COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1080H.08T Bill No.:Truly Agreed To and Finally Passed HCS for SS for SB 24 Subject:Mental Health; Emergencies; Ambulances and Ambulance Districts; Employees -
Employers
Type:Original Date:June 12, 2023Bill Summary:This proposal modifies provisions relating to vulnerable persons.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue* #
**
(Could exceed
$266,460)
(Could exceed
$532,919)
(Could exceed
$532,919)
Total Estimated Net
Effect on General
Revenue
(Could exceed
$266,460)
(Could exceed
$532,919)
(Could exceed
$532,919)
*Oversight assumes any potential 1% collection fees retained by the Department of Revenue due
to an increase in local sales tax from this bill would not reach the $250,000 threshold.
#Oversight notes §161.244 allows DESE to provide grants directly to private entities for the
provision of early childhood education services. Oversight reflected a fiscal impact of $0 or an
unknown amount, depending upon appropriations.
**This proposal (§287.715) extends the sunset date of an up to a 1% supplemental surcharge
allowance paid into the Second Injury Fund, currently it is set to expire on December 31, 2023.
The proposal extends the date to 2026.
Numbers within parentheses: () indicate costs or losses. L.R. No. 1080H.08T
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ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Workers’
Compensation$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Other State$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)State RoadUp to
($45,000)
Up to
($90,000)
Up to
($90,000)
Second Injury Up to
$8,144,251
Up to
$16,288,501
Up to
$16,288,501
Colleges &
Universities(Unknown)(Unknown)(Unknown)
Total Estimated Net
Effect on Other State
Funds
Less than
$8,144,251
Less than
$16,288,501
Less than
$16,288,501
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. L.R. No. 1080H.08T
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ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Local Government(Unknown –
potentially
significant)
(Unknown –
potentially
significant)
(Unknown –
potentially
significant)
Numbers within parentheses: () indicate costs or losses. L.R. No. 1080H.08T
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FISCAL ANALYSIS
ASSUMPTION
§§67.145, 70.631, 170.310, 190.091, 650.320, 650.330, and 650.340 – Telecommunicator first
responders
Officials from the Department of Health and Senior Services (DHSS) state §650.340.8 (1) of
the proposed legislation, directs the DHSS to include an advance health care directive form with
instructions on completion on it’s website as described in §459.015. Included on the form shall
be a listing of possible uses for an advance health care directive including pain management and
nonopioid measures.
It is assumed that the Department can absorb the costs of this bill with current resources.
However, if the workload significantly increased or other legislation was enacted, additional
resources would be requested through the appropriation process.
Oversight does not have any information to the contrary. Oversight assumes the DHSS has
sufficient staff and resources available to absorb the minimal additional duties and costs
associated with creating and implementing on its website an advance health care directive and
will, therefore, reflect no fiscal impact for this agency for these sections.
In response to similar legislation (SS for SCS for SB 45), officials from the Branson Police
Department, the St. Joseph Police Department and the Cole Camp Ambulance District each
assumed the proposal will have no fiscal impact on their respective organizations.
In response to similar legislation from 2023 (HB 567), officials from the Local Government
Employees Retirement System (LAGERS) assumed 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 these sections.
§§67.145, 105,500, 190.100, 190.103, 190.142, 190.147, 192.2405, 208.1032, 285.040, 321.225,
321.620 and 537.037 – Emergency medical services
In response to similar legislation SB 625, officials from the Branson Police Department
assumed the proposal would 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 these sections.
§§135.327, 135.331 & 135.333 - Adoption Tax Credit L.R. No. 1080H.08T
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Officials from the Office of Administration – Budget & Planning (B&P) assume this proposal
would make multiple changes to the adoption tax credit. This proposal would remove the annual
$6 million redemption cap and change the tax credit to refundable beginning with fiscal year
2025.
B&P notes that the average 3-year redemption amount from FY20 – FY22 was $17,568. In
addition, credit redemptions have been $1 million or less since 2012. Therefore, B&P estimates
that this proposal may have an unknown negative impact on TSR and GR beginning FY25.
