COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:3294H.03C Bill No.:HCS for HB 1753 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary Education; Mental Health; Department of Mental Health Type:Original Date:April 3, 2022Bill Summary:This proposal modifies provision relating to elementary and secondary education. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025 General Revenue ($899,129 to Could exceed $1,082,802) ($5,509,306 to Could exceed $10,016,953) ($5,505,295 to Could exceed $10,013,851) Total Estimated Net Effect on General Revenue ($899,129 to Could exceed $1,082,802) ($5,509,306 to Could exceed $10,016,953) ($5,505,295 to Could exceed $10,013,851) ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Evidence-Based Reading Instruction Program Fund*$0$0$0Lottery Fund ($8,416 or Unknown) ($8,416 or Unknown)($8,416 or Unknown) High Need Fund*$0$0$0Criminal Record System Fund Up to ($165,000) $0 or Unknown $0 or Unknown Imagination Library of Missouri Program Fund*$0$0$0 Total Estimated Net Effect on Other State Funds (Could exceed $173,416) Minimal Impact (Less than $8,416) Minimal Impact (Less than $8,416) *Transfers in and distributions net to zero. Numbers within parentheses: () indicate costs or losses. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 2 of April 3, 2022 JLH:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Federal* $0$0$0Total Estimated Net Effect on All Federal Funds $0$0$0 *Income and expenses (of approximately $75,000) net to zero. ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025General Revenue4 FTE to could exceed 5.12 FTE 5 FTE to could exceed 6.12 FTE 5 FTE to could exceed 6.12 FTE Federal Funds 0 to .88 FTE0 to .88 FTE0 to .88 FTETotal Estimated Net Effect on FTE4 to 6 FTE5 to 7 FTE5 to 7 FTE ☒ 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 2025 Local Government (Unknown, Potentially significant) (Unknown, Potentially significant) (Unknown, Potentially significant) L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 3 of April 3, 2022 JLH:LR:OD FISCAL ANALYSIS ASSUMPTION Section 9.308 - Counselor’s Week Officials from the Department of Elementary and Secondary Education (DESE) and the Office of Administration (OA) each assume the provision will have no fiscal impact on their respective organizations. Oversight notes that the above mentioned agencies have stated the provision would not have a direct fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note these agencies for this provision. Section 37.850 - Accountability Portal Officials from the Office of Administration – Division of Accounting (OA) stated due to the scope of the added reporting requirements it is estimated that an additional 1 to 3 staff would be needed. The salary and fringes for one intermediate accountant annually would be $61,155. For 3 staff, the salary and fringe amount would be $183,465. Oversight assumes OA is provided with core funding to handle a certain amount of activity each year. Oversight assumes OA could absorb some of the costs related to this provision, therefore, Oversight will reflect 1 FTE as estimated by OA. In addition, officials from the Office of Administration – Information Technology (ITSD) state this legislation would require 172.80 hours of programing changes at $95 per hour for a total of $16,416 in FY 2023 and on-going support of $3,365 in FY 2024 and $3,449 in FY 2025 to implement the changes in this provision. Oversight notes ITSD assumes that every new IT project/system will be bid out because all their resources are at full capacity. For this bill, ITSD assumes they will contract out the programming changes needed for the Missouri Accountability Portal. ITSD estimates the project would take 172.80 hours at a contract rate of $95 for a total cost of $16,416 in FY 2023. Oversight notes that an average salary for a current IT Specialist within ITSD is approximately $54,641, which totals roughly $85,000 per year when fringe benefits are added. Assuming that all ITSD resources are at full capacity, Oversight assumes ITSD may (instead of contracting out the programming) hire an additional IT Specialist to perform the work required from this bill; however, for fiscal note purposes, Oversight will reflect the ITSD estimated cost of $16,416 in FY 2023 and on-going support of $3,365 in FY 2024 and $3,449 in FY 2025. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 4 of April 3, 2022 JLH:LR:OD In response to a similar proposal, HB 2359 (2022), officials from the Gordon Parks Elementary School District stated the proposal would have a negative fiscal impact to the district. Oversight assumes this provision expands the information already made accessible on the Missouri Accountability Portal and will now require public school districts to provide that information to the Office of Administration. Oversight assumes this provision could create a fiscal impact to local school districts as it could increase staff and resources to prepare and enter data into the Missouri Accountability Portal and therefore, Oversight will reflect a $0 to an unknown cost to local school districts. In response to a similar proposal, HB 2359 (2022), officials from the City of O’Fallon estimated the proposal to have a fiscal impact of under $100,000. There would be a fiscal impact if an employee has to compile information and upload it into the accountability portal. The exact impact cannot be estimated unless it is known how often and what information is requested. In response to a similar proposal, HB 2359 (2022), officials from the City of St. Louis assumed the proposal would have no fiscal impact on their organizations. Oversight assumes municipalities and/or counties are currently required to make expenditures publically accessible through the Missouri Local Government Expenditure Database. Oversight assumes this provision expands the information currently made available to include any form of compensation or benefit made to municipal or county employees. Oversight assumes the additional information required to report exists and collecting it can be absorbed within municipality and/or county current resources Section 160.261 Discipline & Abuse Procedures Officials from the DESE assume the provision would have no fiscal impact on their organization. Officials from from Department of Social Services (DSS) - Division of Youth Services state the Children’s Division may need additional investigators to investigate allegations in schools. The Department estimates a need of 0 – 2 staff for this workload. Oversight will show a range of impact to DSS of $0 (no additional investigators needed) to a cost of two investigators. Per DSS, the cost of the FTE will be split between General Revenue (56%) and Federal Funds (44%). Oversight will show a range of impact to DSS of $0 (no additional investigators needed) to a cost of two investigators. Per DSS, the cost of the FTE will be split between General Revenue (56%) and Federal Funds (44%). L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 5 of April 3, 2022 JLH:LR:OD In response to a similar proposal, HB 2095 (2022), officials from the Phelps County Sheriff, Kansas City Police DepartmentSt. Louis County Police Department each assumed the proposal would have no fiscal impact on their respective organizations. Section 160.516 - Curriculum Review Officials from DESE state the proposed language in this section requires the Department of Elementary and Secondary Education to develop a model policy (§160.516.4) for curriculum development and review for local school boards to adopt and follow. The department estimates two annual meetings would be needed to discuss and develop this model policy. Individuals would include: from each Regional Professional Development Centers (RPDC) regions (4 x 9 = 36) – 13 teachers from each designation (urban, suburban, rural) Centers) from MOASSP / MCCTA (principals/CTE professional organization) representing rural, suburban, urban (3 designations x 4 levels) The estimated cost of these annual meetings is $56,865. In response to a similar proposal, HB 1908 (2022), officials from the Sedalia School District 200 stated the legislation could have a significant fiscal impact on school districts and create an ongoing cost. The annual review, re-visioning, and potential recreation of curriculum on an ongoing basis would require a significant work load. Trying to place a cost estimate on such a law would greatly depend on the size of the district. The estimated annual cost to that district would be approximately $80,000 - $100,000. Oversight notes if 5% of the 518 school districts in Missouri experienced a cost similar to one estimated by the Sedalia 200 School District, the impact is estimated at $2,080,000 (26 * $80,000). Oversight will show an unknown cost to school districts/school boards to implement this provision. Section 160.565 Extended Learning Opportunities Officials from the DESE state this section establishes the Extended Learning Opportunities Act. DESE would be required to assist students and parents in completing the enrollment process, developing an agreement form for each vendor that parents or students must sign, assisting in follow ups on those forms, assuring the student and one parent signs the form, determining if the parent has parental rights in place to sign such a form, etc. The Department estimates at least one Director FTE at a $51,288 annual salary would be required to comply with these requirements. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 6 of April 3, 2022 JLH:LR:OD The section also requires the development of a statewide policy, including criteria for provider approval, basis for credit acceptance and application processes, etc. DESE estimates an additional fiscal impact of at least $35,000 for the policy development and modifications to the data collection system. In response to a similar provision in HCS for SB 323 (2021), officials from the Sikeston R-6 School District assumed the impact would be related to developing new learning opportunities for students with new partnerships. Oversight notes this section requires, beginning with the 2023-2024 school year, the state board of education and each local school board to routinely inform students and their parents of the ability to earn credit for participating in extended learning opportunities. Oversight assumes there could be costs associated with informing and assisting students and parents who want to participate in extended learning opportunities. Oversight will show the costs as estimated by DESE (could exceed 1 FTE) and an unknown cost to school districts. Sections 160.2700 & 160.2705 - Adult High Schools Officials from the DESE and DSS each assume the provision would have no fiscal impact on their respective organizations. Oversight notes that the above mentioned agencies have stated the provision would not have a direct fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note for this provision. Section 161.097 - Missouri Advisory Board for Educator Preparation Officials from DESE estimate a one-time meeting cost to align literacy and reading instruction in teacher preparation programs at $40,140. SEQ CHAPTER \h 1Section 161.214 School Innovation Waiver Officials from the DESE SEQ CHAPTER \h \r 1assume the provision 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 agency for this provision. Oversight notes DESE’s FY 2022 Budget Book included a $1,000,000 Governor’s Recommendation from General Revenue to “support school innovation teams in implementing their waivers approved by the State Board of Education”. DESE’s FY 2023 Budget Book does not appear to include funding to support innovation waivers. