273,657)
More or Less than
($10,986,429)
More or Less
than
($10,844,469)
FISCAL IMPACT – Small Business
Small motor vehicle dealerships could be impacted as a result of this proposal.
FISCAL DESCRIPTION
This proposal modifies provisions relating to motor vehicles.
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
Office of Administration - Budget and Planning
Missouri Highway Patrol
Missouri Department of Transportation
Office of the Secretary of State
Joint Committee on Administrative Rules
Office of Administration
Office of Administration - Administrative Hearing Commission
Department of Corrections
Office of the State Public Defender
Missouri Office of Prosecution Services
Office of the State Courts Administrator
Department of Commerce and Insurance
Department of Elementary and Secondary Education
Julie MorffRoss StropeDirectorAssistant DirectorJune 15, 2023June 15, 2023