Missouri House Bill HB2704 Introduced / Fiscal Note

                    COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5400H.03C Bill No.:HCS for HB 2704  Subject:Drugs and Controlled Substances; Crimes and Punishment; Criminal Procedure; 
Agriculture; Department of Health and Senior Services; Health Care; Taxation and 
Revenue - Income; Courts 
Type:Original  Date:April 11, 2022Bill Summary:This proposal modifies and establishes provisions relating to marijuana. 
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND 
AFFECTED
FY 2023FY 2024FY 2025Fully 
Implemented 
(FY 2028)
General Revenue 
Fund
Less than 
$12,393,156
Less than 
$17,398,163
Less than 
$18,017,308
Less than 
$18,213,497
Total Estimated 
Net Effect on 
General 
Revenue
Less than 
$12,393,156
Less than 
$17,398,163
Less than 
$18,017,308
Less than 
$18,213,497
Numbers within parentheses: () indicate costs or losses. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND 
AFFECTED
FY 2023FY 2024FY 2025Fully 
Implemented 
(FY 2028)
Criminal Records 
SystemUnknownUnknownUnknownUnknown
Cannabis* 
Freedom
Could exceed 
$10,507,906 to 
$19,300,483
Could exceed 
$20,041,312 to 
$29,196,984
Could exceed 
$29,532,785 to 
$38,688,457
Could exceed 
$28,772,402 to 
$37,928,074
School District 
Trust
$2,171,024 to 
$4,327,358
$3,712,771 to 
$5,769,811
$3,712,771 to 
$5,769,811
$3,712,771 to 
$5,769,811
Conservation 
Commission
$271,378 to 
$540,919
$464,096 to 
$721,226
$464,096 to 
$721,226
$464,096 to 
$721,226
Park, Soil & 
Water
$271,102 to 
$432,736
$371,277 to 
$576,981
$371,277 to 
$576,981
$371,277 to 
$576,981
Highway(Up to $397,549)(Up to $460,624)(Up to $465,315)(Up to $479,694)Total Estimated 
Net Effect on 
Other State 
Funds
Could exceed 
$12,823,861 to 
$24,203,947
Could exceed 
$24,128,832 to 
$35,804,378
Could exceed 
$33,615,614 to 
$45,291,160
Could exceed 
$32,840,852 to 
$44,516,398
* Oversight notes the provisions of §196.3021.3 provide that any moneys remaining in the 
Cannabis Freedom Fund after all costs have been paid shall be disbursed as follows: 10% each to 
the deputy sheriff salary implementation fund (§57.278), the peace officer standards and training 
commission fund (§590.178) and the state fire marshal for disbursement of grants to volunteer 
fire protection associations; 15% to establish and administer a work training program 
(§557.059.3) and 5% to assist with small business loans (§196.3047). For simplicity, Oversight is 
not showing the transfers-out from the Cannabis Freedom Fund to the abovementioned funds. L.R. No. 5400H.03C 
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND 
AFFECTED
FY 2023FY 2024FY 2025Fully 
Implemented 
(FY 2028)
Total Estimated 
Net Effect on 
All Federal 
Funds $0$0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND 
AFFECTED
FY 2023FY 2024FY 2025Fully 
Implemented 
(FY 2028)
General RevenueUp to -5 FTEUp to -1 FTEUp to -8 FTEUp to -10 FTECannabis 
Freedom 
800 FTE800 FTE800 FTE800 FTEHighwayUp to 6 FTEUp to 6 FTEUp to 6 FTEUp to 6 FTETotal Estimated 
Net Effect on 
FTEUp to 801 FTEUp to 805 FTEUp to 798 FTEUp to 796 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 
AFFECTED
FY 2023FY 2024FY 2025Fully 
Implemented 
(FY 2028)
Local 
Government
Greater than 
$9,172,577 to 
$17,439,253
Greater than  
$14,962,468 to 
$23,252,337
Greater than 
$14,962,468 to 
$23,252,337
Greater than 
$14,962,468 to 
$23,252,337
FISCAL ANALYSIS L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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ASSUMPTION
Officials from the Office of Administration (OA), Office of Administration - Budget and 
Planning (B&P) state this proposal would enact the Cannabis Freedom Act creating the 
Cannabis Enforcement Authority (CEA) within the Department of Health and Senior Services 
(DHSS) to regulate adult-use recreational marijuana for individuals 21 years or older. Nothing in 
this proposal alters the current medical marijuana program as authorized under Article XIV, 
Section 1 of the Missouri Constitution.
§57.278 – Deputy Sheriff Salary Supplementation Fund
B&P states this section adds language permitting the Deputy Sheriff Salary Supplementation 
Fund to receive disbursements from the newly created Cannabis Freedom Fund in §196.3021.3.
§143.121 – Medical and recreation marijuana expense deduction
B&P states this section would allow any medical marijuana related business to deduct business 
expenses from their Missouri adjusted gross income. B&P notes that this proposal would begin 
August 28, 2022, which is during tax year 2022. Therefore, B&P assumes that this deduction 
would become available for taxpayers for tax year 2022. B&P notes that tax year 2022 returns 
would not be filed until April 2023. Therefore, B&P estimates that this proposal could reduce 
General Revenue (GR) beginning in FY23.
B&P also notes that typically businesses are allowed to deduct certain expenses from their 
federal adjusted gross income (FAGI). Those deductions would then flow through to the 
business’s Missouri adjusted gross income (MAGI) allowing for an implicit deduction from 
Missouri’s income tax. However, because marijuana is a controlled substance at the federal level, 
marijuana related businesses are not allowed to deduct their business expenses on their federal 
taxes. This would allow such businesses to receive the business expense deduction at the state 
level.
B&P was unable to obtain enough revenue, cost, or profit margin data for medical marijuana 
related businesses to estimate the GR impact from this proposal. Therefore, B&P estimates that 
this proposal will reduce total state revenue (TSR) and GR by an unknown, but significant, 
amount beginning with FY23.
If a new crime is created or there is an increase in class of crime, any portion of any associated 
penalty fees/fines that go to the state may impact TSR. 
Oversight does not have any information to the contrary. Oversight will reflect the potential 
reduction for business expenses as a part of the Department of Revenue’s fiscal impact. L.R. No. 5400H.03C 
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Officials from the Department of Revenue (DOR) state this provision would allow medical 
marijuana businesses and recreational marijuana businesses a subtraction from the federal 
adjusted gross income the amount that would have been allowed from the computation of the 
taxpayer’s federal taxable income if the income were not disallowed solely from them being a 
medical marijuana business. Under federal law, marijuana is a controlled substance and 
businesses selling it are not allowed some deductions that other businesses are entitled to. Since 
marijuana is allowed to be sold in Missouri, this would allow them to adjust their federal 
adjusted gross income before calculating their Missouri adjusted gross income.  
This would require the DOR to make an independent interpretation of federal law on what would 
or would not be an allowable federal deduction. The DOR is unable to calculate the amount of 
income and deductions that these businesses could possibly be allowed to deduct under this 
proposal. The DOR assumes this could result in an Unknown, potentially significant, negative 
fiscal impact to general revenue and total state revenue. 
This provision would become effective August 28, 2022, for all expense as of January 1, 2022 
and would allow people to start filing for this immediately. For fiscal note purposes only, DOR 
will assume they file their amended returns starting in FY 2023.
This would require a change to the Form MO-A and the MO-1120. The Form MO-A has a 
selection of check boxes for a set of “other” subtractions, so a new line would not necessarily be 
required. The Form MO-1120 does not currently have this checkbox option, so it would either 
require a new line or a reformatting of the subtractions in Part 2.
Additionally, this would require DOR to update its individual income tax computer system.  
These changes are estimated to cost $11,579.
The DOR notes if may need the following FTE if the volume of returns justify the FTE. 
• 1 FTE Revenue Processing Technician for every 14,700 errors created
• 1 FTE Revenue Processing Technician for every 5,700 pieces of correspondence 
generated
• 1 temporary employee for new line item
Oversight does not have any information to the contrary.  Given the small number of potential 
qualifiers for the proposed deduction, Oversight assumes the DOR has sufficient staff and 
resources available to absorb the costs associated with this section and will reflect no fiscal 
impact for DOR for this section.
§§191.255 – Disclosure of information a felony
B&P states §191.255.2 creates a Class E felony for any violations described in §191.255.1 which 
pertain to the prohibition of disclosing individual information of persons who have applied for or 
obtained a medical marijuana patient or caregiver card authorized in Article XIV, Section 1 of 
the Missouri Constitution. A Class E felony is subject to a fine up to $10,000 and up to four  L.R. No. 5400H.03C 
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years in prison. It is unknown how many violations may occur annually under this statute or the 
fines that may be imposed per occurrence. Therefore, this proposal could increase total state 
revenue by an unknown amount beginning August 28, 2022.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a $0 
to Unknown positive impact relating to the potential collection of fines under this section. It is 
assumed the unknown fiscal impact will be less than $250,000 as at least 25 violations would 
have to occur annually to reach that threshold. Any collection of potential fines is assumed to be 
the responsibility of the Department of Health and Senior Services.
DOR officials state provisions of §191.255 makes it a felony, notwithstanding any other 
provision of law to the contrary, for a state agency or its employees “disclosing to the federal 
government […] the statewide list or any individual information of persons who have applied for 
or obtained a qualifying patient identification card, a qualifying patient cultivation card, or a 
primary caregiver identification card [as described in the constitutional provision relating to 
medical marijuana.]”  Read literally, this would mean that DOR and other state agencies are 
unable to share any individual information – from any source – with federal agencies so long as 
the individual has obtained one of those specified cards. This could significantly impact DOR’s 
working relationship with the IRS by prohibiting the sharing of individual information with the 
IRS simply because an individual has applied for or obtained a qualifying patient identification 
card, qualifying patient cultivation card, or primary caregiver identification card. 
This could result in an unknown negative impact on general revenue from the DOR being unable 
to do collections from the IRS for outstanding tax debt owed the state.
Oversight does not have any information to the contrary. Oversight will present an unknown 
loss to GR for this section of the proposal.
§§195.006, 195.017, 195.815 and 196.3028 – Cannabis no longer controlled 
substance/background checks
B&P officials state §§195.815 and 196.3028.4(9) require that all marijuana business owners, 
staff, or other affiliated individuals of the facility, regulated by the Cannabis Enforcement 
Authority undergo a fingerprint-based criminal background check. The Missouri State Highway 
Patrol (MHP) Criminal Justice Information Services (CJIS) Division processes all state and 
federal fingerprint background checks.  The CJIS has the following fee structure for background 
checks:
State fee: $20.00
Vendor Fee: $8.50
FBI fee: $13.25
Total fees: $41.75
The state retains the $20 state fee and $2 of the FBI fee ($22 total retained by the state).  All fees 
collected will be deposited in the MHP Criminal Records System Fund.  MHP verified that over  L.R. No. 5400H.03C 
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90% of background checks are conducted using third party vendor, IDEMIA, who charges the 
applicant an $8.50 fee which is kept by IDEMIA. The applicant pays the full fee of $41.75 to the 
vendor and MHP then collects the full state and FBI fees ($33.25) from the vendor each month.  
The FBI bills MHP monthly, and MHP pays the FBI their portion of the FBI fee out of the MHP 
Criminal Records System Fund. This would increase TSR by an unknown amount.  B&P defers 
to MHP for further discussion on this impact.
Officials from the Department of Public Safety (DPS) - Missouri Highway Patrol (MHP or 
Patrol)
majority of the Patrol’s canines are currently trained using Cannabis/Marijuana as one of four 
drugs they alert to. If this bill were to pass, it would likely mean the MHP’s current canines 
would have to be retired. The purchase and initial training for a canine is approximately $25,000.  
The overall cost to purchase and train the current canine program would be approximately 
$150,000 ($25,000 x 6).  Not only will there be a financial impact to the Patrol, but there will 
also be an impact to the services the Patrol provides to other law enforcement agencies, who use 
the Patrol's canine service.  
Oversight does not have any information to the contrary. Oversight will reflect the fiscal impact 
provided by the MHP to replace its canine unit for purposes of this fiscal note. 
Oversight contacted MHP officials regarding a potential fiscal impact related to background 
checks performed as a result of this legislation. Officials stated they have no data available to 
determine how many background checks might be performed or what the potential fiscal impact 
might be. Therefore, for fiscal note purposes, the impact to the Criminal Records System Fund 
would be a positive Unknown.
DOR officials state these sections are not expected to have a fiscal impact on the department.
§§196.3000 – 196.3048 Cannabis Enforcement Authority (CEA) or the Department of Health 
and Senior Services
B&P states §196.3009.1(2) allows individuals age 21 or older to possess up to six mature, 
flowering marijuana plants for personal use if they possess a personal cultivation registration 
card.  DHSS’ CEA will set any fines for individuals who exceed the limitations. It is unknown 
how many violations may occur annually under this statute or the fines that may be imposed per 
occurrence. Therefore, this proposal could increase total state revenue by an unknown amount 
beginning August 28, 2022.  B&P defers to DHSS for more details.
Oversight notes the Department of Health and Senior Services did not specifically mention fines 
collected under this section in their response but an Unknown positive fiscal impact was included 
in their fiscal estimate. L.R. No. 5400H.03C 
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B&P officials state §196.3021.1 levies a tax on marijuana or marijuana products to consumers at 
a rate of 4.225 percent. DOR shall direct the CEA to establish procedures for tax collections as 
well as issue stamps used as evidence of the taxes. DOR is to enforce the collection of marijuana 
taxes similar to cigarette taxes under Chapter 149, RSMo. Subsection 2 establishes the Cannabis 
Freedom Fund as the location for which all recreational marijuana taxes are to be deposited.  
Funds are to be used for expenses of CEA program operations. Subsection 3 specifies that excess 
funds shall be divided in the following way:


