COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0934H.02P Bill No.:Perfected HCS for HB 668 Subject:Employees - Employers; Economic Development; Department of Economic
Development; Labor and Management; Business and Commerce
Type:Original Date:March 8, 2023Bill Summary:This proposal creates a grant program for employers to enhance
cybersecurity.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue
Fund*Up to ($10,109,706)Up to ($10,120,937)Up to ($10,123,059)
Total Estimated Net
Effect on General
RevenueUp to ($10,109,706)Up to ($10,120,937)Up to ($10,123,059)
*Oversight notes this program is subject to appropriation and has a $10 million cap annually.
DED has estimated the need for one (1) additional FTE (Senior Economic Development
Specialist at $74,664 annually) to administer the program.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Colleges &
Universities $0 to Unknown$0 to Unknown$0 to Unknown
Total Estimated Net
Effect on Other State
Funds$0 to Unknown$0 to Unknown$0 to Unknown
Numbers within parentheses: () indicate costs or losses. L.R. No. 0934H.02P
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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 2026General Revenue
Fund
1 FTE1 FTE1 FTETotal Estimated Net
Effect on FTE
1 FTE1 FTE1 FTE
☒ 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 to Unknown$0 to Unknown$0 to Unknown L.R. No. 0934H.02P
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development (DED) assume Section 620.2550
creates a one-time grant to any employer for the purpose of enhancing cybersecurity. No
employer shall receive more than one cybersecurity grant.
Grants shall not exceed 90% of the total cost of the cybersecurity enhancement. DED must
reserve 50% of funding for qualifying employers with 1-50 employees, until January 1st of each
year, when remaining reserved funding not issued or awarded becomes available to employers
with greater than 50 employees.
Subject to appropriation, no more than $10M shall be distributed in any fiscal year. Applications
must start being accepted by 3/1/2024. Bill does not include a sunset date.
DED will need to hire 1.0 FTE to administer the act and carryout compliance with the act.
Oversight notes the Delloite Company published an article, Reshaping the cybersecurity
landscape, and provided data showing that companies in U.S. spent about 10.9% of their IT
budget on cybersecurity on average, up from 10.1% a year earlier. The survey was conducted in
2020. This equaled about 0.48% of company revenue on average, again up from 0.34%. In terms
of spending per employee, respondents spent about $2,700 on average per full-time employee
(FTE) on cybersecurity, increasing from about $2,300 a year earlier.
Oversight will note the DED’s FTE (Senior Economic Development Specialist at $74,664
annually) in the fiscal note beginning FY 2024.
Officials from the Office of Administration – Budget & Planning (B&P) note:
To the extent appropriations are made for this new program, resources may be reduced for other
priorities. Subject to appropriation, no more than ten million dollars shall be distributed under
this section in any fiscal year with priority given to any company contracting with the state for
the purpose of protecting critical infrastructure.
Officials from the B&P 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.
Officials from the Department of Revenue (DOR) 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. L.R. No. 0934H.02P
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Officials from the City of Springfield and the City of Kansas City both 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
the respective entities.
Oversight will note a range of impact from $0 (various local political subdivisions do not
qualify) to positive Unknown (local political subdivisions were approved for grant) for local
political subdivisions in the fiscal note.
Officials from the Missouri State University (MSU) assume the proposal will have an
indeterminate fiscal impact due to employee hours needed to comply and potential of receiving
the grant.
Officials from the University of Central MissouriUCM) assume the proposal would have a
fiscal impact which will take place if the grant is leveraged simply because the grant will only
cover up to 90% of the cost for whatever cybersecurity initiative is pursued. Indirect costs will be
incurred to implement the selected and approved initiative. The expectations would be that the
benefits of the initiative more than justify the direct and indirect costs incurred. Dollar amount
contingent on the initiative selected and approved. If the grant is not pursued, then expenditure of
funds is not a concern; however, the cybersecurity initiative will not be pursued, or if pursued at
a later time then the total cost will come from UCM.
Oversight notes UCM & MSU both assumes the proposal could have an impact on their
organization. The proposal, specifically 620.2550. 2., states that the prospective grantee would
have to match the overall cost with 10% of their own money. However, the final approval, and
with submission of an application for the grant, still lies with the DED. Therefore, Oversight
will note a range of impact from $0 (various colleges and universities do not qualify) to positive
Unknown (colleges and universities were approved for grant) to Other State Funds in the fiscal
note.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDCost – DED Section 620.2550 (p.3) Salary ($62,220)($76,157)($77,680) Fringe Benefits($33,187)($40,326)($40,835) Equipment & Expense($14,299)($4,454)($4,544)Total Cost - DED($109,706)($120,937)($123,059) FTE Change 1 FTE1 FTE1 FTE L.R. No. 0934H.02P
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Cost – Cybersecurity Grant not
exceeding shown amount -Section
620.2550 (p.3)
Up to
($10,000,000)
Up to
$10,000,000
Up to
$10,000,000
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND
Up to
($10,109,706)
Up to
($10,120,937)
Up to
($10,123,059)
Estimated Net FTE Change on General
Revenue1 FTE1 FTE1 FTE
COLLEGES AND UNIVERSITIESGain in Revenue – potential award
recipient of Cybersecurity Grant (p. 4)
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
NET EFFECT ON COLLEGES
AND UNIVERSITIES
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Gain in Revenue – potential award
recipient of Cybersecurity Grant (p.4)
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
NET EFFECT ON THE LOCAL
POLITICAL SUBDIVISIONS
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Small Business
Certain companies will be able to obtain Cybersecurity Grant money to enhance their
cybersecurity measures and must match at least ten percent (10%) of the grant. L.R. No. 0934H.02P
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FISCAL DESCRIPTION
This bill allows the Department of Economic Development to distribute one-time grants to
employers for the purpose of enhancing cybersecurity, as defined in the bill. Grants made require
a 10% match from the employer.
The bill limits the amount that may be distributed in any fiscal year to $10 million and the limit
to any individual employer to $15,000. The Department shall create an online application form
as part of its website which is to be the sole means of applying for grants. Employers seeking a
grant must fill out the application along with documents outlining how it will enhance
cybersecurity, including plans for how it will cover the remaining 10% cost for its cybersecurity
enhancement.
The bill limits the factors that the Department may consider in assessing an employer's funding
plans. An employer who receives a grant shall submit documentation within one year from
distribution showing how the grant funds were spent. In the case of employers with employees
and locations outside of Missouri, grant funds shall be used only for locations and employees
residing in Missouri.
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 Revenue
Office of Administration – Budget & Planning
City of Springfield
City of Kansas City
University of Central Missouri
Missouri State University
Julie MorffRoss StropeDirectorAssistant DirectorMarch 8, 2023March 8, 2023