COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4070H.01I Bill No.:HB 1858 Subject:Department of Elementary and Secondary Education; Education, Elementary and Secondary Type:Original Date:February 11, 2022Bill Summary:This proposal establishes the Parents' Bill of Rights Act of 2022. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue$0 or Unknown$0 or Unknown$0 or UnknownTotal Estimated Net Effect on General Revenue$0 or Unknown$0 or Unknown$0 or Unknown Oversight notes, if a school district fails to comply with this proposal, DESE is to withhold all moneys provided by the monthly distribution of state formula funding to the district. Oversight is uncertain how many school districts would be non-compliant but notes the monthly distribution for many school districts exceed the $250,000 threshold. Therefore, Oversight assumes this impact could possibly exceed the $250,000 threshold. 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. 4070H.01I Bill No. HB 1858 Page 2 of February 11, 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. 4070H.01I Bill No. HB 1858 Page 3 of February 11, 2022 JLH:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Elementary and Secondary Education, Missouri Office of Prosecution Services and the Office of the State Courts Administrator assume the proposal will have no fiscal impact on their organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. Oversight did not receive any responses from school districts related to the fiscal impact of this proposal. Oversight assumes there could be costs for staff time to meet requests for information on curriculum, instructional material, contracts and funding. Additionally, Oversight assumes there could be training costs, administrative costs related to notifications and printing, costs to hold additional public hearings as well as legal costs. Oversight is uncertain if these costs could be absorbed by school districts. Therefore, Oversight will show a range of cost of $0 (no additional cost or can be absorbed) to an unknown cost. Oversight notes, if a school district fails to comply with this proposal, DESE is to withhold all moneys provided by the monthly distribution of state formula funding to the district. Oversight will show a potential loss to school districts who fail to comply and a gain in revenue for General Revenue. Oversight is uncertain how many school districts would be non-compliant but notes the monthly distribution for many school districts exceed the $250,000 threshold. Therefore, Oversight assumes this impact could exceed a gain of $250,000. Oversight has presented this fiscal note on the best current information available. If school districts respond with additional information, Oversight will review to determine if an updated fiscal note should be prepared and seek approval to publish a new fiscal note. Oversight only reflects the responses received from state agencies and political subdivisions; however, over 200 school districts were requested to respond to this proposed legislation but did not. A general listing of political subdivisions opting to participate in the Missouri Legislative Information System (MOLIS) is available upon request. L.R. No. 4070H.01I Bill No. HB 1858 Page 4 of February 11, 2022 JLH:LR:OD FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUERevenue Gain - from funding withheld from school districts and charter schools for non-compliance §161.841.9 $0 or Unknown $0 or Unknown $0 or Unknown ESTIMATED NET EFFECT ON GENERAL REVENUE $0 or Unknown $0 or Unknown $0 or Unknown FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025SCHOOL DISTRICTS & CHARTER SCHOOLS Loss - School Districts & Charter Schools - funding withheld for non- compliance §161.841.9 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - staff time, training, notification, printing, and legal costs - §161.841 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON SCHOOL DISTRICTS & CHARTER SCHOOLS $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 creates the "Parents' Bill of Rights Act of 2022" and provides a list of rights that parents may require school districts that receive federal or state money to follow. Rights listed in the bill include but are not limited to: (1) The right to review curricula, books, and instructional materials; (2) The right to visit school during school hours; and L.R. No. 4070H.01I Bill No. HB 1858 Page 5 of February 11, 2022 JLH:LR:OD (3) The right to have sufficient accountability and transparency regarding school boards. School district restrictions are also outlined in the bill and include: (1) Limits on nondisclosure agreements; (2) Allowing a student involvement in school assemblies, field trips, or other extracurricular activities without written authorization from the parent; (3) Biometric data collection; and (4) Public meeting requirements that allow public comment. Each school district and public school must notify parents of all reported incidents pertaining to student safety including, but not limited to, any felony or misdemeanor committed by teachers or other school employees. The bill provides details on civil actions that may be taken against a school district and provides that withholdings from state funding may occur for noncompliance 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 Missouri Office of Prosecution Services Office of the State Courts Administrator Julie MorffRoss StropeDirectorAssistant DirectorFebruary 11, 2022February 11, 2022