COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4622H.03C Bill No.:HCS for SB 984 Subject:Lakes, Rivers and Waterways; Department of Natural Resources; Political
Subdivisions; Water Resources and Water Districts; Education, Elementary And
Secondary
Type:Original Date:May 9, 2022Bill Summary:This proposal creates provisions relating to environmental protection.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
General
Revenue*
(Unknown, could
exceed
$3,752,559)
(Unknown,
could exceed
$3,807,714)
(Unknown,
could exceed
$3,815,970)
(Unknown, could
exceed
$3,824,128)
Total Estimated
Net Effect on
General
Revenue
(Unknown,
could exceed
$3,752,559)
(Unknown,
could exceed
$3,807,714)
(Unknown,
could exceed
$3,815,970)
(Unknown,
could exceed
$3,824,128)
*§256.800 - Subject to appropriation. Oversight assumes an appropriation from General
Revenue to the new Flood Resiliency Improvement Fund, if any, would exceed the $250,000
threshold.
*§166.070 - Subject to appropriation. Oversight notes this total does not include any
remediation costs (filtration, replace drinking water outlets, replace pipes, etc.). Also, Oversight
assumes some of the testing & remediation efforts could potentially utilize federal funding.
Numbers within parentheses: () indicate costs or losses. L.R. No. 4622H.03C
Bill No. HCS for SB 984
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May 9, 2022
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ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
Geologic
Resources Fund
$0$0$0$269,566Flood Resiliency
Improvement
Fund*
$0$0$0$0Total Estimated
Net Effect on
Other State
Funds
$0$0$0$269,566
*Transfer in and costs net to zero.
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
Federal Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)Total Estimated
Net Effect on
All Federal
Funds
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
General RevenueCould exceed
9 FTE
Could exceed
9 FTE
Could exceed
9 FTE
Could exceed
9 FTE
Total Estimated
Net Effect on
FTE
Could exceed
9 FTE
Could exceed
9 FTE
Could exceed
9 FTE
Could exceed
9 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. L.R. No. 4622H.03C
Bill No. HCS for SB 984
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May 9, 2022
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ESTIMATED NET EFFECT ON LOCAL FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
Local
Government
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
FISCAL ANALYSIS
ASSUMPTION
Due to time constraints, Oversight was unable to receive some agency responses in a timely
manner and performed limited analysis. Oversight has presented this fiscal note on the best
current information that we have or on information regarding a similar bill(s). Upon the receipt
of agency responses, Oversight will review to determine if an updated fiscal note should be
prepared and seek approval to publish a new fiscal note.
§99.847 – TIF Projects and Flood Plains
Oversight assumes this amendment will not have a direct fiscal impact on the state.
§160.077 – Get the Lead Out of School Drinking Water Act
Officials from the Department of Health and Senior Services (DHSS) assume the following
regarding this proposal:
Section 160.077 of the proposed legislation would create the “Get the Lead Out of School
Drinking Water Act” which would create lead testing requirements for certain schools, including
early childhood education programs, that receive state funding.
Section 160.077.4(8) would require school districts to submit annual testing results to the
Department of Health and Senior Services.
Section 160.077.5 would make DHSS responsible for determining the entities that may conduct
testing and analyze the results.
Section 160.077.6 would require the Department of Natural Resources (DNR) make
apportionments available to school districts, with assistance from DHSS and the Department of
Elementary and Secondary Education (DESE). L.R. No. 4622H.03C
Bill No. HCS for SB 984
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Section 160.077.7 would require DHSS to publish a biennial report on the findings from water
testing as reported to DHSS under Section 160.077.4(8), which would be published on DNR’s
website.
Section 160.077.8 would require DHSS to ensure public schools comply with the provisions of
the Act.
Section 160.077.11 would allow DHSS to promulgate rules.
To administer the provisions of the legislation DHSS would need to establish a new program,
requiring:
required by subsection eight, to provide schools technical assistance on testing and
interpreting results, and provide any needed trainings to schools and school staff. Each
position would have an estimated annual salary of $50,213 based on the average annual
salary of an Environmental Program Analyst in the Division of Community and Public
Health (DCPH) as of March 2022.
and education about the program, and assist schools with communicating results to the
public. Each position would have an estimated annual salary of $47,616 based on the
average annual salary of a Public Health Program Specialist in the DCPH as of March
2022.
with an estimated annual salary of $67,256 based on the average annual salary of an
Environmental Program Supervisor in the DCPH as of March 2022.
managing phone calls, letter communications, and travel arrangements. This position
would have an estimated annual salary of $32,573 based on the average annual salary of
an Administrative Support Assistant in the DCPH as of March 2022.
