COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:1729H.01P Bill No.:Perfected HB 730 Subject:Property, Real And Personal; Courts Type:Original Date:February 28, 2023Bill Summary:This proposal establishes provisions relating to property rights. 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. 1729H.01P Bill No. Perfected HB 730 Page 2 of February 28, 2023 KB: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 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 1729H.01P Bill No. Perfected HB 730 Page 3 of February 28, 2023 KB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Attorney General’s Office assume the proposal will have no fiscal impact on their organization. In response to a previous version, officials from the Office of the State Courts Administrator assumed the proposal would have no fiscal impact on their organization. Oversight notes that the above mentioned agencies have stated the proposal would not have a direct fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note. In response to a previous version, officials from the City of Kansas City could have a negative fiscal impact in an indeterminate amount. Oversight is unable to determine any direct fiscal impact to the City of Kansas City; therefore, Oversight will not reflect a fiscal impact. Officials from the City of Springfield assume the proposal will have no fiscal impact on their organization. In response to a previous version, officials from the City of O’Fallon and City of Jefferson assumed the proposal would have no fiscal impact on their organization. Oversight only reflects the responses received from state agencies and political subdivisions; however, other local political subdivisions 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. House Amendment 2 In response to a similar proposal from 2023 (HB 962), officials from the Department of Commerce and Insurance, Department of Economic Development, City of Kansas City and City of Springfield each assumed the proposal would 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 agencies. In response to a similar proposal from 2023 (HB 1145), officials from the City of St. Louis notes the Building Commissioner in the City of St. Louis estimates that 30-40% of Housing Conservation District inspections occur because of a residential property sale. Eliminating the requirement for these inspections could reduce Building Division revenue by up to $800,000. L.R. No. 1729H.01P Bill No. Perfected HB 730 Page 4 of February 28, 2023 KB:LR:OD Oversight inquired of the City of St. Louis (STL) regarding their response. The STL stated that their response falls under two municipal ordinances: 67914 regarding the City Housing Conservation Program and 69202 regarding revised legislation on the City Housing Conservation Program. According to ordinance 67914, Section 5C: Upon determining that a dwelling unit has undergone a complete change of occupancy or a sale of the property as reflected in the Recorder of Deeds Office without first obtaining a Certificate of Inspection, the Code Official shall serve notice on the owner of such dwelling unit, by either first class mail or personal service that a Certificate of Inspection must be obtained within thirty (30) calendar days of notification or unit will be condemned for occupancy and must be vacated. Section 8 states: A. Fees for a Certificate of Inspection prior to occupancy when the application for inspection is: 1. General inspection of exterior of building and all common areas and premises plus one dwelling unit is $70.00. Each additional dwelling unit included in the General Inspection, if inspection is performed within the same building and on a common date is $25.00 per each additional dwelling unit. B. The fee for a Certificate of Inspection per unit which is unlawfully occupied shall be as follows: 1. $110.00 per unit. Oversight notes 98% of property in St. Louis is located in a Housing Conservation District. Oversight will reflect a $0 to “Unknown” loss for local political subdivisions on the fiscal note. L.R. No. 1729H.01P Bill No. Perfected HB 730 Page 5 of February 28, 2023 KB:LR:OD FISCAL IMPACT – State GovernmentFY 2024 (10 Mo.) FY 2025FY 2026$0$0$0FISCAL IMPACT – Local GovernmentFY 2024 (10 Mo.) FY 2025FY 2026LOCAL POLITICAL SUBDIVISIONS Loss – fees from inspections of properties prior to sale $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Small Business Small real estate rental and inspection companies and could be impacted as a result of this proposal. FISCAL DESCRIPTION The bill prohibits any county, municipality, or political subdivision from imposing or enforcing a moratorium on eviction proceedings unless specifically authorized by state law. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. L.R. No. 1729H.01P Bill No. Perfected HB 730 Page 6 of February 28, 2023 KB:LR:OD SOURCES OF INFORMATION Attorney General’s Office Office of the State Courts Administrator City of Jefferson City of Kansas City City of O’Fallon City of Springfield Department of Economic Development Department of Commerce and Insurance City of St. Louis Julie MorffRoss StropeDirectorAssistant DirectorFebruary 28, 2023February 28, 2023