COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:5608H.03P Bill No.:Perfected HCS for HJR 131 Subject:Constitutional Amendments; Elections Type:Original Date:March 30, 2022Bill Summary:This proposal modifies constitutional provisions for voter eligibility and voting procedures. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025 General Revenue* $0 or (More than $7,000,000) $0$0Total Estimated Net Effect on General Revenue $0 or (More than $7,000,000)$0$0 *The potential fiscal impact of “(More than $7,000,000)” would be realized only if a special election were called by the Governor to submit this joint resolution to voters. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 5608H.03P Bill No. Perfected HCS for HJR 131 Page 2 of March 30, 2022 SAK:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on FTE 000 ☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0 or (Unknown)*$0 or (Unknown)$0 or (Unknown) *Transfer out and transfer in net to zero if the Governor calls a special election. L.R. No. 5608H.03P Bill No. Perfected HCS for HJR 131 Page 3 of March 30, 2022 SAK:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Office of the Secretary of State (SOS) assume, each year, a number of joint resolutions that would refer to a vote of the people a constitutional amendment and bills that would refer to a vote of the people the statutory issue in the legislation may be considered by the General Assembly. Unless a special election is called for the purpose, Joint Resolutions proposing a constitutional amendment are submitted to a vote of the people at the next general election. Article XII section 2(b) of the Missouri Constitution authorizes the Governor to order a special election for constitutional amendments referred to the people. If a special election is called to submit a Joint Resolution to a vote of the people, section 115.063.2 RSMo requires the state to pay the costs. The cost of the special election has been estimated to be $7 million based on the cost of the 2020 Presidential Preference Primary. The Secretary of State’s office is required to pay for publishing in local newspapers the full text of each statewide ballot measure as directed by Article XII, Section 2(b) of the Missouri Constitution and Section 116.230-116.290, RSMo. Funding for this item is adjusted each year depending upon the election cycle. A new decision item is requested in odd numbered fiscal years and the amount requested is dependent upon the estimated number of ballot measures that will be approved by the General Assembly and the initiative petitions certified for the ballot. In FY 2014, the General Assembly changed the appropriation so that it was no longer an estimated appropriation. For the FY22 petitions cycle, the SOS estimates publication costs at $70,000 per page. This amount is subject to change based on number of petitions received, length of those petitions and rates charged by newspaper publishers. The Secretary of State’s office will continue to assume, for the purposes of this fiscal note, that it should have the full appropriation authority it needs to meet the publishing requirements. Because these requirements are mandatory, they reserve the right to request funding to meet the cost of their publishing requirements if the Governor and the General Assembly again change the amount or continue to not designate it as an estimated appropriation. Oversight has reflected, in this fiscal note, the state potentially reimbursing local political subdivisions the cost of having this joint resolution voted on during a special election in fiscal year 2023. This reflects the decision made by the Joint Committee on Legislative Research that the cost of the elections should be shown in the fiscal note. The next scheduled statewide primary election is in August 2022 and the next scheduled general election is in November 2022 (both in FY 2023). It is assumed the subject within this proposal could be on one of these ballots; L.R. No. 5608H.03P Bill No. Perfected HCS for HJR 131 Page 4 of March 30, 2022 SAK:LR:OD however, it could also be on a special election called for by the Governor (a different date). Therefore, Oversight will reflect a potential election cost reimbursement to local political subdivisions in FY 2023. The SOS also assumes many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact for this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that this is a small amount and does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what the office can sustain with its core budget. Therefore, the SOS reserves the right to request funding for the cost of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the governor. Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could require additional resources. Officials from the Kansas City Board of Elections assume it costs $625,000 to conduct an election in the Kansas City portion of Jackson County. The State would be responsible for its prorata share based on voter registration. For audit and testing purposes, two permanent staff would need to be hired at $40,000 each, including benefits. Additional programming or service by election vendors may be needed at an unknown cost. Officials from the St. Louis County Board of Elections assume the proposal will have no fiscal impact on their organization. Oversight notes that Section 25 requires every voting machine used to conduct an election in the state of Missouri shall be tested and certified as secure prior to each election in which the machine will be used. Oversight also notes this proposal is contingent on a voter approved amendment to the Constitution. Oversight will show the impact as either $0 (Constitutional amendment is not approved by voters) to a potential cost to local election authorities based on Kansas City Board of Elections response above. Officials from the Missouri Senate and Missouri House of Representatives both 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. 5608H.03P Bill No. Perfected HCS for HJR 131 Page 5 of March 30, 2022 SAK:LR:OD Oversight only reflects the responses received from state agencies and political subdivisions; however, other local election authorities and county clerks 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. FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUE FUNDTransfer Out – SOS – reimbursement of Local Election Authorities election costs if special election is called for by the Governor $0 or (More than $7,000,000)$0$0 ESTIMATED NET EFFECT ON GENERAL REVENUE FUND $0 or (More than $7,000,000)$0$0 L.R. No. 5608H.03P Bill No. Perfected HCS for HJR 131 Page 6 of March 30, 2022 SAK:LR:OD FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025LOCAL POLITICAL SUBDIVISIONS Transfer In - Local Election Authorities reimbursement of election costs by State for a special election $0 or More than $7,000,000$0$0 Costs – Local Election Authorities Testing and certifying voting machines $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - Local Election Authorities cost of a special election if called for by the Governor $0 or (More than $7,000,000)$0$0 ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This joint resolution modifies constitutional provisions for voter eligibility and voting procedures. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. SOURCES OF INFORMATION Office of the Secretary of State Missouri House of Representatives Missouri Senate St. Louis County Board of Elections Kansas City Board of Elections L.R. No. 5608H.03P Bill No. Perfected HCS for HJR 131 Page 7 of March 30, 2022 SAK:LR:OD Julie MorffRoss StropeDirectorAssistant DirectorMarch 30, 2022March 30, 2022