COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3849S.05A Bill No.:SS for HCS for HB 1662, as amended Subject:Construction and Building Codes; County Officials; Landlords and Tenants;
Property, Real and Personal; Public Records, Public Meetings;
Type:Original Date:May 11, 2022Bill Summary:This proposal enacts provisions relating to restrictions on real property.
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. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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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(Unknown)(Unknown)(Unknown) L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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FISCAL ANALYSIS
ASSUMPTION
§§64.008, 65.710 & 89.500 – Home-Based Businesses
In response to similar legislation from this year, SCS for SB 809, officials from the Department
of Labor and Industrial Relations (DOLIR) assumed that the Division of Labor Standards can
absorb the costs of this bill with current resources. However, if the workload significantly
increased or other legislation was enacted, additional resources would be requested through the
appropriation process.
In response to similar legislation from this year, SCS for SB 809, officials from the Office of
Administration - Administrative Hearing Commission 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 for this entity.
In response to similar legislation from this year, SCS for SB 809, officials from the Office of the
Governor, Attorney General’s Office the Department of Commerce and Insurance, the
Department of Public Safety (National Guard), the the Missouri House of Representatives,
the University of Central Missouri, the City of O’Fallon, and the City of Claycomo each
assumed the proposal will have no fiscal impact on their organizations. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note
for above organizations.
§71.990 – Political Subdivisions regulating Home-Based Businesses
In response to similar legislation from this year, Perfected HB 2593, officials from the City of
St. Louis assumed municipalities will no longer be able to require a person to apply for, register
for, or obtain any permit, license, variance, or other type of prior approval to operate a no-impact
home-based business. The City currently issues business licenses for said businesses which
would be prohibited under the proposed legislation. With an annual cost of $25, licenses for
home businesses generated $12,467 in 2018 and this amount would no longer be collected. The
City will also have to modify its ordinances to comply with the new legislation. The new
legislation would also seriously affect the Building Division’s ability to regulate problem uses in
residential areas.
In response to similar legislation from this year, Perfected HB 2593, officials from the City of
Osage Beach assumed costs may increase as additional investigations will result from citizen
complaints about neighborhood activity, or to ensure that such home based business is in
compliance with the permitted uses under this bill, especially sections 3 and 4. The City
anticipates up to 10 inspections per year for 4 hours of work at $30 per hour for a total cost of
$1,200. L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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In response to similar legislation from this year, Perfected HB 2593, officials from the City of
Liberty assumed this proposal would not allow cities to limit home based businesses,
specifically the number of people who can be on the residential “Home Based Business”
property at one time. It seems that as long as the products being sold are not illegal or
considered “bad”, the only limiting factor would be on-site parking. This is problematic as the
City has many large lot residential properties who could create a parking lot to accommodate a
retail location. This proposal also removes a City’s authority to require sprinkler systems for
these homes that will now be able to be used in a commercial manner. By not allowing cities to
require a business license will remove the City’s ability to regulate these businesses to ensure the
safety and welfare of their citizens.
Oversight assumes there could be additional investigations done by local political subdivisions
as a result of this proposal. However, Oversight is unclear on the number of inspections and cost
that could be incurred. Therefore, Oversight will reflect an unknown amount of lost
permit/license revenue and/or inspection costs that could exceed the municipalities’ numbers for
local political subdivisions from this proposal.
In response to similar legislation from this year, Perfected HB 2593, officials from the Attorney
General’s Office 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.
In response to similar legislation from this year, Perfected HB 2593, officials from the City of
Springfield assumed the proposal will have no fiscal impact on their organization.
§260.295 – Regulating of Refrigerants
In response to similar legislation from this year, Perfected HB 2593, officials from the City of
Springfield and City of St. Louis each assumed 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 on the fiscal note for this section.
§442.403 – Restrictive Covenants
In response to a previous version, officials from Greene County and the City of O’Fallon each
assumed 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.
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. L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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§442.404 – Restrictive Covenants regarding Solar Panels or Rooftops
In response to similar legislation from this year, Perfected SB 820, officials from the City of
Springfield assumed the proposal will have no fiscal impact on their organizations. Oversight
does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in
the fiscal note.
In response to similar legislation from this year, Perfected SB 820, officials at the cities of
Ballwin, Corder, Hale, O’Fallon and St. Louis each assumed the proposal will have no fiscal
impact on their cities. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for these cities.