Officials from the Department of Revenue (DOR) note the Adoption tax credit program allows
taxpayers who adopt a child to get a tax credit for non-recurring expenses that result from the
adoption. Additionally, businesses that help cover the cost of their employee’s adoptions can
receive the credit also. This program has a $6 million annual cap with a limit of $10,000 per
child.
This proposal, starting July 1, 2024, removes the $6 million annual cap and makes it unlimited
and it will allow the $10,000 child cap to be inflated in the future by the CPI. Additionally, this
proposal allows the credit to be refunded to taxpayers starting January 1, 2024. While this may
encourage more people to apply for this credit, it has not been near its $6 million cap. Therefore,
the DOR assumes this will not have any additional impact on DOR.
For informational purposes, DOR notes that the Adoption tax credit started in 1987. It has gone
through numerous changes through the years. Most recently in 2021 when the cap on the
program was raised from $2 million to $6 million annually. The DOR is providing the amount
of credits, issued and redeemed over the last few years.
Table 1.
YearIssued
Total
Redeemed
FY 2022$19,690$19,690FY 2021$3,611$3,611FY 2020$29,404$29,404FY 2019$19,185$19,185FY 2018$88,706$88,706FY 2017$127,211$127,211FY 2016$225,358$231,367FY 2015$380,715$380,715FY 2014$714,857$718,495FY 2013$744,155$744,155FY 2012$1,036,226$1,036,226TOTALS$3,389,118$3,398,765 L.R. No. 1080H.08T
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This proposal will require the DOR to update the information on forms, website and computer.
These changes are estimated at $7,193.
Oversight assumes DOR will be able to absorb the cost of the internal updates; therefore,
Oversight will reflect a zero impact for DOR in the fiscal note for these sections.
Oversight notes §135.331 states that no credit shall be allowable for the adoption of any child
who has attained the age of eighteen, unless it has been determined that the child has a medical
condition or disability (changed from “handicap”).
Oversight provides that §135.333 allows after January 1, 2024, any amount of tax credit that is
issued and which exceeds the tax due shall be refunded to the taxpayer. However, for tax years
ending on or before December 31, 2023, any amount of tax credit which exceeds the tax due
shall not be refunded, but instead carried over up to maximum of 5 years.
Oversight notes the most recent data (regarding the adoptions of children with or without special
needs) for state of Missouri from FY 2012 to FY 2019 as follows:
Table 2.
Missouri
State
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
Adopted1,1701,2121,2281,2331,2911,3571,5911,5411,7981,820Waiting for
Adoption
1,9922,0562,0672,1622,3252,5132,5842,8252,7832,745
Source: https://www.acf.hhs.gov/acf-data-research?keyword=special+needs
There was an average of 1,424 children adopted each year from 2010 to 2019.
Oversight notes the “adopted” children (shown above) represent an estimated count of all
children adopted, with public child welfare agency involvement, during the federal fiscal year.
An individual child is counted only once for each year, even if (in rare cases) the child was
adopted multiple times during the year. In cases when an individual child is adopted in one year
and then adopted again in a subsequent year, he or she is included in the count of adoptions for
both years.
Oversight notes that under current law, a tax credit is available for taxpayers who:
expenses.
special needs child can also receive a tax credit up to $10,000 for nonrecurring expenses
paid. L.R. No. 1080H.08T
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needs was removed, and the law allows for the adoption of any child. (HB 429 merged
with HB 430 – 2021)
Section 135.327 provides that for tax years ending on or before December 31, 2023, priority
shall be given to applications to claim the tax credit for special needs children who are residents
or wards of residents of this state at the time the adoption is initiated.
Furthermore, for tax years beginning on or after January 1, 2024, there shall be no limit imposed
on the cumulative amount of tax credits that may be claimed by taxpayers claiming the credit for
nonrecurring adoption expenses. (Currently the cap is set at $6 million per year)
Oversight notes there were 20 taxpayers claiming the tax credit, from FY 2019 to FY 2022.
