COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3503H.01I Bill No.:HB 1998 Subject:Teachers; Professional Registration and Licensing Type:Original Date:February 17, 2022Bill Summary:This proposal allows school districts to issue school district teaching permits
for persons without a certificate of license to teach granted by the state board
of education.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue
($237,903)($59,366)($59,957)
Total Estimated Net
Effect on General
Revenue($237,903)($59,366)($59,957)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Criminal Record
System Fund (0671) ($165,000)$0$0
Total Estimated Net
Effect on Other State
Funds
($165,000)
$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3503H.01I
Bill No. HB 1998
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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 2025General Revenue -
DESE 1 FTE1 FTE1 FTE
Total Estimated Net
Effect on FTE1 FTE1 FTE1 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 2025
Local Government
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown L.R. No. 3503H.01I
Bill No. HB 1998
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FISCAL ANALYSIS
ASSUMPTION
Section 168.029 - Teacher Permits
Officials from the Department of Elementary and Secondary Education (DESE) state they
would now be required to issue a teaching certificate based on a permit issued by the school
district. This will require the creation of two new software applications. ITSD estimates a
minimum of $30,000 - $35,000 per application for a total estimate of $70,000.
Oversight will show the costs as estimated by DESE.
Officials from the Joint Committee on Public Employee Retirement (JCPER) assumed this
proposal has no fiscal impact to the JCPER. The JCPER states that this proposal may constitute a
“substantial proposed change” in future plan benefits as defined in section 105.660(10). It is
impossible to accurately determine the fiscal impact of this legislation without an actuarial cost
statement prepared in accordance with section 105.665. Pursuant to section 105.670, an actuarial
cost statement must be filed with the Chief Clerk of the House of Representatives, the Secretary
of the Senate, and the Joint Committee on Public Employee Retirement as public information for
at least five legislative days prior to final passage.
Officials from the Kansas City Public Schools Retirement System state the impact is minimal
and positive for the retirement system as it will increase membership rolls and contributions to
the pension fund.
In response to a similar proposal, HCS for HB 2304 (2022), officials from Public Schools and
Education Employee Retirement Systems (PSRS/PEERS) assumed this bill provides a four-
year certificate for individuals that want to substitute teach. Applicants for certification must
complete a background check and also have at least 36 college hours or have completed a 20-
hour online training, individuals must also have a high school diploma or equivalence. An
alternative route to certification is provided for qualified individuals with technical or business
expertise or Armed Forces experience and a superintendent sponsorship.
The provision of the bill that has an impact on Public School Retirement System (PSRS) or
Public Education Employee Retirement System (PEERS) deals with the ability of our PSRS
retirees to return to work in a substitute teaching position with a covered employer. Until
December 31, 2025, this bill allows retired teachers that have a substitute certification to
substitute part-time and not have those hours and salary affect their retirement allowance.
The Systems have an actuary firm, PricewaterhouseCoopers (PWC), that prepares actuarial
statements on any proposed legislation as well as the annual actuarial valuation reports for the
Systems. This legislation has been submitted to PWC for an actuarial statement. As soon as the
actuarial statement is available, PSRS/PEERS will be amending its fiscal response to include
PWC’s analysis. L.R. No. 3503H.01I
Bill No. HB 1998
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PSRS/PEERS provides retirement benefits to more than 129,800 active members and over
103,000 retired Missouri public school teachers, school employees, and their families. The total
invested assets of both PSRS and PEERS were $59.4 billion as of December 31, 2021, making
the combined entity larger than all other public retirement plans in the state combined, and the
46th largest institutional investor in the United States.
Oversight will show an unknown (positive or negative) impact on employer contributions for
school districts and community colleges. Oversight has presented this fiscal note on the best
current information available. Once an actuarial statement is provided, Oversight will review to
determine if an updated fiscal note should be prepared and seek the necessary approval to
publish a new fiscal note.
Section 168.036 - Substitute Teachers
Officials from DESE state section 168.036.4 allows the State Board of Education to grant a
certificate to any highly qualified individual with certain expertise or experience in the Armed
Forces, explained further in the bill, that may not meet any other qualifications if the school
board of the seeking school district votes to approve that individual to substitute teach at that
district. Doing so would require a new application and process for districts to recommend these
individuals at which the department estimates a cost of $30,000.
