LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 475 HLS 24RS 718
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 16, 2024 4:13 PM Author: BOURRIAQUE
Dept./Agy.: Office of Motor Vehicles
Subject: Provide for digital transaction providers. Analyst: John McKay
REVENUE/TAXATION DEPT EN NO IMPACT See Note Page 1 of 1
Provides for digital transaction providers
Proposed law allows the commissioner to enter into an agreement with public or private persons or agencies to be digital
transaction providers who can provide and renew digital credentials and provides a contract can be denied if the person or
organization has violated any rule or regulation of the office of motor vehicles. Proposed law provides that digital transaction
providers may collect registration license taxes and fees and may collect a convenience charge as provided in present law
Proposed law provides that the digital transaction provider must execute a surety bond of $100,000 naming the Dept. of
Public Safety and Corrections, office of motor vehicles, as obligee. Further provides the surety bond must be delivered to the
Dept. of Public Safety and Corrections, office of motor vehicles. Proposed law requires the digital transaction provider to
acquire a cyber liability insurance policy for $1,000,000 that names the state of La., the Dept. of Public Safety and
Corrections, office of motor vehicles, department employees, and the office of technology services and its employees as
additional insureds.
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. $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 $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 $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 $0
EXPENDITURE EXPLANATION
Proposed law is permissive in nature and will not create a material expenditure impact. The state of Louisiana currently has
a contract with a third-party application developer to deliver an electronic credential for driver’s licenses and official
identification cards issued by the OMV. Expenditures to further develop an interface a third-party might require is factored
into the ongoing IT modernization project. OTS reports that most of the functionality currently exists in the legacy
application.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
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:
HB475 Engrossed: 47:1(A)(1)
HB475 Enrolled: 47:1(A)(1)
HB475 Act : 47:1(A)(1)