RSMo;

protection associations for the purpose of funding such association's costs related to 
workers' compensation insurance premiums for volunteer firefighters under §287.245, 
RSMo;

subsection 3 of §557.059, RSMo; and

Section 196.3021.4 provides that any excess moneys in the fund after all costs and disbursements 
under subsections 2 and 3 of this section have been paid shall revert to GR and §196.3021.5 
allows for recreational marijuana purchases to be subject to state and  local sales tax.
B&P states §196.3028.1 creates marijuana business licenses for the following categories:


o
o

Section 196.3028.3 grants authority to the CEA to determine the applicable application fees for 
each license type in an amount sufficient to cover their operational expenses with the fees to be 
deposited into the Cannabis Freedom Fund.  B&P defers to DHSS for more details on the license 
fees.  
B&P notes subdivisions of 196.3028 specify other requirements relating to licenses, fees, other 
requirements that must be met by potential applicants, and when the CEA must approve or reject 
applications submitted. Subsection 17 specifically requires DHSS to issue the following number 
of licenses as compared to those issued as of August 28, 2022 for the medical marijuana program 
under Article XIV, Section 1 of the Missouri Constitution:
o
authorized or issued for medical marijuana cultivation facilities;
o
for medical marijuana-infused products manufacturing facilities; and  L.R. No. 5400H.03C 
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o
medical marijuana dispensary facilities; and
o
holders in order to meet the demand for marijuana in the state and ensure a 
competitive market.
Section 196.3029.1 creates a conditional marijuana business license that will provide the 
necessary permissions to operate as though under an annual license. Subsection 3 authorizes 
DHSS, upon conditional license approval, to continue its review of the licensee of the 
conditional marijuana business license and conduct all necessary inspections and investigations 
before approving the licensee for an annual marijuana business license. Subsection 6 requires all 
local permits and licenses be obtained prior to annual license approval. For license renewal, if it 
is after the expiration date, the licensee must pay a nonrefundable late renewal fee equal to ten 
percent of the license fee.  B&P defers to DHSS on the late fee.  Any license expired for more 
than 90 days shall not be renewed.
Section 196.3031 specifies what entities or customers a given licensee may sell product to. This 
section further specifies additional violations that would result in a denial of licensure.  

food preparation guidelines for processors to follow in preparation of edible marijuana 
products.

determine compliance. If the growers or processors do not correct any deficiencies within 
one month, they will be subject to fines from the CEA. B&P defers to DHSS for further 
details.  

subject to taxation.
Section 196.3032.12 specifies that the fee for a marijuana transporter agent license shall be $100 
with any reprints to be $100 each. The license shall be valid for three years after the date of 
issuance. A marijuana transporter agent is an individual agent, employee, officer, or owner of a 
marijuana transporter license. These fees will result in an increase to TSR and impact the 
calculation under Article X, Section 18(e). Subsection 14 details that any transporter licensee or 
transporter license agent who knowingly violate provisions within §196.3032 may have their 
license revoked or suspended as well as other penalties established by the law for violations.  
B&P is unsure what the other penalties may be and defers to DHSS for further details.
Section 196.3036 provides that currently licensed medical marijuana businesses may apply for a 
recreational marijuana business license as long as the requirements under §§196.3000 to 
196.3048 are met.
Section 196.3045 creates the Cannabis Freedom Fund which shall collect all moneys generated 
from the Cannabis Freedom Act under §§196.3021, 196.3028, 196.3029, and 196.3032. L.R. No. 5400H.03C 
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Section 196.3047 requires DHSS to establish an interest-free loan program for women and 
minority businesses.
Revenue Estimates
Based on research, B&P was able to find forecasts for the U.S. legal market for cannabis.  
According to such forecasts, the U.S. market for legal marijuana will be approximately $33.74 
billion in calendar year 2023 and grow up to $56.84 billion by calendar year 2028. Based on 
information from the Substance Abuse and Mental Health Services Administration, from 2019-
2020 approximately 16.72% of Missouri residents and 18.33% of all U.S. residents surveyed 
have used marijuana within the last year. Using the populations of Missouri residents compared 
to the U.S. population, B&P estimates that the market for legal marijuana in Missouri is 1.71% 
of the total U.S. market.  Therefore, B&P estimates that the Missouri market for legal marijuana 
would be approximately $578.5 million in calendar year 2023 ($33.74 billion x 1.71%) and up to 
$816.2 million by calendar year 2026 ($56.84 billion x 1.71%).
Based on further research, B&P estimates that there are approximately 146,700 medical 
marijuana users in Missouri. Using these estimates, and the estimates shown above, B&P 
estimates that the Missouri market for medical marijuana is approximately 0.34% of the total 
U.S. Market for legal marijuana. Therefore, B&P estimates that the total Missouri market for 
recreational marijuana is about 1.40% of the total U.S. market.  Table 1 shows the estimated U.S. 
and Missouri markets for marijuana.
Table 1: Estimated Marijuana Market Size for U.S. and Missouri
Calendar 
Year
Estimated U.S. 
Market
Estimated 
MO Market
Estimated 
MO Medical 
Market
Estimated 
MO 
Recreational 
Market
2021$24,500,000,000 $420,094,628 $78,036,154 $342,058,474 2022$29,120,000,000 $499,312,472 $111,180,816 $388,131,657 2023$33,740,000,000 $578,530,317 $144,325,478 $434,204,839 2024$38,360,000,000 $657,748,161 $177,470,140 $480,278,021 2025$42,980,000,000 $736,966,005 $210,614,802 $526,351,203 2026$47,600,000,000 $816,183,849 $243,759,463 $572,424,386 2027$52,220,000,000 $895,401,693 $276,904,125 $618,497,568 2028$56,840,000,000 $974,619,538 $310,048,787 $664,570,750 
There is no specified date for which the newly created CEA within DHSS must begin accepting 
conditional marijuana business applications, thus B&P assumes they will begin accepting 
applications on the implementation date of August 28, 2022 and provide approval of such 
applications within 90 days (11/26/2022) to meet the requirements of Section 196.3028.13. B&P 
further notes that revenues collected from the sales of medical marijuana are distributed one  L.R. No. 5400H.03C 
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month behind retailer collections. Therefore, revenues from the sale of recreational marijuana 
will also be distributed one month behind retail collections. As a result, B&P will show revenues 
beginning January 2023 providing six months of revenue in FY 23.
B&P estimates that this proposal may increase state revenues by $36,690,309 in calendar year 
2023. By calendar year 2025, B&P estimates that this proposal may increase state revenues by 
$44,476,677.  This proposal could increase local sales tax collections by $17,498,455 in 
calendar year 2023 and increase local revenues by $21,211,953 by calendar year 2025.  There is 
likely to be some shift of medical marijuana sales to recreational, however the amounts are 
unknown. Table 2 shows the estimated revenues generated by calendar year. 
Table 2: Calendar Year Revenue Impact CY 2023CY 2024CY 2025GR
(3.0% tax) $13,026,145$14,408,341$15,790,536
Education
(1.0% tax) $4,342,048$4,802,780$5,263,512
Conservation
(0.125% tax) $542,756$600,348$657,939
Parks, soil,
water (0.1%
tax) $434,205$480,278$526,351
Total
4.225% state
sales tax) $18,345,154$20,291,746$22,238,338
  
Cannabis 
Freedom Fund 
(4.225% excise 
tax)$18,345,154$20,291,746$22,238,338
TSR Total$36,690,309$40,583,493$44,476,677
  Local Sales Tax 
(4.03%)$17,498,455$19,355,204$21,211,953
B&P estimates that this proposal may increase state revenues by $18,345,154 in fiscal year 
2023. By fiscal year 2025, B&P estimates that this proposal may increase state revenues by 
$42,530,085. This proposal could increase local sales tax collections by $8,749,228 in fiscal 
year 2023 and increase local revenues by $20,283,579 by fiscal year 2025.  This will impact the 
calculation under Article X, Section 18(e). Table 3 shows the estimated revenues generated by 
calendar year. L.R. No. 5400H.03C 
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Table 3: Fiscal Year Revenue Impact  FY 2023FY 2024FY 2025GR
(3.0% tax) $6,513,073$13,717,243$15,099,438
Education
(1.0% tax) $2,171,024$4,572,414$5,033,146
Conservation
(0.125% tax) $271,378$571,552$629,143
Parks, soil,
water (0.1%
tax) $217,102$457,241$503,315
Total4.225% 
statesales tax) $9,172,577$19,318,450$21,265,042
  