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 7 of April 3, 2022 JLH:LR:OD Oversight will show a range of impact to General Revenue of $0 (no additional cost or not appropriated) to an unknown cost to support school innovation teams. Based on FY 2022’s Governor Recommend, Oversight assumes the cost could exceed $250,000. Oversight assumes there could be a cost to implement this program. School districts may have costs related to improving student readiness and job training, increasing teacher compensation, or improving teacher recruitment and development. Oversight will show a range of impact of $0 (no school districts participate or no additional cost) to an unknown cost to implement the waiver. Oversight assumes the net impact on school districts would be $0 if distributions from General Revenue cover all costs or negative net impact if implementation costs exceed state distributions. Section 161.241 Statewide Literacy Plan Officials from DESE state Section 161.241 requires DESE to create an Office of Literacy to coordinate staff with roles relating to literacy and align staff work around supporting best practices in reading instruction. DESE assumes that one (1) FTE Coordinator of Literacy would be required as part of this new office at a cost of $63,480. This section also requires DESE to recruit and employ quality teacher trainers with expertise in reading instruction. Because this is subject to appropriation DESE estimates a cost that could exceed a cost that could greatly exceed $100,000. This would be subject to appropriation so DESE will show the costs as $0 – Could Exceed $100,000. This could be funded by the proposed creation of the “Evidence-Based Reading Instruction Program Fund." Oversight assumes this provision creates the Evidence-Based Reading Instruction Program Fund. The fund shall consist of moneys appropriated by the General Assembly or from gifts, bequests or donations. Funds are to be distributed to school districts to reimburse school districts and charter schools for efforts to improve literacy. For simplicity, Oversight assumes on the money in the Fund will be used within the year it is received. Section 161.700 - Holocaust Education Officials from DESE state they would incur meeting costs in the amount of $22,300 for curriculum development and implementation. In addition, DESE will incur meeting costs in the amount of $66,900 for teacher professional development and framework implementation. In response to a similar proposal, officials from Southeast Missouri State University, a charter school sponsor, stated many schools do not even address the Holocaust. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 8 of April 3, 2022 JLH:LR:OD Oversight assumes DESE is to create a curriculum for students on the Holocaust for school districts to adopt beginning in the 2023-24 school year. School districts shall provide professional development for teachers related to Holocaust instruction. Oversight assumes teachers are already required to obtain a certain number of hours towards professional development. Oversight does not anticipate a fiscal impact to school districts. Section 161.854 - Changes to Individualized Education Programs (IEPs) Officials from the DESE and the Office of Administration - Administrative Hearing Commission each assume the provision would have no fiscal impact on their respective organizations. Oversight notes that the above mentioned agencies have stated the provision would not have a direct fiscal impact on their organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note for this provision. Oversight assumes the requirements of this provision can be absorbed using existing resources. Therefore, Oversight will reflect a zero fiscal impact on for this provision for school districts. Section 162.058 Community Engagement Policy Officials from the DESE and the OA each assume the provision will have no fiscal impact on their respective organizations. In response to a similar proposal, HB 1750 (2022), officials from the Office of the State Courts Administrator assumed the proposal would have no fiscal impact on their organization. SEQ CHAPTER \h 1Oversight boards/school districts but assumes there could be additional costs to implement community engagement policies and allowing residents to submit items to be placed on the agenda of a school board meeting (depending on the number of agenda items that are submitted to the board). Oversight will show a range of impact $0 (no agenda items submitted or no material additional costs stemming from the agenda items or implementation of community engagement policies) to unknown costs for school boards/school districts. Sections 162.261, 162.281, 162.291, 162.471, 162.481, 162.491 and 162.563 - Subdistricts Officials from the DESE assume the provision will have no fiscal impact on their organization. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 9 of April 3, 2022 JLH:LR:OD In response to a similar proposal, HB 1804 (2022), officials from the Office of the State Courts Administrator SEQ CHAPTER \h 1assumed the proposal would have no fiscal impact on their organization. In response to a similar proposal, HB 1804 (2022), officials from the St. Louis County Election Board stated it would take their office 15 hours per subdistrict that they would have to draw. With that in mind, they estimate that they would have to draw 161 subdistricts for the 23 impacted school districts. This would entail 2,415 hours of programming at a cost of $24.00 per hour for a total of $57,960. SEQ CHAPTER \h 1Oversight draw sub-district boundaries. Oversight assumes this provision is permissive; therefore, Oversight will show a range of impact of $0 (no school districts choose to subdivide) to an unknown cost for local election authorities for school districts that choose to subdivide. In response to a similar proposal, HB 164 (2021), officials from the Affton 101 School District, Fordland R-III School District and the Marquand-Zion R-VI School District each assumed this proposal would have a fiscal impact on their respective organizations. However, these school districts did not provide any further information regarding the impact. In response to a similar proposal, HB 164 (2021), officials from the High Point R-III School District and the Malta Bend R-V School District each assumed the proposal would have no fiscal impact on their respective organizations. Oversight requested additional information from the responding school districts; however, no additional information was received. Based on the information available at the time this fiscal note was completed, Oversight assumes there is no fiscal impact to these school districts for these sections. Section 162.720 - Gifted Education Officials from the DESE assume the provision will have no fiscal impact on their organization. In response to a similar proposal, Perfected HCS HB 1750 (2022), officials from Sikeston R-6 School District assume the proposal will have no fiscal impact on their organization. In response to a similar proposal, HB 306 (2021), officials from the High Point R-III School District assumed the proposal would not fiscally impact their schools. In response to a similar proposal, from 2021 (SB 151), officials from the Fordland School District stated this would require additional funding to establish a gifted program. In response to a similar proposal from 2020 (SB 645), officials from the Hurley R-I School L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 10 of 49 April 3, 2022 JLH:LR:OD District stated gifted programs are very expensive to run and for small school districts, the financial impact of creating sections for 3 or 4 students could be massive at varying grade levels. In response to a similar proposal from 2020 (SB 645), officials from the Shell Knob School District assumed this proposal has a negative fiscal impact. In response to a similar proposal from 2020 (SB 645), officials from the Fayette R-III school district said the annual cost of this proposal is $50,000, and would increase each year. It would be the cost to hire a gifted teacher plus any required assessments. In response to a similar proposal from 2019, (HB 112), officials from the Wellsville- Middletown R-1 School District assumed the proposal had the potential to have a substantial negative fiscal impact. In response to a similar proposal from 2019, (HB 112), officials from the Lee's Summit R-7 School District assumed the proposal would be of no cost to the district because it has a state- approved program. In response to a similar proposal from 2019, (HB 112), Springfield Public Schools assumed the cost to the district would be for additional professional development for non-certificated gifted teachers. The program already exists in the district but this change would create a mandate for districts. Additional cost above current expenditure is negligible. Oversight notes, per information from DESE’s 2019 Gifted Advisory Council (GAC) Biennial Report, 239 out of 528 Missouri school districts offered gifted programs in 2018, spending $42,968,610 for these programs. Also, per the report, the state reimburses $24,870,140 annually, which amount has remained static since 2006. Therefore, Oversight will assume the costs for this expansion will be borne by the school districts. DESE provided there were 37,475 identified students in Missouri, and that 5,199 identified students were unserved. However, the GAC reports and statistics from the National Center for Education Statistics show there are likely more unidentified unserved gifted students in Missouri. Oversight estimates gifted spending is approximately $1,325 per gifted student ($42,968,610 / 32,276). If there are 5,199 unserved identified gifted students with a cost of $1,325 to educate, Oversight estimates $6,888,675 to provide gifted education to every unserved identified gifted student. Oversight notes that the GAC reports show that districts with gifted programs identify gifted students at higher rates than districts without gifted programs. Oversight does not have sufficient data to firmly estimate a specific number of unidentified unserved gifted students, but will create an instructive estimate based on national statistics. Oversight notes that in 2014, The National Center for Education Statistics (NCES) found states L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 11 of 49 April 3, 2022 JLH:LR:OD identified 6.7% of their public school students as gifted. 6.7% of Missouri’s 883,703 students is 59,208 gifted students. To match the NCES identified gifted student population average, Missouri would need to identify 11,335 ((.067 x 883,703) - 5,199 identified gifted students) more students as gifted. Furthermore, to provide gifted services to every currently identified and unidentified gifted student would cost $21,907,684 ((11,335 estimated unidentified gifted students + 5,199 identified gifted students) x $1,325 cost per student). Alternately, Oversight will estimate the cost of each district establishing a gifted program. If the 289 districts without a gifted program each hired one $50,000 a year teacher to establish a gifted program, this provision would have a $14,450,000 local net direct fiscal impact. Last, DESE recommends a maximum of 90 gifted students per full time teacher, which is a $6,000,000 direct fiscal impact for 120 teachers, but is likely low because that would likely require some districts to share a teacher. Section 162.961 - Burden of Proof Officials from the DESE, Office of Administration - Administrative Hearing Commission and the each assumed the section would have no fiscal impact on their respective organizations. In response to a similar proposal, HB 2010 (2022), officials from the Taneyville R-II School District stated that shifting the burden of proof to the school district could have a very large fiscal impact on school districts. This includes increased attorney fees, increased costs for special education process coordination fees, not to mention every time a parent requests a one-on-one paraprofessional for their child. It's much harder to prove a child would not benefit from an individual paraprofessional - every child would benefit from this. If granted, a district is looking at approximately $20,000-$25,000 easily for each extra paraprofessional. In response to a similar proposal, HB 2010 (2022), officials from Republic School District stated because the burden of proof currently rests with the parents, it inadvertently prevents many due process claims from making it all the way to hearing - which is good for districts and for families. This is often because the process of preparing their burden of proof provides parents information and legal advice about whether or not the dispute should even be addressed by due process procedures. In addition, bearing the burden of proof provides motivation for parents to participate in other alternative dispute resolution strategies prior to moving forward to hearing which saves money, time, and emotional capital for all parties. If the burden of proof is shifted to the district at the beginning of the process, many of the complaints parents threaten to take to due process will be taken all the way to hearing because parents will have no motivation to resolve the issue sooner or by way of alternative methods because they would bear none of the initial costs related to money, time, effort, and emotion which are already being incurred by the district as soon a complaint is filed. