COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4070H.03C Bill No.:HCS for HB 1858 Subject:Education, Elementary and Secondary Type:Original Date:March 1, 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 2025 General Revenue ($20,000) or Unknown $0 or Unknown$0 or UnknownTotal Estimated Net Effect on General Revenue ($20,000) 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.03C Bill No. HCS for HB 1858 Page 2 of March 1, 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.03C Bill No. HCS for HB 1858 Page 3 of March 1, 2022 JLH:LR:OD FISCAL ANALYSIS ASSUMPTION Section 37.850 – Missouri Accountability Portal Officials from the Office of Administration assume the proposal 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. Oversight assumes this proposal expands the information already made accessible on the Missouri Accountability Portal and will now require public school districts to provide information related to all bonds issued to the Office of Administration. Oversight assumes the cost to provide bond information could be absorbed by school districts. Section 161.841 - Parents’ Bill of Rights Act Officials from the Department of Elementary and Secondary Education (DESE) state this section requires the development of a set of model policies for school districts to adopt regarding the parental bill of rights. DESE estimates a cost of $20,000 for the development of such policies, holding meetings for parent feedback, and monitoring to make sure the appropriate polices are adopted by all local boards of education. Officials from the Missouri Office of Prosecution Services assume the proposal 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. In response to the previous version, officials from the Office of the State Courts Administrator assume the proposal 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. Oversight did not receive any responses from school districts related to the fiscal impact of this proposal. Oversight assumes there could be costs to school districts to adopt model policies related to parental rights depending on the requirements of the policies. 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 L.R. No. 4070H.03C Bill No. HCS for HB 1858 Page 4 of March 1, 2022 JLH:LR:OD could be training costs, administrative costs related to notifications and printing, costs to hold additional public hearings as well as legal costs. Oversight assumes there could be costs for school boards to ensure effective accountability and transparency by assisting, collaborating and communicating with parents. Oversight is uncertain if these costs could be absorbed by school districts. Therefore, Oversight will show theses costs as a range of $0 (no additional costs or can be absorbed) to unknown costs. 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 assumes any funding withheld for non-compliance shall be released to the school district in the same school year if the school district establishes compliance. Oversight assumes the combined effect would range from $0 (no funding withheld or funding returned) to an unknown gain to General Revenue and an unknown loss to school districts if a school district does not establish compliance. 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.03C Bill No. HCS for HB 1858 Page 5 of March 1, 2022 JLH:LR:OD FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUECosts - to develop a model policies for school districts - §161.841.4($20,000)$0$0 Revenue Gain - from funding withheld from school districts and charter schools for non-compliance §161.841.14 $0 or Unknown $0 or Unknown $0 or Unknown Revenue Loss - from funding returned to school districts and charter schools for establishing compliance - §161.841.14 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON GENERAL REVENUE ($20,000) or Unknown $0 or Unknown $0 or Unknown L.R. No. 4070H.03C Bill No. HCS for HB 1858 Page 6 of March 1, 2022 JLH:LR:OD FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025SCHOOL DISTRICTS & CHARTER SCHOOLS Costs - to adopt policies related to parents’ rights - §161.841.4 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - for school board to assist, collaborate and communicate with parents - §161.841.13 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Loss - School Districts & Charter Schools - funding withheld for non- compliance §161.841.14 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Gain - School Districts & Charter Schools - funding returned for establishing compliance - §161.841.14 $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 (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; L.R. No. 4070H.03C Bill No. HCS for HB 1858 Page 7 of March 1, 2022 JLH:LR:OD (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 Office of Administration Missouri Office of Prosecution Services Office of the State Courts Administrator Julie MorffRoss StropeDirectorAssistant DirectorMarch 1, 2022March 1, 2022