As the proposed legislation requires DNR to make apportionments available to schools, DHSS
assumes that the funds apportioned to schools would be an expense within DNR rather than
DHSS, and any needed fiscal staff would be within DNR.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by the DHSS.
Officials from the Department of Natural Resources (DNR) state the following:
Section 160.077.6
To meet the requirements of 160.077.6, additional FTEs are anticipated in the Financial
Assistance Center. However, without knowing the size of the appropriation or how many schools
would require funding, the Department is unable to estimate the exact number of FTEs that will
be needed at this time and currently have no established funding for these activities. Positions L.R. No. 4622H.03C
Bill No. HCS for SB 984
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will be needed to develop a new grant program, solicit and review applications, oversee the
award of grant funds to recipients, issue grant payments, and to coordinate with staff in the
Public Drinking Water Branch and regional offices who handle monitoring, compliance and field
responses related to the law.
Oversight will reflect an “Unknown” cost to DNR for implementation of the grant program.
In response to a similar proposal from 2022 (HCS for HB 2532), officials from the Department
of Elementary and Secondary Education and Office of Administration - Administrative
Hearing Commission each assumed the proposal would 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.
In response to a similar proposal from 2022 (HCS for HB 2532), officials from the Kansas City
Public Schools (KCPS) indicated they did 290 samples over 38 sites at a cost of $133 per
sample last year. This was for lead and copper. This was doing an average of 7.6 tests at 38
locations. Not every outlet was tested. KCPS paid an average of approximately $1,025 per
location for the testing only. To test every outlet the cost per location would be about $2,700 per
location. For all locations for KCPS that would cost $102,500 each testing round.
Remediation costs will vary by building with older/larger buildings coming at a higher cost.
Replacement of lines is one remediation. There will not be issues in buildings constructed after
1986. That is when the mandate for lead free solder was put in place. If the lines are too costly
to replace, a school district could filter at that line.
Oversight assumes this proposal requires school districts to test drinking water outlets for lead
levels and to engage in remediation efforts if elevated lead levels are discovered. Oversight
assumes this proposal provides additional funding for school districts to fund the filtration,
testing, and remediation of drinking water systems, subject to appropriation.
In addition, this proposal allows school districts to seek federal funds for reimbursement for
compliance incurred under this proposal. Oversight will show a range of impact to Federal
Funds of $0 (none available) to an unknown negative transfer from Federal Funds to school
districts.
Oversight notes, per a report by the U.S. Government Accountability Office (GAO) titled Lead
Testing of School Drinking Water Would Benefit from Improved Federal Guidance:
“In our survey, the median amount spent by school districts to test for lead in
school drinking water during the past 12 months varied substantially,
depending on the number of schools in which tests were conducted (see table
1). School districts may have paid for services such as collecting water
samples, analyzing and reporting results, and consultants. For example, an L.R. No. 4622H.03C
Bill No. HCS for SB 984
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official in a small, rural school district—with three schools housed in one
building—told us his district spent $180 to test all eight fixtures. In contrast,
officials in a large, urban school district told us they spent about $2.1 million
to test over 11,000 fixtures in over 500 schools. Some school districts,
especially larger ones, incurred costs to hire consultants to advise them and
help design a plan to take samples, among other things.”
Based on this information, Oversight
per fixture. There are 518 school districts in Missouri with 2,357 public and charter school
buildings, plus an estimated 650 private schools. Assuming a cost of $100 per test x 10 drinking
water outlets per building x 3,007 school buildings total testing costs would be over $3 million
per year.
Oversight notes, per a local news report, a school district in Lancaster County, Pennsylvania,
“installed around 100 filters throughout the school, which cost about $200,000.” Based on this,
Oversight estimates the cost per filter at approximately $2,000.
Per the GAO report, approximately 37% of school districts tested found elevated lead levels.
Oversight assumes if 37% of school buildings in Missouri were required to install three filters
the cost is estimated at $4,735,260. In addition, Oversight assumes there would be annual
maintenance costs.
