COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5092H.03C Bill No.:HCS for HB 2432 Subject:Saint Louis City; Law Enforcement Officers and Agencies Type:Original Date:April 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*(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
Total Estimated Net
Effect on General
Revenue
(Unknown) to
Unknown
(Unknown) 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
a twenty-one equal share basis per claim up to the current law maximum of $1,000,000 per fiscal
year.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Other State Funds(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
State Legal Expense
Fund* $0$0$0
Total Estimated Net
Effect on Other State
Funds
(Unknown) to
Unknown
(Unknown) 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.03C
Bill No. HCS for HB 2432
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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 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(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown L.R. No. 5092H.03C
Bill No. HCS for HB 2432
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FISCAL ANALYSIS
ASSUMPTION
§§84.005, 84.012, 84.020, 84.030, 84.100, 84.140, 84.150, 84.160, 84.170, 84.225, 84.325, and
105.726 – Policing Defunding Control Act of 2022
Officials from the Office of Administration - Budget and Planning (B&P) state this act creates
the "Police Defunding Control Act of 2022" which provides that the city of St. Louis may pass
ordinances, including ordinances for preserving order and protecting the public; but no
ordinances shall, in any manner, conflict or interfere with the powers or the exercise of the
powers of the Board of Police Commissioners. Additionally, the mayor or any city officer shall
not impede or hinder the Board of Police Commissioners. The mayor or any city officer shall be
liable for a penalty of $1,000 for each and every offense to hinder the Board and shall forever be
disqualified from holding or exercising any office of the city. To the extent any related fines or
penalties are deposited in the state treasury, TSR may be impacted.
Oversight does not have any information contrary to that provided by B&P. Therefore,
Oversight will reflect the impact to the City of St. Louis as $0 to (Unknown) for violations of
section 84.225.
Oversight also notes that per Article IX Section 7 of the Missouri Constitution fines and
penalties collected by counties are distributed to school districts. Fine varies widely from year to
year and are distributed to the school district where the violation occurred. Oversight will reflect
a positive fiscal impact of $0 to Unknown to local school districts.
Officials from the Office of Administration (OA) state this legislation adds the provision that
reimbursement from the LEF is on a twenty-one equal share basis per claim up to a maximum of
one million dollars per fiscal year. The manner of calculation is unclear; therefore, the impact to
the Legal Expense Fund is unknown. The maximum amount to be reimbursed appears to remain
unchanged with this legislation. The number of successful claims is unknown; therefore, the
potential cost or cost avoidance is also unknown.
Oversight was unable to determine the impact of the language in §105.726.3 which states the
commissioner of administration shall reimburse from the legal expense fund the board of police
commissioners established under charter 84 for liability claims otherwise eligible for payment
under §105.711 paid by such “
Oversight will reflect OA’s potential impact to the State Legal Expense Fund as Unknown to
“Unknown”. 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. L.R. No. 5092H.03C
Bill No. HCS for HB 2432
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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 2023.
§84.325 – Board of Police Commissioners
Officials from the Office of Administration - Budget and Planning (B&P) state subsections
84.325.2 and .3 of this proposal transfers certain assets, contractual obligations, indebtedness,
and other lawful obligations from the St. Louis Police Department to the state. This expressly
excludes any funds held by the city in the name of, for the benefit of, or for future contribution to
any police pension system created under chapter 86. B&P does not have any information on
what, if any, assets or obligations might be transferred. Oversight should seek such information
from the St. Louis Police Department. Depending on the department's response, the state could
risk picking up significant debt obligations.
Responses regarding the proposed legislation as a whole
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.
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. 5092H.03C
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Officials from the Department of Public Safety - Office of the DirectorDepartment
of Labor and Industrial Relations 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 these agencies.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, the St. Louis Police Department, the City of St. Louis, the St. Louis Police Retirement
System, and the St. Louis City Employees Retirement System 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 p. 4
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Cost/Savings – OA (§105.726) Amount
of claims paid (21 equal share basis
compared to current law) p. 4
(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
OTHER STATE FUNDSCosts – exposure to potential additional
LEF claims by taking control of SLPD
p. 4
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Cost/Savings – OA (§105.726) Amount
of claims paid (21 equal share basis
compared to current law) p. 4
(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
ESTIMATED NET EFFECT ON
OTHER STATE FUNDS
(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown L.R. No. 5092H.03C
Bill No. HCS for HB 2432
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FISCAL IMPACT – State Government
(continued)
FY 2023FY 2024FY 2025STATE LEGAL EXPENSE FUND
(0692)
Transfer In - for possible additional
LEF claims p. 4
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Costs – exposure to potential additional
LEF claims by taking control of SLPD
p. 4
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Cost/Savings – OA (§105.726) Amount
of claims paid (21 equal share basis
compared to current law) p. 4
(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
Revenue/Loss - (§105.726) Amount of
funds received by the LEF from other
state funds p. 4
Unknown to
(Unknown)
Unknown to
(Unknown)
Unknown to
(Unknown)
ESTIMATED NET EFFECT ON
THE STATE LEGAL EXPENSE
FUND $0$0$0 L.R. No. 5092H.03C
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FISCAL IMPACT – Local GovernmentFY 2023FY 2024FY 2025ST. LOUIS CITYRevenue – School districts (§84.225)
Potential fine revenue p. 3
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Cost Avoidance – (§105.726) If the
state assumes responsibility of LEF
claims – instead of St. Louis p. 4
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Cost/Savings – OA (§105.726) Amount
of claims paid (21 equal share basis
compared to current law) p. 4
(Unknown) to
Unknown
(Unknown) to
Unknown
(Unknown) to
Unknown
FISCAL IMPACT – Local Government
(continued)
FY 2023FY 2024FY 2025Cost – to St. Louis City for violations
of §84.225
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON ST.
