COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:5092H.01I Bill No.:HB 2432 Subject:Saint Louis City; Law Enforcement Officers and Agencies Type:Original Date:March 28, 2022Bill Summary:This proposal returns the control of the City of St. Louis Police Department back to the Board of Police Commissioners. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue* $0 $0 to Unknown (Unknown) to Unknown Total Estimated Net Effect on General Revenue $0 $0 to Unknown (Unknown) to Unknown *Oversight notes the provisions of this proposal state the Office of Administration shall reimburse from the State Legal Expense Fund any board of police commissioners established under Chapter 84 for liability claims eligible for payment under §105.711 paid by such boards on an equal share basis per claim up to the current law maximum of $1,000,000 per fiscal year. Oversight has requested additional information from the Office of Administration - Budget and Planning regarding the state’s commitment for the St. Louis Police Department’s debt but has not received a response. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Other State Funds $0 $0 to Unknown (Unknown) to Unknown State Legal Expense Fund* $0$0$0 Total Estimated Net Effect on Other State Funds $0 $0 to Unknown (Unknown) to Unknown *Cost avoidance and reduction in contributions net to zero. Numbers within parentheses: () indicate costs or losses. L.R. No. 5092H.01I Bill No. HB 2432 Page 2 of March 28, 2022 DD: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 to (Unknown) Unknown to (Unknown) L.R. No. 5092H.01I Bill No. HB 2432 Page 3 of March 28, 2022 DD:LR:OD FISCAL ANALYSIS ASSUMPTION §§84.325, 86.200, 86.213, and 105.726 – Board of Police Commissioners Officials from the Office of Attorney General (AGO) arising from this proposal can be absorbed with existing personnel and resources. However, the AGO may seek additional appropriations if there is a significant increase in litigation. Oversight does not have any information to the contrary. Therefore, Oversight assumes the AGO will be able to perform any additional duties required by this proposal with current staff and resources and will reflect no fiscal impact to the AGO for fiscal note purposes. Officials from the Office of Administration (OA) state this legislation adds the provision that reimbursement from the LEF is on an equal share basis per claim up to a maximum of one million dollars per fiscal year. This change has the potential to avoid costs to the Legal Expense Fund. The maximum amount to be reimbursed remains unchanged with this legislation. The number of successful claims is unknown; therefore, the potential cost avoidance is also unknown. Oversight does not have any information contrary to that provided by OA. Therefore, Oversight will reflect OA’s potential unknown impact to the State Legal Expense Fund. Oversight notes the Legal Expense Fund is funded by the General Revenue Fund as well as other state funds. Oversight notes this possible litigation exposure as described by OA could also apply to local political subdivisions. Oversight also assumes if the state takes control of the St Louis Police Department, they will be exposed to additional LEF claims in the future. Oversight will reflect a potential unknown loss of funds starting in FY 2025. Oversight notes the provisions of this proposal state on or after July 1, 2023, the Board of Police Commissioners shall assume control of any municipal police force established in any city not within a county, which, at this time, is only St. Louis City. Upon such assumption any municipal police force within St. Louis City shall transfer to the Board title and ownership of all debts and assets, and the state shall accept responsibility, ownership, and liability as successor-in-interest for contractual obligations, debts, and other lawful obligations of the municipal police forces established in St. Louis City. Oversight has requested additional information from the Office of Administration - Budget and Planning regarding the state’s commitment for the St. Louis Police Department’s debt but has not received a response. L.R. No. 5092H.01I Bill No. HB 2432 Page 4 of March 28, 2022 DD:LR:OD 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. Officials from the Department of Public Safety - Office of the Director 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. Oversight only reflects the responses received from state agencies and political subdivisions; however, the St. Louis Police Department and the City of St. Louis were requested to respond to this proposed legislation but did not. A general listing of political subdivisions included in the Missouri Legislative Information System (MOLIS) database is available upon request. FISCAL IMPACT – State GovernmentFY 2023FY 2024FY 2025GENERAL REVENUE FUNDCosts – exposure to potential additional LEF claims by retaking control of SLPD $0$0 $0 to (Unknown) Cost Avoidance – OA (§105.726) Reduction in the amount of claims paid (equal share basis compared to current law) p. 3$0 $0 to Unknown $0 to Unknown ESTIMATED NET EFFECT ON THE GENERAL REVENUE FUND$0 $0 to Unknown (Unknown) to Unknown FISCAL IMPACT – State Government FY 2023FY 2024FY 2025 L.R. No. 5092H.01I Bill No. HB 2432 Page 5 of March 28, 2022 DD:LR:OD (continued)OTHER STATE FUNDSCosts – exposure to potential additional LEF claims by taking control of SLPD $0$0 $0 to (Unknown) Cost Avoidance – OA (§105.726) Reduction in the amount of claims paid (equal share basis compared to current law) p. 3$0 $0 to Unknown $0 to Unknown ESTIMATED NET EFFECT ON OTHER STATE FUNDS$0 $0 to Unknown $0 to Unknown STATE LEGAL EXPENSE FUND (0692) Costs – exposure to potential additional LEF claims by taking control of SLPD $0$0 $0 to (Unknown) Transfers – In - for possible additional LEF claims $0$0 $0 to Unknown Cost Avoidance – OA (§105.726) Reduction in the amount of claims paid (equal share basis compared to current law) p. 3$0 $0 to Unknown $0 to Unknown Loss - (§105.726) Reduction in the amount of funds received by the LEF from other state funds p. 3$0 $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON THE STATE LEGAL EXPENSE FUND $0$0$0 L.R. No. 5092H.01I Bill No. HB 2432 Page 6 of March 28, 2022 DD:LR:OD FISCAL IMPACT – Local GovernmentFY 2023FY 2024FY 2025ST. LOUIS CITYCost Avoidance – (§105.726) If the state assumes responsibility of LEF claims – instead of St. Louis p. 3$0$0 $0 to Unknown Cost – (§105.726) Reduction in the amount of claims paid (equal share basis compared to current law) p. 3$0 $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON ST. LOUIS CITY $0 $0 to (Unknown) 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 provides that, on or after July 1, 2023, the Board of Police Commissioners shall assume control of any municipal police force established in any city not within a county, which, at this time, is only St. Louis City. Upon such assumption any municipal police force within St. Louis City shall convey, assign, or otherwise transfer to the Board title and ownership of all debts and assets, and the state shall accept responsibility, ownership, and liability as successor-in-interest for contractual obligations, debts, and other lawful obligations of the municipal police forces established in St. Louis City. The bill provides that the Board will employ, without change in pay or benefits, all commissioned and civilian personnel who were employed by the municipal police department prior to the date the Board assumed control. This bill specifies the rights and benefits afforded such personnel, as well as those who retire from service before the Board assumes control. Currently, the Board of Trustees, in which the general administration and responsibility of proper operation of the retirement system is vested, is composed of nine members. This bill increases the number of trustees to 10 by adding the president of the Board of Police Commissioners of the city as an ex officio member of the Board of Trustees. The bill also increases the number of trustees appointed by the mayor of the city from two members to three and reduces the retired members from three to two members. L.R. No. 5092H.01I Bill No. HB 2432 Page 7 of March 28, 2022 DD:LR:OD 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 Attorney General’s Office Department of Public Safety Joint Committee on Administrative Rules Office of Administration Office of the Secretary of State Julie MorffRoss StropeDirectorAssistant DirectorMarch 28, 2022March 28, 2022