FISCAL NOTE, 2006 LEGISLATIVE SESSION

HB 1114 exempt from motor vehicle license fees certain motor vehicles used to transport children to and from certain head start programs.

SDCL 32-5-42 exempts from fees for registration buses and other motor vehicles owned by a long list of entities. These entities include: the state, the federal government, counties, townships, municipalities, public or nonpublic schools, Indian mission schools, Indian tribes, and fire departments. This bill adds federally-funded Head Start programs to that list.

After consultation with the Department of Education, it is estimated that House Bill 1114 would have the following impact on state and county finances:

Agency/Item	General Fund	Federal Funds	Other Funds*	Total	FTE
Revenue:	$0	$0	($10,000)	($10,000)
Expenses:	$0	$0	$0	$0	0.0
Net Impact	$0	$0	($10,000)	($10,000)	0.0
*Includes registration fees to the state and counties and the waste disposal fee.

                    
According to the Education Department, there are 6 federally-funded Head Start programs serving 59 of 66 counties in South Dakota. The 6 programs own a total of 29 buses and 140 other vehicles. The Head Start programs have reported to the Department that bus license fees average $50 and the fees for other vehicles slightly less. Of those fees, approximately $41 goes to the state, $8 to counties, and $1 to the waste fee for disposal of plates. The Department estimates the total savings to the Head Starts would be less than $10,000 per year for registration of vehicles. This savings to the Head Starts would be a loss of revenue to the state and counties of less than $10,000 per year.

APPROVED BY:_______________________________________ DATE:____________