COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5732H.01I Bill No.:HJR 142 Subject:Health Care; Suicide; Department of Health and Senior Services; Veterans Type:Original Date:March 21, 2022Bill Summary:This proposal proposes a constitutional amendment relating to medical
marijuana.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue*
$0 or (More than
$14,184,947)$0 or ($12,767,867)$0 or ($11,650,841)
Total Estimated Net
Effect on General
Revenue
$0 or (More than
$14,184,947)$0 or ($12,767,867)$0 or ($11,650,841)
*Election costs (more than $7M in FY 2023) would only be incurred if the Governor called a
special election. The new 2% cap on Veterans’ Health Care Fund for DHSS’ administrative costs
would only occur if this constitutional amendment is passed by Missouri voters. The fiscal note
assumes expenses beyond the cap would be funded by General Revenue instead of reducing
DHSS’ costs.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Veterans’ Health and
Care* $0$0$0
Total Estimated Net
Effect on Other State
Funds $0$0$0
*Transfer-in from GR and DHSS costs net to $0 and only occur if the constitutional amendment
restricting DHSS costs to 2% of medical marijuana taxes collected is passed.
Numbers within parentheses: () indicate costs or losses. L.R. No. 5732H.01I
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0*$0$0
*Transfer-in and reimbursement of election costs net to $0 and only occur if a special election is
called by the Governor.
FISCAL ANALYSIS
ASSUMPTION
HJR – Medical marijuana
Officials from the Department of Health and Senior Services (DHSS) state the bill makes
changes to Section 1 of Article XIV. The change to Section 1 of Article XIV that would have
fiscal impact on DHSS is in 1.4(2). This language seeks to limit the amount of the Veteran’s
Health and Care Fund that DHSS may use to administer the regulatory requirement of Article
XIV. The limit would be two percent of all taxes and fees generated by the program. DHSS
assumes if passed; this legislation would go into effect on January 1, 2023. Based on current
revenue and expense projections, the limit proposed in this bill would result in operating costs L.R. No. 5732H.01I
Bill No. HJR 142
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exceeding funds available from the Veteran’s Health and Care Fund for the next two years as
follows:
Total revenues for the Fund in FY2023 are projected to be $22,263,902. Two percent of that is
$445,278. Total operating costs are projected to be $15,260,449. This would create a budget
shortfall of approximately $7,184,947 for FY2023 since half of the year would be limited to the
two percent revenue received for fiscal year.
Total revenues for the Fund in FY2024 are projected to be $24,629,105. Two percent of that is
$492,582. Total operating costs are projected to be $13,260,449. This would create a budget
shortfall of approximately $12,767,867 for FY2024.
Total revenues for the Fund in FY2025 are projected to be $30,480,412. Two percent of that is
$609,608. Total operating costs are projected to be $12,260,449. This would create a budget
shortfall of approximately $11,650,841 for FY2025.
DHSS would require appropriation from General Revenue to cover the operating costs not
covered by the Veteran’s Health and Care Fund:
SFY 2023-$7,184,947
SFY 2024-$12,767,867
SFY 2025-$11,650,841
Oversight does not have any information to the contrary. Oversight will reflect a transfer from
the General Revenue Fund (fund assumed to cover the difference between DHHS’ costs and the
new 2% cap) to the Veterans’ Health and Care Fund from $0 or the amount provided by DHSS
to cover costs of operation as the fiscal impact for this agency. This proposal is subject to a vote
of the people and this transfer would only occur should the proposal pass.
Officials from the Department of Revenue (DOR) state the Constitution currently allows for
medical marijuana. Under current law, the Missouri Veterans’ Health and Care Fund was created
in the state treasury to receive the taxes and fees owed under the medical marijuana laws. The
Fund was to be distributed some to the Department of Health and Senior Services (DHSS) to
cover their administrative costs. It also is to be distributed to the MO Veterans Commission for
operations and maintenance and capital improvements of MO Veterans homes.
This proposal would limit the amount of the funding that the DHSS would receive at 2%.
Additionally, it would allow the MO Veterans Commission to use the funding for other uses in
addition to improving the veterans’ homes. This proposal would allow the funding of suicide
prevention programs.
