COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1713H.01I Bill No.:HB 702 Subject:Law Enforcement Officers And Agencies; Saint Louis City Type:Original Date:February 8, 2023Bill Summary:This proposal modifies provisions relating to the operation of certain law
enforcement agencies.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue*
$0
$0 to
Unknown
(Unknown) to
Unknown
Total Estimated Net
Effect on General
Revenue $0
$0 to
Unknown
(Unknown) to
Unknown
*Oversight notes the provisions of this proposal state the Office of Administration shall
reimburse from the State Legal Expense Fund any board of police commissioners established
under Chapter 84 for liability claims eligible for payment under §105.711 paid by such boards on
an equal share basis per claim up to the current law maximum of $1,000,000 per fiscal year.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Other State Funds
$0
$0 to
Unknown
(Unknown) to
Unknown
State Legal Expense
Fund* $0$0$0
Total Estimated Net
Effect on Other State
Funds $0
$0 to
Unknown
(Unknown) to
Unknown
*Cost avoidance and reduction in contributions net to zero. Numbers within parentheses: ()
indicate costs or losses. L.R. No. 1713H.01I
Bill No. HB 702
Page 2 of
February 8, 2023
NM:LR:OD
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
$0 to
(Unknown)
(Unknown) to
Unknown L.R. No. 1713H.01I
Bill No. HB 702
Page 3 of
February 8, 2023
NM:LR:OD
FISCAL ANALYSIS
ASSUMPTION
§§84.012, 84.020, 84.030, 84.100, 84.140, 84.150, 84.160, 84.170, 84.225, 84.325, and 105.726
– Board of Police Commissioners
In response to similar legislation from this year, HB 216, officials from the Office of
Administration (OA) stated section 105.726.3 adds the provision that reimbursement from the
LEF is on an equal share basis per claim up to a maximum of one million dollars per fiscal year.
This change has the potential to avoid costs to the Legal Expense Fund. The maximum amount
to be reimbursed remains unchanged with this legislation. The number of successful claims is
unknown; therefore, the potential cost avoidance is also unknown.
Oversight does not have any information contrary to that provided by OA. Therefore, Oversight
will reflect OA’s potential unknown impact to the State Legal Expense Fund. Oversight notes the
Legal Expense Fund is funded by the General Revenue Fund as well as other state funds.
Oversight notes this possible litigation exposure as described by OA could also apply to local
political subdivisions.
Oversight also assumes if the state takes control of the St Louis Police Department, they will be
exposed to additional LEF claims in the future. Oversight will reflect a potential unknown loss
of funds starting in FY 2026.
Oversight notes the provisions of this proposal state on or after July 1, 2024, the Board of Police
Commissioners shall assume control of any municipal police force established in any city not
within a county, which, at this time, is only St. Louis City. Upon such assumption, any municipal
police force within St. Louis City shall transfer to the Board title and ownership of all debts and
assets, and the state shall accept responsibility, ownership, and liability as successor-in-interest
for contractual obligations, debts, and other lawful obligations of the municipal police forces
established in St. Louis City.
In response to similar legislation from this year, HB 216, officials from the Office of
Administration - Budget and Planning (B&P) stated this proposal transfers certain assets,
contractual obligations, indebtedness, and other lawful obligations from the St. Louis Police
Department to the state. This could include any funds held by the city in the name of, for the
benefit of, or for future contribution to any police pension system created under chapter 86. B&P
does not have any information on what, if any, assets or obligations might be transferred. The
state could risk picking up significant debt obligations.
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation. L.R. No. 1713H.01I
Bill No. HB 702
Page 4 of
February 8, 2023
NM:LR:OD
In response to similar legislation from this year, HB 216, officials from the Office of the
Secretary of State (SOS) noted many bills considered by the General Assembly include
provisions allowing or requiring agencies to submit rules and regulations to implement the act.
The SOS is provided with core funding to handle a certain amount of normal activity resulting
from each year's legislative session. The fiscal impact for this fiscal note to the SOS for
Administrative Rules is less than $5,000. The SOS recognizes that this is a small amount and
does not expect that additional funding would be required to meet these costs. However, the SOS
also recognizes that many such bills may be passed by the General Assembly in a given year and
that collectively the costs may be in excess of what the office can sustain with its core budget.
Therefore, the SOS reserves the right to request funding for the cost of supporting administrative
rules requirements should the need arise based on a review of the finally approved bills signed by
the governor.
Officials from the Department of Public Safety - Office of the DirectorDepartment of
Labor and Industrial Relations and the Department of Natural Resources each 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.
