COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1201H.02P Bill No.:Perfected HCS for HB Nos. 651, 479 & 647 Subject:Telecommunications; Utilities; Television; Internet and E-Mail Type:Original Date:March 23, 2023Bill Summary:This proposal modifies provisions relating to municipal franchise fees for
video service providers.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on General
Revenue $0$0$0
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. 1201H.02P
Bill No. Perfected HCS for HB Nos. 651, 479 & 647
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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) to
Unknown
$0 or (Unknown) to
Unknown
$0 or (Unknown) to
Unknown L.R. No. 1201H.02P
Bill No. Perfected HCS for HB Nos. 651, 479 & 647
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Commerce and Insurance assume the proposal will have no
fiscal impact on their organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note for the DCI.
In response to a previous version, officials from Kansas City assumed this proposal could have a
potential positive fiscal impact.
Officials from the City of Springfield anticipated a possible negative fiscal impact of an
indeterminate amount from this bill if a court case in pending litigation involving another city
determines that streaming services are obligated to pay video service licensing fees, since this
bill would revise the definition of "video service" to exclude businesses offering streaming
content.
Oversight assumes this proposal may create a fiscal impact to local political subdivisions that
collect the franchise entity fee in Section 67.2689, as that fee utilizes the “video service”
definition, which is being amended by this bill. Oversight will reflect a $0 to potential unknown
revenue and potential unknown loss to local political subdivisions.
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 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 2026$0$0$0 L.R. No. 1201H.02P
Bill No. Perfected HCS for HB Nos. 651, 479 & 647
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Revenue/Loss – potential Video Service
Provider Fees change from definition
change to “video service” §67.2677
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
ESTIMATED NET EFFECT TO
LOCAL POLITICAL
SUBDIVISIONS
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This of bill modifies the definition of “Video Service” for provisions of law relating to video
service providers to now include streaming content.
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 Commerce and Insurance
Kansas City
City of Springfield
Julie MorffRoss StropeDirectorAssistant DirectorMarch 23, 2023March 23, 2023