COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1892H.02P Bill No.:Perfected HCS for HB 805 Subject:Roads and Highways; Business and Commerce; Department of Transportation Type:Original Date:April 10, 2023Bill Summary:This proposal modifies provisions relating to outdoor signage.
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 2026
State Road Fund*
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
Total Estimated Net
Effect on Other State
Funds
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
*MoDOT assumes participation in the highway or bridge designation program could grow
considerably from current totals if participants are no longer be required to pay for the signage.
Oversight assumes the cost for memorial designations could exceed the $250,000 threshold in a
given fiscal year.
Numbers within parentheses: () indicate costs or losses. L.R. No. 1892H.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 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$0 L.R. No. 1892H.02P
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Transportation (MoDOT) assume this proposal would waive
the permit fee and biennial fee for landowners, provided the landowner is the permit holder and
owns both the land the sign is located on and the business advertised on the sign.
This proposal is estimated to have a positive fiscal impact to MoDOT of $500 annually.
Language added under §226.540(4) may increase new permit fees and biennial inspection fees
collected in unzoned areas by $5,400 annually. In 2021, there were 30 billboard permits issued
in unzoned areas along a primary route. MoDOT estimates that language under §226.540(4)
would allow an additional 27 permits to be issued in unzoned areas along a primary route on the
opposite side of the travelway.
27 billboard permits x $200 new permit fee = $5,400
Biennial inspection fee of $100 x 27 billboard permits issued / 2 = $1,350
$5,400 + $1,350 = $6,750 annually
Language added under §226.550.1, 2, and 4 may decrease the biennial inspection fees for
landowners by $6,250 annually.
There are 125 (estimated) landowners that are also the permit holder and advertiser x $100
biennial inspection fee / 2 = $6,250.
Cumulative impact is $6,750 - $6,250 = $500
Oversight does not have any information to the contrary in regards to MoDOT’s estimates.
Oversight assumes the potential change in revenue and costs is not material; therefore, Oversight
will not reflect this on the fiscal note.
House Amendment 2 – Memorial Designations
Officials from the Missouri Department of Transportation (MoDOT) assume the following
regarding this proposal:
At present, 803 memorial designations exist across the state highway system. This number
should be expected to increase exponentially, since the current participation fee paid to the State L.R. No. 1892H.02P
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Road Fund would be removed. MoDOT finds a current six-year average of four law enforcement
memorial requests each year.
The Missouri Department of Public Safety (DPS) estimates that Missouri has 16,287 active law
enforcement, and MoDOT finds a six-year average of four law enforcement memorial requests
each year.
The Missouri Veterans Commission estimates that Missouri has 406,035 veterans as of 2020.
MoDOT receives a six-year average of ten veteran memorial requests annually. 178 veteran
memorials have been erected, while seven Medal of Honor Memorial signs have been erected.
The former signs have been funded partially with participation fees, while some of the latter have
been funded with the legislation signed into law during the 2021 legislative session.
Supporting Heroes estimates that nine firefighters die in the line of duty in Missouri each year.
The Defense POW/MIA Accounting Agency estimates that there are 2,404 Missouri members of
the armed forces that are missing in action.
MoDOT’s true expenditure costs for memorial sign costs today for a standard 6’x3’ sign is
$3,900 for the pair of Perforated Square Steel Tube (PSST) Posts and $6,547 for Pipe Posts. The
costs increase significantly when the applicant requests the larger 8’x3’ signs to accommodate
rank and titles, assuming the route allows it. At present, 2/3 of memorial signs are installed on
PSST Posts, while 1/3 are installed on Pipe Posts. The current fees of $4,000 (6’x3’ signs) and
$4,800 (8’x3’ signs) only account for PSST Post installations.
As demonstrated by the number of Missouri veterans, law enforcement officers, and firefighters,
the range of the fiscal impact to MoDOT would be substantial. The number of memorial
designations passed annually would be likely to increase substantially due to the waiving of
participation fees.
Oversight is unable to determine how many additional memorial designations will be applied for
as a result of this proposal; therefore, Oversight will reflect a cost of Unknown, could exceed the
$250,000 threshold on the fiscal note based on MoDOT’s estimates.
House Amendment 4 – City Populations on City Limit Signs
Officials from the Missouri Department of Transportation (MoDOT) assume there will be no
fiscal impact from this amendment. MoDOT will replace the signs as they replace the city signs
through attrition. L.R. No. 1892H.02P
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FISCAL IMPACT –
State Government
FY 2024
(10 Mo.)
FY 2025FY 2026STATE ROAD
FUND
Cost – MoDOT –
§227.299 signage for
memorial bridge /
highway designations
(HA 2)
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $2500,000)
ESTIMATED NET
EFFECT ON THE
STATE ROAD
FUND
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
(Unknown, could
exceed $250,000)
FISCAL IMPACT –
Local Government
FY 2024
(10 Mo.)
FY 2025FY 2026$0$0$0
FISCAL IMPACT – Small Business
Certain small businesses would not have to pay a one-time permit fee and biennial inspection fee
for outdoor advertising.
FISCAL DESCRIPTION
This bill exempts from the current $200 outdoor advertising fee and biennial inspection fee for
certain highway signs under Section 226.550, RSMo, a sign displayed by a landowner who also
owns the business advertised on the sign if the business has a physical location within 750 feet of
the sign.
The bill, under section 226.540(1) would expand areas considered unzoned commercial or
industrial areas on nonfreeway primary highways, thus allowing additional signs. L.R. No. 1892H.02P
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This bill requires the Department of Transportation to pay all costs associated with the memorial
highways and bridges honoring deceased Missouri veterans who died in the line of duty,
deceased Missouri law enforcement officers and firefighters who died in the line of duty, and
Missouri members of the Armed Forces who are missing in action.
This bill would require the Department of Transportation to include city populations on city limit
signs.
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
Missouri Department of Transportation
Julie MorffRoss StropeDirectorAssistant DirectorApril 10, 2023April 10, 2023