COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0902H.03C Bill No.:HCS for SB 47 Subject:Department of Revenue; Fees; Licenses - Driver's Type:Original Date:April 13, 2023Bill Summary:This proposal modifies provisions relating to fees collected by the
Department of Revenue.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue($90,808)$41,019$41,019Total Estimated Net
Effect on General
Revenue($90,808)$41,019$41,019
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Highway Fund$2,158,013$2,589,615$2,589,615License Office
Distribution Fund*$0$0$0
Total Estimated Net
Effect on Other State
Funds $2,158,013$2,589,615$2,589,615
*Revenue and distributions net to zero. Officials from the Department of Revenue (DOR)
estimate the annual distribution per open contract offices from License Office Distribution Fund
would be $47,269.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0902H.03C
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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$719,338$863,205$863,205 L.R. No. 0902H.03C
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FISCAL ANALYSIS
ASSUMPTION
§136.055 – Department of Revenue Fee Offices
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
Administrative Impact
To implement these provisions for permit, driver license and nondriver license processing fees,
the Department would be required to:
systems projects.
Driver License (MEDL) issuance system;
the Missouri Electronic Driver License system (MEDL);
License (MEDL) system to ensure system update with the required fee increase;
FY 2024 Driver License Bureau
Research/Data Assistant 160 hrs. x $17.20 = $2,752
Research/Data Analyst 200 hrs. x $25.63 = $5,126
Administrative Manager 40 hrs. x $27.82 = $1,113
FY 2024 Personnel Services Bureau
Associate Research/Data Analyst 20 hrs. x $20.54 = $411
Associate Research/Data Analyst 20 hrs. x $20.54 = $411 L.R. No. 0902H.03C
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FY 2024 – Motor Vehicle Bureau
Research/Data Analyst 288 Hrs @ $24.84/hr = $7,154
Associate Research/Data Analyst 673 Hrs @ $19.90/hr. = $13,393
Lead Administrative Support Asst. 20 Hrs @ $17.05 = $341
Administrative Manager 89 Hrs @ $26.96 = $2,399
FY 2024 – Strategy and Communications Office
Associate Research/Data Analyst 1,000 hrs. @ $19.90/hr. = $19,900
Total Cost = $53,000
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 $69,381 in FY 2024 (730.32 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 MO Electronic
Driver License System and supporting application. 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.
Revenue Impact
DOR notes the proposed processing fee increases in §136.055, RSMo, will also be applied to
transactions occurring in Department operated “Branch” licensing offices (DOR central site.)
Central Office (retained by the state)
Estimated Annual Increase for Permits, Driver License, or Non-driver License Issued (Highway
Fund 75%, Cities 15% & Counties 10%):
1,428 Estimated annual 0-3 year transaction processing fees in DOR Branch Office
x $3.00 Amount of fee increase from proposed change from $6.00 to $9.00
$ 4,284 Estimated annual increase in DOR branch office processing fees L.R. No. 0902H.03C
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5,452 Estimated annual 3-6 3 year transaction processing fees in DOR Branch Office
x $6.00 Amount of fee increase proposed from $12.00 to $18.00
$32,712 Estimated annual increase in DOR branch office processing fees
$32,712 + $4,284 = $36,996
Estimated Annual Increase for State office title, registration issuance/renewal, online registration
renewal, phone in registration renewal, and registration transfers issued (Highway Fund 75%,
Cities 15% & Counties 10%):
1,138,608 Estimated annual Motor Vehicle (MV) in DOR Branch Office
x $3.00 Amount of fee increase from proposed change from $6.00 to $9.00
$3,415,824 Estimated annual increase in DOR branch office processing fees
Total annual increase to Highway Fund from increase in DOR branch office processing fee
collections = $3,452,820 ($36,996 + $3,415,824)
Estimated Annual Increase for Notice of Lien and Duplicate Titles (General Revenue):
13,673 Estimated annual 3-6 3 year transaction processing fees in DOR Branch Office
x $3.00 Amount of fee increase proposed from $6.00 to $9.00
$41,019
License Office Fee Increases
Estimates are based on Missouri Transportation Accounting System Driver License Transaction
reporting totals for FY 2022
Permits, Driver License, or Non-driver License Issued:
352,500 Total 0-3 year transactions
x $2.00 Proposed agent transaction processing fee collection increase for 0- 3 year term
