Subject: Licenses - Driver's: Education, Elementary and Secondary; Revenue Department

Bill Summary: Makes eligibility for a driver's license for persons between the ages of fifteen and eighteen contingent upon documentation that the applicant has complied with certain school-related standards.

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on General Revenue Fund	$0	$0	$0

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on Other State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on FTE	0	0	0

☐ 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 2009	FY 2010	FY 2011
Local Government	$0	$0	(Unknown -Expected to exceed $100,000)

Officials from the Department of Public Safety - Missouri State Highway Patrol state there will be no fiscal impact to the Patrol.

Officials from the Office of 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 to the SOS office for Administrative Rules for this proposal is less than $2,500. The SOS recognizes this is a small amount and does not expect additional funding would be required to meet these costs. However, SOS also recognizes that many such bills may be passed in a given year and that collectively the costs may be in excess of what the SOS can sustain with their core budget. Any additional required funding would be handled through the budget process.

Officials from the Department of Elementary and Secondary Education (DESE) assume there is no state cost to the foundation formula associated with this proposal. Should the new crimes and amendments to current law result in additional fines or penalties, DESE cannot know how much additional money might be collected by local governments or the DOR to distribute to schools. To the extent fine revenues exceed 2004-2005 collections, any increase in this money distributed to schools increases the deduction in the foundation formula the following year. The affected districts will see an equal decrease in the amount of funding received through the formula the following year; unless the affected districts are hold-harmless, in which case the districts will not see a decrease in the amount of funding received through the formula (any increase in fine money distributed to the hold-harmless districts will simply be additional money). An increase in the deduction (all other factors remaining constant) reduces the cost to the state of funding the formula.

DESE assumes that any increase in fine or penalty distribution is contingent upon the number of persons found guilty of a class C misdemeanor for knowingly submitting false information relating to the terms of the proposal and will not likely be significant.

The proposal indicates that DESE, in cooperation with the Department of Revenue, shall promulgate a model or models for compliance with this proposal; however, DESE assumes school districts will incur inestimable costs to track and retrieve the required information on a student-by-student basis and report the required information in accordance with the proposal.

Officials from the Department of Revenue (DOR) assume, for the purposes of this fiscal note, that the information from the Department of Elementary and Secondary Education will be automated. The license issuance system and supporting applications must be modified to include an edit for permit and license applicants to ensure they have met the minimum requirements or waiver provisions. The Missouri Driver Guide (printed and web version) must be modified to include the new requirements. This proposed legislation will require programming changes to the Missouri Electronic Driver License (also referred to as Over The Counter-OTC) software and supporting applications. These programming changes will need to be designed and tested. DOR assumes it would take 80 hours for project completion at an hourly rate of $100.

Oversight assumes costs for design and testing can be absorbed with existing resources.

The Office of Administration Information Technology (ITSD DOR) estimates that this legislation could be implemented utilizing 2 existing CIT III's for 1 month at a rate of $8,372. ITSD DOR estimates the IT portion of this request can be accomplished within existing resources; however; if priorities shift, additional FTE/overtime would be needed to implement. Funding would be requested through the budget process.

Officials from the Francis Howell School District (FHSD) assume the proposed legislation requires school districts to provide “academic counseling” beginning in the fifth grade. It is anticipated that FHSD would need to add an additional counselor in order to assure that 5th through 12th grade students have “multiple opportunities” to participate in said counseling or receive information. The cost for an additional counselor is estimated to be $65,000.

This proposal was sent to several other school districts, none of which responded.

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

This proposal prohibits the Department of Revenue (DOR) from issuing a driver's license or a temporary instruction permit to any person 15 to 18 years of age if a public school district submits information to DOR that the student is not in compliance with eligibility standards established by the Department of Elementary and Secondary Education (DESE). The public school district shall ensure that students are aware of DESE standards and provide multiple opportunities in the fifth grade year and subsequent years for students to receive information and participate in academic counseling in anticipation of meeting such standards

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

FISCAL IMPACT - State Government	FY 2009 (10 Mo.)	FY 2010	FY 2011

	$0	$0	$0

FISCAL IMPACT - Local Government	FY 2009 (10 Mo.)	FY 2010	FY 2011
LOCAL POLITICAL SUBDIVISIONS

Cost - School Districts - Counseling costs (§302.063.3)	$0	$0	(Unknown -Expected to exceed $100,000)

ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS	$0	$0	(Unknown -Expected to exceed $100,000)