COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:5732H.02C Bill No.:HCS for HJR 142 Subject:Health Care; Suicide; Department of Health and Senior Services; Veterans Type:Original Date:April 3, 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 $7,000,000)$0 $0 Total Estimated Net Effect on General Revenue $0 or (More than $7,000,000)$0 $0 *Election costs (more than $7M in FY 2023) would only be incurred if the Governor called a special election. 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. 5732H.02C Bill No. HCS for HJR 142 Page 2 of April 3, 2022 HWC: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*$0$0 *Transfer-in and reimbursement of election costs net to $0 and only occur if a special election is called by the Governor. L.R. No. 5732H.02C Bill No. HCS for HJR 142 Page 3 of April 3, 2022 HWC:LR:OD FISCAL ANALYSIS ASSUMPTION HJR – Medical marijuana 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 partially 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 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. The Department of Revenue will defer to the MO Veterans Commission potential impact. 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 L.R. No. 5732H.02C Bill No. HCS for HJR 142 Page 4 of April 3, 2022 HWC:LR:OD 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. 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. SEQ CHAPTER \h 1Oversight 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 Health and Senior Services, the Department of Mental Health, the Department of Public Safety - Missouri Veterans Commission, the Jackson County Election Authority, 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.02C Bill No. HCS for HJR 142 Page 5 of April 3, 2022 HWC:LR:OD 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$0 ESTIMATED NET EFFECT ON THE GENERAL REVENUE FUND $0 or (More than $7,000,000)$0 $0 FISCAL 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 L.R. No. 5732H.02C Bill No. HCS for HJR 142 Page 6 of April 3, 2022 HWC:LR:OD FISCAL IMPACT – Small Business 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 remaining in the account shall be used 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 Jackson County Election Authority Kansas City Election Authority Platte County Election Authority St. Louis County Election Authority Julie MorffRoss StropeDirectorAssistant DirectorApril 3, 2022April 3, 2022