Ultimately, Oversight is uncertain how many school districts currently test for lead levels or
how many would have elevated lead levels. Additionally, Oversight is uncertain what type of
remediation efforts would be used to address elevated lead levels.
Oversight will show an unknown cost to school districts that could be substantial.
In addition, per section 160.077.9 (2), Oversight assumes school districts could incur penalties
for non-compliance.
Oversight received a limited number of responses from school districts related to the fiscal
impact of this proposal. Oversight has presented this fiscal note on the best current information
available. Upon the receipt of additional responses, Oversight will review to determine if an
updated fiscal note should be prepared and seek the necessary approval to publish a new fiscal
note.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, school districts were requested to respond to this proposed legislation but did not. A
listing of political subdivisions included in the Missouri Legislative Information System database
is available upon request.
§§256.700 & 256.710 – Geologic Resources Fee and the Industrial Minerals Advisory Council L.R. No. 4622H.03C
Bill No. HCS for SB 984
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In response to a similar proposal from 2022 (SCS for SB 1004), officials from the Department
of Natural Resources (DNR) assumed this section will extend the 0801 fund until 2030 and
continue collecting fees from the industrial minerals industry. No change to the current fee
structure is proposed.
DNR notes approximately $269,566 is collected annually. These funds support 2 Field
Technicians that work on industrial mining activities.
Oversight notes there was a $210,641 balance in the Geologic Resources Fund (0801) as of
April 30, 2022.
§256.800 – Flood Resiliency
Officials from the Department of Natural Resources (DNR)Office of the State
Treasurer (STO) 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 for this provision.
Officials from the City of Kansas City, City of O’Fallon and City of Springfield
the proposal will have no fiscal impact on their respective organizations. Oversight does not
have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal
note for these agencies.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities were requested to respond to this proposed legislation but did not. A
general listing of political subdivisions included in the Missouri Legislative Information System
database is available upon request.
Oversight notes a new fund has been established, the “Flood Resiliency Improvement Fund” as
a result of this proposal. This fund could issue grants or offer financial assistance to entities for
the development, construction or renovation of a flood resiliency project. The DNR could also
develop its own plans with the funds.
Oversight notes this fund is subject to appropriation by the General Assembly; therefore,
Oversight will range the revenue from “$0” (the General Assembly does not appropriate funds to
the new program) to an “Unknown” amount (the General Assembly appropriates funds to the
new program). Oversight will also reflect an “Unknown” amount of costs in the form of
grants/financial assistance.
§§260.221 & 644.060 – Asphalt Shingles Recycling
Officials from the Department of Natural Resources assume the following regarding this
section: L.R. No. 4622H.03C
Bill No. HCS for SB 984
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May 9, 2022
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Section 644.060.3 & 4
The Water Protection Program does not track processors or accumulators of solid waste.
Therefore, without knowing what this universe would look like, the fiscal impact is unknown.
Oversight will reflect an “Unknown” cost to DNR for implementation of this section.
§260.295 – Clean Air Act
In response to a similar proposal from 2022 (HCS for HB 2673), officials from the Department
of Natural Resources assumed the proposal would have no fiscal impact on their organization.
In response to a similar proposal from 2022 (HCS for HB 2673), officials from the City of
Kansas City, City of Springfield and City of St. Louis each assumed the proposal would have
no fiscal impact on their respective organizations.
Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact on the fiscal note.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties 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.
