COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0423H.03P Bill No.:Perfected HCS for HB 183 Subject:Education, Elementary and Secondary; Education, Higher; Department of
Elementary and Secondary Education; Department of Higher Education and
Workforce Development
Type:Original Date:April 12, 2023Bill Summary:This proposal establishes guidelines for student participation in athletic
contests organized by sex.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue*($145,692) to
Unknown
($29,867) to
Unknown
($30,631) to
Unknown
Total Estimated Net
Effect on General
Revenue
($145,692) to
Unknown
($29,867) to
Unknown
($30,631) to
Unknown
*The fiscal note reflects the potential withholding of funds from school districts and fine revenue
from institutions of higher education if the financial penalty provisions of the bill are enacted.
For simplicity, Oversight will reflect the potential withheld payments/fine revenue coming from
(remaining in) General Revenue. Oversight assumes the payments withheld/fine revenue could
exceed the $250,000 threshold.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026University Funds*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)Total Estimated Net
Effect on Other State
Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)
Oversight assumes the cost could exceed $250,000.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0423H.03P
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total 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 2024FY 2025FY 2026Local Government$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 0423H.03P
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FISCAL ANALYSIS
ASSUMPTION
Sections 163.048 and 173.088 as amended
Officials from the Department of Elementary and Secondary Education (DESE) and the
Office of Administration – Information Technology state it is assumed that every new IT
project/system will be bid out because all ITSD resources are at full capacity. This project would
have to be prioritized by DESE to be worked among DESE's other projects. ITSD assumes based
on the language about withholding district distributions from the monthly funding, the
Foundation Formula application/system would be affected, as it handles the calculation that
districts receive based on rules and state regulations. This funding being withheld would have to
be accounted for in this systems/application to ensure it was held back from disbursement. ITSD
estimates the project would take 1,533.60 hours at a contract rate of $95 for a total cost of
$145,692 with on-going support costs.
Officials from the Attorney General’s Office assume the proposal will have no fiscal impact on
their organization.
In response to the previous version, officials from the Department of Higher Education and
Workforce Development assumed the proposal would have no fiscal impact on their
organization.
In response to the previous version, officials from the University of Missouri System stated the
fiscal impact on the System could be significant.
In response to the previous version, officials from the University of Central Missouri
there is the potential for an indeterminate fiscal impact.
In response to the previous version, officials from the St. Charles Community College
indicated this proposal could have a fiscal impact, but did not provide any additional
information.
In response to a similar proposal, SB 2 (2023), officials from Missouri Western State
University stated, if enacted, the impact is zero (not implemented) or up to Missouri Western
State University's state appropriations (implemented), including the annual core appropriation
(FY23 amount =$24,315,659) and funds for capital improvements.
Oversight notes transgender student participation in interscholastic sports is regulated by school
districts and the Missouri State High School Activities Association (MSHSAA). Per the
MSHSAA Handbook the Board Policy on Transgender Participation is as follows; L.R. No. 0423H.03P
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“A transgender student must meet the following in order to participate in sex-separated
interscholastic sports so long as the athlete’s use of medical/hormone therapy is
consistent with current medical standards:
No Medical/Hormone Treatment: Any transgender student-athlete who is not taking
medical/hormone treatment related to gender transition may commence and continue
interscholastic participation in sex-separated sports in accordance with his or her assigned
birth gender.
treatment related to gender transition may participate in co-ed sports and may
apply to participate in boys sports. Once the student participates in a boys’ sport,
he shall participate consistently with that gender for the remainder of his
interscholastic eligibility.
medical/hormone treatments related to gender transition may not compete on a
girls’ team, but may participate in co-ed and boys sports. (See also By-Law 3.20.)
Receiving Medical/Hormone Treatment:
medical/hormone treatment with prescribed drugs for diagnosed gender dysphoria
and/or transsexualism, may compete on a boys’ team, but is no longer eligible to
compete on a girls’ team without changing that team status to a co-ed team. (See
also By-Law 3.20.d.)
suppression medication for diagnosed gender dysphoria and/or transsexualism
may continue to compete on a boys’ team but may not compete on a girls’ team,
without changing it to a co-ed team, until one calendar year of documented
medical/hormone treatment and/or suppression is completed. To maintain
eligibility, a trans female student shall thereafter provide continuing medical
documentation that the appropriate hormone levels are being maintained.”
Oversight notes transgender student participation in intercollegiate sports is regulated by
National Collegiate Athletic Association (NCAA). Per the by-laws of the NCAA
“The following policies clarify participation of transgender student-athletes undergoing
hormonal treatment for gender transition:
with testosterone for diagnosed Gender Identity Disorder or gender dysphoria and/or
Transsexualism, for purposes of NCAA competition may compete on a men’s team, but L.R. No. 0423H.03P
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is no longer eligible to compete on a women’s team without changing that team status to
a mixed team.
A trans female (MTF) student-athlete being treated with testosterone suppression medication for
Gender Identity Disorder or gender dysphoria and/or Transsexualism, for the purposes of NCAA
competition may continue to compete on a men’s team but may not compete on a women’s team
without changing it to a mixed team status until completing one calendar year of testosterone
suppression treatment.
Any transgender student-athlete who is not taking hormone treatment related to gender transition
may participate in sex-separated sports activities in accordance with his or her assigned birth
gender.
transition may participate on a men’s or women’s team.
related to gender transition may not compete on a women’s team.”