In response to similar legislation from this year, HB 216, officials from the Attorney General’s
OfficeOversight does not
have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal
note.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, the St. Louis Police Department and the City of St. Louis were requested to respond to
this proposed legislation but did not. A general listing of political subdivisions included in the
Missouri Legislative Information System (MOLIS) database is available upon request. L.R. No. 1713H.01I
Bill No. HB 702
Page 5 of
February 8, 2023
NM:LR:OD
FISCAL IMPACT – State GovernmentFY 2024FY 2025FY 2026GENERAL REVENUECost Avoidance – OA (§105.726)
Reduction in the amount of claims paid
(equal share basis compared to current
law) p. 3$0
$0 to
Unknown
$0 to
Unknown
Costs – Exposure to potential additional
LEF claims by retaking control of
SLPD $0$0
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND$0
$0 to
Unknown
(Unknown) to
Unknown
OTHER STATE FUNDSCost Avoidance – OA (§105.726)
Reduction in the amount of claims paid
(equal share basis compared to current
law) p. 3$0
$0 to
Unknown
$0 to
Unknown
Costs – exposure to potential additional
LEF claims by taking control of SLPD$0$0
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
OTHER STATE FUNDS$0
$0 to
Unknown
(Unknown) to
Unknown
STATE LEGAL EXPENSE FUND
(0692)
Transfer In - for possible additional
LEF claims $0$0
$0 to
Unknown
Cost Avoidance – OA (§105.726)
Reduction in the amount of claims paid
(equal share basis compared to current
law) p. 3$0
$0 to
Unknown
$0 to
Unknown L.R. No. 1713H.01I
Bill No. HB 702
Page 6 of
February 8, 2023
NM:LR:OD
Costs – exposure to potential additional
LEF claims by taking control of SLPD$0$0
$0 to
(Unknown)
Loss - (§105.726) Reduction in the
amount of funds received by the LEF
from other state funds p. 3$0
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
THE STATE LEGAL EXPENSE
FUND $0$0$0
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026ST. LOUIS CITYCost Avoidance – (§105.726) If the
state assumes responsibility of LEF
claims – instead of St. Louis p. 3$0$0
$0 to
Unknown
Cost – (§105.726) Reduction in the
amount of claims paid (equal share
basis compared to current law) p. 3$0
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON ST.
LOUIS CITY$0
$0 to
(Unknown)
(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
The bill provides that when city of St. Louis passes ordinances, no ordinances can in any
manner, conflict or interfere with the powers of the Board of Police Commissioners.
Additionally, the mayor or any city officer shall not impede or hinder the Board of Police
Commissioners or they shall be liable for a penalty of $1,000 for each and every offense to
hinder the Board and will forever be disqualified from holding or exercising any office of the
city.
Beginning August 28, 2023, the Board shall assume control of the municipal police department
of St. Louis and, no later than September 28, 2023, the Governor must appoint four
commissioners to the Board who shall serve together with the President of the Board of L.R. No. 1713H.01I
Bill No. HB 702
Page 7 of
February 8, 2023
NM:LR:OD
Aldermen. The municipal police department will transfer title and ownership of all indebtedness
and assets and accept liability as successor-in-interest for contractual obligation of the police
department.
The Board shall initially employ, without reduction in rank, salary, or benefits, all commissioned
and civilian personnel of the municipal police department. The Board is required to appoint and
employ a permanent police force consisting of not less than 1,142 members. The Board may
continue to employ as many non-commissioned police civilians as it deems necessary in order to
perform the duties imposed on them, which will include city marshals and park rangers. The
Board will grant every member of the police force a certain number of paid vacation days based
on how long each member has served as provided in the bill.
No further appointments to the rank of major will be made, but all members of the force now
holding the rank of major shall continue in that rank until their promotion, demotion, removal,
resignation, or other separation from the force. The salaries paid as of August 28, 2023, shall not
be less than the annual salaries paid to each member before the enactment of this bill and annual
salaries shall increase by no less than $4,000 by July 1, 2024. No additional compensation shall
be given to any officer of the rank of lieutenant or above for overtime, court time, or stand-by
court time. Probationary patrolmen, patrolmen, and sergeants must receive compensation for all
hours of service in excess of the established regular working period, for all authorized overtime,
and for employees who complete academic work at an accredited college or university up to a
certain amount as provided in the bill. Additionally, certain officers may receive up to 10% of
their salary in additional compensation for hours worked between 11 p.m. and 7 a.m.
This bill provides that, until the Board adopts other investigative and disciplinary procedures, the
police force shall follow the disciplinary and investigative procedures established by the Police
Manual of the St. Louis Metropolitan Police Department that are consistent with law. The Board
will not adopt any disciplinary procedures that do not include the summary hearing Board
procedures provided for currently in the Police Manual. This bill provides that reimbursements
from the Legal Expense Fund to the Board for liability claims must be on a 21 equal share basis
per claim up to a maximum of $1 million per fiscal year.
This bill repeals all provisions relating to the municipal police force established by the city of St.
Louis.
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
Attorney General’s Office
Department of Public Safety
Office of the Director
Department of Natural Resources L.R. No. 1713H.01I
Bill No. HB 702
Page 8 of
February 8, 2023
NM:LR:OD
Department of Labor and Industrial Relations
Office of Administration
Office of Administration - Budget and Planning
Joint Committee on Administrative Rules
Office of the Secretary of State
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 8, 2023February 8, 2023