Cannabis 
Freedom Fund 
(4.225% excise 
tax)$9,172,577$19,318,450$21,265,042
TSR Total$18,345,154$38,636,901$42,530,085
  Local Sales Tax 
(4.03%)$8,749,228$18,426,830$20,283,579
Oversight does not have any information to the contrary. For fiscal note purposes, Oversight 
will range the amount of taxes estimated to be collected between the low and high estimates 
provided by B&P and DOR.
§196.3021 – Taxation of recreational cannabis
DOR officials state this provision sets the tax rate of 4.225% percent on marijuana sold for 
personal use and does not address the medical marijuana tax. DOR assumes the 4% tax for 
medical marijuana use will remain.  The medical marijuana tax will continue to go into the 
Missouri Veteran’s Health Care Fund while the new 4.225% tax will go into the Cannabis 
Freedom Fund created in this provision.
This provision assesses the special tax but does not state it is an excise tax or sales tax. So it is 
considered a special tax. Since marijuana will be considered a new product to be sold in  L.R. No. 5400H.03C 
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Missouri, the businesses will also be required to collect sales and use tax on the marijuana. This 
provision allows for the assessment of state and local sales tax on the marijuana also.
To calculate the fiscal impact of this proposal DOR used the following data.
Based on a study completed by Gallup in 2019 and again in 2021, they found that 12% of the 
nation’s adults smoke marijuana regularly. Based on information published by the US Census 
Bureau there are approximately 4,525,345 individuals at age 21 or above in the State of 
Missouri; 12% of the total number of adults aged 21 or older would equal 543,041 adults 
(4,525,345 x 0.12). 
A report published by Headset Inc., a new market insights from Seattle-based Cannabis 
Intelligence Company, believes that the average cannabis consumer spends roughly $645 on 
marijuana and related products per year. Based on information provided in the report, the largest 
pool of individuals surveyed spent $1,000 or above each year on marijuana and marijuana 
products. 
This proposal begins on the effective date of the proposal, August 28, 2022.  It should be noted 
that the special tax and the sales tax are distributed by the state one month behind the collection 
due to processing. Therefore, only nine months of impact would be expected in FY 2023.
Special Tax- Low Amount
If the 12% of adults in Missouri, age 21 and older, spend $645 each year on marijuana and 
included in this amount is the tax (passed on from seller to purchaser) and assuming the tax is 
4.225%, the DOR estimates that $14,797,867 would be collected and deposited into the Cannabis 
Freedom Fund. 
$645*4.225% = $27.250 x 543,041 = $14,797,867
If the average amount spent each year on marijuana by adults in Missouri, over the age of 21, is 
$645 and not included in this amount is the tax, the DOR estimates that $15,438,656 would be 
collected and deposited into Marijuana Freedom Fund. 
($645 / 95.775% = $673 x 4.225% =$28.43 x 543,041 = $15,438,656
DOR estimates the fiscal impact as $14,797,867 to $15,438,656 once fully implemented in FY 
2025.
Special Tax- High Amount
If the $1,000 included tax (assumed at 4.225%), the DOR estimates that $22,943,482 would be 
collected and deposited into the Cannabis Freedom Fund. ($1,000*4.225% = $42.25 x 543,041) L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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If the $1,000 does not include tax, the DOR estimates that $23,953,539 would be collected and 
deposited into Cannabis Freedom Fund. ($1,000 / 95.775% = $1,044 x 4.225% = $44.11 x 
543,041)
DOR estimates the fiscal impact as $22,943,482 to $23,953,539 once fully implemented in 
FY 2025.
  
FY 2023(9 months)FY 2024 FY 2025LowHighLowHighLowHigh$11,098,400$17,965,154$14,797,867$23,953,539$14,797,867$23,953,539
State and Local Sales Tax
Since this is a new product it will be subject to state and local sales tax. The state sales tax rate is 
4.225% and the Department uses a 4.03% weighted average for calculating the local sales tax 
rate. 
Assuming the special tax price is included in the price of the marijuana, DOR expects the 
purchase price would be $683.70 ($645 + $38.70 special tax) on the low end, and total sales 
would equal $371,277,132 ($683.70 x 543,041).  Therefore the total state sales tax collected 
would be $15,686,459 ($371,277,132 x 4.225% state sales tax rate).
FundFull Year Low ImpactGeneral Revenue (3%)$11,138,314School District Trust (1%)$3,712,771Conservation Commission 
(0.125%)
$464,096Park, Soil & Water (0.1%)$371,277Local (4.03% weighted)$14,962,468
The high end estimate is expected to generate total sales of $576,981,063 [($1,000 spending 
+$62.50 special tax) x 543,041].  This would generate state sales tax of $24,550,544.
FundFull Year High ImpactGeneral Revenue (3%)$17,309,432School District Trust (1%)$5,769,811Conservation Commission 
(0.125%)
$721,226Park, Soil & Water (0.1%)$576,981Local (4.03% weighted)$23,252,337 L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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So the potential impact from the sales tax is:
FundFY 2023 (9 mo. collection)FY 2024 +General Revenue$8,353,736- $12,982,074$11,138,314 - $17,309,432School District 
Trust
$2,784,578 - $4,327,358$3,712,771 - $5,769,811Conservation 
Commission
$348,072-$540,919$464,096 - $721,226Park, Soil & Water$278,458 - $432,736$371,277 - $576,981Locals$11,221,851-$17,439,253$14,962,468 - $23,252,337
Oversight notes that the Conservation Sales Tax funds are derived from one-eighth of one 
percent sales and use tax pursuant to Article IV Section 43 (a) of the Missouri Constitution, thus 
Missouri Department of Conservation’s (MDC) sales taxes are constitutional mandates. 
Therefore, Oversight will reflect the B&P’s and DOR’s fiscal impact estimates for MDC’s funds.
Oversight notes the Park, Soil, and Water Sales Tax funds are derived from the one-tenth of one 
percent sales and use tax pursuant to Article IV Section 47 (a) thus Department of Natural 
Resources (DNR) sales taxes are constitutional mandates. Therefore, Oversight will reflect the 
B&P’s and DOR’s fiscal impact estimates for DNR’s funds.
DOR states this proposal requires the special 4.225% marijuana tax to be handled the way DOR 
does the cigarette tax with stamps. The seller pays the tax and is provided stamps of proof of the 
tax paid.  The seller then can charge the buyer to reimburse the tax to the seller. This is how 
DOR does the cigarette tax.
The cost for the DOR to buy the cigarette stamps is $245,000 annually. Additionally the DOR 
has 2 FTE that run the cigarette stamp program. It is assumed DOR would need at least the 2 
Association Customer Service Representatives (ACSRs; annual salary $27,776 each) to handle 
the processing of the form, phone calls and stamps and the $245,000 to fund the marijuana 
program.  This provision allows the DOR to receive funding from the Cannabis Freedom Fund to 
pay for the administrative costs.
This allows the DOR to establish the method for collection the sales tax. DOR assumes it would 
collect it in the same manner as the current state and local sales tax. DOR assumes no additional 
administrative impact for the collection of the sales tax.  
However, this would create a new special tax that is collected. The Department assumes it will 
run the program similar to its other excise programs (like motor fuel) and will need a need a new 
marijuana database for tracking payments and the stamps. ITSD provided DOR with the below 
impact for the creation of the new database.  
Additionally, this will require new marijuana reporting form(s) and application form(s).   L.R. No. 5400H.03C 
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ITSD estimates it will require 311.04 consultant hours for the creation of the marijuana database, 
including requirements gathering, analysis, design, development, test, implementation and 
project management. The consultant rate of $95/hour based is based on current contract(s) 
pricing as it is assumed that any new IT project/system will be bid out, as all ITSD resources are 
at full capacity. Therefore, the total cost to General Revenue in FY2023 for the new database is 
estimated to be $29,549 (311.04 consultant hrs x $95/hr).
Oversight does not have any information to the contrary. For fiscal note purposes, Oversight 
will range the amount of taxes estimated to be collected between the low and high estimates 
provided by B&P and DOR.
Officials from the City of Kansas City and the Kansas City Firefighter’s Pension System each 
assume the legislation could have a positive fiscal impact on Kansas City if there are increased 
sales tax revenues.
Oversight will present the potential increase in sales tax revenues to local governments as 
provided by the DOR.
§196.3036 – Marijuana licenses
DOR officials state §§196.3024 – 196.3036 and §§196.3042 – 196.3048 are about the use of 
cannabis and licensing of cannabis facilities. These sections will not have a fiscal impact on the 
DOR.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note for this section of the proposal for the DOR. 
Officials from the Department of Health and Senior Services (DHSS) state the proposal 
establishes a new adult use marijuana industry to be licensed by DHSS, the Cannabis Freedom 
Act.
§196.3027.17 – Authorizes the DHSS to authorize beyond the minimum specified in order to 
establish a competitive market and sufficient supply.   DHSS assumes it will issue 9,000 facility 
licenses in Year 1, 10,500 in Year 2 and upwards of 12,000 in Year 3 as more than the minimum 
facilities will be needed for some types of facility licenses to ensure consumer access to 
sufficient retail locations as well as sufficient supply of infused-products. These licensure 
numbers are based on observations of other states, primarily Oklahoma, and would be 24 times 
the number of licenses issued under and regulated by Missouri’s existing medical marijuana 
program.
The new adult use program would require similar regulatory activity as is needed for the existing 
medical program; some medical program duties are not required, and some adult use program  L.R. No. 5400H.03C 
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duties are entirely new. DHSS will apply this factor of 24 to the relevant existing medical 
program staffing structure in order to project staffing needs for the new adult use program. 
DHSS will require:
EXPENDITURES
144- Senior Regulatory Auditors at annual salary of $50,000 each;
576 -Compliance Inspectors at annual salary of $59,300 each; and
72-Program Specialists at annual salary of $54,300 each.  
These staff will cover all licensing, auditing, compliance, enforcement, and operations functions 
related to the number of licensees expected. These staff will also conduct background checks on 
facility agents as specified under §195.815 as well as enforcement of statewide labeling 
requirements in §196.3026.
Compliance Inspector positions will be remote with vehicle/travel costs associated. All others 
will be based in Jefferson City. 
DHSS’ Fiscal Unit needs the following staff to process payments and review loan documents:
4-Senior Accountants at an annual salary of $59,186 each.
4-Administrative Support Professional at an annual salary of $39,898 each.
§196.3026 - requires licensees to test product before sale and for DHSS to certify and regulate 
testing facilities. This task is addressed by staffing listed above. Additionally, DHSS assumes the 
product labeling oversight and enforcement needs for correct labeling and measure potency will 
be absorbed by the staff and IT system described (where noted below) for the Cannabis Freedom 
Act.
§196.3027- gives DHSS oversight and auditing responsibilities to ensure all marijuana grown for 
adult use is tracked in a Seed-to-Sale (STS) system. DHSS currently has a STS system for the 
medical program, and based on the cost for that system, DHSS estimates it would expend 
$168,000 in the first year (one-time tracking equipment costs—RFID Readers) and $229,000 in 
the first year and each year after (ongoing software costs) to track adult use product under this 
bill. DHSS can use this same system to track/enforce package labels with an additional $120,000 
annually. DHSS program staff will collaborate with the contractor to implement these systems.
§196.3028- requires DHSS to develop a website for adult use facility application and directs that 
fees be set in an amount sufficient to cover administration, regulation, and enforcement 
associated with the program. In order to do so, application fees will need to be established at 
$8,000 or higher for the first year, which will be the fee for subsequent years until there is data 
available indicating a need to raise or lower the fee. DHSS will require an application system to 
accept and process these applications. Using the existing application system contract as a basis,  L.R. No. 5400H.03C 
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DHSS estimates it will expend $281,000 (implementation plus annual cost) in Year 1 and 
$181,000 each year after that on a third party application system contract.
§196.3031- sets out compliance and enforcement expectation for DHSS. These tasks are covered 
by the staffing projections above.
§196.3045- establishes the Cannabis Freedom Fund where taxes and fees related to the adult use 
program will be deposited and then be used to pay for every cost associated with the bill. Section 
196.3021 provides provisions for taxation and disbursement Fund monies to be used to pay for 
every cost associated with the bill. It appears this Fund will be accessible to any government 
agency/program with new costs associated with this bill and not just to DHSS. The Fund will 
also be used for small business loans under §196.3021.3.(5); five percent of the monies deposited 
in the Fund are designated for this purpose. It is unknown how much of the Fund will go to other 
agencies or what will be the amount designated for small business loans.
§196.3047- requires that DHSS establish a loan program for women and minority businesses. 
The task of administering the program is addressed by staff listed above. The loan program will 
be funded by five percent of the taxes and fees related to the adult use program, which are 
unknown, as explained above. 
§557.059.3- requires that DHSS collaborate with the Division of Workforce Development to 
establish a 6-week work training for certain persons. DHSS assumes it will contract with or hire 
a training and subject matter expert to develop and present the training and it will expend at least 
$50,000 annually on this requirement.
REVENUES
§196.3021- set a tax on sale of adult use marijuana. Based on its experience with implementation 
timelines of medical marijuana facilities, DHSS assumes these revenues will begin to generate 
from some licensees in Year 1 but that the bulk of the licensees will not be operational and 
generating revenues until the end of Year 1, at the earliest, or well into Year 2. DHSS also 
assumes many licensees will never become operational since the fees to licensure are low but 
regulatory compliance/operational costs will be high, but there is no data on which to estimate 
what portion of the licensees will never generate revenue. Tax is paid through stamp purchase 
from DOR and not point of sale by consumer, therefore, the amount of tax revenues is unknown. 
Oversight will use tax estimates provided by B&P and the DOR for fiscal note purposes rather 
than the unknown provided by the DHSS.
§196.3029- directs that licenses be renewed annually with a fee. DHSS assumes the fee will be 
the same as the initial application fee in order to continue covering administration, regulation, 
and enforcement costs. Therefore, renewal fees will need to be established at $8,000 or higher. L.R. No. 5400H.03C 
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§196.3032- establishes requirements for transporter licenses, including a fee to transporter 
agents, which is $100 per year. §196.3032.4 specifies that each business which possesses, sells, 
or transfers cannabis will also possess a transporter license. DHSS assumes 980 transporter 
licensees, which are reflected in the licensee estimates above, and 7 employees per one 
transporter licensee, which equals a total of 6,860 transporter agents in year one that will be 
licensed at $100 per agent and an annual revenue $686,000 the first year. Agents are licensed for 
three years, but DHSS anticipates issuing additional transporter licenses each year.
Facility Revenues: DHSS is to set facility fees in Year 1 such that they be sufficient to cover 
program costs. Program costs the first year are projected to be $71,350,671. The fee set in the 
first year will remain the same for subsequent years until there is data available indicating a need 
to raise or lower the fee.
FY2023: $72,686,000 [(9,000 licenses X $8,000) + $686,000 for agents].
FY2024: $84,644,000 [(10,500 licenses X $8,000) + $644,000 for agents].
FY2025: $96,630,000 [(12,000 licenses X $8,000) + $630,000 for agents].
While this proposed legislation makes no changes to Article XIV Section 1 of the Missouri 
Constitution, which establishes the medical marijuana program, DHSS assumes the need for the 
medical program would diminish over time. It is unknown to what extent or how quickly the 
need would diminish, so it is unknown what fiscal impact to DHSS would result from that 
diminishing need.
Oversight notes DHSS indicated the Section for Medical Marijuana Regulation (SMMR) will 
not need ITSD to implement the Seed-to-Sale Tracking System and the Online Registry (AU 
facility) because the contract with Complia and Metrc will require them to implement the system 
in collaboration with program staff.  In addition, the proposed legislation could result in 224 
additional FTE that will be located in Jefferson City with an estimated annual lease cost of 
$927,360 ($18 x 230 sq. ft. x 224). The remaining 576 FTE proposed by the legislation are 
assumed to be telecommuters. 
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the 
income, costs and unknown impacts as provided by DHSS as the fiscal impact of this proposal.
Officials from the Missouri Department of Agriculture (MDA)
are required to be inspected annually by MDA's Division of Weights & Measures. Estimates for 
the number of facilities to retail marijuana were based on the below percentages:
Gas/Convenience Store: 75% (2,167); Grocery Stores: 15% (177); Marijuana Retail Stores: 
NEW (est. 750)
All facilities are estimated to require 1 scale at each location, with the exception of Marijuana 
Retail Stores, where MDA estimates an average of 3.5 scales at each location. Medical marijuana  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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scales are currently inspected at a rate of $30 per scale; this computation was reflected in MDA's 
revenue estimate. MDA estimates Scale Inspection Fees received will total $220,647 annually.
This estimate of facilities will require 7 FTE, as defined above, and their respective fringe 
benefits and equipment and expenses. 
Various sections of HB 2704 allow growth or cultivation of marijuana which conflicts with the 
existing Noxious Weed Law (263.190 through 263.474).  Section 263.250 specifically requires 
the destruction of marijuana.  Conflicting statutes would need to be addressed. 
 