Oversight assumes this proposal prohibits public or private schools and public or private
institutions of postsecondary education from allowing biological males as assigned at birth to
play on sports teams designated for women. Entities that violate this proposal must remit a fine
equal to a certain proportion of the entities appropriated funds.
Oversight notes the foundation formula payments for school districts are estimated at
$3,561,737,794 for FY 2024 per the DESE Budget Request for FY 2024.
Oversight notes the following appropriations for FY 2023 to public postsecondary institutions:
InstitutionAppropriationCommunity Colleges $174,863,323State Technical College of Missouri$8,494,011UCM $60,711,063Southeast Missouri State University $50,371,167Missouri State University$103,242,970Lincoln University$29,183,697Truman State University$45,734,649Northwest Missouri State University$34,336,363Missouri Southern State University$30,874,099Missouri Western State University$24,640,659Harris-Stowe State University$12,634,137University of Missouri System$463,876,797
*Source: TAFP HB 3003 (2022). Actual appropriations amounts may differ based on withholds.
Oversight assumes there could be a cost/loss to public schools, colleges and universities that fail
to comply with the requirements in the proposal. The penalty would be a proportion of moneys
appropriated by the general assembly. Based on amounts appropriated, Oversight assumes the L.R. No. 0423H.03P
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loss could exceed $250,000. In addition, private postsecondary educational institutions that
violate this section are to be fined up to one million dollars per violation.
Oversight will show a gain to the General Revenue fund and a corresponding cost to school
districts and institutions of higher education.
Oversight received a limited number of responses from school districts, colleges and universities
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, other school districts, colleges and universities 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.
House Amendment 2
Oversight notes that this provision may prompt a cause of action against colleges and
universities. Oversight notes, in rare circumstances, universities and community colleges can
access the state Legal Expense Fund. However, for purposes of this fiscal note, Oversight
assumes colleges and universities will bear the cost of any litigation or judgment. Oversight will
range the fiscal impact to colleges and universities from $0 (does not increase litigation) to an
unknown cost for damages and court costs.
Rule Promulgation
In response to similar proposals, officials from the Joint Committee on Administrative Rules
assumed this proposal is not anticipated to cause a fiscal impact beyond its current appropriation.
In response to similar proposals, officials from the Office of the Secretary of State (SOS) noted
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. L.R. No. 0423H.03P
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FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUECosts - DESE/ITSD – programming for
foundation formula modifications -
§163.048($145,692)($29,867)($30,631)
Revenue Gain - from funding withheld
from school districts and charter
schools for violating section §163.048.5$0 or Unknown$0 or Unknown$0 or Unknown
Revenue Gain - from funding withheld
from public universities for violating
section §173.088.4 (1)$0 or Unknown$0 or Unknown$0 or Unknown
Revenue Gain - from funding withheld
from public community colleges for
violating section §173.088.4 (1)$0 or Unknown$0 or Unknown$0 or Unknown
Revenue Gain - from fines collected (up
to $1 million per violation) from private
postsecondary education institutions -
§173.088.4 (2)$0 or Unknown$0 or Unknown$0 or Unknown
ESTIMATED NET EFFECT ON
GENERAL REVENUE
($145,692) to
Unknown
($29,867) to
Unknown
($30,631) to
Unknown
UNIVERSITY FUNDS
Costs - legal costs - §173.088
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Loss - funding withheld for violating
section §173.088.4 (1)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
UNIVERSITY FUNDS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown) L.R. No. 0423H.03P
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Loss - School Districts & Charter
Schools - funding withheld for violating
section §163.048.5
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs – Community Colleges - legal
costs - §173.088 (HA2)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Loss - Community Colleges - funding
withheld for violating section
§173.088.4 (1)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
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 bill defines "sex" as, the two main categories of male and female into which individuals are
divided based on an individual's reproductive biology at birth and the individual's genome.
The bill prohibits public school districts and charter schools from allowing students grade six to
12 and public and private postsecondary educational institutions from allowing any student to
compete in an athletics competition designated for the opposite sex, as determined by the
student's official birth certificate, or if unobtainable, another government record. However, a
female student may be allowed to compete in an athletics competition designated for male
students if there is no such athletics competition for female students offered. The bill clarifies
that biological sex is only correctly stated on birth certificates if it was entered at or near the time
of birth or modified to correct scrivener's error.
No public school shall be a member of any statewide athletic organization and shall not compete
in athletic events with a private or parochial school that does not have a policy that is
substantially similar to the provisions of this bill. No postsecondary educational institution shall
allow a student to compete in an athletics competition of any intercollegiate association that does
not have a policy that is substantially similar to the provisions of this bill. L.R. No. 0423H.03P
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In each school year a school district, charter school, or private school violates the provisions of
this bill, the Department of Elementary and Secondary Education shall withhold a percentage of
any monthly distribution of state formula funding and any other revenues from the state that are
distributed, as described in the bill.
In each fiscal year a public postsecondary educational institution violates the provision of the
bill, that institution shall remit a fine in an amount of the postsecondary institution’s current
fiscal year state operating appropriation, as described in the bill. In each fiscal year a private
postsecondary educational institution violates the provision of the bill, that institution shall be
fined up to $1 million as determined by the Coordinating Board of Higher Education.
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 Elementary and Secondary Education
Department of Higher Education and Workforce Development
Attorney General’s Office
Office of the Secretary of State
Joint Committee on Administrative Rules
University of Missouri System
University of Central Missouri
Missouri Western State University
St. Charles Community College
Julie MorffRoss StropeDirectorAssistant DirectorApril 12, 2023April 12, 2023