COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3503H.04C Bill No.:HCS for HB 1998 Subject:Teachers; Professional Registration and Licensing Type:Original Date:March 7, 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
($393,903)($69,366)($69,957)
Total Estimated Net
Effect on General
Revenue($393,903)($69,366)($69,957)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Criminal Record
System Fund (0671)
Up to
($165,000)$0 or Unknown$0 or Unknown
Total Estimated Net
Effect on Other State
Funds
Up to
($165,000)$0 or Unknown$0 or Unknown
Numbers within parentheses: () indicate costs or losses. L.R. No. 3503H.04C
Bill No. HCS for 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
FISCAL ANALYSIS
ASSUMPTION
Section 160.067 - ARPA Report
Officials from the Department of Elementary and Secondary Education (DESE) state the
proposed language states “Any school district with more than six thousand students that receives
moneys under the federal American Rescue Plan Act of 2021 shall submit a report to the state
board of education before July first following each year such moneys are received.” It also states
that any report submitted under this section will be made publicly available on the department’s
website. L.R. No. 3503H.04C
Bill No. HCS for HB 1998
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DESE estimates an approximate minimum cost of $40,000 to develop and maintain a new
MOSIS data collection.
Section 168.029 - Teacher Permits
Officials from the 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 applications.
Based on historical data, ITSD estimates around 400 hours per application process to develop,
using $95/hour as the standard staff fiscal note rate, this equates to $38,000 each at a total of
$76,000 for both applications.
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 assume the proposal will
have no fiscal impact on their organization.
Officials from Public Schools and Education Employee Retirement Systems (PSRS/PEERS)
assume this proposal could impact the Public School Retirement System (PSRS) or the Public
Education Employee Retirement System (PEERS) in two different sections. The first being
sections 168.021 and 168.029 related to the issuance of teaching permits and the second is
section 168.036 related to working after retirement limits.
Issuance of Teaching Permits
HCS HB 1998 allows school districts to issue school district teaching permits for persons that
will then be issued a certificate of license to teach granted by the state board of education. PSRS
membership is automatic, regardless of position, for certificated employees of the covered
employers in a position that normally requires the employee to:
1. Work at least 17 hours per week on a regular basis
2. Work at least 600 hours during the school term
The term “certificated” refers to full-time and part-time employees holding valid Missouri
educator certificates issued by the Missouri Department of Elementary and Secondary Education
(DESE). The members of PSRS normally do not participate into Social Security, whereas
members of PEERS do pay into Social Security. L.R. No. 3503H.04C
Bill No. HCS for HB 1998
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HCS HB 1998 adds section 168.021 which governs the certification of licensure to teach in the
public schools of Missouri. The school district teaching permit as established under 168.029
must be approved and certificated by the State Board of Education (SBE). These “permitted,
certificated” teachers will be members of PSRS.
Section 168.029 allows school districts to issue a teaching permit to individuals who meet certain
eligibility requirements as established by the school districts. These “permitted” individuals shall
be issued a teaching certificate by the state board of education as provided in section 168.021.
School districts shall develop a policy listing qualification for this type of “permitted, certificated
teacher” as specified in the bill and submit the policy to DESE.
The number of teachers issued a teaching permit that is certificated must not exceed 15% of the
total number of teachers employed in the district. If an individual is issued a teaching permit and
teaches for four years, the State Board of Education may issue a teaching certificate as specified
in the bill.
Working After Retirement
HCS HB1998 modifies section 168.036 as it relates to substitute teaching and PSRS and PEERS
retirees returning to work with covered school districts.
This bill allows individuals who are receiving a retirement benefit from PSRS or PEERS to
substitute teach on a part-time or temporary substitute basis in a school district without a
discontinuance of the person's retirement benefit. The provisions in this bill only apply to part-
time or temporary substitute teaching. As specified in this bill if an individual chooses to work
for a covered employer after retirement under this provision they will not contribute to additional
retirement benefits.