Currently, substitute certificates expire at the end of four years and may be renewed. The new
language in this subsection, Section 168.036.7, would allow substitute certificates to expire at
any point in time and will have a substantial fiscal impact to the department. The substitute
certification process will need to be redesigned to comply with this language as well as a new
reporting database will need to be created for districts to notify the department on substitute
statuses. DESE estimates this will cost around $60,000. The department also estimates one (1)
additional FTE Administrative Assistant will be needed as well.
Oversight will show the costs as estimated by DESE.
Section 168.33 - Substitute Teacher Background Check
Officials from the Department of Public Safety - Missouri Highway Patrol (MSHP) state, on
average, the Patrol processes approximately 11,000 criminal record checks specific to substitute
teacher certification and employment, of which approximately 145 per year resulted in checks
for the same individual for different school districts and completed in the same week. Based on
the 145 average there could be a small reduction in revenue by changing the second and third
background checks to $5 and the third and fourth to an additional $5.
This proposal would require technical system changes to the Missouri Automated Criminal
History System to be completed by the MSHP’s Criminal History vendor. The estimated to cost
of $165,000.00 is based on previous projects with a similar scope of work. L.R. No. 3503H.01I
Bill No. HB 1998
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Oversight will show the cost for system modifications to the Missouri Automated Criminal
History System. Oversight assumes the decrease in fees for multiple school designation is
minimal ($1,450 to $2,465). Therefore, Oversight will not show an impact for this provision in
the fiscal note.
Oversight did not receive any 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 received from state agencies and political subdivisions;
however, school districts were requested to respond to this proposed legislation but did not. A
listing of political subdivisions included in the Missouri Legislative Information System
(MOLIS) 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. 3503H.01I
Bill No. HB 1998
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUECosts - DESE - ITSD costs for two new
applications for permits issued by
school districts - §168.029 - p. 3
($70,000)$0$0
Costs - DESE - new application and
process for individuals with experience
in the Armed Forces - §168.036.4 p. 4
($40,000)$0$0
Costs - DESE - new certification
process and reporting database -
§168.036.7 - p. 4
($60,000)$0$0
Costs - DESE - §168.036.7 p.4 Personnel Service($27,960)($28,240)($28,522) Fringe Benefits($22,737)($22,838)($22,941) Expense & Equipment($17,206)($8,288)($8,494)Total Costs - ($67,903)($59,366)($59,957)FTE Change1 FTE1 FTE1 FTEESTIMATED NET EFFECT ON
GENERAL REVENUE($237,903)($59,366)($59,957)
Estimated Net FTE Change on General
Revenue p.41 FTE1 FTE1 FTE L.R. No. 3503H.01I
Bill No. HB 1998
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025CRIMINAL RECORD SYSTEM
FUND (0671)
Costs - DPS-MHP - Missouri
Automated Criminal History System
modifications - §168.036 p.4($165,000)$0$0
ESTIMATED NET EFFECT ON
CRIMINAL RECORD SYSTEM
FUND
($165,000)$0$0
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL EDUCATIONAL
AGENCIES
Costs/Savings - from an unknown
impact on employer contribution rates -
§168.029.7 p. 3-4
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
ESTIMATED NET EFFECT ON
LOCAL EDUCATIONAL
AGENCIES
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
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 will allow school districts to issue a district teaching permit to any individual who does
not currently hold a SBE issued teaching certificate. The district teaching permit allows the
holder to teach only in the issuing school district unless another school district also issues
permits and recognizes permits issued in this manner as part of their policy.
This bill provides a new four year certification method for individuals who want to substitute
teach. Applicants for certification must also have completed a background check, have at least 36
college hours or have completed a 20 hour online training and have a high school diploma or
equivalency. Alternatively, the State Board may grant a certificate to an applicant who completes L.R. No. 3503H.01I
Bill No. HB 1998
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a background check and has expertise in a technical or business field or experience in the Armed
Forces if the superintendent of the school district sponsors the individual and the school board
votes to approve such individual to substitute teach. Individuals must also complete a two hour
orientation containing instruction on classroom management and developed by the district that
sponsors them. Certificates will expire if the individual fails to substitute teach for at least five
days or 40 hours in a calendar year.
The bill provides substitute teachers that apply for a fingerprint background check the
opportunity to submit the results to up to five different school districts for a specified fee.
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
Department of Public Safety - Missouri Highway Patrol
Joint Committee on Public Employee Retirement
Office of the Secretary of State
Joint Committee on Administrative Rules
Kansas City Public Schools Retirement System
Public Schools and Education Employee Retirement Systems
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 17, 2022February 17, 2022