LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 621 HLS 21RS 560
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 8, 2021 11:27 AM Author: PIERRE
Dept./Agy.: Public Safety, Office of Motor Vehicles
Subject: Six-Year Identification Cards Analyst: Patrice Thomas
MTR VEHICLE/DRIVER LIC EN +$1,000,000 SD RV See Note Page 1 of 1
Provides relative to the issuance of identification cards
Proposed law authorizes the Office of Motor Vehicles (OMV) to issue 6-year ID cards. Proposed law increases the handling
fee for ID cards from $8 to $12 and requires the handling fee to be deposited into the Office of Motor Vehicles Handling Fee
Escrow Fund. Proposed law provides funds deposited into the Handling Fee Escrow Fund be appropriated in FY 26, FY 27, FY
32, FY 33, FY 38, and FY 39. Present law requires a $3 fee for a two-year ID card and a $5 fee for a four-year ID card for
persons under the age of 16. Proposed law changes 4 years to 6 years and increases the fee of $5 to $7.50. Present law
requires a $10 fee for an ID card for persons 16 years or older. Proposed law changes the fee from $10 to $15. Proposed law
creates the Office of Motor Vehicles Special Identification Card Dedicated Fund Account (ID Card Account) and requires fee
increases resulting from extending ID cards by 2 years under this measure to be deposited into the fund. Proposed law
requires the State Treasurer to deposit 1/3 of the fee increase under this measure be deposited into the ID Card Account
and appropriated in FY 26, FY 27, FY 32, FY 33, FY 38, and FY 39. Proposed law sunsets 7/01/2039.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 SEE BELOW $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $1,000,000 $1,000,000 $1,000,000 $1,000,000 $0 $4,000,000
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $1,000,000 $1,000,000 $1,000,000 $1,000,000 $0 $4,000,000
EXPENDITURE EXPLANATION
The Department of Public Safety (DPS), Office of Motor Vehicles (OMV) indicates the proposed law may require
approximately 350 hours of overtime for the Information Services Section at an average cost of $80 per hour ($80 x 350 =
$28,000) plus associated Medicare expenses ($28,000 x 1.45% = $406), or a total of $28,406. The legislation will require
modifications to the OMV Driver’s License Issuance system and transaction and batch processes, as well as modifications to
issue a driver’s license for 6 years and prevent a renewal for not less than 6 years. The Legislative Fiscal Office presumes
additional IT workload associated with this proposed law is incremental in nature and will be accomplished utilizing existing
resources and budget authority. To the extent that numerous pieces of legislation are enacted that require additional
programming efforts, the department may require additional resources.
The monies from the Office of Motor Vehicles Special Identification Card Dedicated Fund Account (ID Card Account) and the
Office of Motor Vehicles Handling Fee Escrow Fund will be used in FY 26, FY 27, FY 32, FY 33, FY 38, and FY 39 to fund OMV
expenses related to ID cards that will mitigate the loss of revenue during the 2-year gap.
REVENUE EXPLANATION
Proposed law will result in the same amount of revenue collected over a 12 year period. The proposed law authorizes the
OMV to issue ID cards for 6 years instead of 4 years. By increasing the ID card renewal cycle to 6 years, there will be a 2-
year gap in which ID cards are not renewed. Currently, the ID card renewal fee and handling fee generate approximately
$2.3 M annually. Under the proposed law, the ID card renewal fee and handling fee are anticipated to generate
approximately $3 M annually ($1.8 M for the renewal fee and $1.2 M for the handling fee). Approximately $600,000 (1/3 of
the $1.8 M) will be deposited into the ID Card Account, totaling $2.4 M ($600,000 x 4 years); and approximately $400,000
will be deposited into the Handling Fee Escrow Fund, totaling $1.6 M ($400,000 x 4 years). The proposed law provides that
funds will be used to replace revenues that will not be collected in the 2-year gap period and available for appropriations FY
26, FY 27, FY 32, FY 33, FY 38, and FY 39.
The total amount that will be deposited annually into fund accounts from FY 22 to FY 25 is $4 M ($2.4 M from ID card fees
into the Special Identification Card Dedicated Fund Account (ID Card Account) and $1.6 M from handling fees into the
Handling Fee Escrow Fund).
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}
Alan M. Boxberger
x 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} Staff Director


Statutes affected:
HB621 Original: 32:1(A), 40:1321(C), 40:1321(D)(1)
HB621 Engrossed: 32:1(A), 40:1321(C), 40:1321(D)(1)
HB621 Reengrossed: 32:1(A), 40:1321(C)
HB621 Re-Reengrossed: 32:1(A), 32:3(E), 40:1321(C)
HB621 Enrolled: 32:1(A), 32:3(E), 40:1321(C)
HB621 Act 348: 32:1(A), 32:3(E), 40:1321(C)