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the 
income and costs provided by the MDA for fiscal note purposes.
Oversight notes the provisions of §196.3021.3 provide that any moneys remaining the fund 
(Cannabis Freedom Fund) after all costs have been paid shall be disbursed as follows:
10% - deputy sheriff salary implementation fund under §57.278
10% - peace officer standards and training (POST) commission fund under §590.178
10% - state fire marshal for disbursement of grants to volunteer fire protection associations
15% - establish and administer a work training program under §557.059.3
5% - assist with small business loans under §196.3047
Any excess funds (50%) - general revenue fund. 
Since it is unknown the amount of operating revenue DHSS will need each year to fund 
operations, it is unknown what amount of funds remaining in the Cannabis Freedom Fund will be 
determined as available for distribution. Therefore, for fiscal note purposes, Oversight will not 
show a transfer out of the Cannabis Freedom Fund to the funds listed above.
§288.045 – Employee testing
DOR officials state this section is about testing employees and marijuana use. This section will 
not fiscally impact the DOR.
§§362.003 – 370.070 – Cannabis businesses and financial institutions
B&P states §§362.033.1, 362.105.1(17), 369.144(21), 369.326.1, 370.064.1, and 370.070(14) 
permit banks, trust companies, associations, and credit unions to provide loans, deposit funds, 
and invest funds of bank customers authorized to operate as medical marijuana or recreational 
marijuana businesses pursuant to Article XIV, Section 1 of the Missouri Constitution and 
Sections 196.3000 to 1963.3048.  B&P notes however that the federal prohibition on banks 
working with marijuana related businesses would remain in place. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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DOR officials state these sections allow financial institutions to offer bank accounts to 
businesses that are in the cannabis business. Additionally, it provide protections for the cannabis 
businesses and financial institutions.  These sections are not expected to have an impact on the 
DOR.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note for these sections of the proposal.
§§557.059, 577.001, 579.015 and 610.135 – Vacating cannabis convictions/court petitions/ 
training program    
B&P states §557.059 provides that a person who files a petition with the court in which the 
person was convicted of a nonviolent marijuana-related offense or violation, as of August 28, 
2022, may have any conviction, remaining sentence, ongoing supervision, or unpaid court-
ordered restitution vacated after a court hearing.
Sections 579.015, 579.020, 579.030, 579.055, 579.065, 579.068, and 579.105 remove marijuana 
and substances containing marijuana from the list of offenses detailed within each of these 
sections. As a result, the number of offenses committed each year could decrease resulting in a 
decrease to total state revenue by an unknown amount beginning August 28, 2022.
Section 610.135 provides that any person may petition the court for expungement of a nonviolent 
marijuana-related offense or violation if it was prosecuted under the jurisdiction of a Missouri 
associate circuit court, circuit court, or municipal court and the original charge was not reduced 
by plea agreement. Additionally, the person must not have been convicted of any further drug-
related offenses for a period of ten years. If the court determines the person’s acts would no 
longer violate current marijuana statute, the court may enter an order of expungement.
If a new crime is created or there is an increase in class of crime, any portion of any associated 
penalty fees/fines that go to the state may impact TSR.  
Officials from the Office of the State Courts Administrator (OSCA) state the proposed 
legislation modifies and establishes the provisions relating to marijuana.
The average of all marijuana related charge codes from 2017 to 2021 for Circuit case types is 
16,666. The average of all marijuana related charge codes from 2017 to 2021 for Associate case 
types is 28,824. 
The average of all marijuana related charge codes from 2017 to 2021 for Circuit cases for 
persons over the age of twenty-one is 15,572. The average of all marijuana related charge codes 
from 2017 to 2021 for Associate cases for persons over the age of twenty-one is 25,846.  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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The following Criminal Court Costs would be affected by this proposed legislation: L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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Criminal Court CostsFelony Case CostsAmount of CostDisburse to State/CountyBasic Civil Legal Services 
Fund surcharge$10.00
State of Missouri - Basic Civil Legal 
Services FundClerk Fee$45.00
State of Missouri - General Revenue 
$36, County $9 
County Fee$75.00County
Court Automation Fund Fee$7.00
State of Missouri -Statewide Court 
Automation Fund
Court Reporter fee (All Circuit 
Division Cases)$15.00State of Missouri - General Revenue 
Crime Victims' Compensation 
Fund surcharge$7.50
State of Missouri - Crime Victims' 
Compensation Fund
DNA Profiling Analysis Fund 
surcharge$30.00
State of Missouri - DNA Profiling 
Analysis Fund
Brain Injury Fund surcharge$2.00State of Missouri - Head Injury FundIndependent Living Center 
Fund surcharge$1.00
State of Missouri - Independent Living 
Center Fund
Motorcycle Safety Trust Fund 
surcharge$1.00
State of Missouri - Motorcycle Safety 
Trust Fund
Peace Officer Standards & 
Training (POST) Commission 
surcharge$1.00
State of Missouri - Peace Officer 
Standards & Training Fund
Prosecuting Attorney and 
Circuit Attorneys' Retirement 
Fund$4.00Pros. Attorney Retirement Fund
Prosecuting Attorney Training 
Fund surcharge$5.00
State of Missouri - Prosecuting 
Attorney Training Fund
Sheriffs' Fee$75.00CountySheriffs' Retirement Fund 
surcharge (except 21st Circuit)$3.00Sheriffs' Retirement Fund
Spinal Cord Injury Fund 
surcharge$2.00
State of Missouri - Spinal Cord Injury 
Fund
Total$283.50Misdemeanor Case Costs L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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Basic Civil Legal Services 
Fund surcharge$8.00
State of Missouri - Basic Civil Legal 
Services Fund
Clerk Fee$15.00$12 State of Missouri / $3 CountyCounty Fee$25.00County
Court Automation Fund Fee$7.00
State of Missouri - Court Automation 
Fund
Crime Victims' Compensation 
Fund surcharge$7.50
State of Missouri - Crime Victims' 
Compensation Fund
DNA Profiling Analysis Fund 
surcharge$15.00
State of Missouri - DNA Profiling 
Analysis Fund
Brain Injury Fund surcharge$2.00State of Missouri - Brain Injury FundIndependent Living Center 
Fund surcharge$1.00
State of Missouri - Independent Living 
Center Fund
Motorcycle Safety Trust Fund 
surcharge$1.00
State of Missouri - Motorcycle Safety 
Trust Fund
Peace Officer Standards and 
Training (POST) Commission 
surcharge$1.00
State of Missouri - Peace Officer 
Standards & Training Fund
Prosecuting Attorney and 
Circuit Attorneys' Retirement 
Fund$4.00Pros. Attorney Retirement Fund
Prosecuting Attorney Training 
Fund surcharge$5.00$0.50 State of Missouri / $0.50 County
Sheriffs' fee$10.00CountySheriffs' Retirement Fund 
surcharge (except 21st Circuit)$3.00Sheriffs' Retirement fund
Spinal Cord Injury Fund 
Surcharge$2.00
State of Missouri - Spinal Cord Injury 
Fund
Total$106.50Municipal Case (Filed in 
Associate Division) Costs L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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Clerk Fee$15.00$12 State of Missouri / $3 County
Court Automation Fund Fee$7.00
State of Missouri - Court Automation 
Fund
Crime Victims' Compensation 
Fund surcharge$7.50
State of Missouri - Crime Victims' 
Compensation Fund
Peace Officer Standards and 
Training (POST) Commission 
surcharge$1.00
State of Missouri - Peace Officer 
Standards & Training Fund
Sheriffs' Retirement Fund 
surcharge$3.00Sheriffs' Retirement Fund
Total$33.50Criminal Costs Not Included 
Above
Drug Testing by a State Lab$150.00State of MissouriDrug Testing by a Private LabActual CostsCounty ReimbursementLaw Enforcement Arrest 
Costs:
     Highway PatrolAmt. Approved by the Court    Local (County)Amt. Approved by the Court    MunicipalAmt. Approved by the Court
Oversight does not have any information to the contrary. For fiscal note purposes, Oversight 
will reflect an (unknown) reduction in revenue to GR for the reduction in court fees collected by 
OSCA as a result of the legalization of marijuana. It is further assumed the reduction in revenue 
collected will exceed $250,000 annually.
Officials from the Department of Corrections (DOC) state FN 5400-03C (HCS HB 2704) 
modifies and establishes provisions relating to marijuana, making the responsible use of 
marijuana legal as of 8/28/2022. Marijuana will no longer be listed among Missouri’s drug 
schedule and will no longer be considered a controlled substance. As a result of this bill, any 
conviction, remaining sentence, ongoing supervision, or unpaid court-ordered restitution of any 
person who on August 28, 2022, is or will be serving a sentence of incarceration, probation, 
parole, or other form of community supervision as a result of the person's conviction of an 
offense or municipal violation involving a nonviolent marijuana-related offense or violation that 
was committed prior to obtaining a patient identification card under Article XIV, Section 1 of the 
Constitution of Missouri, or prior to the enactment of §§196.3000 to 196.3048, shall have the 
conviction, remaining sentence, ongoing supervision, or unpaid court-ordered restitution vacated. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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This bill also prohibits any state agency or its employees from disclosing to the federal 
government, any federal government employee, or any unauthorized third party the statewide list 
or any individual information of persons who have applied for or obtained a qualifying patient 
identification card, a qualifying patient cultivation identification card, or a primary caregiver 
identification card, as those cards are described in Article XIV, Section 1 of the Constitution of 
Missouri relating to the right to access medical marijuana. The violation of this portion of the bill 
will be guilty of a new Class E felony.
This bill also introduces language known as the "Cannabinoid Product Labeling Act". It creates a 
definition for Cannabinoid products as well as establishes language to regulate it. Any dealer of 
Cannabinoid products that violates the guidelines in this bill will be guilty of a Class D 
misdemeanor.
Operational Impact
§191.255 – Disclosure of statewide list/information
For each new nonviolent class E felony, the DOC estimates one person will be sentenced to 
prison and two to probation. The average sentence for a nonviolent class E felony offense is 3.4 
years, of which 2.1 years will be served in prison with 1.4 years to first release. The remaining 
1.3 years will be on parole. Probation sentences will be 3 years. 
The cumulative impact on the department is estimated to be 2 additional offenders in prison and 
7 additional offenders on field supervision by FY 2025.
§557.059 – Marijuana-related offense discharges
There are currently 774 offenders in prison in who were admitted only on drug sentences, and 
16,148 offenders under some type of supervision based only on drug-related sentences. Using the 
C
hange in prison admissions and probation openings with legislation-Class E Felony (nonviolent)
F
Y2023
F
Y2024
F
Y2025
F
Y2026
F
Y2027
F
Y2028
F
Y2029
F
Y2030
F
Y2031
F
Y2032
N
ew Admissions
C
urrent Law
0 0 0 0 0 0 0 0 0 0
A
fter Legislation
1 1 1 1 1 1 1 1 1 1
P
robation
C
urrent Law
0 0 0 0 0 0 0 0 0 0
A
fter Legislation
2 2 2 2 2 2 2 2 2 2
C
hange (After Legislation - Current Law)
A
dmissions
1 1 1 1 1 1 1 1 1 1
P
robations
2 2 2 2 2 2 2 2 2 2
C
umulative Populations
P
rison
1 2 2 2 2 2 2 2 2 2
P
arole
0 0 1 1 1 1 1 1 1 1
P
robation
2 4 6 6 6 6 6 6 6 6
I
mpact
P
rison Population
1 2 2 2 2 2 2 2 2 2
F
ield Population
2 4 7 7 7 7 7 7 7 7
P
opulation Change
3 6 9 9 9 9 9 9 9 9 L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
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estimate of 3.5% of all drug sentences are related specifically to marijuana, DOC estimates 27 
could be immediately discharged from prison and 565 offenders could be immediately 
discharged from supervision as a result of the passage of this bill if they successfully petition the 
court after receiving a patient identification card under Article XIV, Section 1 of the Constitution 
of Missouri.
§579.015 – Decriminalization of marijuana
The estimate of the number of offenders who will be impacted by the decriminalization of 
marijuana can be calculated from the sentencing records maintained by the DOC, but with an 
important qualification. Most offenders sentenced for drug offenses in Missouri are sentenced for 
the production, sale, distribution or possession of a controlled substance, but the drug type is not 
always part of the sentence information that the DOC receives. In some cases the drug type is 
known and is included in the offender management database, but the proportion of cases in 
which the drug related to the offense is known is a minority of the cases. Given that the drug 
associated with the offense is unknown by the DOC in the majority of cases, the estimation of 
the total impact that follows will use the proportions of cases in which the associated drug is 
known to determine the number of cases in which the associated drug is unknown that are likely 
related to marijuana. Therefore, DOC assumes 3.5% of all prison admissions related to drug 
sentences are related to marijuana (see table 1).
Table 1. FY 2017 through FY 2021 admissions to prison on only drug-related sentences in which the 
drug associated with the offense is known. (Drug offenses and drug types are identified in the data 
system through the use of the NCIC categories, modifiers associated with a sentence, and the 
description of the offense.)
M  Marijuana1043.5%Ot  Other Drug2,89296.5%To Total2,996100.0%
There were 713 offenders with new commitments to prison in FY 2021 who were admitted only 
on drug sentences. The average length of those sentences was 5.7 years. Based on DOC’s 
assumption that 3.5% of those sentences are related to marijuana, DOC estimates 25 admissions 
for sentences for offenses related only to marijuana.
In FY 2021, there were 539 offenders released from prison who had been incarcerated for new 
commitments to prison only on drug sentences. Their average length of time served to first 
release was 1.1 years, which is what DOC assumes for all new commitments in FY 2021 in 
estimating its impact.
Based on DOC’s analysis of new probation cases related to drug sentences received by the 
department in FY 2021, approximately 7.6% of the cases in which the associated drug is known 
are related to marijuana (see table 2). Therefore, DOC assumes 7.6% of all new probation cases 
are based on drug sentences related to marijuana.   L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 28 of 49
April 11, 2022
HWC:LR:OD
Table 2. FY 2021 probation cases related only to drug sentences in which the drug associated with 
the offense is known. (Drug offenses and drug types are identified in the data system through the 
use of the NCIC categories, modifiers associated with a sentence, and the description of the offense.)
M  Marijuana2187.6%Ot  Other Drug2,66792.4%To Total2,885100.0%
There were 4,656 offenders with new probation cases in FY 2021 whose cases were only on drug 
sentences. Based on DOC’s assumption that 7.6% of those sentences are related to marijuana, 
DOC estimates 354 new probation cases related only to marijuana. The average length of those 
sentences was 5.4 years. Given the possibility of earned compliance credit, DOC applies a 3 year 
sentence in its estimation of impact.
The estimated cumulative impact of this part of the proposal on department operations is 65 
fewer people in prison and 1,140 fewer people under supervision in the field by FY 2028.
  