The Systems have an actuary firm, PricewaterhouseCoopers (PWC), that prepares actuarial cost
statements on any proposed legislation as well as the annual actuarial valuation reports for the
Systems. This legislation has been submitted to them for an actuarial statement. As soon as the
actuarial statement is available, we will be amending our fiscal response to include their analysis.
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 168.036.5 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 L.R. No. 3503H.04C
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district. Doing so would require a new application and process for districts to recommend these
individuals at which the department estimates a cost of $40,000.
Currently, substitute certificates expire at the end of four years and may be renewed. The new
language in this subsection 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 $70,000.
The department also estimates an additional FTE for an Administrative Assistant to monitor all
individuals holding a sub certification and the days they work each year.
Oversight will show the costs as estimated by DESE.
Officials from the Department of Public Safety - Missouri Highway Patrol (MSHP) state, o
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 current state fee of $20 and calculating 145 checks per year, an increase of an additional $30
per check could be realized for the Criminal Records System Fund.
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.
Oversight will show the cost for system modifications to the Missouri Automated Criminal
History System and an unknown amount of revenue from the increased fees.
Section 168.037 - Substitute Data
Officials from DESE state this section requires DESE to create and maintain a web-based survey
for collecting anonymous information from substitute teachers in Missouri public schools.
DESE estimates an initial costs that could exceed $100,000 for the design, programming, and
testing of a system that can collect real time information from substitute teachers that will be
available anytime for schools and DESE to use to study. DESE also estimates annual
maintenance and storage costs of $10,000 annually.
Responses regarding the proposed legislation as a whole
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. L.R. No. 3503H.04C
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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.04C
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUECosts - DESE - develop and maintain
new MOSIS data collection for ARPA
report - §160.067 - p.3
($40,000)$0$0
Costs - DESE - ITSD costs for two new
applications for permits issued by
school districts - §168.029 - p. 3
($76,000)$0$0
Costs - DESE - new application and
process for individuals with experience
in the Armed Forces - §168.036.5 p. 4
($40,000)$0$0
Costs - DESE - new certification
process and reporting database -
§168.036.7 - p. 4
($70,000)$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 FTECosts - DESE - to create and maintain a
web based survey - §168.037 p.6($100,000)($10,000)($10,000)
ESTIMATED NET EFFECT ON
GENERAL REVENUE($393,903)($69,366)($69,957)
Estimated Net FTE Change on General
Revenue p.41 FTE1 FTE1 FTE L.R. No. 3503H.04C
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025CRIMINAL RECORD SYSTEM
FUND (0671)
Income – MHP – potential increase in
fees for multiple school designations -
§168.036 p.4
$0 or Unknown$0 or Unknown$0 or Unknown
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
Up to
($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
Costs - substitute teacher data
collection - §168.037 p.5
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(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
Section 160.067 L.R. No. 3503H.04C
Bill No. HCS for HB 1998
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This provision requires school districts with more than six thousand students that receives money
under the federal American Rescue Act of 2021 shall submit a report to the state board of
education.
Section 168.021
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.
Section 168.029
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
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.
Section 168.036
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.
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 effect their retirement allowance.
Substitute certificates will expire if the individual fails to substitute teach for at least five days or
40 hours in a calendar year, and no individual under 20 years old may substitute in grades nine-
12.
The bill also requires that the Department of Elementary and Secondary Education (DESE)
develop and maintain an online substitute training program with 20 hours of training related to
subjects appropriate for substitute teaching, and authorizes school districts to develop district
specific orientations lasting two hours. L.R. No. 3503H.04C
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The bill provides substitute teachers beginning January 1, 2023 that apply for a fingerprint
background check the opportunity to submit the results to up to five different school districts for
a specified fee (Section 168.036 RSMo).
Section 168.037
The bill adds a web based survey to be developed and maintained by DESE that will collect
information from substitutes at the end of each day of teaching. Districts will provide links to
substitute teachers to access the survey, which will contain questions regarding the support and
interaction with school staff, student health and safety issues, among other relevant questions.
The bill requires that school districts and charter schools annually provide DESE with
information relating to substitute teaching as outlined.
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 DirectorMarch 7, 2022March 7, 2022