COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4017H.01P Bill No.:Perfected HB 1859 Subject:Political Subdivisions Type:Original Date:April 14, 2022Bill Summary:This proposal modifies provisions relating to ballots. 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. 4017H.01P Bill No. Perfected HB 1859 Page 2 of April 14, 2022 SAK: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$0$0 L.R. No. 4017H.01P Bill No. Perfected HB 1859 Page 3 of April 14, 2022 SAK:LR:OD FISCAL ANALYSIS ASSUMPTION In response to a previous version, officials from the Office of the Secretary of State, Jackson County Board of Elections, Platte County Board of Elections, St. Louis City Board of Elections, St. Louis County Board of Elections, and Greene County Clerk’s Office each assumed the proposal will have no fiscal impact on their respective organizations. Oversight notes that the above-mentioned agencies have stated the proposal 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. House Amendment 1- Titling amendment Oversight notes this amendment will have no fiscal impact. House Amendment 2- Section 1 states “for any election in which the selection of multiple candidates in response to a single ballot question is permitted, the ballot language for such an election shall specify that the voter "may vote for up to [the maximum number] candidates". The maximum number of candidates is based on the offices available. The ballot language shall not indicate that the voter "shall" or "must" vote for a definite number of candidates.” Oversight assumes this amendment will have no fiscal impact. House Amendment 3 –Requires paper ballots and removal of unattended drop boxes and DREs In response to similar legislation, HCS for HB 2140 from 2022, officials from Office of the Secretary of State (SOS) noted this provision would require all direct-record electronic voting machines (DREs) be removed from service by January 1, 2024, with the exception of any machine used solely for disabled voters. Based on most recent survey conducted in 2020, there are 330 DREs in service statewide. All local election authorities (LEAs) which disclosed the use of DREs on the survey have already replaced or have indicated that they are actively planning to replace those machines prior to the date specified in the bill. Therefore, the SOS does not anticipate being required to cover the costs under Article X, Section 21, but will provide assistance to those LEAs using existing grant programs. Oversight notes this response from the SOS is different from previous years. SOS’ response to similar proposals in 2021 (i.e. HB 925) included a per-machine replacement cost of $5,000 for the 330 DRE’s in service statewide (for a total of $1.65 million). Oversight will utilize SOS’ assumption that this change is already in progress and that this bill will not create a material additional fiscal impact to the state. L.R. No. 4017H.01P Bill No. Perfected HB 1859 Page 4 of April 14, 2022 SAK:LR:OD The SOS also assumes 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 the 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. Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could require additional resources. Oversight notes that at the beginning of January 1, 2024, no electronic voting systems shall be used. The use of remaining direct-record electronic voting machines shall be phased out upon mechanical failure. Based on most recent survey conducted in 2020, there are 330 DREs in service statewide. All local election authorities (LEAs) which disclosed the use of DREs on the survey have already replaced or have indicated that they are actively planning to replace those machines prior to the date specified in the bill. Therefore, Oversight does not anticipate fiscal impact to LEAs for this provision. Oversight only reflects the responses received from state agencies and political subdivisions; however, other local election authorities and county clerks were requested to respond to this proposed legislation but did not. A listing of political subdivisions included in the Missouri Legislative Information System 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 2025$0$0$0 L.R. No. 4017H.01P Bill No. Perfected HB 1859 Page 5 of April 14, 2022 SAK:LR:OD FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION The proposed legislation appears to have no direct fiscal impact. 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 Office of the Secretary of State Jackson County Board of Elections Platte County Board of Elections St. Louis City Board of Elections St. Louis County Board of Elections Greene County Clerk’s Office Julie MorffRoss StropeDirectorAssistant DirectorApril 14, 2022April 14, 2022