HCS SCS SB 675 -- SPECIAL FUNDS

SPONSOR:  Gross (Cooper, 120)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tax Policy
by a vote of 15 to 3.

This substitute makes various changes to state law relating to
special funds.  The substitute:

(1)  Transfers all interest accrued from July 1, 2001, to June
30, 2003, on the moneys in various state special funds outlined
in the substitute to the General Revenue Fund;

(2)  Transfers fixed dollar amounts in various state special
funds from the accounts to the General Revenue Fund.  These funds
and the amounts transferred are:  State Fair Fees Fund, $6,000;
Petroleum Inspection Fund, $77,617; Department of Revenue
Information Fund, $250,000; Secretary of State's Technology Trust
Fund, $102,000; and Administrative Trust Fund, $3,500,000;

(3)  Creates the Highway Patrol Traffic Records Fund for deposit
of funds received by the State Highway Patrol for copying
documents and providing data processing services related to
traffic accident reports;

(4)  Transfers any outstanding balance in the School Building
Revolving Fund upon the effective date of the substitute and any
future deposits into the State Schools Moneys Fund;

(5)  Requires transfers of certain funds held in escrow accounts
by real estate brokers which are in dispute by the parties in a
real estate transaction to the State Treasurer within 365 days of
the date of the initial projected closing date.  This provision
will become effective January 1, 2004; and

(6)  Transfers 55% of the balance of the Department of Insurance
Dedicated Fund as of the effective date of the substitute to the
General Revenue Fund.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Income to General Revenue Fund of
Greater than $7,725,236 in FY 2004, $0 in FY 2005, and $0 in FY
2006.  Cost to Various State Funds of Greater than $1,709,381 in
FY 2004, $0 in FY 2005, and $0 in FY 2006.  Estimated Net Cost to
School Building Revolving Fund of $7,868,759 in FY 2004, $0 in FY
2005, and $0 in FY 2006.  Estimated Net Effect on State School
Moneys Fund of $0 in FY 2004, FY 2005, and FY 2006.  Cost to
Insurance Dedicated Fund of $6,015,855 in FY 2004, $0 in FY 2005,
and $0 in FY 2006.  Estimated Net Income to Highway Patrol
Traffic Records Fund of Unknown in FY 2004, FY 2005, and FY 2006.
Totals are expected to exceed $100,000 annually.

PROPONENTS:  Supporters say that the bill as it passed the Senate
will provide necessary funds to help balance the state budget for
Fiscal Year 2004.

Testifying for the bill was Senator Gross.

OPPONENTS:  Those who oppose the bill say that sweeping funds
from the Department of Insurance Dedicated Fund could cause the
fund to be insolvent, require fees to be increased to replenish
the fund, and undermine the oversight of the insurance industry.

Testifying against the bill were the Department of Insurance; and
Coventry Health Care Company.

Bill Tucker, Deputy Director of Research

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am