Combined Estimated Cumulative Impact
The combined estimated cumulative impact of creating a new class E felony as well as the 
decriminalization of marijuana is estimated to be 63 fewer offenders in prison and 1,133 fewer 
offenders on field supervision by FY 2028. 
C
hange in prison admissions and probation openings with legislation
F
Y2023
F
Y2024
F
Y2025
F
Y2026
F
Y2027
F
Y2028
F
Y2029
F
Y2030
F
Y2031
F
Y2032
N
ew Admissions
C
urrent Law
2
5
2
5
2
5
2
5
2
5
2
5
2
5
2
5
2
5
2
5
A
fter Legislation
0 0 0 0 0 0 0 0 0 0
P
robation
C
urrent Law
3
54
3
54
3
54
3
54
3
54
3
54
3
54
3
54
3
54
3
54
A
fter Legislation
0 0 0 0 0 0 0 0 0 0
C
hange (After Legislation - Current Law)
A
dmissions
-
25
-
25
-
25
-
25
-
25
-
25
-
25
-
25
-
25
-
25
P
robations
-
354
-
354
-
354
-
354
-
354
-
354
-
354
-
354
-
354
-
354
C
umulative Populations
P
rison
-
25
-
50
-
65
-
65
-
65
-
65
-
65
-
65
-
65
-
65
P
arole
0 0 -
10
-
35
-
60
-
78
-
78
-
78
-
78
-
78
P
robation
-
354
-
708
-
1,062
-
1,062
-
1,062
-
1,062
-
1,062
-
1,062
-
1,062
-
1,062
I
mpact
P
rison Population
-
25
-
50
-
65
-
65
-
65
-
65
-
65
-
65
-
65
-
65
F
ield Population
-
354
-
708
-
1,072
-
1,097
-
1,122
-
1,140
-
1,140
-
1,140
-
1,140
-
1,140
P
opulation Change
-
379
-
758
-
1,137
-
1,162
-
1,187
-
1,205
-
1,205
-
1,205
-
1,205
-
1,205 L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 29 of 49
April 11, 2022
HWC:LR:OD
* If this impact statement has changed from statements submitted in previous years, it could be 
due to an increase/decrease in the number of offenders, a change in the cost per day for 
institutional offenders, and/or an increase in staff salaries.
If the projected impact of legislation is less than 1,500 offenders added to or subtracted from the 
department’s institutional caseload, the marginal cost of incarceration will be utilized. This cost 
of incarceration is $22.616 per day or an annual cost of $8,255 per offender and includes such 
costs as medical, food, and operational E&E. However, if the projected impact of legislation is 
1,500 or more offenders added or removed to the department’s institutional caseload, the full 
cost of incarceration will be used, which includes fixed costs. This cost is $88.12 per day or an 
annual cost of $32,162 per offender and includes personal services, all institutional E&E, 
medical and mental health, fringe, and miscellaneous expenses.  None of these costs include 
construction to increase institutional capacity.
  
