TITLE: CONCERNING THE PROCUREMENT OF PRODUCTS THAT EVIDENCE THE REGISTRATION OF A MOTOR VEHICLE.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund	Potential Cost Savings
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: None
Local Government Impact: May affect how county clerks provide motor vehicle license plate services.

The bill would allow the Division of Motor Vehicles in the Department of Revenue (DOR) to obtain validating motor vehicle stickers or tabs from any source.

It is estimated that the Department of Revenue’s expenditures would not change as a result of this bill. However, the providing stickers and tabs in other methods for county clerks may reduce the department’s costs and create efficiencies for the county clerks offices.

The bill is permissive and allows the DOR to use the current system with the Division of Correctional Industries in the Department of Corrections or seek a new provider. Should the DOR choose to obtain stickers and tabs from other sources, the inmate work provided by this program would no longer be used. Should this be done immediately or in less than two years, other opportunities for work projects may not be found. The Division of Correctional Industries may request General Funds (an estimated $85,800) to provide some programs for this inmate workforce. However, should the purchase of tabs be phased out over a two year period from correctional industries, the division would have adequate time to find alternative work. The fiscal impact of this bill would depend upon the future decisions of the Department’s of Corrections and Revenue. Therefore this bill is assessed as having a conditional fiscal impact.

If county clerks offices are allowed to provide motor vehicle tabs and sticker in an alternative manner, they may experience increased efficiencies and fewer costs.