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 12 of 49 April 3, 2022 JLH:LR:OD Regarding due process in general, everyone needs to keep in mind the following: - Of the three formal dispute resolution procedures provided by the IDEA, due process hearings are the most costly in terms of time, fiscal resources, and impact on relationships between school personnel and parents. - With each due process complaint - even before the complaint is adjudicated - the district is forced to expend considerable school district resources which impedes the ability of school personnel to provide enhanced services for all students with disabilities because it devotes the district’s precious time and resources to fighting the legal actions of a single parent. This is why districts are already motivated to participate in alternate methods of dispute resolution. - The average legal fees for a district involved in a due process hearing were $10,512.50. Districts compelled to compensate parents for their attorney’s fees averaged $19,241.38. The expenditures associated with the verdict of the due process hearing averaged districts $15,924.14. For districts that chose to settle with a parent prior to the adjudication of the due process hearing, the settlement costs averaged $23,827.34 (although the Council of School Attorneys estimates much higher average costs for all of these categories). Their own district's fees were much higher than this, and the complaint was withdrawn before it even went to hearing. In addition, the stress on teachers and staff who are forced to participate in due process complaints, hearings or litigation is significant. A 2016 AASA report cited 12% of school administrators who said that more than half of district special education school personnel either left the district or requested a transfer out of special education after being involved in a due process hearing or subsequent litigation. This is an aspect of due process which is an additional increase in costs for the district as they are forced to recruit, hire and train replacement personnel in a field which is already difficult to staff. There is considerable prep time for these legal type events and many districts employ Special Education legal guidance for due process hearings. This, combined with the time and attention of their District Special Education staff, will without a doubt increase costs for the district. Between staff wages and legal guidance they conservatively estimate the financial cost at $10,000 per occurrence. Thus, they would need to increase the Special Education budget for these events for each year. They would estimate increasing the budget between $25,000 and $40,000 each year as a result of the legislation. In response to a similar proposal, HB 2010 (2022), officials from the North Kansas City Schools stated they have not been involved in too many due process hearings as described and when they have, their insurance company has taken the lead. They do pay a $25,000 deductible per occasion. In response to a similar proposal, HB 2010 (2022), officials from the Dallas County R-I School District stated there would be a fiscal impact to a school district; however, that amount is unknown and would be dependant upon the unique situation each "due process" requires. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 13 of 49 April 3, 2022 JLH:LR:OD Oversight assumes this provision shifts the burden of proof and production to school districts in due process hearings for children with a disability. Oversight assumes this could result in additional costs for school districts. Therefore, Oversight will show an unknown cost. Section 162.974 - High Need Fund Officials from DESE assume this provision would make two specific changes to current law. Each of these changes will have impact as discussed below: 1) The first change adds the following sentence: "For any school district with an average daily attendance of five hundred students or fewer, the calculation of three times the current expenditure per average daily attendance shall not include any money reimbursed to a school district under this section." This will result in an additional cost to the High Need Fund of $25,503. 2) The second change adds the word "special" to section 162.974.1. Adding the word "special" would allow DESE to deny any education costs (that are not special education costs) reported under the High Need Fund. The ability to deny reimbursement of these regular education costs will result in a savings to the state; however, DESE cannot calculate the extent of the savings. In summary, the first change will result in an increased cost of approximately $25,503; however, the second change will diminish this cost by some unknown amount. Oversight will show the impact as calculated by DESE to General Revenue and Lottery Fund for the first change. Additionally, Oversight will show a savings from the second change which allows DESE to deny reimbursement of regular education (non-special education) costs from the High Need Fund. The increased cost from the first change will be somewhat offset by the savings from the second change. Oversight notes the High Need Fund reimburses school districts for the costs of educating students that exceed three times the current expenditure per average daily attendance (ADA). DESE assumes the provision removes the cost reimbursed by the High Need Fund from the calculation of current expenditure per ADA which would lower the current expenditure per ADA threshold and increase the potential costs eligible for reimbursement for districts with ADA of 500 or fewer. Current Cost of Student > (Current Expenditure/ADA)*3 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 14 of 49 April 3, 2022 JLH:LR:OD Proposed Cost of Student > ((Current Expenditure - High Need Fund Reimbursed Costs)/ADA)*3 Oversight notes the following regarding the High Need Fund: High Need FundFY 2019 FY 2020FY 2021 FY 2022 Proj. Total Costs Reported$184,676,057$197,257,252$188,425,481$190,309,736Total Reimbursed$61,174,204$61,174,204$62,058,526$62,008,829Percent Reimbursed33%31%32%33%Districts Paid235242217219Students Claimed3,6373,7853,6363,672 DESE FY 2023 Budget Book Oversight notes, per DESE’s FY 2023 budget book, the High Need Fund is funded with $39,946,351 from General Revenue (67%) and $19,590,000 from the Lottery Fund (33%). Section 167.225 BRITE Act Officials from the DESE state the Missouri School for the Blind already provides many of the services required in this legislation with the exception of orientation and mobility evaluations at the home and paying for eye exams. To implement this legislation, the Department estimates the following costs per year: The orientation and mobility evaluations described in paragraph (b) of this subdivision shall occur in familiar and unfamiliar environments and around the home, school, and community as determined age appropriate by the blind students IEP. 40 students X 500 miles X .43 mileage rate = $8,600 If an LEA requires an eye report, the LEA shall bear all costs associated with obtaining such report. LEAs shall not delay an evaluation for eligibility based on the absence or delay of such report. 40 students X $300 eye exam = $12,000 Total Cost = $20,600 Officials from the DSS assume the provision will have no fiscal impact on their organization. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 15 of 49 April 3, 2022 JLH:LR:OD Oversight assumes this provision could result in additional costs to school districts if it imposes duties beyond those that school districts are already performing. Oversight will show a range of impact to school districts of $0 (no additional costs or can be absorbed) to an unknown cost. Section 167.268 - Develop Reading Guidelines Officials from DESE estimate a one-time meeting cost to develop DESE guidelines for the Office of Literacy at $44,600. Sections 167.640 and 167.645 - Reading Remediation In response to a similar proposal, HCS HB 1556 (2022), DESE stated the proposal could impact the call to the foundation formula but they would have no way to estimate the impact. Oversight assumes there could be an increased call to the foundation formula if remediation hours outside of the traditional school day may count toward the calculation of average daily attendance (Section 167.640). Oversight will show a range of impact of $0 (no additional remediation hours outside the traditional school day) to an unknown cost to General Revenue for an increase in average daily attendance. One full term of attendance is 1,044 hours per student. For each full term of attendance, the average state funding per ADA is approximately at $5,066 (per DESE) or $4.85 per hour of full term attendance. However, Oversight notes this is an approximation of the cost as the state aid payment can vary greatly by district. Oversight estimates to reach a revenue impact of $250,000 would require a change in attendance hours of approximately 52,000 hours or approximately 50 ADA (52,000 * $4.85 = $252,200). Oversight notes an increase of 50 ADA is approximately a 0.01% increase in total ADA (50/843,650); therefore, Oversight assumes it is possible the cost could exceed $250,000. In response to a similar proposal, SB 54 (2021), officials from the Springfield R-XII School District stated the total fiscal impact to the district is $6,562,500. In response to a similar proposal, SB 54 (2021), officials from the High Point R-III School District assumed the proposal will have no fiscal impact on their organization. In response to a similar proposal, HB 2470 (2020), officials from the Park Hill School District anticipated a fiscal impact to hire additional staff to implement and monitor the extended requirements. Estimated cost would exceed $100,000 annually. In response to a similar proposal, HB 2470 (2020), officials from the Shell Knob School District assumed that bill would have a negative fiscal impact. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 16 of 49 April 3, 2022 JLH:LR:OD In response to a similar proposal, HB 2470 (2020), officials from the Wellsville -Middletown School District estimated needing at least one possibly two additional elementary teachers, at a cost of $92,000 per year. Oversight assumes these provisions would require school districts and charter schools to implement remediation strategies such as: Per the Achievement Level Report available on the Missouri Comprehensive Data System, Oversight notes the following number of students with scores in the below basic level and the basic level within the Springfield School District: Springfield School District - School Year 2019 GradeBelow BasicBasicTotalThird Grade4705501020Fourth Grade245707952Fifth Grade2338051038Sixth Grade317658975Total1,2652,7203,985 Based on the cost reported by the Springfield School District, Oversight estimates the cost per student reading at below basic and basic (in grades 3 through 6) at approximately $1,647 ($6,562,500/3,985). Statewide - School Year 2019 GradeBelow BasicBasicTotalThird Grade15,66418,52734,191Fourth Grade8,38926,40634,795Fifth Grade8,65328,51037,163Sixth Grade10,93827,22638,164Total43,644100,669144,313 Applying the $1,647 to the statewide total of students reading at below basic and basic in grades 3 through 6, Oversight school districts, Oversight is uncertain if other school districts would experience costs similar to L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 17 of 49 April 3, 2022 JLH:LR:OD those reported by the Springfield School District. Oversight assumes additional resources, namely additional teacher time, assessments and materials, will be required to implement these changes. Therefore, Oversight will show an unknown cost to school districts that could be significant. Section 167.850 - Recovery High Schools Officials from the DESE and the Department of Mental Health each assume the provision will have no fiscal impact on their respective organizations. Oversight received no responses from school districts estimating the fiscal impact of this provision, and presents this fiscal note on the best current information available. Upon the receipt of additional responses, Oversight will review to determine if an updated fiscal note should be prepared and seek the necessary approval to publish a new fiscal note. According to the National Institute on Drug Abuse (NIDA), 8.5 percent of Americans needed treatment for a problem related to illicit drug or alcohol use in 2014. Oversight assumes if 8.5 percent of the 4,043 students currently enrolled in the Kansas City Public School District (grades 9 through 12) needed substance use treatment, this could result in approximately 344 students being eligible to attend a recovery high school. Oversight assumes this number could be higher as non-resident students are also eligible to attend. Based on the study, Recovery High Schools: A Descriptive Study of Programs and Students Oversight notes students were primarily referred to recovery high schools by treatment programs, parents and the juvenile justice system. Of the schools in the study, most had small enrollments ranging from 12 to 25 students with a median capacity of 35 students. The study indicated students reported a reduction in the use of drugs, an increase in attendance and a reduction in repeated problems with the law. Oversight assumes this provision states the sending district of an eligible student shall pay tuition to the recovery high school. However, public schools may not see a 1:1 reduction in the costs associated with those students transferring out. Oversight also notes that such students recovering from substance use or dependency may not regularly attend school, or may require more expensive attention from school. Because there are no responses, and several factors that may save or cost school districts or recovery high schools, this note will show an impact ranging from a unknown savings to an unknown cost net direct fiscal impact to school districts and recovery high schools. Oversight notes this provision is permissive, therefore Oversight will range the fiscal impact from $0 (a recovery high school is not established) to the range of potential fiscal impact. Section 168.021 - Provisionally Certified Teachers & Visiting Scholars’ Certificate L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 18 of 49 April 3, 2022 JLH:LR:OD Officials from the DESE assume the provision will have no fiscal impact on their organization. This provision modifies 168.021, which appears to change requirements that must be completed when having a provisional certification. Since that is still a certification attendance hours for students taught can still be claimed for state aid and has no fiscal impact. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note for DESE for this provision. Section 168.036 Substitute Teacher Certificates Section 168.036.5 Officials from DESE state this section allows the State Board of Education to grant a certificate to any highly qualified individual with certain expertise or experience in the Armed Forces, explained further in the bill, that may not meet any other qualifications if the school board of the seeking school district votes to approve that individual to substitute teach at that district. Doing so would require a new application and process for districts to recommend these individuals at which the department estimates a cost of $40,000. Oversight will show the costs as estimated by DESE. Section 168.036.6 In response to a similar proposal, HCS for HB 2304 (2022), officials from Public Schools and Education Employee Retirement Systems (PSRS/PEERS) assumed this bill provides a four- year certificate for individuals that want to substitute teach. Applicants for certification must complete a background check and also have at least 36 college hours or have completed a 20- hour online training, individuals must also have a high school diploma or equivalence. An alternative route to certification is provided for qualified individuals with technical or business expertise or Armed Forces experience and a superintendent sponsorship. The provision of the bill that has an impact on Public School Retirement System (PSRS) or Public Education Employee Retirement System (PEERS) deals with the ability of PSRS retirees to return to work in a substitute teaching position with a covered employer. Until December 31, 2025, this bill allows retired teachers that have a substitute certification to substitute part-time and not have those hours and salary affect their retirement allowance. The Systems have an actuary firm, PricewaterhouseCoopers (PWC), that prepares actuarial statements on any proposed legislation as well as the annual actuarial valuation reports for the Systems. This legislation has been submitted to PWC for an actuarial statement. As soon as the actuarial statement is available, PSRS/PEERS will be amending its fiscal response to include PWC’s analysis. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 19 of 49 April 3, 2022 JLH:LR:OD At the time this fiscal note was completed, Oversight had not received an actuarial statement from the Public Schools and Education Employee Retirement Systems. Oversight will show an unknown (positive or negative) impact on employer contributions for school districts and community colleges. Section 168.036.7 Officials from DESE state, currently, substitute certificates expire at the end of four years and may be renewed. The new language in this subsection would allow substitute certificates to expire at any point in time and will have a substantial fiscal impact to the department. The substitute certification process will need to be redesigned to comply with this language as well as a new reporting database will need to be created for districts to notify the department on substitute statuses. DESE estimates this will cost around $70,000. The department also estimates an additional FTE for an Administrative Assistant $27,960 annual salary, will be needed as well. Oversight will show the costs as estimated by DESE. Officials from the Department of Public Safety - Missouri Highway Patrol (MHP) state the proposed legislation could increase the state fee from $20 up to $50 depending on the number of background checks performed up to five, resulting in a net increase to the Criminal Record System (CRS) Fund. The range is calculated based on the current state fee and the proposed language that increases the state fee up to $50. On average, the Patrol processes approximately 11,000 criminal record checks specific to substitute teacher certification and employment, of which approximately 145 per year resulted in checks for the same individual for different school districts and completed in the same week. However, an increase for the fund could be noted for the potential increase in the state fee, depending on the number of background checks performed. Regardless of the state fee structure, this proposal would require technical system changes to the Missouri Automated Criminal History System to be completed by the MSHP’s Criminal History vendor. The estimated cost of $165,000 is based on previous projects with a similar scope of work. Oversight will show the cost for system modifications to the Missouri Automated Criminal History System and an unknown amount of revenue from the increased fees. Section 168.037 - Substitute Teacher Survey and Data Collection Officials from assumed this requires DESE to create and maintain a web-based survey for collecting anonymous information from substitute teachers in Missouri public schools. DESE estimates an initial costs that could exceed $100,000 for the design, programming, and testing of a system that can collect real time information from substitute teachers that will be available L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 20 of 49 April 3, 2022 JLH:LR:OD anytime for schools and DESE to use to study. DESE also estimates annual maintenance and storage costs of $10,000 annually. Oversight assumes this provision requires DESE to create and maintain a web-based survey for collecting information related to substitute teachers. Oversight will show the costs as estimated by DESE. Oversight also assumes this provision requires school districts and charter schools to provide data to DESE regarding certain information related to substitute teachers. Oversight will show a range of impact of $0 (no additional cost or can be absorbed) to an unknown cost to collect the data for school districts and charter schools. In response to a similar proposal, HB 608 (2021), officials from the Affton 101 School District, High Point R-III School District and the Springfield R-XII School District each assumed the proposal would have no fiscal impact on their respective organizations. Section 168.205 - Superintendent Sharing Officials from DESE state because they are unsure of how many school districts will participate, DESE will provide a range for the estimated impact of $1,440,000 to $8,940,000. Shown below are the estimated impacts based on different levels of participation. $8,940,000. $6,510,000. $3,900,000. $1,440,000. The calculation is based on 2020 average daily attendance (ADA) due to 2021 ADA being impacted by COVID 19. ADA Under Number of Districts Cost 600 ADA 298 $8,940,000.00 350 ADA 217 $6,510,000.00 200 ADA 130 $3,900,000.00 100 ADA 48 $1,440,000.00 Funding for this increase would most likely be General Revenue as no other funding was specified to pay this additional cost. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 21 of 49 April 3, 2022 JLH:LR:OD Oversight notes, according to a DESE report, previously there was only one superintendent that was shared between school districts. The Malta Bend R-V School District and the Hardeman R- X School District had such an agreement (Paul Vaillencourt). These school districts no longer appear to share a superintendent. Oversight will show a range of impact of $0 (no districts sharing a superintendent) to an amount that could exceed $60,000 in state funding based on two districts (2 x $30,000 each) sharing a superintendent. Section 169.596 - Public School Retirement System In response to a similar proposal, HB 1881 (2022), officials from Public Schools and Education Employee Retirement Systems state this legislation makes changes to the critical shortage statute, 169.596 for the Public School Retirement System of Missouri (PSRS) and the Public Education Employee Retirement System (PEERS). The Critical Shortage Employment Exception found in Section 169.596, RSMo, is a statutory provision which allows covered employers who meet certain requirements (as set forth in statute) to employ PSRS/PEERS retirees up to full-time without affecting the payment of their retirement benefits. In order to employ retirees up to full-time under this provision, the employer must: of the previous two school years programs position(s) During the two years of Critical Shortage employment, employer contributions must be made on all salary earned, including employer-paid medical insurance premiums and pay for additional duties. The retired members employed under this provision continue to receive benefits, but do not contribute to PSRS/PEERS or earn service. By statute, districts cannot use the Critical Shortage Employment Exception to fill the position of superintendent. If a covered district declares a critical shortage of either certificated or non-certificated employees, they can hire up to 10% of the certificated (or non-certificated) staff, not to exceed five individual PSRS retirees to teach, or five individual PEERS retirees to work, for up to two years under this provision (24 months). The two years of employment do not have to be L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 22 of 49 April 3, 2022 JLH:LR:OD consecutive - there can be breaks in the employment. However, the total time worked by each retiree cannot exceed two years at all covered districts. This proposal allows retirees to return to work under the Critical Shortage Exemption statute up to four years versus the current two-year restriction. For the 2020-2021 fiscal year, PSRS/PEERS had 125 retired members who returned to work under the critical shortage statute. Their average earnings were approximately $51,900 for PSRS and approximately $23,200 for PEERS. The Systems have an actuary firm, PricewaterhouseCoopers (PWC), that prepares actuarial cost statements on any proposed legislation as well as the annual actuarial valuation reports for the Systems. Due to the limiting conditions noted above, PWC expects the proposed changes to have little or no impact on active member retirement patterns or enable a significant change in hiring practices by employers to favor retirees over new employees. Contributions to PSRS due to the critical shortage modifications would result in an actuarial gain, as no additional benefits would be accrued and since employer contributions would be made on all earnings for each retiree rehired under a critical shortage declaration. Therefore, they estimate the impact of the proposed critical shortage modifications to be an insignificant fiscal gain to PSRS. PWC expects the proposed changes to have little or no impact on active member retirement patterns or enable a significant change in hiring practices by employers to favor retirees over new employees. Contributions to PEERS due to the critical shortage modifications would result in an actuarial gain, as no additional benefits would be accrued and since employer contributions would be made on all earnings for each retiree rehired under a critical shortage declaration. Therefore, PWC estimates the impact of the proposed critical shortage modifications to be an insignificant fiscal gain Oversight assumes any fiscal impact resulting from this provision would be insignificant and therefore will reflect a zero fiscal impact in this fiscal note for this provision. Section 170.014 - Reading Instruction Act Oversight assumes there could be costs to school districts to expand reading programs through grade five. Currently, the reading programs are established for kindergarten through grade three. Section 170.025 - Cursive Writing Officials from the DESE assume the provision 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 DESE for this section. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 23 of 49 April 3, 2022 JLH:LR:OD In response to a similar proposal, HB 108 (2021), officials from the Bowling Green R-1 School District state this proposal is redundant. This is already a communications arts standard in their state that requires students in 2nd and 3rd grade to write legibly (print, cursive). In response to a similar proposal, HB 108 (2021), officials from the Fordland R-III School District, High Point R-III School District and the Shell Knob 78 School District each assumed the proposal would have no fiscal impact on their respective organizations. In response to a similar proposal, HB 54 (2019), the Springfield Public Schools said it would cost $85,000 in materials, assessments and teacher time. Oversight notes the English Language Arts Missouri Learning Standards standard for Grade 2 and Grade 3 to “write legibly (print, cursive)”. Based on the cost estimate provided by the Springfield Public Schools and the district’s 4 th and 5 th grade enrollment numbers, Oversight estimates a per student cost of approximately $21 ($85,000/4,087). The statewide total enrollment for Grade 4 and Grade 5 is 129,695 (for the 21-22 school year). Assuming a per student cost of $21, Oversight estimates the cost to implement this provision at $2,273,595. However, Oversight notes some districts indicated there would be no fiscal impact from this provision; therefore, Oversight will show a cost of less than $2,273,595. Section 171.033 - Inclement Weather Officials from the DESE estimate a minimal impact from the proposed legislation as it would result in ITSD costs to modify edits in Web Applications (webpage school districts/charters use to submit data to the department). OA-ITSD assumes every new IT project/system will be bid out because all ITSD resources are at full capacity. IT contract rates are estimated at $95/hour. It is assumed modifications will require 120.96 hours for a cost of $11,491 in FY 2023 with continuing costs of $2,356 in FY 2024 and $2,415 in FY 2025. Per DESE’s School Calendar Requirements publication, “A half-day Kindergarten or Prekindergarten program must provide a minimum of five hundred twenty-two hours of actual pupil attendance and shall also include thirty-six make-up hours for possible loss of attendance due to inclement weather.” Oversight assumes that this provision would potentially reduce the number of hours required for makeup days on a proportional basis. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 24 of 49 April 3, 2022 JLH:LR:OD Oversight assumes this section could result in savings if it reduces transportation costs, hourly wages, food service costs, etc. Oversight will show a range of impact of $0 (no impact) to an unknown savings to school districts from a reduction in the number of hours required. Section 178.694 - Imagination Library of Missouri Program Officials from DESE estimate the need for one (1) FTE Program Specialist at an annual salary of $45,443. The Program Specialist would manage the contracts and/or communication with the non-profit ("Dolly Parton's Imagination Library Affiliate"), oversee the activities required, and be responsible for communication and collaboration with the school districts regarding the implementation of this program. Beginning in school year 2023-24 and continuing in each subsequent school year, school districts shall, in partnership with the affiliate, give one reading selection to each eligible child in the school district in each month, beginning as early as the child's birth month through the month in which the child reaches five years of age. Subject to appropriation, the costs of giving such reading selections to eligible children shall be reimbursed to each school district from the “Imagination Library of Missouri Program Fund.” According to the CDC Vital Statistics Surveillance Report, there were approximately 70,000 children born in Missouri in 2020. Assuming a child could receive up to 60 books before turning five years of age and an average cost of $30 per year per child, DESE estimates a cost of up to $10,500,000. Number of children ages 0 – 5: 350,000 (70,000 births/year * 5) Cost per child/year: $30 Total yearly costs: $10,500,000 Because this amount is subject to appropriations DESE will show a range of $0 - $10,500,000. In response to a similar proposal, HB 2567 (2022), officials from Sikeston R-6 School District state this would be a great program, but are concerned if Missouri would remain committed to reimbursing school districts this new financial expenditure. Districts would incur the cost of purchasing and shipping the books to the homes of families within the district. It would be beneficial if Missouri could provide a means for school districts to provide information prior to ordering the books and DESE provided the funds to purchase the books instead of a reimbursement process. Oversight assumes this provision requires each school district to provide each child birth to five with one reading selection per month starting beginning in the 2023-2024 school year (FY 2024). Oversight notes, per the U.S. Census Bureau Missouri QuickFacts, persons under 5 years of age account for 6% of Missouri’s population or 370,091. Per the Imagination Library website, a $25 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 25 of 49 April 3, 2022 JLH:LR:OD dollar donation can provide a book to a child each month for a year. Oversight assumes the costs to school districts are estimated at $9,252,275 per year (370,091 * $25) beginning in FY 2024. Oversight assumes school districts shall be reimbursed for this cost from the Imagination Library of Missouri Program Fund. Oversight assumes this provision requires the general assembly to appropriate at least $5 million annually for this purpose. For simplicity, Oversight assumes all funds will be used within the year they are received. If the costs of providing the reading selections exceeds the available appropriations, Oversight assumes the school districts will bear the remaining cost. Section 186.080 - Literacy Advisory Council Officials from DESE estimate ongoing annual meeting costs to maintain the Literacy Advisory Council at $44,600. Sections 302.010 and 304.060 - Other Vehicles for Transportation of Students Officials from the DESE assume the provision will have no fiscal impact on their organization. Officials from Department of Revenue (DOR) state section 302.010.21 changes the definition of school bus to mean any vehicle designed for carrying more than ten passengers used to transport students for educational purposes. Section 304.060.1 gives school districts the authority to use vehicles other than school buses for the purpose of transporting school children. The state board of education may adopt rules and regulations governing the use of other vehicles used to transport school children, except vehicles operating under sections §387.400 to §387.440. The draft language further removes the requirement for drivers of such vehicles to meet the provisions of §302.272, thus removing the requirement to meet school bus endorsement testing, issuance, driver history and background check requirements. It also requires vehicles other than school buses to transport no more children than the manufacturer suggests appropriate, and meet any additional requirements of the school district. The proposed change to remove the requirements of §302.272, may have an impact on the safety of students being transported in vehicles other than a commercial class school bus. Under current requirements drivers applying for a non-commercial Class E with a school bus endorsement are required to complete additional driver history and background checks and regular drug testing. This also includes the current mandatory annual skills provisions to ensure driving proficiency for those school bus endorsed drivers age 70 and over. School districts are required to report failed drug tests to the Department for suspension of school bus endorsements. Drivers without school bus endorsements may not be held to the same requirements. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 26 of 49 April 3, 2022 JLH:LR:OD Administrative Impact To implement the proposed legislation, the DOR will be required to: to include the new information (online and printed versions). FY23-Driver License Bureau Research/Data Analyst 15 hrs. @ $24.29 per hr. =$364 Administrative Manager 10 hrs. @ $26.37 per hr. =$264 Total $628 FY23-Personnel Services Bureau Associate Research/Data Analyst 15 hrs. @ $19.46 per hr. =$292 Associate Research/Data Analyst 15 hrs. @ $19.46 per hr. =$292 Total $584 Total Costs =$1,212 The DOR anticipates being able to absorb these costs. However, until the FY23 budget is final, the Department cannot identify specific funding sources. If multiple bills pass that require Department resources, FTE/funding will be requested through the appropriations process. The proposed legislation would require updates to the Missouri Driver Guide that could be absorbed. Decisions made during implementation could result in a requirement for destruction and replacement of current driver guide supplies and printing costs outside of normal reordering. The printing costs of the driver guide are currently covered by the Missouri State Highway Patrol (MSHP). Oversight assumes these costs are minimal and can be absorbed by the DOR and MSHP. Officials from the Department of Public Safety - Missouri Highway Patrol and Department of Elementary and Secondary Education each assume these sections will have no fiscal impact on their respective organizations. Oversight does not anticipate an impact to school districts. Responses regarding the proposed legislation as a whole Officials from the Attorney General’s Office, Office of Administration - Administrative Hearing Commission, Office of the State Treasurer and the Department of Mental Health 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. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 27 of 49 April 3, 2022 JLH:LR:OD Officials from the Joint Committee on Public Employee Retirement (JCPER) state the JCPER has reviewed this proposal. The proposal has no fiscal impact to the Joint Committee on Public Employee Retirement. The JCPER’s review of the proposal indicates that its provisions may constitute a “substantial proposed change” in future plan benefits as defined in section 105.660(10). It is impossible to accurately determine the fiscal impact of this legislation without an actuarial cost statement prepared in accordance with section 105.665. Pursuant to section 105.670, an actuarial cost statement must be filed with the Chief Clerk of the House of Representatives, the Secretary of the Senate, and the Joint Committee on Public Employee Retirement as public information for at least five legislative days prior to final passage. Officials from the Kansas City Election Board state if this legislation causes a School District election, the cost in the Kansas City portion of Jackson County would range from $10,000 to $250,000. Officials from the Jackson County Election Board, Platte County Election Board, St. Louis County Election Board and the Gordon Parks Elementary Charter School each assume the proposal will have no fiscal impact on their respective organizations. SEQ CHAPTER \h 1In response to a similar proposal, Perfected HCS HB 1750 (2022), officials from the University of Central Missouri state there is an indeterminate fiscal impact due to uncertainty of application. Oversight received a limited number of responses from school districts related to the fiscal impact of this proposal. Oversight has presented this fiscal note on the best current information available. Upon the receipt of additional responses, Oversight will review to determine if an updated fiscal note should be prepared and seek the necessary approval to publish a new fiscal note. Oversight only reflects the responses received from state agencies and political subdivisions; however, school districts 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. Rule Promulgation Officials from the Joint Committee on Administrative Rules assume this proposal is not anticipated to cause a fiscal impact beyond its current appropriation. 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 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 28 of 49 April 3, 2022 JLH:LR:OD 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 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. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 29 of 49 April 3, 2022 JLH:LR:OD FISCAL IMPACT – State Government FY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUE FUNDCost – OA Added Reporting Requirements to the Missouri Accountability Portal §37.850 - p. 3-4 FTE Cost($61,155)($61,155)($61,155) ITSD Cost($16,416)($3,365)($3,449)Total Cost – OA($77,571)($64,520)($64,604) FTE Change – OA1 FTE1 FTE1 FTECosts – DSS - §160.261 - p.4-5$0 to …$0 to …$0 to … Personnel Service($43,756)($53,032)($53,563) Fringe Benefits($28,478)($34,349)($34,527) Expense & Equipment($11,439)($7,991)($8,191)Total Costs - ($83,673)($95,372)($96,281)FTE Change1.12 FTE1.12 FTE1.12 FTECosts - for meeting to develop a model policy - §160.516 - p.5($56,865)$0$0 Costs - DESE - policy development and modifications to data collection system - §160.565 - p.5-6($35,000)$0$0 Costs - DESE - §160.565 - p.5-6Could exceed...Could exceed...Could exceed... Personal Service($42,740)($51,801)($52,319) Fringe Benefits($26,012)($31,400)($31,589) Expense & Equipment($15,858)($8,288)($8,494)Total Costs($84,610)($91,489)($92,402)FTE Change DESE1 FTE1 FTE1 FTECosts - meeting costs to align literacy instruction - §161.097 - p.6($40,140)$0$0 Costs - DESE - support for school districts implementing School Innovation Waivers - §161.214 - p.6-7 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 30 of 49 April 3, 2022 JLH:LR:OD Costs - DESE - §161.241 - p.7 Personnel Service($52,900)($64,115)($64,756) Fringe Benefits($29,704)($35,875)($36,108) Expense & Equipment($15,858)($8,288)($8,494)Total Costs - DESE($98,462)($108,278)($109,358)FTE Change1 FTE1 FTE1 FTE Costs - to recruit and employ quality teacher trainers - §161.241 - p.7 $0 to (Could exceed $100,000) $0 to (Could exceed $100,000) $0 to (Could exceed $100,000) Transfer Out - to the Evidence-Based Reading Instruction Program Fund - §161.241.9 - p.7 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - DESE - develop a Holocaust curriculum - §161.700 - p.7($22,300)$0$0 Costs - DESE - professional development framework - §161.700 p.8 ($66,900)$0$0 Cost Avoidance - denial of non-special education costs - §162.974 p.12-14UnknownUnknownUnknown Transfer Out - to High Need Fund - §162.974 - p.12-14 ($17,087 or Unknown) ($17,087 or Unknown) ($17,087 or Unknown) Costs - orientation and mobility evaluations and eye reports - §167.225 - p.14 ($20,600)($20,600)($20,600) Costs - meeting costs to develop guidelines for the Office of Literacy - §167.268 - p.14 ($44,600)$0$0 Costs - increased ADA for remediation hours - §167.640 & §167.645 p.14-16 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 31 of 49 April 3, 2022 JLH:LR:OD Costs - DESE - new application and process - §168.036.5 - p.17-19($40,000)$0$0 Costs - DESE - new certification process and reporting database - §168.036.7 - p.17-19($70,000)$0$0 Costs - DESE - §168.036.7 - p.17-19 Personnel Service($27,960)($28,240)($28,522) Fringe Benefits($22,737)($22,838)($22,941) Expense & Equipment($17,206)($8,288)($8,494)Total Costs - ($67,903)($59,366)($59,957)FTE Change1 FTE1 FTE1 FTECosts - DESE - to create and maintain a web based survey - §168.037 - p.19 (Could exceed $100,000)($10,000)($10,000) Costs - GR payment to schools that share a superintendent - §168.205.2(2) - p. 19-20$0 $0 to (Could exceed $60,000) $0 to (Could exceed $60,000) Costs - DESE ITSD costs - §171.033 - p.22-23($11,491)($2,356)($2,415) Costs - DESE - §178.694 - p. 23-24 Personnel Service$0($45,894)($46,356) Fringe Benefits$0($29,255)($29,422) Expense & Equipment$0($15,858)($8,494)Total Costs - $0($91,010)($84,272)FTE Change0 FTE1 FTE1 FTETransfer Out - to the Imagination Library of Missouri Program Fund - §178.694 - p. 23-24$0 ($5,000,000) to Could exceed ($9,252,275) ($5,000,000) to Could exceed ($9,252,275) Costs - annual meetings for literacy advisory council - §186.080 - p.24($44,600)($44,600)($44,600) L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 32 of 49 April 3, 2022 JLH:LR:OD ESTIMATED NET EFFECT TO THE GENERAL REVENUE FUND ($899,129 to Could exceed $1,082,802) ($5,509,306 to Could exceed $10,016,953) ($5,505,295 to Could exceed $10,013,851) Estimated Net FTE Change to the General Revenue Fund 4 FTE to Could exceed 5.12 FTE 5 FTE to Could exceed 6.12 FTE 5 FTE to Could exceed 6.12 FTE EVIDENCE-BASED READING INSTRUCTION PROGRAM FUND Transfer In - from General Revenue - §161.241.9 - p.7 $0 or Unknown $0 or Unknown $0 or Unknown Income - from gifts, bequests or donations - §161.241.9 - p.7 $0 or Unknown $0 or Unknown $0 or Unknown Transfer Out - to School Districts and Charter Schools - for efforts to improve literacy - §161.241.9 - p.7 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON THE EVIDENCE-BASED READING INSTRUCTION PROGRAM FUND $0$0$0 FISCAL IMPACT – State Government - Continued FY 2023 (10 Mo.) FY 2024FY 2025 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 33 of 49 April 3, 2022 JLH:LR:OD LOTTERY FUNDCost Avoidance - denial of non-special education costs - §162.974 p. 13-14UnknownUnknownUnknown Transfer Out - to High Need Fund - §162.974 p. 13-14 ($8,416 or Unknown) ($8,416 or Unknown) ($8,416 or Unknown) ESTIMATED NET EFFECT ON LOTTERY FUND ($8,416 or Unknown) ($8,416 or Unknown) ($8,416 or Unknown) HIGH NEED FUNDTransfers In - from General Revenue - §162.974 p. 12-14 $17,087 or Unknown $17,087 or Unknown $17,087 or Unknown Transfer In - from Lottery Fund - §162.974 p. 12-14 $8,416 or Unknown $8,416 or Unknown $8,416 or Unknown Savings - denial of non-special education costs - §162.974 p. 12-14UnknownUnknownUnknown Cost - increase in eligible costs - §162.974 p. 12-14 ($25,503 or Unknown) ($25,503 or Unknown) ($25,503 or Unknown) ESTIMATED NET EFFECT ON HIGH NEED FUND$0$0$0 FISCAL IMPACT – State Government Continued FY 2023 (10 Mo.) FY 2024FY 2025 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 34 of 49 April 3, 2022 JLH:LR:OD CRIMINAL RECORD SYSTEM FUND (0671) Income – MHP – potential increase in fees for multiple school designations - §168.036 p.18-19 $0 or Unknown$0 or Unknown$0 or Unknown Costs - DPS-MHP - Missouri Automated Criminal History System modifications - §168.036 p.18-19($165,000)$0$0 ESTIMATED NET EFFECT ON CRIMINAL RECORD SYSTEM FUND Up to ($165,000) $0 or Unknown $0 or Unknown IMAGINATION LIBRARY OF MISSOURI PROGRAM FUNDTransfer In - from General Revenue - §178.694 - p.23-24$0 $5,000,000 to Could exceed $9,252,275 $5,000,000 to Could exceed $9,252,275 Income - from gifts, bequests, grants or donations - §178.694 - p.23-24$0$0 or Unknown$0 or UnknownTransfer Out - to reimburse school districts - §178.694 - p.23-24$0 ($5,000,000) to Could exceed ($9,252,275) ($5,000,000) to Could exceed ($9,252,275) ESTIMATED NET EFFECT ON THE IMAGINATION LIBRARY OF MISSOURI PROGRAM FUND $0$0$0 FISCAL IMPACT – State Government - Continued FY 2023 (10 Mo.) FY 2024FY 2025 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 35 of 49 April 3, 2022 JLH:LR:OD FEDERAL FUNDSIncome – DSS - §160.261 - p.4-5$0 to $63,349$0 to $72,035$0 to $72,719Costs - DSS - §160.261 - p.4-5$0 to …$0 to …$0 to … Personnel Service($34,380)($41,668)($42,085) Fringe Benefits($22,375)($26,988)($27,128) Expense & Equipment($8,988)($6,279)($6,435)Total Costs - DSS($65,743)($74,935)($75,648)FTE Change.88 FTE.88 FTE.88 FTEESTIMATED NET EFFECT ON FEDERAL FUNDS$0$0$0 Estimated Net FTE Change on Federal Funds 0 to .88 FTE 0 to .88 FTE 0 to .88 FTE L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 36 of 49 April 3, 2022 JLH:LR:OD FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025LOCAL POLITICAL SUBDIVISIONS Cost – Local School Districts Reporting to the Missouri Accountability Portal §37.850 - p.3-4 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - for annual curriculum review - §160.516 - p.5(Unknown)(Unknown)(Unknown) Costs - inform and assist students/parents who want to participate in extended learning opportunities - §160.565 - p.5-6 $0(Unknown)(Unknown) Costs - §161.214 - to implement School Innovation Waivers (improve student readiness and job training, increase teacher compensation, improve teacher recruitment and development) - p.6-7 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Revenue - §161.214 - distributions to support school districts implementing School Innovation Waivers - p.6-7 $0 or Unknown $0 or Unknown $0 or Unknown Transfer In - from the Evidence-Based Reading Instruction Program Fund - §161.241.9 - p.7 $0 or Unknown $0 or Unknown $0 or Unknown Costs - School Boards/School Districts - to implement community engagement policies and add agenda items from residents of a district - §162.058 - p.8 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - Election Authorities - for redistricting and conducting elections - §162.563 - p.8-9 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Local GovernmentFY 2023FY 2024FY 2025 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 37 of 49 April 3, 2022 JLH:LR:OD Continued(10 Mo.)Cost - to School Districts - requirement to establish gifted programs - §162.720 - p.9-11$0 $0 $0 to could exceed ($6,888,675) Costs - additional costs for shifting the burden of proof and production to school districts - §162.961 - p.11-12 (Unknown) (Unknown) (Unknown) Loss - denial of non-special education costs - §162.974 - p.12-14(Unknown)(Unknown)(Unknown) Revenue - increase in eligible costs - §162.974 - p.12-14 $25,503 or Unknown $25,503 or Unknown $25,503 or Unknown Costs - orientation and mobility evaluations and instruction, eye reports, duplicative accessible assistive technology - §167.225 - p.14 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Revenue Gain - increased call to the foundation formula for remediation hours outside of the traditional school day - §167.640 - p.14-16 $0 or Unknown $0 or Unknown $0 or Unknown Costs - reading success plans and reading intervention for students - §167.640 & §167.645 - p.14-16 (Unknown, Potentially significant) (Unknown, Potentially significant) (Unknown, Potentially significant) Cost avoidance - School Districts - savings from transferring students now to attend recovery high schools - §167.850 - p.16-17 $0 or Unknown $0 or Unknown $0 or Unknown Costs - School Districts - payments to recovery high schools - §167.850 - p.16-17 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - Recovery High Schools - cost to educate students - §167.850 - p.16-17 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Local GovernmentFY 2023FY 2024FY 2025 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 38 of 49 April 3, 2022 JLH:LR:OD Continued(10 Mo.)Revenue - Recovery High School - payments from public schools and/or other state(s) - §167.850 - p.16-17 $0 or Unknown $0 or Unknown $0 or Unknown Costs/Savings - from an unknown impact on employer contribution rates - §168.036.6 - p.18 $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown Costs - School Districts & Charter Schools - substitute teacher data collection - §168.037 - p.19 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Revenue Gain - state payment to schools that share a superintendent - §168.205.2(2) - p.19-20$0 $0 to Could exceed $60,000 $0 to Could exceed $60,000 Costs - to expand reading programs to grade five - §170.014 - p.22(Unknown)(Unknown)(Unknown) Costs - materials, assessments and teacher time to implement cursive writing - §170.025 p.22 (Less than $2,739,933) (Less than $2,739,933) (Less than $2,739,933) Savings - from reduce transportation costs, hourly wages or food service costs - §171.033 - p.22-23 $0 to Unknown $0 to Unknown $0 to Unknown Transfer In - from the Imagination Library of Missouri Program Fund - §178.694 - p.23-24$0 $5,000,000 to Could exceed $9,252,275 $5,000,000 to Could exceed $9,252,275 Costs - to provide reading selections to children birth to five - §178.694 - p.23- 24 $0 (Could exceed $9,252,275) (Could exceed $9,252,275) ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS (Unknown, Potentially significant) (Unknown, Potentially significant) (Unknown, Potentially significant) L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 39 of 49 April 3, 2022 JLH:LR:OD FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION Section 9.308 This bill designates the first week of February each year as "School Counseling Week" to recognize the importance of counselors in student success. Section 37.850 This bill expands the information to be made accessible on the Missouri Accountability Portal to include all forms of compensation and benefits paid to or on behalf of employees and all bonds issued by any public school district, and requires public school districts to supply all such information to be made accessible on the Portal to the Office of Administration. Section 160.261 This bill state no pupil shall be subject to corporal punishment procedures outlined in the discipline and corporal punishment policy without a parent or guardian being notified and providing written permission for the corporal punishment. The bill repeals language related to the jurisdiction of the Children's Division within the Department of Social Services and its ability to investigate reports of alleged child abuse by personnel of a school district, a teacher, or other school employee. It also repeals language related to how a school and school district are to handle reports of alleged child abuse. Section 160.516 This bill requires that beginning after June 30, 2023, each local school board will annually review all curricula intended for use by the school district for school instruction. The review conducted by the board must be at a public hearing with notice provided on the school website and a qualified newspaper or posted in three public places as outlined in the bill. Upon review the board must conduct a vote to approve the curriculum for the district. The board must wait four weeks after the board completes the review to vote. Section 160.565 This bill establishes the "Extended Learning Opportunities Act". The bill defines "extended learning opportunity" as an out of classroom learning experience as approved by the State Board of Education (SBE), school board, or a charter school and that provides a student with: 1) Enrichment opportunities; 2) Career readiness or employability skills opportunities including, but not limited to, internships; pre-apprenticeships; or apprenticeships; or 3) Any other approved educational opportunities. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 40 of 49 April 3, 2022 JLH:LR:OD The bill requires that by the 2023-24 school year the SBE and local school boards must inform students of the opportunity to participate and earn credit for extended learning opportunities. The SBE must adopt a policy and local school districts shall distribute and implement extended learning policies that include an application process, a list of eligible entities offering extended learning opportunities, the process for receiving credit, and criteria for approval and completion. Sections 160.2700 & 160.2705 This bill allows synchronous instruction connecting students to a live classroom in a Missouri adult high school to be treated the same as in-person learning. The bill defines "adult high school" to mean the same as a "secondary school system" and to be exempt from child care licensure under Section 210.211, RSMo. Section 161.097 This bill will require the Missouri Advisory Board for Educator Preparation (MABEP) to include at least three active elementary or secondary classroom teachers and at least three faculty members within approved educator preparation programs from various regions of the state and districts of various sizes. The MABEP shall hold regular meetings that allow members to share needs and concerns and plan strategies to enhance teacher preparation. The bill also requires that the State Board of Education shall, in consultation with MABEP, align literacy and reading instruction coursework for teacher education programs. All reading and special education certificates shall include training as outlined in the bill (Section 161.097, RSMo). Section 161.214 Under this act, a school intervention team, which shall mean a group of persons representing certain schools as set forth in the act, may submit a state innovation waiver plan to the State Board of Education for certain purposes, including improving student readiness for employment, higher education, vocational training, technical training, or any other form of career and job training; increasing the compensation of teachers; or improving the recruitment, retention, training, preparation, or professional development of teachers. The Board may grant school innovation waivers to exempt schools from requirements imposed by current law, or from any regulations promulgated by the Board or the Department of Elementary and Secondary Education. If a school innovation waiver is granted to a school district or group of school districts, the waiver shall be applicable to every elementary and secondary school within the school district or group of school districts unless the plan specifically provides otherwise. Any plan for a school innovation waiver shall contain certain information as described in the act, including the specific provision of law for which a waiver is being requested and an explanation for why such provision of law inhibits the goal stated in the plan. The plan shall also demonstrate L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 41 of 49 April 3, 2022 JLH:LR:OD that the intent of the law can be addressed in a more effective, efficient, or economical manner and that the waiver or modification is necessary to implement the plan. In evaluating a plan submitted by a school innovation team, the Board shall consider whether the plan meets certain criteria set forth in the act. The Board may propose modifications to the plan in cooperation with the school innovation team. Any waiver granted under this act shall be effective for no longer than three school years, but school innovation waivers may be renewed. No more than one school innovation waiver shall be in effect with respect to any one elementary or secondary school at one time. The State Board shall not authorize the waiver of any statutory requirements relating to teacher certification, teacher tenure, or any requirement imposed by federal law. Section 161.241 This bill provides a definition for "school innovation team" and for "school innovation waiver" and allows school innovation teams to submit a plan to the State Board of Education (SBE) for a state innovation waiver for a variety of purposes as outlined in the bill. Plans submitted to the SBE must include the provision of law for which the waiver is being requested, as well as demonstrate the necessity of the waiver, provide measurable performance targets and goals, and demonstrate support for the plan, along with additional requirements as provided in the bill. The bill provides the SBE specific criteria for the evaluation of submitted plans and permits the SBE to make modifications to the plan with the cooperation of the school innovation team. School innovation waivers are only effective for three years beginning the school year following the approval and may be renewed. Only one waiver may be in effect per school at a time, and specific restrictions to statutory requirements relating to school start date, teacher certification, teacher tenure, or any requirement imposed by federal law, are applicable (Section 161.241). Section 161.700 This bill designates the 2nd week in April as "Holocaust Education Week" and age appropriate Holocaust education instruction may be provided to students. The Department of Elementary and Secondary Education shall develop a curriculum framework of instruction for studying the Holocaust. The Department shall make such framework available to school districts beginning in the 2023-24 school year. Each school district shall provide a plan for professional development for teachers to ensure such teachers are adequately prepared to provide the instruction provided for under this bill. Section 161.854 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 42 of 49 April 3, 2022 JLH:LR:OD This bill requires public schools and any political subdivision of the state that serves students with an individualized education program or "IEP" to implement parental consent procedures. Written parental consent shall be obtained and maintained for initial placement, annual placement, or other revisions to a student's IEP as outlined in the bill. If the parents and local educational agency (LEA) only reach an agreement on certain IEP services or interim placement, the child's new IEP shall be implemented in the areas of agreement and the child's last agreed- upon IEP shall remain in effect in the areas of disagreement until the disagreement is resolved. If a child is identified as eligible for special education services, the parents have the right to visit any program proposed for their child. The Department of Elementary and Secondary Education shall adopt a parental consent form, as described in the bill, that each school district shall provide to parents, and districts may not proceed with implementation of a student's IEP without the parental consent form completed except as provided in the bill. Section 162.058 The bill requires each school district and charter school to implement a community engagement policy. The policy shall create a process allowing residents of a school district to have an item placed on the agenda of a school board meeting (Section 162.058, RSMo). Sections 162.261, 162.281, 162.291, 162.471, 162.481, 162.491 and 162.563 This bill allows for any seven-director school district or an urban district to be divided into subdistricts, or a combination of subdistricts and at large districts, and provides for the process for the election of subdistrict board members. The bill allows for the division process to be submitted to a vote of the district either by a majority vote of the school board or by an initiative petition signed by 10% of the number of votes cast in the most recent school board election. If the ballot measure to divide the district is passed, the bill provides direction on conducting public hearings and the final development of plans to carry out the division of the district. The required details of the plan proposal are outlined in the bill. Subdistricts shall be of contiguous and compact territory and as nearly equal in population as practicable. The bill contains appeal language for any resident of the district that objects to the division of the district by the election authority, and prevents any district that votes to divide from making changes for five years after the division. The bill prohibits school districts from requiring signatures on a petition as a method of filing for a school board candidate. Section 162.720 This bill requires that by July 1, 2024, school districts shall establish a state-approved gifted program if 3% or more of the students are identified as gifted. By July 1, 2024, district schools with average daily attendance of more than 350 students are required to have a teacher certificated to teach gifted education. In districts with an average daily attendance of 350 or less any teacher providing gifted instruction shall not be required to be certified to teach gifted L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 43 of 49 April 3, 2022 JLH:LR:OD education but must participate in six hours per year of professional development regarding gifted services and the expense of the training will be paid by the school district. Section 162.961 This bill requires that for hearings for children with disabilities the burden of proof and the burden of production shall be on the school district regarding any matter related to identification, evaluation, reevaluation, classification, educational placement, disciplinary action, or the provision of free appropriate public education. Section 162.974 Currently, the Department of Elementary and Secondary Education (DESE) will reimburse school districts for the costs of special education for high-needs children with an Individualized Education Program (IEP) exceeding three times the current expenditure per average daily attendance as calculated on the District Annual Secretary of the Board Report for the year in which the expenditures are claimed. This bill states that any money reimbursed to a school district, with 500 or fewer students, is excluded from such calculation. This bill specifies that a school district shall submit the cost of serving any high-needs student with an IEP to DESE. Section 167.225 This bill establishes the "Blind Students' Rights to Independence, Training, and Education Act" or the "BRITE Act". The bill provides definitions for "accessible assistive technology device", "adequate instruction", and "nonvisual access and skills" among other definitions. The bill requires blind children to have an Individualized Education Plan, (IEP) that shall specify results obtained from evaluations on reading and writing skills, and should include the need for instruction in Braille or the use of Braille. All instruction in Braille reading and writing shall be sufficient to allow a student to effectively and efficiently communicate at an appropriate age level. The bill includes additional guidance for the instruction of Braille and the use of nonvisual accessible assistive technology. The bill provides direction to school districts regarding accessible assistive technology and requires a school district to provide duplicative accessible assistive technology to be used in a blind student's home without requiring payment or family assumption of liability for loss or damage. The bill requires districts to perform an orientation and mobility evaluation to be conducted by certified individuals and provides guidance on the instruction for orientation and mobility, and districts may not limit a student’s instruction in the home, school, or community and provide transportation in the preferred mode of the instructor. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 44 of 49 April 3, 2022 JLH:LR:OD The bill requires educators hired to teach Braille, accessible assistive technology, and orientation and mobility, to hold a valid certificate as outlined in the bill. The bill requires school districts to comply with the Individuals with Disabilities Education Act (IDEA) even during declared emergencies, to bear the cost of any required eye report, and to develop nonvisual accessibility policies to reduce or eliminate common barriers for blind individuals Section 167.268 This bill modifies current law regarding reading success plans, formerly known as reading intervention programs. Each local school district and charter school shall have on file a policy for reading success plans for any pupils of the district that exhibit a substantial deficient in reading based on assessment or observation or has been identified as being at risk for or having dyslexia. Each policy shall be aligned with the guidelines developed by the Department of Elementary and Secondary Education (DESE) for reading success plans. Authority to develop guidelines to assist school districts and charter schools in formulating policies for reading success plans is transferred from the SBE to DESE. Each local school district and charter school is required to include in an individual pupil's reading success plan, suggestions for regular parent-guided home reading (Section 167.268). Section 167.640 As specified in this bill, each school district and charter school shall administer a reading assessment or set of assessments to each student within the first 30 days of school for grades one through four, and by January 31 for kindergarten, unless a student has been determined in the previous school year to be reading at grade level or above. School districts and charter schools shall provide reading success plans to students with an individualized education plan (IEP) who have a reading deficiency, and for students receiving services under the Rehabilitation Act of 1973 whose service plan includes an element addressing reading. The bill requires districts to adopt a policy relating to student promotion and potentially required remediation (Section 167.640). Section 167.645 The bill repeals provisions relating to reading assessments and now states that school districts and charter schools shall assess all students enrolled in kindergarten through third grade at the beginning and end of each school year for their level of reading or reading readiness. Additionally, all school districts and charter schools shall assess any newly enrolled student in grades one through five for their level of reading or reading readiness. At the beginning of the school year, each school district and charter school shall provide a reading success plan to any student who exhibits a substantial deficiency in reading or has been identified as being at risk of dyslexia. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 45 of 49 April 3, 2022 JLH:LR:OD Each school district or charter school shall ensure the parent or guardian of any student in kindergarten through third grade who exhibits a substantial deficiency in reading and shall provide them information listed in the bill. If a student has a substantial reading deficiency at the end of third grade, promotion or retention of the student shall be discussed by the student's parent or guardian and appropriate school staff. School districts and charter school shall provide students identified as having a substantial reading deficiency with certain services as set forth in the bill. Each school district and charter school shall ensure that intensive reading instruction is provided through a reading development initiative to each kindergarten through grade five student who is assessed as exhibiting a substantial reading deficiency. Each district will annually report to DESE the districts specific intensive reading interventions and supports and include in the district's comprehensive school improvement plan (CSIP) goals relating to reading proficiency. If more than 15% of an attendance center's students are not at grade level by the end of third grade a district's CSIP must address specific ways to increase proficiency (Section 167.645). Section 167.850 This bill allows the Commissioner of Education to approve and authorize up to four pilot recovery high schools to be established and operated by individual public school districts or groups of such districts. Section 168.021 This bill will allow provisionally certified teachers an alternative route to achieve their full professional certification beyond the qualifying score on a designated exam, the details of the alternative route are included in the bill. The bill expands language relating to the visiting scholars certificate to allow certificates to be issued to individuals employed to fill vacant positions in hard-to-staff schools or subject areas. Section 168.036 This bill provides a four year certificate for individuals that want to substitute teach. Applicants for certification must complete a background check and also have at least 36 college hours or have completed a 20 hour online training, individuals must also have a high school diploma or equivalence. An alternative route to certification is provided for qualified individuals with technical or business expertise or Armed Forces experience and a superintendent sponsorship. Until December 31, 2025 this bill allows retired teachers that have a substitute certification to substitute part-time and not have those hours and salary effect their retirement allowance. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 46 of 49 April 3, 2022 JLH:LR:OD Substitute certificates will expire if the individual fails to substitute teach for at least five days or 40 hours in a calendar year, and no individual under 20 years old may substitute in grades nine- 12. The bill also requires that the Department of Elementary and Secondary Education (DESE) develop and maintain an online substitute training program with 20 hours of training related to subjects appropriate for substitute teaching, and authorizes school districts to develop district specific orientations lasting two hours. The bill provides substitute teachers beginning January 1, 2023 that apply for a fingerprint background check the opportunity to submit the results to up to five different school districts for a specified fee (Section 168.036 RSMo). Section 168.037 The bill adds a web based survey to be developed and maintained by DESE that will collect information from substitutes at the end of each day of teaching. Districts will provide links to substitute teachers to access the survey, which will contain questions regarding the support and interaction with school staff, student health and safety issues, among other relevant questions. The bill requires that school districts and charter schools annually provide DESE with information relating to substitute teaching as outlined. Section 168.205 Beginning July, 1 2023, this bill allows a school district that enters into an agreement with another district to share a superintendent to receive an additional $30,000 per year in state aid for up to five years. The bill directs districts to spend the additional compensation and half of the savings from sharing a superintendent on teacher salaries or counseling services. Section 169.596 Currently, a retired teacher or a retired non-certificated employee who is receiving a retirement benefit from the Public School Retirement System of Missouri is allowed to work full time for up to two years for a school district covered by such retirement system if the system has a shortage of certified teachers or non-certificated employees. This bill allows these employees to work full time up to four years for such districts. Section 170.014 Currently, the reading programs are established for kindergarten through grade three. This provision expands reading programs through grade five Section 170.025 This bill requires school districts to provide instruction in cursive writing by the end of the fifth grade, including a proficiency test of competency in reading and writing cursive. L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 47 of 49 April 3, 2022 JLH:LR:OD Section 171.033 Beginning with the 2022-23 school term, a school district's 1/2 day education program will only make up days or hours of school that are required of the district due to inclement weather on a proportional basis. Section 178.694 This bill provides definitions for "affiliate", "eligible child" and "reading selection" and creates within the Department of Elementary and Secondary Education's (DESE) Office of Childhood, the "Imagination Library of Missouri Program". The bill requires the office of childhood to establish a nonprofit entity that will be known as the "Dolly Parton's Imagination Library Affiliate" and beginning in the 2023-24 school year to coordinate with school districts to provide a reading selection to all eligible children ages zero to five years old on a monthly basis. The bill also creates the "Imagination Library of Missouri Program Fund" and directs the General Assembly to appropriate at least $5 million annually to the Fund and for DESE to develop rules for the distribution of the funds to school districts. The Program will sunset 6 years from the effective date. Section 186.080 The bill directs the Commissioner of the Department of Elementary and Secondary Education to establish a literacy advisory council. The council shall include no more than 20 members representing stakeholder groups listed in the bill. The council shall provide recommendations to the Commissioner and the State Board of Education regarding any identified improvements to literacy instruction and policy for students as set forth in the bill (Section 186.080). Section 302.010 and 304.060 This act modifies a definition of "school bus" to include only vehicles designed for carrying more than 10 passengers. The act also provides that school districts shall have the authority to use vehicles other than school buses to transport school children, specifies that the State Board of Education shall not adopt rules or regulations governing the use of transportation network companies for the transportation of school children, repeals the requirement that drivers of non-school-bus vehicles transporting school children have a school bus driver's license endorsement, and provides that the vehicles other than school buses shall meet any additional requirements of the school district. 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 L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 48 of 49 April 3, 2022 JLH:LR:OD Attorney General’s Office Department of Elementary and Secondary Education Department of Public Safety - Missouri Highway Patrol Office of Administration Department of Social Services Administrative Hearing Commission Office of the State Courts Administrator Office of the State Treasurer Department of Mental Health Joint Committee on Public Employee Retirement Office of the Secretary of State Joint Committee on Administrative Rules Public Schools and Education Employee Retirement Systems City of Kansas City City of Springfield City of St. Louis Jackson County Election Board Platte County Election Board St. Louis County Election Board Kansas City Election Board City of Claycomo City of O’Fallon Sedalia School District 200 Southeast Missouri State University - Charter School Sponsor Gordon Parks Elementary Sikeston R-6 School District Fordland School District High Point R-III School District Springfield Public Schools Lee’s Summit R-7 School District Wellsville-Middletown R-I School District Fayette R-III School District Schell Knob School District Hurley R-I School District Taneyville R-II School District Republic School District Dallas County R-I School District Affton 101 School District Marquand-Zion R-VI School District Malta Bend R-V School District High Point R-III School District Springfield R-XII School District Park Hill School District L.R. No. 3294H.03C Bill No. HCS for HB 1753 Page 49 of 49 April 3, 2022 JLH:LR:OD Shell Knob School District Wellsville -Middletown School District Sikeston R-6 School District Bowling Green R-n School District Phelps County Sheriff Kansas City Police Department St. Louis County Police Department Julie MorffRoss StropeDirectorAssistant DirectorApril 3, 2022April 3, 2022