Bill as a Whole
Officials from the Office of Administration - Budget and Planning, the Department of
Economic Development, the Department of Higher Education and Workforce
Development, the Department of Health and Senior Services, the Department of Mental
Health, the Department of Natural Resources, the Department of Corrections, the
Department of Labor and Industrial Relations, the Department of Public Safety (Division
of Alcohol and Tobacco Control, Fire Safety, Office of the Director, Missouri Gaming
Commission, Missouri Highway Patrol, State Emergency Management Agency), the
Department of Social Services, the Missouri Department of Agriculture, the Missouri
Ethics Commission, the Missouri Department of Transportation, the MoDOT & Patrol
Employees’ Retirement System, the Office of Administration, the Office of the State Public
Defender, the University of Missouri System, the City of Kansas City, the Kansas City
Health Department, the Newton County Health Department, the St. Louis County Health
Department, the Kansas City Police Department, the St. Louis County Police Department,
the Office of the State Auditor, the Office of the State Treasurer, the Joint Committee on
Administrative Rules, the Joint Committee on Public Employee Retirement, Legislative
Research, the Oversight Division, the Missouri Senate, the Missouri Lottery, the Missouri
Consolidated Health Care Plan, the Missouri Office of Prosecution Services, the Missouri
State Employee's Retirement System and the State Tax Commission 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.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
Oversight assumes the SOS could absorb the costs of printing and distributing regulations
related to this proposal. If multiple bills pass which require the printing and distribution of
regulations at substantial costs, the SOS could request funding through the appropriation process.
SA 1 - §§ 67.137, 476.095, 478.240, 535.067
Oversight assumes this amendment is striking sections in SS for HCS for HB 1662 will have no
fiscal impact.
SA 2 - §§59.310, 92.720, 92.740, 92.750, 92.760, 92.765, 92.770, 92.775, 92.810, 92.815,
92.817, 92.825, 92.835, 92.840, 92.852, 92.855, & 442.130 – Certain Property Regulations
In response to similar legislation from this year, CCS for SS for SCS for HCS for HB 1606,
officials from the Department of Labor and Industrial RelationsDepartment of
Revenue, the Office of the State Courts Administrator, the St. Louis County Police
Department, the Metropolitan St. Louis Sewer District, the Department of Commerce and
Insurance, the Department of Economic DevelopmentMissouri Department of
Transportation, the State Tax Commission, the City of Kansas City and the City of O’Fallon
each assumed 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 for these sections.
Officials from the City of St. Louis and the St. Louis Metropolitan Police Department did not
respond to Oversight’s request for fiscal impact for this proposal.
Bill as a Whole as Amended
Officials from Joint Committee on Education and the Oversight Division
proposal, as amended, will have no fiscal impact on their organization.
Oversight does not have information to the contrary and therefore, Oversight will reflect no
fiscal impact for this proposal as amended.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties, county health departments, circuit clerks, treasurers, police
departments, schools, colleges 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. L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
Loss and/or Cost – of permit/license
revenue and potential costs for
additional investigations on home based
businesses (§71.990) p. 4
(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS(Unknown)(Unknown)(Unknown)
FISCAL IMPACT – Small Business
Small businesses that employ minors could be impacted by this proposal. Small business
landlords could be impacted as a result of this proposal. There could also be a positive indirect
fiscal impact to small businesses that sell/install solar panels or solar collectors as a result of this
proposal.
FISCAL DESCRIPTION
This proposal enacts provisions relating to restrictions on real property.
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
Greene County
Kansas City
City of O’Fallon
Office of Administration - Budget and Planning
Department of Economic Development L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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Department of Higher Education and Workforce Development
Department of Health and Senior Services
Department of Mental Health
Department of Natural Resources
Department of Corrections
Department of Labor and Industrial Relations
Department of Public Safety
Division of Alcohol and Tobacco Control
Fire Safety
Office of the Director
Missouri Gaming Commission
Missouri Highway Patrol
State Emergency Management Agency
Missouri National Guard
Department of Social Services
Missouri Department of Agriculture
Missouri Ethics Commission
Missouri Department of Transportation
MoDOT & Patrol Employees’ Retirement System
Office of Administration
Office of the State Public Defender
University of Missouri System
City of Kansas City
Kansas City Health Department
Newton County Health Department
St. Louis County Health Department
Kansas City Police Department
St. Louis County Police Department
Office of the State Auditor
Office of the State Treasurer
Joint Committee on Administrative Rules
Joint Committee on Public Employee Retirement
Legislative Research
Oversight Division
Missouri Senate
Missouri Lottery
Missouri Consolidated Health Care Plan
Missouri Office of Prosecution Services
Missouri State Employee's Retirement System
State Tax Commission
Office of Administration - Administrative Hearing Commission
Attorney General’s Office
Department of Commerce and Insurance
University of Central Missouri L.R. No. 3849S.05A
Bill No. SS for HCS for HB 1662, as amended
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City of Claycomo
Office of the State Courts Administrator
City of Springfield
City of Osage Beach
City of Liberty
City of Ballwin
City of Corder
City of Hale
Office of the Secretary of State
St. Louis County Police Department
Metropolitan St. Louis Sewer District
Joint Committee on Education
Julie MorffRoss StropeDirectorAssistant DirectorMay 11, 2022May 11, 2022