COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4305S.01I Bill No.:SJR 37 Subject:Constitutional Amendments; Elections Type:Original Date:December 29, 2021Bill Summary:This joint resolution modifies the voter approval threshold for initiative petitions. 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. 4305S.01I Bill No. SJR 37 Page 2 of December 29, 2021 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*$0$0 *Transfer out and transfer in net to zero if the Governor calls a special election. L.R. No. 4305S.01I Bill No. SJR 37 Page 3 of December 29, 2021 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, we reserve the right to request funding to meet the cost of our 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. 4305S.01I Bill No. SJR 37 Page 4 of December 29, 2021 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. Officials from the Missouri Senate, Missouri House of RepresentativesPlatte County Board of Elections, Jackson County Board of Elections, and St. Louis County Board of Elections 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. Oversight only reflects the responses that we have 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 general listing of political subdivisions included in our 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. 4305S.01I Bill No. SJR 37 Page 5 of December 29, 2021 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 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 No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION Current law provides that initiative petitions proposing constitutional amendments shall take effect when approved by a simple majority of the votes cast thereon prior to taking effect. This constitutional amendment, if approved by the voters, requires such initiatives to be approved by at least 60% of the votes cast thereon. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. L.R. No. 4305S.01I Bill No. SJR 37 Page 6 of December 29, 2021 SAK:LR:OD SOURCES OF INFORMATION Office of the Secretary of State Missouri House of Representatives Missouri Senate Jackson County Board of Elections Platte County Board of Elections St. Louis County Board of Elections Julie MorffRoss StropeDirectorAssistant DirectorDecember 29, 2021December 29, 2021