COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:3790S.02C Bill No.:SCS for HB 1856 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary Education Type:Original Date:April 21, 2022Bill Summary:This proposal enacts provisions relating to earning school credit for out-of- classroom learning experiences. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue($35,000)$0$0Total Estimated Net Effect on General Revenue($35,000)$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. 3790S.02C Bill No. SCS for HB 1856 Page 2 of April 21, 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 ☐ 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(Unknown)(Unknown) L.R. No. 3790S.02C Bill No. SCS for HB 1856 Page 3 of April 21, 2022 JLH:LR:OD FISCAL ANALYSIS ASSUMPTION Due to time constraints, Oversight was unable to receive some agency responses in a timely manner and performed limited analysis. Oversight has presented this fiscal note on the best current information that we have or on information regarding a similar bill(s). Upon the receipt of agency responses, Oversight will review to determine if an updated fiscal note should be prepared and seek approval to publish a new fiscal note. Section 160.565 Extended Learning Opportunities In response to the previous version, officials from the Department of Elementary and Secondary Education (DESE) stated 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. 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. Officials from the Gordon Parks Elementary Charter School assume the proposal will have no fiscal impact on their organization. Oversight assumes this section requires, beginning with the 2023-2024 school year, each local school board shall routinely inform students and their parents of the ability to earn credit for participating in extended learning opportunities. Oversight assumes there could be costs for DESE to develop a form, policy and/or approval process for entities offering extended learning opportunities. Oversight will show the costs for policy development and modifications to the data collections system. L.R. No. 3790S.02C Bill No. SCS for HB 1856 Page 4 of April 21, 2022 JLH:LR:OD Oversight assumes this version removes the requirement that DESE assist students and parents who want to participate in extended learning opportunities. Therefore, Oversight will not show the costs for the FTE as estimated by DESE. Oversight assumes there could be costs for school districts to inform and assist students wanting to participate in extended learning opportunities. Oversight will show an unknown costs to school districts. 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 that we have received from state agencies and political subdivisions; however, other school districts were requested to respond to this proposed legislation but did not. A general listing of political subdivisions included in our 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 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. 3790S.02C Bill No. SCS for HB 1856 Page 5 of April 21, 2022 JLH:LR:OD FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUECosts - DESE - policy development and modifications to data collection system - §160.565($35,000)$0$0 ESTIMATED NET EFFECT ON GENERAL REVENUE($35,000)$0$0 FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025SCHOOL DISTRICTS & CHARTER SCHOOLS Costs - inform and assist students/parents who want to participate in extended learning opportunities - §160.565 0(Unknown)(Unknown) ESTIMATED NET EFFECT ON SCHOOL DISTRICTS & CHARTER SCHOOLS$0(Unknown)(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 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. 3790S.02C Bill No. SCS for HB 1856 Page 6 of April 21, 2022 JLH:LR:OD The bill requires that by the 2023-24 school year local school boards must inform students of the opportunity to participate and earn credit for extended learning opportunities. Each local school board 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. 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 Secretary of State Joint Committee on Administrative Rules Sikeston R-6 School District Gordon Parks Elementary Charter School Julie MorffRoss StropeDirectorAssistant DirectorApril 21, 2022April 21, 2022