LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 683 HLS 24RS 51
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2024 2:23 PM Author: OWEN, CHARLES
Dept./Agy.: Office of Motor Vehicles/Revenue
Subject: Implementation of Reinstatement Relief Program Analyst: John McKay
MTR VEHICLE/OFFICE EN SEE FISC NOTE SG RV Page 1 of 2
Requires the office of motor vehicles to process reinstatements in person at all field locations
Proposed law extends the number of days that constitutes “Delinquent debt” from 60 to 180 days. Proposed law allows for
“final debt” to be negotiable. Proposed law creates the Reinstatement Relief Program for persons who owe reinstatements
fees imposed pursuant to present law for having a lapse in insurance coverage. Proposed law specifies that after the debt
becomes final but before it is transferred to the office of debt recovery (ODR), the office of motor vehicles (OMV), through
the commissioner, may compromise and settle the debt upon satisfactory showing of substantial compliance with the law.
Proposed law retains present law but makes it optional for the office of motor vehicles to refer any unpaid balance due under
the installment agreement to the Dept. of Revenue, office of debt recovery, for collection. Proposed law requires the OMV to
process reinstatements in person at all field locations.
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 $0 $0 $0 $0 $0 $0
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. 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
EXPENDITURE EXPLANATION
Proposed law may create a minimal expenditure impact to OMV associated with software updates. DPS estimates a one-time
SGF cost of $48,189 to make coding changes. The Office of Technology Services (OTS) would perform this work at an
estimated 500 hours of overtime by an IT Senior Developer (500 hours x $95 per hour = $47,500 x 1.45% Medicare tax =
$689; a total of $48,189). Currently, OMV offers in-person reinstatement in 59 of the 79 field locations. As the IT
modernization project progresses, reinstatement will be offered in-person at all 79 locations.
OMV indicates current staffing levels will not be impacted by transferring delinquent accounts to OMV for collection. OMV
reports that 45 employees are currently processing these accounts and that the agency has 40 existing vacancies that can
be filled if additional staff is needed. Additionally, OMV reports that system updates will enable individuals to complete
reinstatements online by the end of the year, reducing the need for individuals to interact directly with staff.
ODR has indicated that it will maintain current staffing levels and rededicate work efforts toward collecting other state debts
due. ODR anticipates no operational impact. However, the LFO has concerns about ODR’s ability to maintain current
operational levels given that OMV debt collections represent approximately 88% of ODR’s total collections.
REVENUE EXPLANATION
Proposed law will have an indeterminable impact on SGR and statutorily dedicated Real Time Insurance Verification System
Fund collections from reinstatement fees in the Department of Public Safety, Office of Motor Vehicles (OMV), and an
indeterminable SGR decrease in the Office of Debt Recovery (ODR) within the Department of Revenue (LDR). 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.
Proposed law allows OMV to recall final delinquent debt from ODR. Proposed law is retroactive, which means final delinquent
debt from 1989 or earlier may be included. The fiscal impacts provided assume proposed law will impact existing uncollected
reinstatement fees as well as revenues for prospective violations.
Under present law, OMV reports the debt (insurance lapse/reinstatement fees) that has been finalized to ODR at the
maximum amount. In the collection process, ODR adds up to 25% (15% on debt referred on or after 1/01/2024) of the
delinquent amount as a collection fee. Thus, if a vehicle has an insurance lapse, the following reinstatement fees apply: (1)
$100 per violation for 1-30 days, (2) $250 per violation for 31-90 days, and (3) $500 per violation over 90 days. All
reinstatement fees are subject to a $25 administrative fee. When OMV sends finalized debt to ODR, the amount owed would
be subject to the maximum penalty of $525 plus the 25% fee ODR retains, resulting in a total of $656.25 ($525 x 25% =
$131.25 + $525 ). There is also no limit on the number of insurance lapse fines a person can accrue. CONT’D ON PAGE 2
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
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 683 HLS 24RS 51
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2024 2:23 PM Author: OWEN, CHARLES
Dept./Agy.: Office of Motor Vehicles/Revenue
Subject: Implementation of Reinstatement Relief Program Analyst: John McKay
CONTINUED EXPLANATION from page one: Page 2 of 2
Revenue explanation continued from page 1
In public testimony in the House Committee on Transportation, Highways and Public Works on the original version of this
legislation, OMV testified that $470 M of final delinquent debt would be recalled from ODR and reduced to the actual amount
owed of $254 M. The proposed law authorizes OMV to "compromise and settle the debt" as well as negotiate and implement
a new Reinstatement Relief Program.
This fiscal note assumes the proposed law will impact existing uncollected reinstatement fees recalled from ODR as well as
revenues for prospective violations. The proposed law may accelerate the payment of reinstatement fees as OMV will be able
to negotiate the debt amount and offer a new Reinstatement Relief Program based on the debtor's income, financial
obligations, and other factors that affect the ability to repay. Over the past five fiscal years, on average, ODR has recovered
$45 M of OMV debt annually. The new Reinstatement Relief Program may or may not result in adequate revenue to
replace the $45 M recovered by ODR and submitted to OMV, which covers the normal operations of OMV and
State Police.
The revenue impact of the proposed law is difficult to predict due to the participation rates of debtors in the new
Reinstatement Relief Program and the amounts of negotiated reinstatement fees. Therefore, any specific amounts expected
to be collected would be speculative, therefore, no specific amount can be identified in this fiscal note. Longer-term
collections are expected to decline due to lower fees charged if compliance remains typical.
Office of Debt Recovery
Proposed law will significantly decrease SGR in ODR by eliminating the 25% fee on revenue on collection efforts. Due to the
permissive nature of the bill, some debt may still be referred to ODR for collections but such referral is not mandatory.
For informational purposes, in FY 22, ODR collected $53.4 M, which generated $9.9 M of SGR utilized by the agency to
operate. Of the $53.4 M debt collected, $46.9 M was finalized debt from OMV, which represents 88% of debt recovered from
all sources. Thereby, in future fiscal years, any debt recalled and/or not sent by OMV is anticipated to significantly impact
the SGR collected and utilized by ODR to operate.
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:
HB683 Original: 32:8(B)
HB683 Engrossed: 32:8(A)(2), 32:4(B)
HB683 Reengrossed: 32:8(A)(2), 32:4(B)
HB683 Enrolled: 32:8(A)(2), 32:4(B)
HB683 Act 629: 32:8(A)(2), 32:4(B)