transactions changing fee from $6.00 to $9.00, less $1.00 to be remitted to
License Office Distribution Fund
$705,000 Total Estimated increase to agent processing fees for 3 year transactions annually
983,966 Total 3-6 year transactions
x $5.00 Proposed agent transaction processing fee collection increase for 3- 6 year term
transactions changing fee from $12.00 to $18.00, less $1.00 to be remitted to
License Office Distribution Fund
$4,919,830 Total estimated agent fee collection increase for 3-6yr transactions L.R. No. 0902H.03C
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$5,624,830 Total estimated statewide annual contract office revenue increase from portion of
proposed processing fee not distributed to new License Office Distribution Fund
from Driver License Transactions ($705,000 + $4,919,830)
Estimated annual License Office Distribution Fund remittance derived from $1 of each office
processing fee collected for driver license transactions:
352,500 Total 0-3 year transactions
x $1.00 Proposed $1.00 portion of proposed agent fee increase to be remitted to License
Office Distribution Fund
$352,500 Total estimated statewide agent fee $1 remittance to new fund
983,966 Total 3-6 year transactions
x $1.00 Proposed $1.00 of total proposed agent fee increase to be remitted to the License
Office Distribution Fund
$983,966 Total estimated statewide agent fee $1 remittance to new fund
$1,336,466 Total estimated statewide annual amount remitted to and to be distributed from
the proposed License Office Distribution Fund from Driver License Transactions
Motor Vehicle (MV) Transactions:
6,935,666 Total MV transactions
x $2.00 Proposed agent transaction processing fee collection increase for MV transactions
changing fee from $6.00 to $9.00, less $1.00 to be remitted to License Office
Distribution Fund
$13,871,322 Total estimated statewide annual contract office revenue increase from portion of
proposed processing fee not distributed to new License Office Distribution Fund
from MV transactions
6,935,666 Total Motor Vehicle (MV) Transactions
x $1.00 Proposed $1.00 portion of proposed agent fee increase to be remitted to License
Office Distribution Fund
$6,935,666 Total estimated statewide annual amount remitted to and to be distributed from
the proposed License Office Distribution Fund from Driver License Transactions
from MV Transactions
License Office Distribution Fund projections ($1 per transaction) $6,935,666 + $1,336,466 =
$8,272,132 L.R. No. 0902H.03C
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Total estimated statewide annual amount remitted to and to be distributed from the proposed
License Office Distribution Fund:
$8,272,132 Estimated revenue into the License Office Distribution Fund
/ 175 Number of possible contract license offices
$47,269 Estimated annual distribution per open contract offices from License Office
Distribution Fund
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by DOR.
Officials from the Missouri Department of Transportation (MoDOT) assume the revenues
collected from these fees are state revenue derived from highway users (SRHU) subject to the
distribution requirements set out in Art. IV, Sec. 30(b)1, Mo. Constitution., meaning only 3% of
these fees should go to DOR and the remaining revenue should be deposited into the State Road
Fund (SRF).
Currently, these funds are not being deposited to the SRF, but rather 100% of the proceeds of
these fees are distributed to the privately or not-for-profit owned and operated DOR license
offices.
MoDOT does not have the numbers to determine the current negative fiscal impact to
MHTC/MoDOT from this diversion and any increased negative fiscal impact due to the increase
in fees.
Therefore, MoDOT defers to DOR for these numbers.
This diversion also impacts cities and counties.
§193.265 – Birth Certificates Fees Waived for Domestic Violence Victims
In response to a similar proposal from 2023 (HB 71), officials from the Department of Health
and Senior Services (DHSS) stated §193.265.6 of this proposed legislation states no fee shall be
required or collected for a certification of birth if the request is made by a victim of domestic
violence or abuse, as defined in §455.010 RSMo, and if the victim provides documentation
signed by an employee, agent, or volunteer of a victim service provider, an attorney, or a health
care or mental health care professional, from whom the victim has sought assistance relating to
the domestic violence or abuse. The victim may only be eligible one time for a fee waiver under
this subsection.
