Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund	-$2,048,781	-$2,048,781
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon the Governor's signature
Appropriation Summary for FY 1999-2000: Department of Revenue would have a reduction of $2,048,781 GF and Department of Corrections would have a reduction of $2,048,781 Cash Fund Exempt
Local Government Impact: See Local Government Impact section

The bill would change the current requirement that a motor vehicle have a front and rear license plate and require just a rear license plate on a motor vehicle.

Under current law, the Department of Revenue (DOR) receives a General Fund (GF) appropriation to pay the Department of Corrections for the cost of manufacturing motor vehicle license plates. For purposes of this fiscal note, it is assumed that the DOR would continue to issue the current two license plates until July 1, 1999. In FY 1998-99, the DOR ordered 1,256,921 sets of plates at a cost of $1.63 per plate for a total cost of $4,097,562 GF. Requiring only one plate would reduce the amount the DOR would spend on license plates by $2,048,781 GF.

The Department of Corrections, Division of Correctional Industries employs 65 inmates in making the motor vehicle licenses plates for the DOR. Reducing the number of plates would reduce an estimated 20 inmate jobs. Should Correctional Industries choose to replace the lost inmate jobs with another vocational program, they would anticipate approximately $50,000 CFE in annual operating costs, initial startup, and facility renovation costs.

County clerks offices would have reduced storage, handling, and mailing costs. If county clerks mail license plates to residences, the mailing cost would be reduced. However, some counties currently charge the resident the cost of mailings and others do not charge residents.

This fiscal note implies that for FY 1999-00, the Department of Revenue would require a $2,048,781 General Fund reduction. Of this amount, the Department of Corrections, Correctional Industries would have a cash fund exempt reduction of $2,048,781.