DOC’s cost of probation or parole is determined by the number of P&P Officer II positions that 
are needed to cover its caseload. The DOC average district caseload across the state is 51 
offender cases per officer. An increase/decrease of 51 cases would result in a cost/cost avoidance 
equal to the salary, fringe, and equipment and expenses of one P&P Officer II. 
Increases/decreases smaller than 51 offender cases are assumed to be absorbable.
In instances where the proposed legislation would only affect a specific caseload, such as sex 
offenders, the DOC will use the average caseload figure for that specific type of offender to 
calculate cost increases/decreases. 
C
hange in prison admissions and probation openings with legislation
F
Y2023
F
Y2024
F
Y2025
F
Y2026
F
Y2027
F
Y2028
F
Y2029
F
Y2030
F
Y2031
F
Y2032
N
ew Admissions
C
urrent Law
5
2
2
5
2
5
2
5
2
5
2
5
2
5
2
5
2
5
2
5
A
fter Legislation
1 1 1 1 1 1 1 1 1 1
P
robation
C
urrent Law
9
19
3
54
3
54
3
54
3
54
3
54
3
54
3
54
3
54
3
54
A
fter Legislation
2 2 2 2 2 2 2 2 2 2
C
hange (After Legislation - Current Law)
A
dmissions
-
51
-
24
-
24
-
24
-
24
-
24
-
24
-
24
-
24
-
24
P
robations
-
917
-
352
-
352
-
352
-
352
-
352
-
352
-
352
-
352
-
352
C
umulative Populations
P
rison
-
51
-
48
-
63
-
63
-
63
-
63
-
63
-
63
-
63
-
63
P
arole
0 0 -
9
-
34
-
59
-
77
-
77
-
77
-
77
-
77
P
robation
-
917
-
704
-
1,056
-
1,056
-
1,056
-
1,056
-
1,056
-
1,056
-
1,056
-
1,056
I
mpact
P
rison Population
-
51
-
48
-
63
-
63
-
63
-
63
-
63
-
63
-
63
-
63
F
ield Population
-
917
-
704
-
1,065
-
1,090
-
1,115
-
1,133
-
1,133
-
1,133
-
1,133
-
1,133
P
opulation Change
-
968
-
752
-
1,128
-
1,153
-
1,178
-
1,196
-
1,196
-
1,196
-
1,196
-
1,196 L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 30 of 49
April 11, 2022
HWC:LR:OD
# to 
prison
Cost per 
year
Total Savings 
for prison
Change 
in 
probation 
& parole 
officers
Total 
savings for 
probation 
and parole
# to 
probation 
& parole
Grand Total - 
Prison and 
Probation 
(includes 2% 
inflation)
Year 1-51($8,255)$350,838(17)$975,845(917)$1,326,683Year 2-48($8,255)$404,165(13)$905,089(704)$1,309,254Year 3-63($8,255)$541,076(20)$1,407,453(1,065)$1,948,528Year 4-63($8,255)$551,897(21)$1,493,743(1,090)$2,045,640Year 5-63($8,255)$562,935(21)$1,509,849(1,115)$2,072,785Year 6-63($8,255)$574,194(22)$1,598,821(1,133)$2,173,015Year 7-63($8,255)$585,678(22)$1,616,126(1,133)$2,201,804Year 8-63($8,255)$597,391(22)$1,633,605(1,133)$2,230,996Year 9-63($8,255)$609,339(22)$1,651,317)(1,133)$2,260,656Year 10-63($8,255)$621,526(22)$1,669,207(1,133)$2,290,733
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the 
estimated savings to General Revenue provided by DOC for fiscal note purposes.
Officials from the Department of Higher Education and Workforce Development (DHEWD) 
state §557.059.3 states the department, in conjunction with the division of workforce 
development, shall establish a six-week work training program for any person subject to this 
section. The work training program shall train and educate the person for workforce entry into 
the marijuana industry."
DHEWD would need an FTE for this requirement. However, DHEWD has no way of knowing 
how many people are subject to this section as included in the bill and therefore is unable to 
estimate the total number of people that would be trained annually. Furthermore, this section 
does not designate which department the Office of Workforce Development would be working 
with on this statutory requirement. There are several different departments listed throughout the 
bill. In addition, it is not clear if this training is to be provided in person or if it could be offered 
in a blended format with some virtual training. If virtual training is determined as an option, then 
the ITSD costs would also need to be included in the development of a learning management 
system.
Furthermore, DHEWD wouldn’t be able to use any existing OWD federal funding resources as 
that would jeopardize the department’s federal funds and this activity is not covered in the 
authorized purposes for these funds. Six weeks of training curriculum would also have to be 
created and a consultant would need to be hired to develop the curricula. DHEWD is a federally 
approved cost-allocated agency and existing staff at DHEWD and department resources could 
not support this effort due to potential violation of federal guidelines. Overall, due to unknown 
costs for development and delivery of the six-week training courses and a lack of the number of  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 31 of 49
April 11, 2022
HWC:LR:OD
people subject to this training, DHEWD is unable to provide a complete cost estimate at this 
time.
Oversight does not have any information to the contrary. Oversight will reflect the estimated 
fiscal impact provided by the DHEWD, but assumes it is possible that costs will exceed the 
amount provided, especially if DHEWD had to hire a consultant to develop curricula for the 
program and ITSD needed to develop virtual training.
Officials from the Office of the State Public Defender (SPD) state the proposed legislation 
removes marijuana from the list of controlled substances under §579.015, and therefore, could 
decrease the number of persons who are eligible for representation by SPD. The fiscal impact of 
this legislation on SPD is unknown as the number of additional cases eligible for representation 
as the result of the legislation is unknown, but it is anticipated that any decrease would be less 
than $250,000.
Oversight does not have any information to the contrary.  Therefore, Oversight will reflect an 
unknown savings, less than $250,000 annually, to GR as the fiscal impact for SPD for this 
proposal.
Officials from the Department of Public Safety - Missouri Highway Patrol (MHP)
currently there are 65,496 conviction records in the Traffic Arrest System (TAS) that meet the 
criteria of this proposed legislation. To process 65,496 court orders, the Patrol will require a 
minimum of six (6) FTE to process the court orders within an approximate twelve-month 
timeframe (5 Patrol Records Division (PRD) Technicians III @ $38,184 annually; 1 PRD 
Program Supervisor @ $47,448 annually) .
1 full-time employee (FTE) = 1,864 hours (average work hours per year) x 60 minutes per hour 
= 111,840 minutes per year.
30 minutes = estimate of the amount of time per petition to log, process, research, review, and 
expunge the information/record when the order is received.
1 FTE can process 3,728 expungements per year = 111,840/30.
Oversight does not have any information to the contrary. However, Oversight assumes if all of 
the conviction records currently in the TAS are expunged in one year, the number of FTE 
requested by MHP may be reduced. Therefore, for fiscal note purposes, Oversight will present 
MHP’s fiscal impact/number of FTE as “Up to” the amount provided.
DOR officials state these provisions will allow the courts to expunge all marijuana related 
offenses or violations from a person’s records and removes marijuana offenses from the crime 
list.  
Courts order a driver license suspension/revocation to individuals convicted of possession of 
controlled substances, both over and under the age of 21, pursuant to the Abuse and Lose. If a  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 32 of 49
April 11, 2022
HWC:LR:OD
possession of marijuana offense is expunged through the court, and such offense has resulted in 
an Abuse and Lose suspension/revocation, an expungement order from the court reversing the 
suspension/revocation would be necessary for the DOR to comply with requiring restoration to 
the status that such person occupied as if such event had never taken place.
The DOR receives only about 20 court orders a month. There were approximately 167 court 
orders received in FY 2021 under the Abuse and Lose actions. The DOR would not be able to 
accurately identify how many of the above actions on record would be eligible for expungement, 
as the orders do not specify the violation that warranted the suspension/revocation.
An Associate Customer Service Representative can process 50 court-ordered expungements per 
day. The DOR does not feel that a significant increase in expungements will be received based 
on this proposal. If the increase is more significant than anticipated, additional FTE will be 
requested through the appropriation process.
To implement the proposed legislation, the DOR would be required to:


FY 2022 – Driver License Bureau
Research/Data Analyst                                               10 hrs. @ $25.01 per hr.         =$250
Administrative Manager                                             10 hrs. @ $23.35 per hr.         =$233 
                                                                                                                                    =$483
The DOR presumes it will be able to absorb the above listed costs. If multiple bills pass which 
require DOR resources, the DOR could request additional FTE and related equipment and 
expenses through the appropriation process.
§§302.420 and 302.541 allow the DOR to collect a reinstatement fee on Abuse and Lose 
suspensions/revocations, which is $45 per reinstatement. The proposed legislation may result in 
the loss of reinstatement fees associated with the expungement of active actions on record. The 
DOR is unable to accurately identify the amount of potential revenue lost, as it is unable to 
identify how many of the above actions on record would be eligible for expungement. The loss 
in reinstatement fees should be minimal.
This proposal could also prevent the State of Missouri from obtaining Impaired Driving federal 
grant funding.  This funding is distributed through MODOT and the DOR defers to them for any 
fiscal impact. 
Oversight does not have any information to the contrary. Oversight assumes the DOR has 
sufficient staff and resources available to absorb the minimal costs associated with 
expungements and the loss of reinstatement fees and will reflect no fiscal impact for DOR 
related to these provisions of the proposal. However, if multiple proposals pass which require 
DOR resources, DOR could request additional funding through the appropriations process.   L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 33 of 49
April 11, 2022
HWC:LR:OD
Oversight notes §610.135.5 excludes the expungement of records relating to commercial 
drivers’ license holders. DOR deferred to MODOT regarding the potential fiscal impact of these 
provisions. MODOT officials assume the proposal will have no fiscal impact on their 
organization (see below, in Bill as a whole). Therefore, Oversight assumes this proposal would 
have no fiscal impact on Impaired Driving federal grant funding.
Officials from the DOC state this legislation may cause an increase in workload for Institutional 
Records Office Staff, as it expands the list of offenses for which an individual can request 
expungement. Expunging these records for the specified offenses through destruction, redacting 
or removal (electronic) will result in an increase in workload for DOC’s Institutional Records 
Officers, as they are the custodian of records for the offender files. This could also affect records 
kept at Probation and Parole Offices. While it represents an increase in workload, it is not 
anticipated that it will significantly impact the DOC.
There is also some concern for tracking previous medical, mental health, substance use 
treatment, and education records should the offender return to supervision by the DOC.
If there should be a significant number of additional requests for expungement or a significant 
expansion in the number of offenses that could be expunged, it could result in additional costs to 
the DOC, but without knowing the extent of expungements that would need to be completed, this 
cost is unknown.
Oversight does not have any information to the contrary. Oversight assumes the duties and 
requirements of this section could be performed with current staff and resources. However, the 
DOC could request additional staff and resources through the appropriations process if 
determined necessary. 
Section 1 – Giving marijuana or marijuana accessory to a person under 21
B&P states Section 1.1 establishes that any person who provides marijuana or any marijuana 
accessory or product to someone under age 21 shall be guilty of a misdemeanor, with the 
exception of individuals providing marijuana to individuals under age 21 who have a medical 
marijuana card.  Subsection 2 describes that any person or entity with a lawful right to the 
exclusive use and enjoyment of any property who knowingly allows a person under age 21 to 
possess or use marijuana or marijuana products or knowingly fails to stop a person under age 21 
from possessing or using marijuana or marijuana products on such property is guilty of a Class B 
Misdemeanor subject to up to six months in jail and a fine not to exceed $1,000. Any subsequent 
violation shall be a Class A Misdemeanor subject to up to one year in jail and a fine not to 
exceed $2,000. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 34 of 49
April 11, 2022
HWC:LR:OD
Section 2 – Persons between 17 and 21 year presenting themselves to be 21 or older
B&P states Section 2.1 provides that any person between the ages of 17 and 21 who represents 
themselves as being age 21 or older for the purpose of acquiring marijuana or any marijuana 
product, except in cases authorized by law, shall be deemed guilty of a misdemeanor.  
Subsection 2 details that in addition to penalties administered in subsection 1, any person who is 
under age 21 and uses any kind of fake government-issued identification card for the purpose of 
acquiring marijuana or any marijuana product shall be guilty of a misdemeanor and shall be 
subject to a fine of five hundred dollars for each separate offense.
Section 3 – Under 21 years of age and visible intoxication
B&P states Section 3 establishes that any person under age 21 who purchases or attempts to 
purchase, or has in his or her possession, any marijuana or marijuana, or who is visibly in an 
intoxicated condition, is guilty of a misdemeanor unless such person is able to purchase or 
possess marijuana or a marijuana-infused product under Article XIV, Section 1 of the 
Constitution of Missouri. A first violation of this section shall be punishable as a Class D 
Misdemeanor of a fine not to exceed five hundred dollars. Any subsequent violation of this 
section shall be punishable as a class A misdemeanor subject to up to one year in jail and a fine 
not to exceed $2,000.
Section 4 – Misrepresenting age on an ID to be of legitimate age
B&P states Section 4.3 details that any person who changes or misrepresents a driver’s license or 
identification card as legitimate shall be deemed guilty of a misdemeanor and upon conviction 
shall be subject to a fine of not more than one thousand dollars or confinement for not more than 
one year, or both.
Therefore, these provisions in Sections 1, 2, 3, and 4 could increase total state revenue by an 
unknown amount beginning August 28, 2022.
Oversight notes that violations of Sections 1 through 4 could result in fines or penalties. 
Oversight also notes 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. For simplicity, Oversight will 
not reflect the possibility that fine revenue paid to school districts may act as a subtraction in the 
foundation formula. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 35 of 49
April 11, 2022
HWC:LR:OD
Bill as a whole
Officials from the Department of Public Safety, Missouri Veterans Commission (MVC) 
defers to DOR regarding the amount of the fiscal impact of this proposal.
Officials from the University of Central Missouri assume the proposal would have an 
indeterminate fiscal impact on their organization due to uncertainty of application.
Oversight does not have any information to the contrary. However, Oversight assumes any 
impact that might be incurred by the University would be minimal and absorbable within current 
funding levels.
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 Missouri Office of Prosecution Services (MOPS) state there is no 
measurable fiscal impact to MOPS. The enactment of new crimes [191.255, Section 1, Section 2, 
Section 3 and Section 4] creates additional responsibilities for county prosecutors and the circuit 
attorney which may in turn result in additional costs which are difficult to determine.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect no 
fiscal impact for this proposal for MOPS.
Officials from the Department of Commerce and Insurance, the Department of Economic 
Development, the Department of Elementary and Secondary Education, the Department of 
Mental Health, the Department of Labor and Industrial Relations, the Department of 
Natural Resources, the Department of Public Safety – Alcohol and Tobacco Control
Department of Social Services, the Missouri Department of Conservation, the Missouri 
Department of Transportation, the Office of Administration, the City of Springfield, the 
City of Urich, the Newton County Health Department, the St. Louis County Health 
Department, the Phelps County Sheriff’s Department, the Kansas City Police Department, 
the St. Joseph Police Department, the St. Louis County Police Department, the Sheriff’s 
Retirement System, the St. Joseph Policemen’s Pension FundSt. Louis City 
Firefighter’s Pension FundHermann Area Hospital District, Missouri State University, 
the Office of the State Treasurer, the Missouri House of Representatives and the Missouri 
Senate 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.   L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 36 of 49
April 11, 2022
HWC:LR:OD
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.
Oversight only reflects the responses received from state agencies and political subdivisions; 
however, other cities, various county officials, local public health agencies, nursing homes, 
sheriffs’ departments, police departments, first responder retirement plans, schools, hospitals, 
and colleges and universities 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. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 37 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
GENERAL 
REVENUE FUND
Income – DHSS 
(§191.255) - Penalty 
income p. 5-6
$0 to Unknown$0 to Unknown$0 to Unknown$0 to Unknown
Income – DOR 
(§196.3021) – sales tax 
on recreational cannabis  
p. 12-16
$6,813,073 to 
$12,982,074
$11,138,314 to 
$17,309,432
$11,138,314 to 
$17,309,432
$11,138,314 to 
$17,309,432
Income – MDA 
(§196.3036) – Scale 
inspection fees p. 16-20$220,647$220,647$220,647$220,647
Revenue reduction – 
DOR (§143.121) – 
marijuana business 
deductions p. 5(Unknown)(Unknown)(Unknown)(Unknown)
Revenue reduction – 
DOR (§191.255) – 
reduction in collections 
p. 6(Unknown)(Unknown)(Unknown)(Unknown)
Revenue reduction – 
OSCA (§§557.059, 
577.001, 579.015, & 
610.135) – reduction in 
court fees collected  
p. 24-29
(Unknown, 
greater than 
$250,000)
(Unknown,
greater than 
$250,000)
(Unknown, 
greater than 
$250,000)
(Unknown, 
greater than 
$250,000) L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 38 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
GENERAL 
REVENUE (continued)
Savings – DOC 
(§§191.255, 557.059, 
and 579.015) p. 22-26
   Personal service$548,998$508,820$790,640$896,038  Fringe benefits$377,666$350,028$543,894$616,405  Equipment and 
expense$49,181$46,241$72,919$86,378
   Reduction in 
incarceration and P&P 
expenditures$350,838$404,165$541,076$574,194
Total Savings – DOC$1,326,683$1,309,254$1,948,529$2,173,015    FTE Change – DOS-17 FTE-13 FTE-20 FTE-22 FTESavings – SPD 
(§579.015) – reduction 
in number of cases p. 30
Less than 
$250,000
Less than 
$250,000
Less than 
$250,000
Less than 
$250,000
Costs – DPS, MHP 
(§195.017) – 
Repurchase canines and 
training p. 7($150,000)$0$0$0
Costs – DOR 
(§196.3021) p. 12-16
   Personal service($114,625)($139,550)($141,581)($144,566)  Fringe benefits($84,997)($102,633)($102,857)($104,180)  Equipment and 
expense($33,388)($1,473)($1,509)($1,625)
   ITSD/marijuana 
database
($29,549)$0$0$0  Marijuana stamps($204,167)($251,125)($257,403)($277,195)Total Costs – DOR($466,726)($494,781)($503,350)($527,566)    FTE Change – DOR4 FTE4 FTE4 FTE4 FTE L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 39 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
GENERAL 
REVENUE (continued)
Costs – MDA 
(§196.3036) p. 16-20
   