Per Missouri Coalition against Domestic and Sexual Violence (MCADS) and the National
Coalition Against Domestic Violence (NCADV) 2019 statistical data, domestic violence
programs served 36,304 Missourians with over 26,000 requests for services going unmet due to a
lack of resources. Therefore, a total number equaling more than 62,304. L.R. No. 0902H.03C
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There is no estimate of how many of these individuals will request birth certificates. Requests
could range from 0% to 100% issuance of approximately 62,304 certificates. Each certificate
costs $15. Therefore, the total loss of revenue for the issuance of requests at 100% would be
equivalent to $778,800 for FY 24; $934,560 for FY 25; and $934,560 for FY 26. Birth
certificates have a current fee split of $5 per certificate to the Children’s Trust Fund; $5 to the
Missouri Public Health Services (MOPHS) Fund; $4 to General Revenue; and $1 to the
Endowed Care Cemetery Fund.
Moreover, these types of requests typically take more time than regular requests. Many of these
applications come with incomplete information which makes the match more difficult and takes
more time in processing. If a match does not result in the issuance of a certified copy, a search
fee is not collected like it is from the general public. DHSS expects the number of requests to
increase and the loss of revenue and lack of adequate staff to be an issue for program operations.
The Department would request a range of one (1) to up to seven (7) FTE to account for the
deficiency in staffing depending on how much the work load increases.
FTE count comes from the calculation of a fifteen (15) minute application review, processing,
and issuance time average with 2,080 working hours per annum which equals 8,320 applications
processed per FTE.
Fund NameFY 2024
(10 mos.)
FY 2025FY 2026General Revenue
($4)$207,680$249,216$249,216
Children’s Trust
Fund ($5)$259,600$311,520$311,520
MOPHS Fund ($5)$259,600$311,520$311,520Endowed Care
Cemetery Audit
Fund ($1)$51,920$62,304$62,304
TOTAL$778,800$934,560$934,560
General Revenue 62,304* $4 = $249,216
Children’s Trust 62,304* $5 = $311,520
Endowed Care 62,304* $1 = $62,304
MOPHS Fund 62,304* $5 = $311,520
Total $934,560
Oversight notes, based on DHSS calculations, the loss of revenue to the various state funds
impacted by this proposal are estimated to be as shown in the above table. L.R. No. 0902H.03C
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Oversight notes this legislation does not contain a provision to limit the number of free birth
certificates that may be issued annually; however, the legislation does provide that a victim is
only eligible one time for a waiver of the fee (§193.265.6(2)).
Oversight also notes HB 1300 (2020 legislative session) contained similar language regarding
the provision of a free birth certificate to victims of domestic violence. In that fiscal note
response, DHSS stated that while they did not know the number of birth certificates that would
be issued and the actual potential fiscal impact was unknown, they believed the number of
qualifying individuals who would apply for a free birth certificate would be minimal due to the
target population most likely being unaware of the legislation.
Since the number of individuals actually applying for a free birth certificate was assumed to be
minimal, Oversight assumed, for fiscal note purposes, that it was possible for up to 10% of
victims to request a free birth certificate annually.
The annual estimated loss of funds to GR in the fiscal note for HB 1300 was $0 to $26,724; the
loss to the Children’s Trust Fund was $0 to $33,405; the loss to the MOPHS Fund was $0 to
$33,405; and the loss to the Endowed Care Cemetery Audit Fund was $0 to $6,681.
For the current proposal, assuming up to 10% of 62,304 individuals would apply for a free birth
certificate each year, the estimated loss in birth certificate fees would be (62,304*10% =
6,203*$15) up to $93,056 or a loss of up to $24,812 to GR (6,203*$4); a loss of up to $31,015 to
each the Children’s Trust Fund and the MOPHS Fund; and a loss of up to $6,203 to the Endowed
Care Cemetery Audit Fund. Oversight assumes these losses to be minimal and will not present
for fiscal note purposes.
