COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3849H.03C Bill No.:HCS for HB 1662 Subject:Contracts and Contractors; Property, Real and Personal; Mortgages and Deeds Type:Original Date:February 25, 2022Bill Summary:This proposal changes the laws regarding restrictive covenants by expanding
the definition of prohibited covenants and establishes a procedure to remove
prohibited covenants from deeds.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3849H.03C
Bill No. HCS for HB 1662
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February 25, 2022
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0$0$0 L.R. No. 3849H.03C
Bill No. HCS for HB 1662
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February 25, 2022
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FISCAL ANALYSIS
ASSUMPTION
Officials from the State Tax Commission assume the proposal will have no fiscal impact on
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note.
Officials from the City of Kansas City and the City of O’Fallon each assume the proposal will
have no fiscal impact on their respective organizations. Oversight does not have any information
to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these
agencies.
In response to a previous version, officials from Greene County assumed the proposal will have
no fiscal impact on their organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note.
Oversight assumes this proposal prohibits any deed recorded after August 28, 2022 from
containing a reference to a specific portion of a restrictive covenant. Oversight assumes the
owner of real property that is subject to a restrictive covenant can release it with the recorder of
deeds office by filing a certificate of release form. Oversight assumes the proposal will have no
fiscal impact and will reflect a zero impact in the fiscal note.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties and county recorder offices were requested to respond to this
proposed legislation but did not. A listing of political subdivisions included in the Missouri
Legislative Information System (MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 3849H.03C
Bill No. HCS for HB 1662
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February 25, 2022
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FISCAL DESCRIPTION
The proposed legislation appears to have no direct fiscal impact.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
State Tax Commission
Greene County
Kansas City
City of O’Fallon
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 25, 2022February 25, 2022