LOUIS CITY
(Unknown) to
Unknown
(Unknown) 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
POLICE DEFUNDING CONTROL ACT OF 2022 (Sections 84.005, 84.012, 84.030, 84.100,
84.140, 84.150, 85.160, 84.170, 84.225 and 105.726)
This act provides that the city of St. Louis may pass ordinances, including ordinances for
preserving order and protecting the public; but no ordinances shall, in any manner, conflict or
interfere with the powers or the exercise of the powers of the Board of Police Commissioners.
Additionally, the mayor or any city officer shall not impede or hinder the Board of Police
Commissioners. The mayor or any city officer shall be liable for a penalty of $1,000 for each and
every offense to hinder the Board and shall forever be disqualified from holding or exercising
any office of the city.
Beginning August 28, 2022, the Board shall assume control of the municipal police department
of St. Louis and no later than September 28, 2022, the Governor shall appoint four L.R. No. 5092H.03C
Bill No. HCS for HB 2432
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commissioners to the Board who shall serve together with the president of the board of aldermen.
The municipal police department shall transfer title and ownership of all indebtedness and assets
and accept liability as successor-in-interest for contractual obligation of the police department.
The Board shall initially employ, without reduction in rank, salary, or benefits, all commissioned
and civilian personnel of the municipal police department.
The Board is required to appoint and employ a permanent police force consisting of not less than
1,142 members. The Board may continue to employ as many non-commissioned police civilians
as it deems necessary in order to perform the duties imposed on them, which shall include city
marshals and park rangers. The Board shall grant every member of the police force a certain
number of paid vacation days based on how long each member has served as provided in the act.
The maximum number of officers of the police force in each rank shall be as follows:
• 1 chief of police with the rank of colonel;
• 1 assistant chief of police with the rank of lieutenant colonel;
• 4 additional lieutenant colonels;
• 10 captains;
• 57 lieutenants; and
• 188 sergeants.
No further appointments to the rank of major shall be made, but all members of the force now
holding the rank of major shall continue in that rank until their promotion, demotion, removal,
resignation, or other separation from the force. The salaries paid as of August 28, 2022, shall not
be less than the annual salaries paid to each member before the enactment of this act and annual
salaries shall increase by no less than $4,000 by July 1, 2023. No additional compensation shall
be given to any officer of the rank of lieutenant or above for overtime, court time, or stand-by
court time.
Probationary patrolmen, patrolmen, and sergeants shall receive compensation for all hours of
service in excess of the established regular working period, for all authorized overtime, and for
employees who complete academic work at an accredited college or university up to a certain
amount as provided in the act. Additionally, certain officers may receive up to 10% of their
salary in additional compensation for hours worked between 11 p.m. and 7 a.m.
This act provides that until the Board adopts other investigative and disciplinary procedures, the
police force shall follow the disciplinary and investigative procedures established by the Police
Manual of the St. Louis Metropolitan Police Department which are consistent with law. The
Board shall not adopt any disciplinary procedures that do not include the summary hearing Board
procedures provided for currently in the Police Manual.
This act provides that reimbursements from the Legal Expense Fund to the Board for liability
claims shall be on a twenty-one equal share basis per claim up to a maximum of one million
dollars per fiscal year. L.R. No. 5092H.03C
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This act repeals all provisions relating to the municipal police force established by the city of St.
Louis.
BOARD OF POLICE COMMISSIONERS (Section 84.325)
This bill provides that on August 28, 2022, 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 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.
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
Department of Labor and Industrial Relations
Joint Committee on Administrative Rules
Office of Administration
Office of the Secretary of State
Julie MorffRoss StropeDirectorAssistant DirectorApril 28, 2022April 28, 2022