   Personal service($239,073)($292,625)($298,478)
(More than 
$298,478)
   
   Fringe benefits($166,453)($201,667)($203,629)
(More than 
$203,629)
   Equipment and 
expense($346,091)($120,932)($123,350)
(More than 
$123,350)Total Costs – MDA($751,617)($615,224)($625,457)
(More than 
$625,457)
     FTE Change - MDA7 FTE7 FTE7 FTE7 FTECosts – DHEWD 
(§5573.059) p. 29-30
Could 
exceed…
Could 
exceed…
Could 
exceed…
Could 
exceed…
   Personal service($38,614)($47,264)($48,209)($51,160)  Fringe benefits($25,274)($30,640)($30,957)($31,884)  Equipment and 
expense($12,723)($3,261)($3,327)($3,530)
Total Costs - DHEWD(Could exceed 
$76,611)
(Could exceed 
$81,165)
(Could exceed 
$82,493)
(Could exceed 
$86,574)
     FTE Change – 
DHEWD
Could exceed 1 
FTE
Could exceed 1 
FTE
Could exceed 1 
FTE
Could exceed 1 
FTE
ESTIMATED NET 
EFFECT ON THE 
GENERAL 
REVENUE FUND
Less than 
$12,393,156
Less than 
$17,398,163
Less than 
$18,017,308
Less than 
$18,213,497
Estimated Net FTE 
Change on the General 
Revenue FundUp to -5 FTEUp to -1 FTEUp to -8 FTEUp to -10 FTE L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 40 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
CRIMINAL 
RECORDS SYSTEM 
FUND (0671)
Income – MHP 
(§§195.006, 195.017, 
195.815 and 196.3028) – 
Background check fees 
p. 7UnknownUnknownUnknownUnknown
ESTIMATED NET 
EFFECT ON THE 
CRIMINAL 
RECORDS SYSTEM 
FUNDUnknownUnknownUnknownUnknown
CANNABIS 
FREEDOM FUND
Income – DOR 
(§196.3021) – 4.225% 
recreational cannabis tax 
p. 12-16
$9,172,577 to 
$17,965,154
$14,797,867 to 
$23,953,539
$14,797,867 to 
$23,953,539
$14,797,867 to 
$23,953,539
Income – DHSS 
(§196.3036) – 
application fees, 
conditional licenses and 
transport fees p. 17-19$72,686,000$84,644,000$96,630,000
Could exceed 
$96,630,000
Income – DHSS 
(§196.3009) – Fines p.7UnknownUnknownUnknownUnknown L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 41 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
CANNABIS 
FREEDOM FUND 
(continued)
Costs – DHSS 
(§§196.3000 – 
196.3048) p. 16-19
   Personal service($38,052,250)($46,119,363)($46,580,557)($46,701,403)  Fringe benefits($22,212,199)($25,143,777)($26,988,174)($27,032,090)  Equipment and 
expense
($4,783,952)($642,060)($658,112)($708,714)  Extensive travel($4,849,440)($5,964,811)($6,113,931)($6,584,035  Seed-to-Sale system($229,000)($229,000)($229,000)($229,000)  Online registry($281,000)($181,000)($181,000)($181,000)  Workforce 
development
($50,000)($50,000)($50,000)($50,000)  Labeling capability in 
STS
($120,000)($120,000)($120,000)($120,000)  Rent($772,800)($950,544)($974,308)($1,049,223)Total Costs - DHSS($71,350,671)($79,400,555)($81,895,082)($82,655,465)    FTE change - DHSS800 FTE800 FTE800 FTE800 FTEESTIMATED NET 
EFFECT ON THE 
CANNABIS 
FREEDOM FUND*
Could exceed 
$10,507,906 to 
$19,300,483
Could exceed 
$20,041,312 to 
$29,196,984
Could exceed 
$29,532,785 to 
$38,688,457
Could exceed 
$28,772,402 to 
$37,928,074
Estimated Net FTE 
Change on the Cannabis 
Freedom Fund800 FTE800 FTE800 FTE800 FTE
*Provisions of §196.3021.3 provide that any moneys remaining in the Cannabis Freedom Fund 
after all costs have been paid shall be disbursed as follows: 10% each to the deputy sheriff salary 
implementation fund (§57.278), the peace officer standards and training commission fund 
(§590.178), and the state fire marshal for disbursement of grants to volunteer fire protection 
associations;15% to establish and administer a work training program (§557.059.3); and 5% to 
assist with small business loans (§196.3047). For simplicity, Oversight is not showing the 
transfers out of the Cannabis Freedom Fund to the funds previously listed. L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 42 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government 
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
SCHOOL DISTRICT 
TRUST FUND (0688)
Income – DOR 
(§196.3021) – sales tax 
on recreational cannabis 
p. 12-16
$2,171,024 to 
$4,327,358
$3,712,771 to 
$5,769,811
$3,712,771 to 
$5,769,811
$3,712,771 to 
$5,769,811
ESTIMATED NET 
EFFECT ON THE 
SCHOOL DISTRICT 
TRUST FUND
$2,171,024 to 
$4,327,358
$3,712,771 to 
$5,769,811
$3,712,771 to 
$5,769,811
$3,712,771 to 
$5,769,811
CONSERVATION 
COMMISSION FUND 
(0609)
Income – DOR 
(§196.3021) – sales tax 
on recreational cannabis 
p. 12-16
$271,378 to 
$540,919
$464,096 to 
$721,226
$464,096 to 
$721,226
$464,096 to 
$721,226
ESTIMATED NET 
EFFECT ON THE 
CONSERVATION 
COMMISSION FUND$271,378 to 
$540,919
$464,096 to 
$721,226
$464,096 to 
$721,226
$464,096 to 
$721,226 L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 43 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – 
State Government 
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
PARK, SOIL & 
WATER FUND
Income – DOR 
(§196.3021) – sales tax 
on recreational cannabis  
p. 12-16
$271,102 to 
$432,736
$371,277 to 
$576,981
$371,277 to 
$576,981
$371,277 to 
$576,981
ESTIMATED NET 
EFFECT ON THE 
PARK, SOIL & 
WATER FUND
$271,102 to 
$432,736
$371,277 to 
$576,981
$371,277 to 
$576,981
$371,277 to 
$576,981
HIGHWAY FUND 
(0644)
Costs – DPS, MHP 
(§§544.186, 577.059 & 
610.135) p. 30Up to…Up to…Up to…Up to…
   Personal service($198,640)($240,752)($243,159)($250,527)  Fringe benefits($176,591)($214,029)($216,168)($222,719)  Equipment and 
expense($22,318)($5,843)($5,988)($6,448)
Total Costs – DPS, 
MHP
(Up to 
$397,549)
(Up to 
$460,624)
(Up to 
$465,315)
(Up to 
$479,694)
     FTE Change – DPS, 
MHPUp to  6 FTEUp to  6 FTEUp to  6 FTEUp to  6 FTE
ESTIMATED NET 
EFFECT ON THE 
HIGHWAY FUND
(Up to 
$397,549)
(Up to 
$460,624)
(Up to 
$465,315)
(Up to 
$479,694)
Estimated Net FTE 
Change on the Highway 
FundUp to  6 FTEUp to  6 FTEUp to  6 FTEUp to  6 FTE L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 44 of 49
April 11, 2022
HWC:LR:OD
FISCAL IMPACT – Local 
Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully 
Implemented 
(FY 2028)
LOCAL GOVERNMENTS Income – Cities and Counties 
(§196.3021) – sales tax on 
recreational cannabis p. 12-16
$9,172,577 
to 
$17,439,253
$14,962,468 
to 
$23,252,337
$14,962,468 
to 
$23,252,337
$14,962,468 
to 
$23,252,337
Income – School Districts 
(Sections 1, 2, 3, and 4) – fine 
revenue p. 32UnknownUnknownUnknownUnknown
ESTIMATED NET EFFECT 
ON LOCAL 
GOVERNMENTS
Greater 
than 
$9,172,577 
to 
$17,439,253
Greater 
than  
$14,962,468 
to 
$23,252,337
Greater 
than 
$14,962,468 
to 
$23,252,337
Greater 
than 
$14,962,468 
to 
$23,252,337
FISCAL IMPACT – Small Business
This proposal could have a significant fiscal impact on a variety of small business that go into 
the recreational marijuana industry and any small business in the hospitality industry.
FISCAL DESCRIPTION
This bill establishes the "Cannabis Freedom Act". 
Under the provisions of this bill, taxpayers are authorized to conduct business under the medical 
cannabis provisions of the Constitution of Missouri or under the provisions of this bill may 
deduct the amount that would have been deducted from the computation of the taxpayer's federal 
taxable income if such a deduction were not disallowed under 26 U.S.C. Section 280E, as in 
effect on January 1, 2022, because of the status of marijuana as a controlled substance under 
federal law (§143.121). 
No state agency shall disclose to the federal government, any federal government employee, or 
any unauthorized third party, the statewide list or any individual information of persons who 
have applied for or obtained a qualifying patient identification card, a qualifying patient 
cultivation identification card, or a primary caregiver identification card, as those cards are 
described in Article XIV, Section 1 of the Constitution of Missouri relating to the right to access 
medical marijuana (§191.255).  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 45 of 49
April 11, 2022
HWC:LR:OD
This bill removes marijuana and tetrahydrocannabinols (THC), as defined, from the list of 
controlled substances and removes marijuana from the offenses of possession, delivery, 
distribution, manufacture, and trafficking of a controlled substance (§§195.006, 195.017, 
579.015, 579.020, 579.030, 579.055, 579.065, and 579.068). 
Currently, all owners, officers, managers, contractors, employees, and other support staff of 
licensed or certified medical marijuana facilities must submit fingerprints to the State Highway 
Patrol for state and federal criminal background checks. Additionally, the Department of Health 
and Senior Services may require fingerprint submissions of owners, officers, managers, 
contractors, employees, and other support staff for licensure authorizing that person to own or 
work at a medical marijuana facility. This bill adds that the Cannabis Enforcement Authority will 
require all officers, managers, contractors, employees, and other support staff of marijuana 
business, and the owners of the businesses, to be subject to such fingerprinting (§195.815).
 These sections establish the "Cannabis Freedom Act". The Cannabis Enforcement Authority 
shall promulgate all necessary rules and regulations for the administration of these sections. The 
provisions of these sections shall not restrict the rights of employers to maintain a drug- and 
alcohol-free workplace or require any employer to allow or accommodate the use of marijuana. 
These provisions shall not allow the operation of motor vehicles while impaired by marijuana, or 
allow individuals under the age of 21 to purchase marijuana. These provisions do not restrict the 
rights of employers, schools, care facilities, or correctional facilities to prohibit or regulate 
conduct otherwise allowed under these provisions.
These provisions legalize the possession and consumption of marijuana for personal use, allow 
for anyone 21 years of age or older to cultivate and possess no more than six mature, flowering 
marijuana plants for noncommercial use, and allows for the sale of marijuana products to 
