COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1451H.02C Bill No.:HCS for HB 580 Subject:Construction and Building Codes; Political Subdivisions Type:Original Date:February 24, 2023Bill Summary:This proposal modifies provisions relating to building codes.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated Net
Effect on General
Revenue*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*Oversight assumes the potential cost of the proposal to the state would not reach the $250,000
threshold.
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. 1451H.02C
Bill No. HCS for HB 580
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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. 1451H.02C
Bill No. HCS for HB 580
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FISCAL ANALYSIS
ASSUMPTION
§67.280 – Building Codes
In response to a previous version, officials from the Department of Economic Development
and the each assumed 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 section.
§67.488 – Building Permit Reform Act
Officials from the Office of Administration - Budget and Planning (B&P) assumes the
proposal requires the state or any of its political subdivisions to provide free of charge in digital
or physical format a copy of any third-party standard or code subject to copyright protection.
This obligates the state to provide the standard or code unless the state repeals the mandate or
declares it will not be enforced until repealed. Given the broad and encompassing definition of
“any political subdivision”, this proposal obligates the state to provide standard and code
materials every time it sets forth a regulation pursuant to a third-party standard or code.
Given that the extent of adoption of these standards and codes is unknown and the incorporation
of the standard or code by reference may involve publishing in statute or regulation, the
estimated impact of this Subsection 12 language would be $0 to Unknown.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
potential impact as presented by the B&P.
In response to similar legislation from this year, HB 625, officials from the Department of
Economic DevelopmentOffice of Administration and the City of O’Fallon each assumed
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 section.
Oversight assumes this proposal establishes the Building Permit Reform Act and prohibits a
political subdivision from requiring an exempt homeowner to obtain a license, certification, or
professional registration or be tested as a condition of applying for a building permit if all work
is done by the owner. The proposal also states if the property is transferred by the owner within
one year of completing any work, the political subdivision may assess the homeowner with a
one-time administration fee not to exceed $5,000. L.R. No. 1451H.02C
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Oversight is unclear how many homeowners fall into the category as an “Exempt Homeowner”
or how many building permits are issued by local political subdivisions (LPS) on a yearly basis.
Oversight assumes there could be a loss in revenues to LPS for building permits with this
proposal and therefore will reflect a $0 to unknown loss of revenue for this proposal. Oversight
also assumes there could be additional administrative fees if the property is transferred by the
owner within one year of completing any work but possibly would be minimal. Therefore,
Oversight will also reflect a $0 or unknown cost for administration fees to locals for this
proposal.
§71.985
Oversight assumes the requirements from this section of the proposal being applied to a local
political subdivision (LPS) for action could have a negative impact on the LPS if the LPS is not
able to approve or disapprove request for building permits on a timely basis. Therefore,
Oversight will reflect a $0 to negative unknown fiscal impact to LPS for this section of the
proposal.
Bill as a Whole
Officials from the Office of the State Courts Administrator, the Department of Natural
Resources, the Department of Public Safety (Office of the Director), the Department of
Health and Senior Services, the Department of Labor and Industrial Relations, the City of
Springfield and the Joint Committee on Administrative Rules 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 received from state agencies and political subdivisions;
however, other cities, counties and fire protection districts 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.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUECosts – providing standard and code
materials of third parties subject to
copyright protection
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 1451H.02C
Bill No. HCS for HB 580
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Loss – of revenues from building
permits issued to exempt homeowners
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Costs – political subdivisions must
return 50% of permit amount if fail to
inspect §67.488.5
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Revenue – potential one-time
administration fee if the ownership of
the property is transferred within one
year §67.488.3(2)
$0 or Unknown$0 or Unknown$0 or Unknown
Costs – LPS – potential costs relating to
timely request approval/disapprovals of
building permits
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Small Business
There could be a direct fiscal impact to small businesses who are exempt homeowners and run a
home business as a result of this proposal.
FISCAL DESCRIPTION
§67.488 – Building Permit Reform Act
This bill establishes the Building Permit Reform Act. "Exempt homeowner" is defined for
purposes of this section as a resident, non-corporate owner of a detached, single-family
residence.
The bill prohibits a political subdivision from requiring an exempt homeowner to obtain a
license, certification, or professional registration or be tested as a condition of applying for a
building permit if all work is done by the owner. If the property is transferred by the owner
within one year of completing any work the political subdivision may assess the homeowner
with a one-time administration fee not to exceed $5,000. Applicable building codes or
inspections required by law are not prohibited. The owner can hire a contractor. Certain instances
to which these provisions do not apply are specified in the bill. L.R. No. 1451H.02C
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Certain activities for which the political subdivision will not require an exempt homeowner to
get a permit, license, variance, or other prior approval are detailed in the bill.
A permit inspection not made within 10 business days of an exempt homeowner request will
result in 50% of the permit charges being refunded. If not made within 20 business days, the
inspection will be waived and the exempt homeowner can proceed as if the inspection were
passed.
Providing the permit is not allowed to expire prior to renewal, an exempt homeowner will not be
charged a fee to extend or renew a permit, no matter how many times it is renewed. No exempt
homeowner will be assessed a fine or fee for unpermitted work in an amount greater than would
have been charged if a permit had been issued at the time it was discovered.
No exempt homeowner will be required to undo work that has been done without a permit unless
the political subdivision can prove by clear and convincing evidence that the work performed did
not meet code or safety standards.
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 Economic Development
Department of Natural Resources
Department of Public Safety - Office of the Director
Department of Health and Senior Services
Department of Labor and Industrial Relations
City of Kansas City
City of Springfield
Office of Administration - Budget and Planning
Office of Administration
Joint Committee on Administrative Rules
Office of the State Courts Administrator
City of O’Fallon
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 24, 2023February 24, 2023