COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:5261H.01I Bill No.:HB 2631 Subject:Health, Public; Business and Commerce; Public Officers Type:Original Date:February 25, 2022Bill Summary:This proposal creates provisions relating to the unauthorized closure of businesses based on public health concerns. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue*$0 or Unknown$0 or Unknown$0 or UnknownTotal Estimated Net Effect on General Revenue$0 or Unknown$0 or Unknown$0 or Unknown *Oversight assumes the unknown cost savings from this proposal is not expected to reach the $250,000 threshold. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 5261H.01I Bill No. HB 2631 Page 2 of February 25, 2022 NM: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 or Unknown$0 or Unknown$0 or Unknown L.R. No. 5261H.01I Bill No. HB 2631 Page 3 of February 25, 2022 NM:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Office of the Governor (GOV) assume §191.247 prohibits an elected official from ordering the closure of a private business for a reason not authorized under existing state laws or guidelines. If an elected official does order the closure of a private business in order to prevent or limit the spread of a contagious disease during a pandemic or address any other public health concern, that official’s pay shall be suspended for the length of the business's closure. If any Governor orders the closure of private businesses in this state in violation of this provision, this provision would suspend that Governor’s pay for the duration of the closure. Dependent upon the Governor’s salary at the time of closure and the duration, this would result in an unknown savings to the GOV. Officials from the Missouri House of Representatives (MHR) assume a possible unknown impact that could be a cost savings. The MHR has no way of knowing if any of their members would make an unauthorized closure of a business, so the MHR has no way to estimate the impact of this legislation. Oversight does not have information to the contrary and therefore, Oversight will reflect the estimates as provided by the GO and MHR. 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. Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. L.R. No. 5261H.01I Bill No. HB 2631 Page 4 of February 25, 2022 NM:LR:OD Officials from the Office of the State Courts Administrator, the Department of Health and Senior Services, the Office of the State AuditorMissouri Senate, the Office of the State Treasurer, the City of Kansas City, the City of O’Fallon, the City of Springfield, the Phelps County Sheriff’s Office, the Little Blue Valley Sewer District, the Metropolitan St. Louis Sewer District, the Morgan County PWSD #2, the South River Drainage District, the St. Charles County PWSD #2 and the Wayne County PWSD #2 each assume the proposal will have no fiscal impact on their respective organizations. 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, other cities, counties, sheriff offices, fire protection districts, ambulance districts, schools and utility entities 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. Oversight notes the proposal also states that elected officials in political subdivisions could also order the unauthorized closure of a private business due to public health concerns. Oversight is unclear on the number of these officials who would make an unauthorized closure of a business. Therefore, Oversight will also reflect a $0 or unknown cost savings to local political subdivisions for this proposal. FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUECost Savings – Elected officials – on salaries paid to elected officials for the unauthorized closure of a private business due to public health concerns $0 or Unknown $0 or Unknown $0 or Unknown ESTIMATED NET EFFECT ON GENERAL REVENUE $0 or Unknown $0 or Unknown $0 or Unknown L.R. No. 5261H.01I Bill No. HB 2631 Page 5 of February 25, 2022 NM:LR:OD FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025LOCAL POLITICAL SUBDIVISIONS Cost Savings – on salaries paid to elected officials for the unauthorized closure of a private business due to public health concerns $0 or Unknown $0 or Unknown $0 or Unknown ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS $0 or Unknown $0 or Unknown $0 or 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 requires that any elected official who orders the closure of a private business without proper authorization under state law or guidelines in order to address any public health concern or the spread of a contagious disease during a pandemic shall have his or her pay suspended during the period of private business closure. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. L.R. No. 5261H.01I Bill No. HB 2631 Page 6 of February 25, 2022 NM:LR:OD SOURCES OF INFORMATION Office of the Secretary of State Office of the Governor Missouri House of Representatives Office of the State Courts Administrator Department of Health and Senior Services Office of the State Auditor Missouri Senate Office of the State Treasurer City of Kansas City City of O’Fallon City of Springfield Phelps County Sheriff’s Office Little Blue Valley Sewer District Metropolitan St. Louis Sewer District Morgan County PWSD #2 South River Drainage District St. Charles County PWSD #2 Wayne County PWSD #2 Julie MorffRoss StropeDirectorAssistant DirectorFebruary 25, 2022February 25, 2022