Oversight also notes DHSS assumes it will need between one (1) and seven (7) new FTE as a
result of this proposal. Because Oversight assumes a minimal number of individuals will actually
request a free birth certificate, Oversight further assumes the DHSS will likely not need
additional FTE. However, if the DHSS needs additional funding as a result of the provisions of
this proposal, they may request additional funding through the budget process.
Officials from the Newton County Health Department assume the proposal will have no fiscal
impact on their organization.
In response to a similar proposal from 2023 (HB 71), officials from the St. Louis County
Health Department assumed the proposal would not have a 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 for local public health agencies.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other public health departments were requested to respond to this proposed legislation L.R. No. 0902H.03C
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but did not. A general listing of political subdivisions included in the Missouri Legislative
Information System (MOLIS) database is available upon request
§§302.178 & 302.181 – Identification Fees Waived for Homeless Youth
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
Administrative Impact
To implement the proposed change, the Department would be required to:
• Complete business requirements and design documents to modify the Missouri Electronic
Driver License (MEDL) issuance system, MEDL central applications and supporting systems to
remove the fee for a nondriver for homeless child, youth, or an intermediate for emancipated
youths.
• Complete programming and user acceptance testing of the Missouri Electronic Driver License
(MEDL) issuance system;
• OA-ITSD Test the file generation and secure transfer process to ensure all required data
elements and signature are sent as required;
• Obtain format and procedure approvals from Secretary of State and others as applicable;
• Update policies, procedures, and the Uniform License Issuance Manual (ULIM);
• Update forms, manuals, and the Department website;
• Complete training as required.
FY 2024 – Driver License Bureau
Research/Data Assistant 360hrs. @ $17.20 per hr. =$6,192
Research/Data Analyst 400hrs. @ $25.63 per hr. =$10,252
Administrative Manager 80 hrs. @ $27.82 per hr. =$2,226
FY 2024 – Personnel Services Bureau
Associate Research/Data Analyst 20 hrs. @ $20.54 per hr. =$411
Associate Research/Data Analyst 10 hrs. @ $20.54 per hr. =$205
Total Costs $19,286
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.
DOR notes OA-ITSD services will be required at a cost of $55,610 in FY 2024 (585.37 hours x
$95 per hour). L.R. No. 0902H.03C
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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 notes during FY 2022 there were a total of 113,014 new non-driver licenses issued. DOR
does not have statistics to determine of this count how many potential annual applicants may be
eligible for a fee waiver under the proposed provisions, therefore the total impact to State and
Local Revenue is unknown.
For each fee waiver eligible non-driver license issued pursuant to this proposed language in
§302.181 there would be a loss to General Revenue of $6.00.
During FY 2022 there were a total of 52,348 intermediate driver licenses issued. DOR does not
have statistics to determine of this count how many may potential applicants may be eligible for
a fee waiver under the proposed provisions, therefore the total impact to State and Local
Revenue is unknown.
For each fee waiver eligible intermediate driver license issued pursuant to this proposed
language in §302.178 there would be a loss of fees distributed to the Highway Fund and Local
Funds for cities and counties as follows
Hwy Fund Loss (75%) = $3.75
Cities Fund Loss (15%) = $0.75
Counties Fund Loss (10%) = $0.50
For each issued document, DOR would be required to pay fees to the card vendor for printing
and postage costs of $2.4724 per card.
There would also be a loss to General Revenue for office processing fees which would have been
collected for non-driver or intermediate license transactions issued in State license offices
eligible for waiver of fees pursuant to the proposed language in §136.055. An estimated volume
of eligible applicants applying in State branch offices is unknown.
