LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 384 HLS 24RS 56
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 23, 2024 11:14 AM Author: KNOX
Dept./Agy.: Public Safety, Office of Motor Vehicles
Subject: Reinstatement Fees Analyst: John McKay
MTR VEHICLE/VIOLATIONS EN -$216,125 RV See Note Page 1 of 2
Extends the grace period applicable to penalties for lapse of compulsory motor vehicle liability security
Proposed legislation extends the period prohibiting the imposition of reinstatement fees for the lapse of insurance coverage
from 5 days or less to 10 days or less.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. ($86,450) ($86,450) ($86,450) ($86,450) ($86,450) ($432,250)
Ded./Other ($129,675) ($129,675) ($129,675) ($129,675) ($129,675) ($648,375)
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total ($216,125) ($216,125) ($216,125) ($216,125) ($216,125) ($1,080,625)
EXPENDITURE EXPLANATION
Proposed legislation will create a minimal expenditure impact to the Office of Motor Vehicles (OMV) associated with updates
and testing. OMV estimates the proposed measure will require a one-time SGF expenditure of $3,855 to implement changes.
The Office of Technology Services (OTS) would perform this work at an estimated 40 hours of overtime by a Senior
Developer (40 hours x $95 per hour = $3,800 x 1.45% Medicare Tax = $55; a total of $3,855). The Legislative Fiscal Office
believes that any additional IT work associated with this measure will be incremental in nature, and that the department can
potentially accomplish these tasks utilizing existing resources and budget authority. To the extent that numerous pieces of
legislation are enacted that require additional programming efforts, DPS may require additional resources.
While proposed law does not otherwise directly impact state expenditures, it does reduce SGR and Statutory Dedications out
of the Real Time Insurance Verification System Fund used to support certain functions within the Department of Public
Safety, specifically a portion of State Police trooper salaries and the general operating costs of the Office of Motor Vehicles.
To the extent that the legislature continues to fund activities in the Department of Public Safety supported by these
revenues at the same or a diminished level in subsequent fiscal years, the funding sources supporting the base expenditures
must be replaced by SGF or another revenue source to supplant the loss of SGR and statutory dedications. These activities
would compete for annual SGF resources along with other significant SGF supported services and activities of the state.
REVENUE EXPLANATION
This measure is anticipated to reduce annual revenues in the OMV by $216,125. Proposed law will decrease self-generated
revenue in the Department of Public Safety, Office of Motor Vehicles (OMV) by $86,450 as well as revenues in the statutorily
dedicated Real Time Insurance Verification System Fund by $129,675 as a result of eliminating reinstatement penalties on
first time insurance cancellations from 6 - 10 days. Monies from the Real Time Insurance Verification Fund are used within
the Office of State Police for trooper salaries. SGR collected by OMV in excess of appropriation is deposited into the SGF. This
fiscal note presumes the proposed law will apply only to prospective revenues and not impact existing uncollected
reinstatement fees. Also, the fiscal note does not anticipate the impact of any unknown cancellation information.
Under present law, a $100 reinstatement fee is charged on insurance cancellations less than 30 days plus a $25
administrative fee. Of the $100 fee, $25 is credited to self-generated revenue, and $75 is credited to the Real Time
Insurance Verification System Fund. The proposed law eliminates the $100 reinstatement fee on insurance cancellations
from 6 - 10 days. Based on actual revenue collections from the prior 10 fiscal years (FY 15 - FY 24), the proposed law would
eliminate reinstatement fees on an average of 1,729 insurance cancellations that have insurance lapses from 6 - 10 days
with an average revenue collection of $216,125 (1,729 x $125) - See table detailing estimates on the following page. The
Legislative Fiscal Office presumes the same number of first-time insurance cancellations will remain constant each year.
REVENUE EXPLANATION CONTINUED ON PAGE TWO
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 384 HLS 24RS 56
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 23, 2024 11:14 AM Author: KNOX
Dept./Agy.: Public Safety, Office of Motor Vehicles
Subject: Reinstatement Fees Analyst: John McKay
CONTINUED EXPLANATION from page one: Page 2 of 2
REVENUE EXPLANATION CONTINUED FROM PAGE ONE
Known
Cancellations
(6-10 days) Current Fee Revenue Collections
FY 14-15 1,750 $125 $218,750
FY 15-16 1,815 $125 $226,875
FY 16-17 1,545 $125 $193,125
FY 17-18 1,508 $125 $188,500
FY 18-19 1,442 $125 $180,250
FY 19-20 874 $125 $109,250
FY 20-21 1,945 $125 $243,125
FY 21-22 1,776 $125 $222,000
FY 22-23 2,390 $125 $298,750
FY 23-24 2,248 $125 $281,000
Average 1,729 $216,125
Unknown Cancellations - The department does not have information regarding the circumstances of insurance cancellations
(i.e. late reporting by insurance companies or vehicle was traded). With unknown compliance information, the department
cannot determine the duration of the insurance lapse until the insured person appears at an OMV office. Any specific
amounts of unknown cancellations that will be eliminated under this measure are speculative, and are not incorporated into
the fiscal note.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB384 Original: 32:863(A)(3)
HB384 Engrossed: 32:863(A)(3)
HB384 Reengrossed: 32:863(A)(3)
HB384 Enrolled: 32:863(A)(3)
HB384 Act : 32:863(A)(3)