Since this does not change the amount of funding coming into the state from the taxes and fees
this will not have a fiscal impact on total state revenue. However, this could potentially change
the amount that DHSS receives and the Department of Revenue will defer to them for that
potential impact. L.R. No. 5732H.01I
Bill No. HJR 142
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Officials from the Kansas City Election Authority state the cost to conduct an election is the
Kansas City portion of Jackson County and is $625,000. The State would be responsible for their
pro-rata share based on voter registration. Oversight does not have any information to the
contrary. Oversight notes the State would reimburse local election authority costs for a special
election.
Officials from the Office of the Secretary of State (SOS), Elections Division
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 SOS 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 SOS 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, the SOS reserves the right to request funding to meet the cost of its publishing
requirements if the Governor and the General Assembly again change the amount or continue to
not designate it as an estimated appropriation.
Officials from the Office of the Secretary of State (SOS), Administrative Rules Division
notes 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 L.R. No. 5732H.01I
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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 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;
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.
Officials from the Department of Mental Health, the Department of Public Safety - Missouri
Veterans Commission, the Platte County Election Authority and the St. Louis County
Election Authority each assume the proposal will have no fiscal impact on their 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. 5732H.01I
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FISCAL IMPACT – State GovernmentFY 2023
(6 Mo.)
FY 2024FY 2025GENERAL REVENUETransfer-out - SOS - reimbursement of
local election authority election costs if
a special election is called by the
Governor
$0 or (More
than
$7,000,000)
$0$0Transfer-out – to Veterans’ Health and
Care Fund for DHSS medical marijuana
program operation costs in excess of
2% of anticipated medical marijuana
taxes collected (pg. 3,4)
$0 or
($7,184,947)
$0 or
($12,767,867)
$0 or
($11,650,841)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
$0 or (More
than
$14,184,947)
$0 or
($12,767,867)
$0 or
($11,650,841)
VETERANS’ HEALTH AND CARE
FUND (0606)
Income – DHSS – Taxes and fees$21,818,624$24,136,523$29,870,804Transfer-in – from General Revenue –
reimbursement for DHSS Medical
Marijuana program operation costs in
excess of 2% of marijuana taxes
collected (pg. 3,4)
$0 or
$7,184,947
$0 or
$12,767,867
$0 or
$11,650,841 L.R. No. 5732H.01I
Bill No. HJR 142
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FISCAL IMPACT – State GovernmentFY 2023
(6 Mo.)
FY 2024FY 2025VETERANS’ HEALTH AND CARE
FUND (0606) (continued)
Costs – DHSS – capped at 2%($445,278)($492,582)($609,608)Costs – DHSS – Medical marijuana
program operation costs in excess of
2% of marijuana taxes collected
$0 or
($7,184,947)
$0 or
($12,767,867)
$0 or
($11,650,841)
Costs – Program expenditures
(veterans’ homes and suicide
prevention programs($21,373,346)($23,643,941)($29,261,196)
ESTIMATED NET EFFECT ON
VETERANS’ HEALTH AND CARE
FUND
$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
Transfer In - Local Election
Authorities - reimbursement of election
costs by the State for a special election
$0 or More
than
$7,000,000
$0$0
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$0$0
FISCAL IMPACT – Small Business L.R. No. 5732H.01I
Bill No. HJR 142
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No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Currently, funds of the Missouri Veterans' Health and Care Fund under Article XIV of the
Missouri Constitution stand appropriated without further legislative action. Upon voter approval,
this proposed Constitutional amendment would subject disbursements of such funds to
appropriation by the General Assembly.
Further, this Constitutional amendment provides that funds distributed to the Department of
Health and Senior Services under Article XIV may not exceed 2% of the taxes and fees
collected. Use of such funds shall be expanded to provide disbursements for construction of
additional veterans’ homes and suicide prevention.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Health and Senior Services
Department of Mental Health
Department of Revenue
Department of Public Safety – Missouri Veterans Commission
Office of the Secretary of State
Kansas City Election Authority
Platte County Election Authority
St. Louis County Election Authority
Julie MorffRoss StropeDirectorAssistant DirectorMarch 21, 2022March 21, 2022