COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:3316H.01I Bill No.:HB 1804 Subject:Education, Elementary and Secondary Type:Original Date:January 28, 2022Bill Summary:This proposal provides for new school board subdistricts and member elections in certain cities. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 3316H.01I Bill No. HB 1804 Page 2 of January 28, 2022 JLH:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on FTE 000 ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 3316H.01I Bill No. HB 1804 Page 3 of January 28, 2022 JLH:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Elementary and Secondary Education, Office of the State Courts Administrator and the Office of the Secretary of State each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. Officials from the St. Louis County Board of Elections states 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. Officials from the Jackson County Board of Elections, Platte County Board of Elections and the St. Louis City Board of Elections each assume the proposal will have no fiscal impact on their respective organizations. Oversight assumes there could be costs for local election authorities to draw sub-district boundaries. Oversight assumes this proposal 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 thee school districts. Oversight received limited responses from local election authorities and 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. L.R. No. 3316H.01I Bill No. HB 1804 Page 4 of January 28, 2022 JLH:LR:OD Oversight only reflects the responses received from state agencies and political subdivisions; however, other local election authorities and school districts were requested to respond to this proposed legislation but did not. A general listing of political subdivisions included in Oversight’s database is available upon request. FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025LOCAL ELECTION AUTHORITIES Costs - Election Authorities - for redistricting and conducting elections - §162.563 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON LOCAL ELECTION AUTHORITIES $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION 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. L.R. No. 3316H.01I Bill No. HB 1804 Page 5 of January 28, 2022 JLH:LR:OD 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. 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 Department of Elementary and Secondary Education Office of the State Courts Administrator Office of the Secretary of State St. Louis County Board of Election Commission Affton 101 School District Fordland R-III School District Marquand-Zion R-VI School District High Point R-III School District Malta Bend R-V School District Platte County Board of Elections Jackson County Board of Elections Platte County Board of Elections St. Louis City Board of Elections Julie MorffRoss StropeDirectorAssistant DirectorJanuary 28, 2022January 28, 2022