COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5301H.01I Bill No.:HB 2586 Subject:Waste - Solid; Environmental Protection Type:Original Date:February 24, 2022Bill Summary:This proposal directs the deposit and transfer of funds forfeited from solid
waste facilities.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue
Could exceed
($997,773)
$0 or
(Unknown)
$0 or
(Unknown)
Total Estimated Net
Effect on General
Revenue
Could exceed
($997,773)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Solid Waste
Forfeitures Post-
closure Fund
Could exceed
$997,773
$0 or
Unknown
$0 or
Unknown
Total Estimated Net
Effect on Other State
Funds
Could exceed
$997,773
$0 or
Unknown
$0 or
Unknown
*Transfers in and out net to zero.
Numbers within parentheses: () indicate costs or losses. L.R. No. 5301H.01I
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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$0$0$0 L.R. No. 5301H.01I
Bill No. HB 2586
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Natural Resources (DNR) assume the following regarding
this proposal:
Sections 260.228. 2, 3 & 260.270.4
Financial Assurance Instruments (FAIs) are collateral provided to the state by permitted landfill
owners or operators to guarantee implementation of corrective action, closure, and/or post-
closure activities to address public health and safety issues when the owner is unable or
unwilling to properly address the issues. For these funds to be effective, the funds must be
available to the Department should the permittee fail to take action. Currently the funds are not
available to the Department in a way that functions effectively. Historically, obtaining access to
these funds to complete the required closure, post-closure, and corrective action plans has been
made possible through use of an estimated (E) appropriation. Without the estimated
appropriation, the Department no longer has the ability to commit funding across fiscal years and
is therefore unable to complete complex, multi-year projects.
The proposed provisions of the bill will allow any forfeited funds, from solid waste facilities or
scrap tire sites, end-user facilities, and scrap tire processing facilities, currently held in the state
general revenue (GR) fund to be transferred to a Solid Waste Forfeitures Account Post-Closure
fund. Without this proposed statutory change, the Department is not able to make progress in
completing corrective action, closure, or post-closure activities at these solid waste disposal areas
or processing facilities, resulting in increased risk to human health, safety, and the environment.
The current GR forfeiture fund Expense & Equipment appropriation is insufficient to cover the
maintenance and corrective actions currently required at landfills and solid waste facilities for
which these forfeited FAI funds are intended. In addition, the appropriation level prevents the
Department from completing larger projects within one fiscal year, resulting in multiple
mobilizations at additional cost.
It is unclear to the Department if the intent of the proposed bill is to create a new fund entitled
the "Solid Waste Forfeitures Account Post-Closure" fund or if the intent is to create a subaccount
entitled the "Solid Waste Forfeitures account" within the current Post Closure (0198) fund. The
Department, through the state budgetary process, is seeking to increase the existing Post-Closure
fund (0198) expenditure appropriations. The transfer of these GR funds into either a new Solid
Waste Forfeitures Account Post-Closure fund or a subaccount within the current Post Closure
(0198) fund, along with increased expenditure appropriations, will allow the Department to more
efficiently utilize forfeited FAIs in a timelier manner and reduce overall costs.
The Post Closure (0198) fund was administratively created. Unlike other administrative funds, it L.R. No. 5301H.01I
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retains its interest and is not subject to the RSMo. 33.080 biennium transfer. If a new fund
entitled the "Solid Waste Forfeitures Account Post-Closure" fund is created, Section 260.228 of
the proposed bill will require additional language to address retaining earned interest and to
address the provisions of RSMo. 33.080.
The amount of forfeited FAI funds held in GR at June 30, 2022 is estimated to be $997,773.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
one-time transfer of funds from General Revenue to the Solid Waste Forfeitures Account Post-
closure Fund in FY 2023 as indicated in the legislation as well as potential future unknown
moneys that would have gone to the General Revenue Fund without this change. L.R. No. 5301H.01I
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUE FUNDTransfer Out – funds currently being
held in GR to the Solid Waste
Forfeitures Account Post-closure Fund
($997,773)$0$0Loss – DNR - future forfeited collateral
funds placed into the new fund instead
of General Revenue
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
Could exceed
($997,773)
$0 or
(Unknown)
$0 or
(Unknown)
SOLID WASTE FORFEITURES
ACCOUNT POST-CLOSURE
FUND
Transfer In – funds currently being held
in GR to the Solid Waste Forfeitures
Account Post-closure Fund
$997,773$0$0Gain – DNR - future forfeited collateral
funds placed into the new fund instead
of General Revenue
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
THE SOLID WASTE
FORFEITURES ACCOUNT POST-
CLOSURE FUND
Could exceed
$997,773
$0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 5301H.01I
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FISCAL DESCRIPTION
This proposal directs the deposit and transfer of funds forfeited from solid waste facilities.
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 Natural Resources
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 24, 2022February 24, 2022