Office Processing Fee each New Non-driver License: $12.00
Office Processing Fee for each Intermediate License $ 6.00
The fiscal impact estimate above is based on changes in the current MO Driver License System
environment. The Department is pursuing an upgraded Motor Vehicle and Driver Licensing
system. The total potential fiscal impact to develop changes in the proposed system in addition to
the current environment is unknown. L.R. No. 0902H.03C
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Oversight notes, according to the National Conference of State Legislatures (NCSL), as of
January 2019, 6,179 individuals of all ages were homeless in Missouri. Of these, 1,359 were
under the age of 18. Among the homeless youth and young adults, 477 were unaccompanied by
an adult.
If all 1,359 of these homeless youth applied for a non-driver license or intermediate driver
license, the loss would amount to approximately $8,154 (1,359 x $6). Oversight assumes there
will be a minimal loss of revenue from this proposal; therefore, Oversight will not reflect a
material loss to the Highway Fund or local political subdivisions. In addition, Oversight will not
reflect a loss to General Revenue for processing fees as Oversight assumes this loss will be
minimal.
Officials from the Missouri Highway PatrolDepartment of Social Services and Department
of Elementary and Secondary Education 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 Missouri Department of Transportation defer to the DOR for the potential
fiscal impact of this proposal.
§408.900 – Digital Asset Mining
In response to a similar proposal from 2023 (SB 536), officials from the Department of
Commerce and Insurance, City of Kansas City, and City of Springfield 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 for this section of the proposal.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties were requested to respond to this proposed legislation but did
not. A listing of political subdivisions included in the MOLIS database is available upon request. L.R. No. 0902H.03C
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FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDRevenue – DOR – increased fees for
notice of lien and duplicate titles (p. 5)
§136.055$34,183$41,019$41,019
Cost – DOR – OA-ITSD services (p.
11) §302.178($55,610)$0$0
Cost – DOR – OA-ITSD services (p. 4)
§136.055($69,381)$0$0
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND($90,808)$41,019$41,019
HIGHWAY FUNDRevenue – DOR – increased fees for
driver license transactions (p. 5)
§136.055$23,123$27,747$27,747
Revenue – DOR – increased fees for
motor vehicle transactions (p. 6)
§136.055$2,134,890$2,561,868$2,561,868
ESTIMATED NET EFFECT ON
THE HIGHWAY FUND$2,158,013$2,589,615$2,589,615 L.R. No. 0902H.03C
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FISCAL IMPACT – State Government
(continued)
FY 2024
(10 Mo.)
FY 2025FY 2026LICENSE OFFICE DISTRUBTION
FUND
Revenue – increased fees for driver
license transactions (p. 5) §136.055$1,113,722$1,336,466$1,336,466
Revenue – increased fees for motor
vehicle transactions (p. ) §136.055
$5,779,722$6,935,666$6,935,666
Transfer Out – to license contract
offices (p. 6) §136.055($6,893,444)($8,272,132)($8,272,132)
ESTIMATED NET EFFECT ON
THE LICENSE OFFICE
DISTRIBUTION FUND$0$0$0 L.R. No. 0902H.03C
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Revenue – Cities (15%) – increased
fees for driver license transactions (p.
5) §136.055$4,625$5,549$5,549
Revenue – Cities (15%) – increased
fees for motor vehicle transactions (p.
6) §136.055$426,978$512,374$512,374
Revenue – Counties (10%) – increased
fees for driver license transactions (p.
5) §136.055$3,083$3,700$3,700
Revenue – Counties (10%) – increased
fees for motor vehicle transactions (p.
6) §136.055$284,652$341,582$341,582
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS$719,338$863,205$863,205
FISCAL IMPACT – Small Business
Small contract license offices could be impacted as a result of this proposal.
FISCAL DESCRIPTION
This proposal modifies provisions relating to fees collected by the Department of Revenue.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 0902H.03C
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SOURCES OF INFORMATION
Department of Revenue
Missouri Highway Patrol
Department of Social Services
Department of Elementary and Secondary Education
Missouri Department of Transportation
Department of Health and Senior Services
Newton County Health Department
St. Louis County Health Department
Department of Commerce and Insurance
City of Kansas City
City of Springfield
Julie MorffRoss StropeDirectorAssistant DirectorApril 13, 2023April 13, 2023