COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:1332H.02I Bill No.:HB 700 Subject:Health Care; Employees - Employers; Political Subdivisions; Health, Public Type:Original Date:February 22, 2023Bill Summary:This proposal creates provisions relating to refusal of medical procedures or treatment. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue Fund* $0 or (Unknown)$0 or (Unknown)$0 or (Unknown) Total Estimated Net Effect on General Revenue$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) *Oversight notes this proposal could possibly create exposure for the state government and/or local political subdivisions. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Other State Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)Legal Expense Fund*$0 $0 $0 Colleges and Universities $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) *LEA Fund will net to zero. Numbers within parentheses: () indicate costs or losses. L.R. No. 1332H.02I Bill No. HB 700 Page 2 of February 22, 2023 BB:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Federal Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)Total Estimated Net Effect on All Federal Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) 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. 1332H.02I Bill No. HB 700 Page 3 of February 22, 2023 BB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Mental Health (DMH) assume this proposal adds sections 191.230 and 292.648 prohibiting a public body and employers in the state from requiring individuals to receive a COVID-19 vaccination. It also prohibits medical treatment as a condition of employment if the individual has religious or medical reason for exemption. CMS expects all facilities’ staff to have received vaccination unless exempted as required by law. Facility staff vaccination rates under 100% constitute non-compliance (CMS guidance QSO-23-02-ALL). CMS rule currently allows for exemption in certain circumstances. However, in the event that CMS removes exemption option for vaccination, this requirement may put some DMH facilities and agencies at odds with federal requirements for licensure and/or CMS funding. This proposal will have an unknown impact on DMH. In response to the similar proposal, HB 1686 – 2022, officials from the Attorney General’s Office noted that there is a theoretical possibility that this proposal could have an impact on the Legal Expense Fund (LEF) for various agencies throughout the state. Oversight notes most LEF costs are reimbursed from the General Revenue Fund (GR). GR has paid for the majority of payments from the LEF since payments on LEF cases for agencies with designated reimbursable funds have been relatively small. According to Office of Administration - Risk Management (OARM), broader budget authority to transfer from Federal and Other Funds beginning in FY 18 allowed for an increase of percentage of payments from Federal and Other Funds. Oversight does not have any information to the contrary in regards to DMH and AGO’s assumptions; therefore, Oversight will range the fiscal impact from $0 (does not increase litigation) to an “Unknown” cost (increased claims related to potential litigation claims for various state agencies) on the fiscal note. Depending on the litigation the cost could exceed $250,000. Officials from the Missouri Department of Transportation (MODOT) 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 Public Safety – Highway Patrol (DPS-MSHP) defer to the MoDOT for the potential fiscal impact of this proposal. Officials from the Department of Commerce and Insurance, the Department of Economic Development, the Department of Elementary and Secondary Education, the Department of Higher Education and Workforce Development, the Department of Health and Senior Services Department of Mental Health, the Department of Natural Resources, the Department of Corrections, the Department of Labor and Industrial Relations, the L.R. No. 1332H.02I Bill No. HB 700 Page 4 of February 22, 2023 BB:LR:OD Department of Revenue, the Department of Public Safety (Office of the Director, Capitol Police, Alcohol & Tobacco Control, Fire Safety, Gaming Commission, Missouri National Guard, State Emergency Management Agency and Veterans Commission the Department of Social Services, the Office of the Governor, the Joint Committee on Administrative Rules, the Joint Committee on Public Employee Retirement, the Missouri Lottery Commission, the Missouri Consolidated Health Care Plan the Department of Agriculture, the Missouri Department of Conservation, the Missouri Ethics Commission, the Missouri House of Representatives, the Department of Transportation, the Office of Prosecution Services Office of AdministrationAdministrative Hearing Commission and Budget and Planning), the Office of the State Courts Administrator, the Office of the State Auditor, the Missouri Senate the Office of the Secretary of State, the Office of the State Public Defender, the Office of the State Treasurer State Tax Commission each assume the proposal will have no fiscal impact on their respective organizations. Officials from Office of Administration – Budget & Planning (B&P) assume the proposal has no direct impact on B&P. The proposal has no direct impact on general or total state revenues; therefore, not impact the calculation pursuant to Art. X, Sec. 18(e). Officials from the above referenced organizations assume the proposal will have no fiscal impact on their organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these organizations. Officials from the University of Central Missourihis legislation could have an indeterminate amount of impact on the University. In response to the similar proposal, HB 1686 – 2022, officials from the Northwest Missouri State University note the University were unable to determine fiscal impact at this