COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0696H.03C Bill No.:HCS for HB Nos 267 & 347 Subject:Elections; Federal - State Relations Type:Original Date:March 31, 2023Bill Summary:This proposal reinstates the Presidential Preference Primary. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026 General Revenue* (More than $10,000,000)$0$0 Total Estimated Net Effect on General Revenue (More than $10,000,000)$0$0 *Costs of approximately $10 million in March 2024 (FY 2024) for holding a Presidential Preference Primary Election. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 0696H.03C Bill No. HCS for HB Nos. 267 & 347 Page 2 of March 31, 2023 SAK:LR:OD 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(Unknown)$0$0 L.R. No. 0696H.03C Bill No. HCS for HB Nos. 267 & 347 Page 3 of March 31, 2023 SAK:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Office of the Secretary of State (SOS) assume this bill would reinstate the presidential preference primary (PPP) election which was previously held in March of any presidential election year. The projected impact is estimated to be $10 million based on the cost of the 2022 primary and general election reimbursements. Oversight notes section 115.785 states all costs of a presidential preference primary shall be paid by the state and for any county with more than five hundred polling places, the state shall assist in assuring adequate poll workers and equipment. The payment of election costs is subject to appropriation by the General Assembly. However, if they assume that the presidential preference primary were to be fully appropriated as it has been in years past, SOS anticipates a cost of $10 million. Oversight has reflected, in this fiscal note, a $10 million cost due to reinstating the requirement to hold a PPP. The next scheduled Presidential Preference Primary election would be in March 2024 (FY24). Therefore, Oversight will reflect a potential election cost for reimbursement to local political subdivisions in FY 2024. In addition, SOS equipment for counties containing more than 500 polling places. For the most recent general election held in November 2022, no county claimed to operate more than 500 polling places. However, at least two counties did claim more than 500 precincts at that election, so there may be a potential cost if these counties were forced to open additional polling places. The scope of such potential cost is unknown. Oversight notes there is no way to determine if particular counties will be operating more than 500 polling places. Therefore, Oversight will also reflect a $0 to unknown cost to the state for the potential cost of poll workers and equipment for counties containing more than 500 polling places. The Office of the Secretary of State (SOS) also assumes 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 the 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. 0696H.03C Bill No. HCS for HB Nos. 267 & 347 Page 4 of March 31, 2023 SAK:LR:OD Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could require additional resources. Officials from the Platte County Board of Elections assume the cost to hold a Presidential Preference Primary in 2020 was $84,155.70. The cost to hold a Presidential Preference Primary in 2024 should be near but slightly higher than the 2020 amount. In response to a previous version, officials from the St. Louis City Board of Elections assumed the cost of a city-wide election runs between $300,000 and $400,000. Officials from the Kansas City Board of Elections assume it will cost the State approximately $650,000 to conduct this election in the Kansas City portion of Jackson County. Officials from the Greene County Clerk’s Office assume SOS’ costs for March 2020 was $192,162. The total cost of the March 2020 election was $266,341. As the State does not pay for machine rental, poll pad rental, and other portions of election costs, the County costs were approximately $74,178 for the machine rental, poll pad rental, a portion of clerk salary, a portion of ballot supplies. Officials from the St. Louis County Board of Elections assume the proposal will have no fiscal impact on their respective organizations. In response to a previous version, officials from the Jackson County Board of Elections assumed the proposal will have no fiscal impact on their organization. Oversight notes section 115.785 states all costs of a presidential preference primary shall be paid by the state and for any county with more than five hundred polling places, the state shall assist in assuring adequate poll workers and equipment. Therefore the fiscal note will reflect the cost and reimbursement to local election authorities netting to zero. Oversight will reflect an unknown cost to local election authorities for election expenses (machine rental, poll pad rental, a portion of clerk salary, and a portion of ballot supplies) not covered by state as mentioned above by the Greene County Clerk’s Office. Oversight only reflects the responses 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 listing of political subdivisions included in the Missouri Legislative Information System (MOLIS) database is available upon request. L.R. No. 0696H.03C Bill No. HCS for HB Nos. 267 & 347 Page 5 of March 31, 2023 SAK:LR:OD FISCAL IMPACT – State GovernmentFY 2024 (10 Mo.) FY 2025FY 2026GENERAL REVENUE FUNDCost - SOS §115.785 Reimbursement of local election authority election costs for PPP (More than $10,000,000) $0$0Cost – SOS §115.785 Additional poll workers and equipment $0 to (Unknown) $0$0ESTIMATED NET EFFECT ON GENERAL REVENUE FUND (More than $10,000,000) $0$0FISCAL IMPACT – Local GovernmentFY 2024 (10 Mo.) FY 2025FY 2026LOCAL POLITICAL SUBDIVISIONS Revenue Gain - Local Election Authorities - §115.785 reimbursement of election costs for PPP $0 or More than $10,000,000$0$0 Cost - Local Election Authorities §115.785 - holding PPP election $0 or (More than $10,000,000) $0$0Cost – Local Election Authorities Election expenses not covered by State (Unknown)$0$0ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS (Unknown) $0$0 FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 0696H.03C Bill No. HCS for HB Nos. 267 & 347 Page 6 of March 31, 2023 SAK:LR:OD FISCAL DESCRIPTION This bill reinstates the presidential preference primary election, to be held statewide on the second Tuesday after the first Monday in March of each presidential election year. Anyone who files a request to be included on the presidential primary ballot is not prohibited from filing or appearing on any ballot as a party candidate for nomination to another office. The bill specifies that on or before the 10th Tuesday prior to the date of the presidential preference primary, the Secretary of State shall announce the official list of presidential candidates for each established political party. All costs of a presidential preference primary shall be paid by the state, except that, costs shall be shared proportionately by the state and any political subdivisions and special districts holding an election on the same day as any such primary. For any county with more than 500 polling places, the state shall assist in assuring adequate poll workers and equipment. 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 Office of the Secretary of State Jackson County Board of Elections Platte County Board of Elections St. Louis City Board of Elections St. Louis County Board of Elections Kansas City Board of Elections Greene County Clerk’s Office Julie MorffRoss StropeDirectorAssistant DirectorMarch 31, 2023March 31, 2023