LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 447 HLS 24RS 651
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 2, 2024 6:06 PM Author: ILLG
Dept./Agy.: Office of Motor Vehicles
Subject: Driver’s License Fee Increase Analyst: John McKay
MTR VEHICLE/DRIVER LIC RE +$3,900,000 SD RV See Note Page 1 of 1
Increases the driver's license fee and the specific portion directed to the litter abatement fund
Proposed legislation increases the basic license fee that every applicant for a Class A, B, C, D, and E license must pay by $6.
Under current law, $1.50 of the driver’s license fee shall be forwarded by the department to the litter abatement account.
This measure changes the amount forwarded to the litter abatement account from $1.50 to $7.50 per license issued.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0
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. $0 $0 $0 $0 $0 $0
Ded./Other $3,900,000 $3,900,000 $0 $0 $0 $7,800,000
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $3,900,000 $3,900,000 $0 $0 $0 $7,800,000
EXPENDITURE EXPLANATION
Proposed legislation will create a minimal expenditure impact to the Office of Motor Vehicles (OMV) associated with software
updates and testing.
The Department of Public Safety (DPS) estimates the proposed measure will require a one-time SGF expenditure of $38,744
to implement application changes and to perform 3 to 6 months of system testing. The Office of Technology Services (OTS)
would perform this work at an estimated 402 hours of overtime by two Senior Developers (402 hours x $95 per hour =
$38,190 x 1.45% Medicare tax = $553.76; a total of $38,744). The Legislative Fiscal Office believes that any additional IT
work associated with this legislation 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.
REVENUE EXPLANATION
Proposed legislation will increase revenues for the statutorily dedicated Litter Abatement and Education Account within the
Conservation Fund by an approximate average of $3.9 M per year for 2 years following enactment, which is based on a 3
year average.
This measure increases the fee on Class A, B, C, D, and E licenses by $6 statewide. The portion of the fee forwarded by OMV
to the Litter Abatement and Education Account will increase from $1.50 to $7.50 per license. The increase from $1.50 to
$7.50 represents a 400% ((7.50 - 1.50)/1.50) increase. Applying the 400% increase to the average deposit amount of
$978,736 yields an incremental increase in deposits by an estimated $3.9 M ($978,736 x 400%) annually.
Below is the prior 3 year history of deposits to the Litter Abatement and Education Dedicated Fund Account from motor
vehicle licenses.
$1,024,162 FY 22
$1,061,510 FY 23
$850,537 FY 24
$978,736 3 Year Average
Proposed legislation shall cease to exist two years from the effective date of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 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:
HB447 Engrossed: 32:412(A)(1)
HB447 Reengrossed: 32:412(A)(1)