Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


January 19, 2021


The Honorable Mike Petersen, Chairperson
Senate Committee on Transportation
Statehouse, Room 345-S
Topeka, Kansas 66612
Dear Senator Petersen:
SUBJECT: Fiscal Note for SB 18 by Senate Committee on Transportation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 18 is
respectfully submitted to your committee.
SB 18 would require the registration of certain military surplus vehicles and allow them to
operate on Kansas roadways. The bill defines military surplus vehicle as a vehicle manufactured
for use in the United States military forces or from another country with similar vehicle standards
as the United States military authorized for sale to civilians, that meets the legal size and weight
requirements of existing laws and is less than 35 years old. The military surplus vehicle cannot be
a fully tracked vehicle and cannot be used to transport passengers for hire. The bill includes
language that special interest vehicles including street rod vehicles are not allowed to haul material
weighing more than 500 pounds. The bill authorizes the issuance of a special interest license plate
for a military surplus vehicle that includes a decal identifying it as a military surplus vehicle. The
fee for the special interest registration is set at $26 per year and issuing the license plate is a one-
time fee of $20. The military surplus vehicles cannot be registered until an inspection has been
completed.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- $9,200
Expenditure -- -- $5,250 $5,250
FTE Pos. -- -- -- --
The Honorable Mike Petersen, Chairperson
Page 2—SB 18

The Department of Revenue estimates that SB 18 would increase State Highway Fund
revenues by $9,200 in FY 2022. To formulate this estimate, the Department of Revenue reviewed
data on military surplus vehicles and estimates that approximately 200 vehicles would be
registered in Kansas. The special interest application fee is estimated to generate $5,200 for the
State Highway Fund ($26 fee x 200 vehicles) and the one-time license plate fee is estimated to
generate $4,000 for the State Highway Fund ($20 fee x 200 vehicles).
The Department indicates that the bill would require $5,250 from the State General Fund
in FY 2022 to implement the bill and to modify the motor vehicle system to allow for a new license
plate type and associated usage for certain military surplus vehicles. The required programming
for this bill by itself would be performed by existing staff of the Department of Revenue. In
addition, if the combined effect of implementing this bill and other enacted legislation exceeds the
Department’s programming resources, or if the time for implementing the changes is too short,
additional expenditures for outside contract programmer services beyond the Department’s current
budget may be required.
The Kansas Department of Transportation indicates that the bill would increase state
revenues to the State Highway Fund as noted above. The Kansas Association of Counties indicates
that if numerous heavy surplus military vehicles are registered in the state, then the bill has the
potential to increase road maintenance costs for local governments that would not be offset by the
registration fees. However, the Association is unable to calculate a precise estimate of any
potential increases in road maintenance costs for local governments as a result of this bill. Any
fiscal effect associated with SB 18 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Lynn Robinson, Department of Revenue
Ben Cleeves, Transportation
Jay Hall, Association of Counties
Sherry Macke, Highway Patrol


Statutes affected:
As introduced: 8-194, 8-195, 8-196, 8-1486