consumers 21 years of age or older. The use or possession of marijuana shall not impede a 
person's legal right to possess a firearm. It shall be lawful for a person 21 years of age or older to 
transfer or gift marijuana to another adult or for a parent or guardian to transfer or gift marijuana 
to a person under 21 years of age if that person has a recommendation by a physician.
Marijuana farmers, manufacturers, processors, and distributors shall not be subject to special 
zoning requirements or licensing fees.
Asset or civil forfeiture shall no longer be used in the state in association with legal marijuana 
cultivation, use, sale, or possession. A tax shall be levied on the sale of marijuana and marijuana 
products at a rate not to exceed 4.225%. All tax revenues collected shall be deposited into the 
"Cannabis Freedom Fund", as established under the bill, and used to pay for costs associated 
with the implementation, administration, and enforcement of the provisions of these sections. 
Excess moneys remaining in the Fund shall be divided in proportions specified in the bill 
between deputy sheriffs, Peace Officer Standards and Training (POST) Commission, and 
volunteer fire protection associations, as well as to provide help for small business loans and to 
the Department of Health and Senior Services to establish and administer a work training  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 46 of 49
April 11, 2022
HWC:LR:OD
program. These provisions shall not prohibit any state or local sales taxes. Any sale of marijuana 
for medical use shall not be subject to the tax established herein.
These provisions establish the "Cannabis Enforcement Authority", under the Department of 
Health and Senior Services. The Authority shall have oversight and auditing responsibilities and 
shall implement an inventory tracking system. The Authority shall require business records be 
kept for all transactions. Inventory shall be tracked and updated after each individual sale and 
reported to the Authority. The Authority shall require a seed-to-sale tracking system that tracks 
marijuana from either the seed or immature plant stage until the marijuana or marijuana product 
is sold to a consumer, as described in the bill.
These provisions establish the marijuana business license, which includes annual licenses for the 
following categories: marijuana commercial growers, marijuana processors, and marijuana 
retailers. Grower, processor, and retailer, prospective licensees must submit a comprehensive 
application for an annual license.
The Authority shall develop a website for marijuana business applications. Applications must 
meet general requirements as provided in the bill and all applicants shall undergo a background 
check. The Authority shall review, approve or reject, and mail such approval or rejection within 
90 days of receipt of the application.
A licensed commercial grower shall sell only at the wholesale level to a licensed retailer, grower, 
or processor. Licensed commercial growers and processors shall complete and submit monthly 
yield and sales reports to the Authority, as described in the bill. The Authority shall have 
oversight and auditing responsibility to ensure all marijuana grown by a licensed commercial 
grower is accounted for and all marijuana processors producing products with marijuana as an 
additive are in compliance with the requirements of the bill.
In addition to the application requirements established under these provisions, licensed 
commercial growers and processors shall demonstrate that they have a bank account and shall 
provide growth estimates, processing estimates, and predicted electrical and water usage to grow 
or process marijuana.
The Authority may issue different kinds of processor licenses based on the level of risk posed by 
the type of processing being conducted as either a nonhazardous marijuana processor license or a 
hazardous marijuana processor license. The Authority shall establish standards for licensed 
processors for the preparation of edible marijuana products.
A marijuana transporter license shall allow the holder to transport marijuana from a Missouri-
licensed marijuana retailer, licensed commercial grower facility, or licensed processor facility to 
a Missouri-licensed marijuana retailer, licensed commercial grower facility, or licensed 
processing facility. All marijuana or marijuana products shall be transported in a locked 
container labeled as "Marijuana or Derivative". No business may possess, sell, or transfer 
marijuana without a valid transporter license. A transporter licensee may contract with multiple  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 47 of 49
April 11, 2022
HWC:LR:OD
marijuana businesses. A transporter licensee shall use the seed-to-sale tracking system 
promulgated by the Authority. The Authority shall issue transporter agent licenses to individual 
agents, employees, and owners of a transporter license in order for that individual to qualify to 
transport marijuana. Such agent license shall be subject to an annual fee of $100 and shall be 
valid for three years or until the transporter licensee alerts the Authority that the agent is no 
longer employed by the licensee. The transportation and inventory tracking of marijuana and 
marijuana products shall comply with requirements as provided for in the bill.
In addition to failure to meet the requirements established under the bill, grounds for denial for a 
temporary or annual license shall include: unlawful sales or purchases, fraudulent acts, falsified 
records or misrepresentation to the Authority, grossly inaccurate or fraudulent reporting, 
threatening or harming any marijuana patient, caregiver, consumer, medical practitioner, or 
employee of the Authority, use of prohibited substances for processing in residential areas, and 
endangering public health and safety.
If marijuana is decriminalized on a federal level, any licensed marijuana business in the state 
may engage in interstate commerce, and the state may enter into any interstate compact or 
agreement relating to marijuana (§§ 196.3000 to 196.3048).
No bank, trust company, association, or credit union shall be prohibited, penalized, have any 
adverse action taken against it, or otherwise discouraged from providing financial services to 
facilities licensed under the provisions of this bill or under Article XIV, Section 1 of the 
Constitution of Missouri or to any service provider to such a facilities.
Furthermore, banks, trust companies, associations, and credit unions are permitted to receive the 
savings of, make loans to, deposit the funds of, and invest funds of customers who operate as a 
facility licensed under the provisions of this bill or under Article XIV, Section 1 of the 
Constitution of Missouri. No such institution acting pursuant to this bill shall be liable under 
state law for contracting with such facilities (§§362.105, 369.144, 369.326, 370.064, and 
370.070).
Any conviction, remaining sentence, ongoing supervision, or unpaid court-ordered restitution of 
any person incarcerated, on probation or parole, or other form of community supervision 
resulting from a conviction of a nonviolent marijuana-related offense shall have such conviction, 
remaining sentence, ongoing supervision, or unpaid court-ordered restitution vacated if the 
person files a petition in the court in which the person was convicted of the offense or violation. 
The lawful possession or use of marijuana shall not result in any punitive action with regard to 
probation or parole status. No condition of probation or parole shall consist of restricting the 
possession or use of marijuana, and no revocation or extension of probation or parole shall be 
imposed as a consequence of the lawful possession or use of marijuana.
Any person who was convicted of a nonviolent marijuana-related offense may petition the court 
to have such offense expunged so long as the offense or violation was prosecuted under the 
jurisdiction of a Missouri court and all nonviolent marijuana-related offenses are listed in the  L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 48 of 49
April 11, 2022
HWC:LR:OD
petition of expungement (§§559.023, 557.059, and 610.135). This bill contains penalty 
provisions.
This legislation is not federally mandated and would not duplicate any other program, but would 
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Attorney General’s Office
Department of Commerce and Insurance
Department of Economic Development
Department of Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Health and Senior Services
Department of Mental Health
Department of Natural Resources
Department of Corrections
Department of Labor and Industrial Relations
Department of Revenue
Department of Public Safety –
Alcohol and Tobacco Control
Missouri Highway Patrol 
Missouri Veterans Commission
Department of Social Services
Missouri Department of Agriculture
Missouri Department of Conservation
Missouri Department of Transportation
Office of Administration
Office of Administration - Budget and Planning
Office of the Secretary of State
Office of the State Public Defender
City of Springfield
City of Kansas City
City of Urich
Newton County Health Department
St. Louis County Health Department
Phelps County Sheriff’s Department
Kansas City Police Department
St. Joseph Police Department
St. Louis County Police Department
Kansas City Firefighter’s Pension System
Sheriff’s Retirement System
St. Joseph Policemen’s Pension Fund
St. Louis City Firefighter’s Pension Fund L.R. No. 5400H.03C 
Bill No. HCS for HB 2704  
Page 49 of 49
April 11, 2022
HWC:LR:OD
Hermann Area Hospital District
Missouri State University
University of Central Missouri
Office of the State Treasurer
Missouri House of Representatives
Joint Committee on Administrative Rules
Missouri Senate
Missouri Office of Prosecution Services
Office of the State Courts Administrator
Julie MorffRoss StropeDirectorAssistant DirectorApril 11, 2022April 11, 2022