HYPERLINK "https://www.fox43.com/article/news/investigations/fox43-reveals/lead-testing-in-
schools-fox43-reveals/521-b47f3a8e-891c-42e2-a36a-82e004dad337" local news report
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 L.R. No. 4622H.03C
Bill No. HCS for SB 984
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supporting administrative rules requirements should the need arise based on a review of the
finally approved bills signed by the governor. L.R. No. 4622H.03C
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FISCAL IMPACT – State
Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully
Implemented
(FY 2030)
GENERAL REVENUE FUNDTransfer Out – to the Flood
Resiliency Improvement Fund
§256.800 (p. 8)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - DNR – implementation
of program §160.077 (p. 5)
(Unknown)(Unknown)(Unknown)(Unknown)Costs – DHSS §160.077 (p. 5)Personal services($367,443)($445,341)($449,795)($454,292)Fringe benefits($227,849)($275,021)($276,640)($279,406)Expense and equipment($157,267)($87,352)($89,535)($90,430)Total Costs – DHSS($752,559)($807,714)($815,970)($824,128)FTE Change – DHSS9 FTE9 FTE9 FTE9 FTECosts – reimburse public and
private schools to test water
(roughly 3,000 school buildings
x 10 water sources each x $100
per test) annually §160.077 (p. 6)
(Could
exceed
$3,000,000)
(Could
exceed
$3,000,000)
(Could
exceed
$3,000,000)
(Could
exceed
$3,000,000)
Costs – to school districts for
funding for filtration and other
remediation efforts - §160.077.6
(1) (p. 7)
(Unknown)(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT
ON THE GENERAL
REVENUE FUND
(Unknown,
could
exceed
$3,752,559)
(Unknown,
could
exceed
$3,807,714)
(Unknown,
could
exceed
$3,815,970)
(Unknown,
could
exceed
$3,824,128)
Estimated Net FTE Change on
General Revenue
Could
exceed 9
FTE
Could
exceed 9
FTE
Could
exceed 9
FTE
Could
exceed 9
FTE L.R. No. 4622H.03C
Bill No. HCS for SB 984
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FISCAL IMPACT – State
Government (continued)
FY 2023
(10 Mo.)
FY 2024FY 2025Fully
Implemented
(FY 2030)
GEOLOGIC RESOURCES
FUND
Revenue Extension – extension
of fee from 2025 to 2030
§256.700 (p. 7)
$0$0$0$269,566ESTIMATED NET EFFECT
ON THE GEOLOGIC
RESOURCES FUND
$0$0$0$269,566FLOOD RESILIENCY
IMPROVEMENT FUND
Transfer In – from General
Revenue §256.800 (p. 8)
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Cost – DNR – grants and/or
financial assistance for flood
resiliency plans §256.800 (p. 8)
(Unknown)(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT
ON THE FLOOD
RESILIENCY
IMPROVEMENT FUND
$0$0$0$0
FEDERAL FUNDSTransfer Out - to school districts
for funding for filtration, testing,
and other remediation efforts -
§160.077.6 (2) (p. 7)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT
ON FEDERAL FUNDS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown) L.R. No. 4622H.03C
Bill No. HCS for SB 984
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FISCAL IMPACT – Local
Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully
Implemented
(FY 2030)
SCHOOL DISTRICTSTransfer In - from General
Revenue §166.070 (p. 6)
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Transfer In - from Federal Funds
§166.070 (p. 7)
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Costs - penalties for non-
compliance - §160.077.9 (2) (p.
7)
$0
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - to school districts for
lead filtration, testing, and other
remediation efforts - §160.077
(p. 7)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
ESTIMATED NET EFFECT
ON SCHOOL DISTRICTS
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
(Unknown,
could be
substantial)
FISCAL IMPACT – Small Business
§256.800 - Small business contractors of flood improvement plans could be impacted as a result
of this proposal.
§§260.221 & 644.060 - Small businesses that recycle asphalt shingles could be affected by this
proposal.
§166.070 - Oversight assumes this proposal would require private schools to test drinking water
outlets for lead levels and to engage in remediation efforts if elevated lead levels are discovered.
Oversight assumes this could result in additional costs for small businesses. L.R. No. 4622H.03C
Bill No. HCS for SB 984
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FISCAL DESCRIPTION
This proposal creates provisions relating to environmental protection.
§160.077 – This section will duplicate the federal Lead and Copper Rule Revisions (LCRR) 40
CFR Part 141 Subpart I, as published in 86 FR 31939. This rule has provisions to test for lead in
schools and child care facilities. The Department will need to adopt these regulations to maintain
primacy for implementing the Lead and Copper Rule in Missouri. The compliance date for this
rule is October 16, 2024.
This legislation is not federally mandated and would not require additional capital improvements
or rental space.
SOURCES OF INFORMATION
Department of Natural Resources
Office of the Secretary of State
Joint Committee on Administrative Rules
Office of the State Treasurer
Department of Elementary and Secondary Education
Department of Health and Senior Services
Kansas City Public Schools
City of Kansas City
City of O’Fallon
City of Springfield
Julie MorffRoss StropeDirectorAssistant DirectorMay 9, 2022May 9, 2022