COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:1332H.05C Bill No.:HCS for HB Nos. 700 & 445 Subject:Health Care; Employees - Employers; Political Subdivisions; Health, Public Type:Original Date:March 1, 2023Bill Summary:The proposal creates provisions relating to refusal of medical procedures or treatment. 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. 1332H.05C Bill No. HCS for HB Nos. 700 & 445 Page 2 of March 1, 2023 BB:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on All Federal Funds 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.05C Bill No. HCS for HB Nos. 700 & 445 Page 3 of March 1, 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. Oversight notes the DMH assume the proposal could affect their funding because the facility staff vaccination rates under 100% constitute non-compliance (CMS guidance QSO-23-02- ALL). Oversight received additional information from the DMH, via e-mail, and confirmed that officials from the DMH believe this bill, considering the allowable exclusions, could still have a potential impact on the funding reaching beyond $250,000, due to the loss of CMS funding. Oversight notes the proposal, specifically Section 191.230.4 (1) thru (6), allows for exclusions of certain organizations certified by the Medicare or Medicaid, and employees of state department and agency who are part of an onsite survey team performing federal oversight of certified providers and suppliers for the Centers for Medicare and Medicaid Services. Oversight assume both Sections, 191.230 and 292.648, provide for exception which is applicable for facilities defined in Section 199.170. The exceptions would effectively include the Department of Mental Health facilities. Therefore, Oversight will reflect a zero impact in the fiscal note for DMH in the fiscal note. Oversight notes the officials from the Department of Social Services (DSS) assume the proposal, specifically Section(s) 191.230 and 292.648, 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 Corrections (DOC) assumes that section 292.648.1(2) is referring to any drug in the treatment of COVID 19, which would be no impact. If this is truly defined as “any drug”, then the DOC could see a significant fiscal impact. L.R. No. 1332H.05C Bill No. HCS for HB Nos. 700 & 445 Page 4 of March 1, 2023 BB:LR:OD Officials from the DOC 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 DOC for this provision. 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 for MoDOT. 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 Labor and Industrial Relations, the 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, the Office of Administration (Administrative 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 and the State Tax Commission each assume the proposal will have no fiscal impact on their respective organizations. Officials from the University of Central Missouri 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 UCM. 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. Oversight notes the proposal, specifically 191.230 3 (1) and (2), allows for exclusions of certain school organizations and states the proposal shall not apply to public colleges and universities where a COVID-19 vaccination is required for employees or select student participants in order for the colleges or universities to receive federal funds. Therefore, Oversight will reflect zero for all college and university organizations in the fiscal note. L.R. No. 1332H.05C Bill No. HCS for HB Nos. 700 & 445 Page 5 of March 1, 2023 BB:LR:OD Officials from the City of Kansas City, and the City of Springfieldassume 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 2026$0$0$0FISCAL IMPACT – Local GovernmentFY 2024 (10 Mo.) FY 2025FY 2026$0$0$0 FISCAL IMPACT – Small Business A fiscal impact to small businesses would be potentially expected as a result of this proposal. 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. The proposal contains exclusions for specified schools, health care facilities, and individuals from the provisions regarding COVID-19 vaccinations. 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; L.R. No. 1332H.05C Bill No. HCS for HB Nos. 700 & 445 Page 6 of March 1, 2023 BB:LR:OD (2) The employee has received a written recommendation, based upon the employee’s unique and individual situation, that a treatment is likely to be harmful to the employee or is not in the best interest of the employee or is harmful for the employee according to a licensed physician based on the employee's medical situation; and (3) The employee submits a written request for the exemption to the employer. Additionally, an student shall be exempt from a public college or university’s requirement to receive medical treatment as a condition of participation in any project or activity sponsored by the college or university and shall not be subject to adverse action by the college or university for declining to receive the treatment if: (1) The student holds a sincerely held religious belief that forbids the student from receiving the treatment and the reasonable accommodation of such belief would not pose an undue hardship on the college or university; (2) The student has received a written recommendation, based upon the student’s unique and individual situation, that a treatment is likely to be harmful to the student or is not in the best interest of the student or is harmful for the student according to a licensed physician based on the student’s medical situation; and (3) The student submits a written request for the exemption to the college or university. 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.05C Bill No. HCS for HB Nos. 700 & 445 Page 7 of March 1, 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 O’Fallon City of Springfield University of Central Missouri Julie MorffRoss StropeDirectorAssistant DirectorMarch 1, 2023March 1, 2023