time; however, it would be contingent upon Federal mandates affecting grants and government grant fund recipients. In response to the similar proposal, HB 1686 – 2022, officials from the Missouri University System noted that if the federal mandate is upheld by the courts and this bill prohibits compliance with the federal mandate, the university would lose in excess of $76 million of federal contracts. If the federal mandate is upheld as a condition of participation in Medicare and Medicaid and this bill prohibits compliance with the federal mandate, it could result in a loss of $547.4 million annually. Officials from the Missouri University System assume the proposal will have potential direct fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect above organizations impact of “Unknown” reduction in federal revenue on the fiscal note. Oversight assumes the proposal will potentially require additional expenditures due to the increased exposure to liability for colleges, universities, and political subdivisions. Therefore, L.R. No. 1332H.02I Bill No. HB 700 Page 5 of February 22, 2023 BB:LR:OD Oversight will range a negative fiscal impact from $0 (no lawsuit was brought against above organizations) or unknown (lawsuit increased exposure to liability to above organizations) on the fiscal note. Officials from the City of Kansas City, the City of O’Fallon, and the City of Springfield 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 cities. FISCAL IMPACT – State GovernmentFY 2024 (10 Mo.) FY 2025FY 2026GENERAL REVENUECost - Potential increase in payments to Legal Expense Fund for increase in claims (p.3) $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT TO GENERAL REVENUE FUND $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) OTHER STATE FUNDSCost - Potential increase in payments to Legal Expense Fund for increase in claims (p.3) $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT TO OTHER STATE FUNDS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FEDERAL FUNDSLoss of Federal Funds for Colleges & Universities (p.3) $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Cost - Potential increase in claims$0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT TO FEDERAL FUNDS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) L.R. No. 1332H.02I Bill No. HB 700 Page 6 of February 22, 2023 BB:LR:OD LEGAL EXPENSE FUND (0692)Transfer In - from GR, Federal, and Other State Funds Potential increase in claims (p.3) $0 or Unknown$0 or Unknown$0 or UnknownTransfer Out - payment of discrimination claims $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT TO THE LEGAL EXPENSE FUND $0$0$0COLLEGES AND UNIVERSITIESCost - Colleges and Universities Potential increase in legal claims (p.5) $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON COLLEGES AND UNIVERSITIES $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Local GovernmentFY 2024 (10 Mo.) FY 2025FY 2026LOCAL POLITICAL SUBDIVISIONSCost - Potential increase in legal claims (p.5) $0 or (Unknown)$0 or (Unknown)$0 or (Unknown)ESTIMATED NET EFFECT TO LOCAL POLITICAL SUBDIVISIONS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Small Business A fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 1332H.02I Bill No. HB 700 Page 7 of February 22, 2023 BB:LR:OD FISCAL DESCRIPTION No public body, political subdivision, public school district, state department or agency, public official, peace officer, or person appointed by the Governor acting in an official capacity shall: (1) Require any person to receive a COVID-19 vaccination; (2) Condition any personal right or public service on a COVID-19 vaccination; or (3) Impose any fine, tax, or criminal or civil penalty on a COVID19 vaccination. Additionally, an employee shall be exempt from an employer's requirement to receive medical treatment as a condition of employment and shall not be subject to adverse employment action for declining to receive the treatment if: (1) The employee holds a sincerely held religious belief that forbids the employee from receiving the treatment and the reasonable accommodation of such belief would not pose an undue hardship on the employer; or (2) The vaccine is harmful for the employee according to a licensed physician based on the employee's medical situation. An employee whose rights under this provision have been violated shall be eligible for Workers' Compensation for any injuries sustain 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 Department of Economic Development Department of Elementary and Secondary Education Department of Higher Education and Workforce Development Department of Health and Senior Services Department of Mental Health Department of Natural Resources Department of Corrections Department of Labor and Industrial Relations Department of Revenue Department of Public Safety Department of Social Services Office of the Governor Joint Committee on Public Employee Retirement Joint Committee on Administrative Rules Missouri Lottery Commission L.R. No. 1332H.02I Bill No. HB 700 Page 8 of February 22, 2023 BB:LR:OD Legislative Research Oversight Division Missouri Consolidated Health Care Plan Missouri Department of Agriculture Missouri Department of Conservation Missouri Ethics Commission Missouri House of Representatives Office of the Lieutenant Governor Missouri Department of Transportation Missouri State Employee's Retirement System MoDOT & Patrol Employees’ Retirement System Missouri Office of Prosecution Services Office of Administration Office of the State Courts Administrator Office of the State Auditor Missouri Senate Office of the Secretary of State Office of the State Public Defender Office of the State Treasurer City of Kansas City City of O’Fallon City of Springfield University of Central Missouri Julie MorffRoss StropeDirectorAssistant DirectorFebruary 22, 2023February 22, 2023