COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3849S.05T Bill No.:Truly Agreed To and Finally Passed SS for HCS for HB 1662 Subject:Construction and Building Codes; County Officials; Landlords and Tenants;
Property, Real and Personal; Public Records, Public Meetings;
Type:Original Date:June 3, 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.05T
Bill No. Truly Agreed To and Finally Passed SS for HCS for HB 1662
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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.05T
Bill No. Truly Agreed To and Finally Passed SS for HCS for HB 1662
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FISCAL ANALYSIS
ASSUMPTION
§§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 Metropolitan St. Louis Sewer District 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.
SEQ CHAPTER \h 1
§§64.008, 65.710 & 89.500 – Home-Based Businesses
In response to similar legislation from this year, SCS for SB 809, officials from the University
of Central Missouri and the City of O’Fallon each assumed the proposal will have no fiscal
impact on their organizations. Oversight
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.
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 L.R. No. 3849S.05T
Bill No. Truly Agreed To and Finally Passed SS for HCS for HB 1662
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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.
SEQ CHAPTER \h 1In response to similar legislation from this year, Perfected HB 2593,
officials from the City of Springfield
organization.
§260.295 – Regulating of Refrigerants
In response to similar legislation from this year, Perfected HB 2593, officials from the City of
Springfield and the City of St. Louis
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.
§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. L.R. No. 3849S.05T
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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 Attorney General’s Office, the Office of Administration (Budget and
Planning & Administrative Hearing Commission), the Department of Commerce and
Insurance, the Department of Economic DevelopmentDepartment of Elementary and
Secondary Education, 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 RevenueDepartment of Public
Safety (Division of Alcohol and Tobacco Control, Capitol Police, Fire Safety, Office of the
Director, Missouri Gaming Commission, Missouri National Guard, Missouri Highway
Patrol, Missouri Veterans Commission, State Emergency Management Agency), the
Department of Social Services, the Missouri Department of Agriculture, the Missouri
Department of Conservation, the Missouri Ethics Commission, the Petroleum Storage Tank
Insurance Fund 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 Claycomo, the City of Kansas City,
St. Louis County, the Newton County Health Department, the St. Louis County Health
Department, the Kansas City Police Department, the St. Joseph Police Department St.
Louis County Police Department, the Office of the Governor Office of the State
Auditor, the Office of the State Treasurer, the Missouri House of Representatives, the Joint
Committee on Administrative Rules, the Joint Committee on Education Joint
Committee on Public Employee Retirement, Legislative Research, the Oversight Division,
the Missouri Lottery, the Missouri Consolidated Health Care Plan, the Missouri Higher
Education Loan Authority, the Missouri Office of Prosecution Services, the Office of the
State Courts Administrator 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 Missouri Senate and the Kansas City Health Department each state an
indeterminate fiscal impact from this proposal.
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 L.R. No. 3849S.05T
Bill No. Truly Agreed To and Finally Passed SS for HCS for HB 1662
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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
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.
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.
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 L.R. No. 3849S.05T
Bill No. Truly Agreed To and Finally Passed SS for HCS for HB 1662
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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.
Section 442.404 contains an effective date of January 1, 2023.
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
Department of Economic Development
Department of Elementary and Secondary Education
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 Revenue
Department of Public Safety
Department of Social Services
Missouri Department of Agriculture
Missouri Department of Conservation
Missouri Ethics Commission
Missouri Department of Transportation
MoDOT & Patrol Employees’ Retirement System
Office of Administration
Office of the State Public Defender
Missouri House of Representatives
University of Missouri System
Kansas City Health Department
Newton County Health Department
St. Louis County Health Department
Kansas City Police Department
St. Joseph Police Department
St. Louis County Police Department L.R. No. 3849S.05T
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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 Higher Education Loan Authority
Missouri Office of Prosecution Services
Missouri State Employee's Retirement System
Office of the Governor
State Tax Commission
Attorney General’s Office
Department of Commerce and Insurance
University of Central Missouri
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
St. Louis County
Office of the Secretary of State
Metropolitan St. Louis Sewer District
Joint Committee on Education
Petroleum Storage Tank Insurance Fund
St. Louis City
Julie MorffRoss StropeDirectorAssistant DirectorJune 3, 2022June 3, 2022