Additionally, the taxpayers redeemed total amount of $71,890 in tax credit within the same
period. Therefore, the average redemption amount was $3,595 ($71,890/20) in tax credits on
average. (See DOR table below – Special Needs Children Adaption - Tax Credit Form Analysis)
Table 3.
FY 2019
ACTUAL
FY 2020
ACTUAL
FY 2021
ACTUAL
FY 2022 ACTUALCertificates Issued
(#)000
0
Projects (#)7823 Amount Authorized$0 $0 $0 $0 Amount Issued$0 $0 $0 $0 Amount Redeemed$19,185 $29,404 $3,611 $19,690
Total Redeemed FY 19, 20, 21, 22$71,890 Total Projects FY 19, 20, 21, 2220
Oversight notes the changes made in HB 429 from 2021 were only implemented starting
January 1, 2022, therefore, Oversight does not have enough information to determine the actual
increase in tax credits from the changes in that bill (increasing the cap from $2 million to $6
million and opening the credit up to children who are not considered special needs) has been.
Oversight assumes the changes in this proposal may cause an additional upward trend in tax
credit redemptions. However, the average adoption tax credit redemptions per year (before the
changes from HB 429 – 2021 have been implemented) were only $17,973 per year. Therefore,
Oversight assumes the various changes in the bill are unknown and could increase redemptions
by the $250,000 threshold in a given year.
Oversight notes the modifications to the Special Needs Adoption Tax Credit proposed in this
legislation would begin January 1, 2024. Tax returns for Tax Year 2024 would not be filed until L.R. No. 1080H.08T
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after January 1, 2025 (Fiscal Year 2025). Therefore, for purposes of this fiscal note, Oversight
will show a reduction to GR equal to a range, beginning at $0 (participation in the tax credit
program does not change) to an unknown amount in Fiscal Year 2025.
Officials from the Department of Commerce and Insurance (DCI) assume a potential
unknown decrease of premium tax revenues (up to the tax credit limit established in the bill) in
FY2025 and FY2026 as a result of the modification of Adoption tax credit. Premium tax revenue
is split 50/50 between General Revenue and County Foreign Insurance Fund except for domestic
Stock Property and Casualty Companies who pay premium tax to the County Stock Fund. The
County Foreign Insurance Fund is later distributed to school districts throughout the state.
County Stock Funds are later distributed to the school district and county treasurer of the county
in which the principal office of the insurer is located. It is unknown how each of these funds may
be impacted by tax credits each year and which insurers will qualify for the new tax credit.
Oversight assumes for fiscal note purposes that all credits will be taken against income taxes.
§161.244 – Grants for early childhood education
Officials from the Department of Elementary and Secondary Education (DESE) assume the
provisions of this section will have no fiscal impact to DESE. DESE plans to oversee the new
grants with FTE approved for the FY 2024 budget. Oversight
fiscal impact for this section; however, Oversight will show a potential amount of General
Revenue appropriations for grants.
Repeals §190.134 and implements §§190.100, 650.320, and 650.340 – Emergency medical
dispatchers
In response to similar legislation, SB 449, officials from the St. Joseph Police Department and
the Webster Groves Fire Department 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 sections.
§190.327 – Jefferson County 911 board tax
Officials from the Department of Revenue (DOR) state that on July 9, 2019, SB 291 was
signed into law. This law prohibited the Jefferson County 9-1-1 Board from having a sales tax
greater than one quarter of one percent for 911 services. SB 291 delineated only Jefferson
County as prohibited from having a sales tax greater than one-quarter of one percent.
When SB 291 was signed into law, Jefferson County had already been collecting the one-half of
one percent sales tax. The citizens of Jefferson County had, in the April of 2009, adopted a one-
half of one percent sales tax to fund 911 services and the sales tax contained a 10 year sunset
provision. Then again, on April 2, 2019, the citizens of Jefferson County voted to renew the one-
half of one percent sales tax for 911 services and removed the 10 year sunset from the tax, L.R. No. 1080H.08T
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making the tax permanent. A lawsuit was filed and Jefferson County was allowed to continue
collecting the one-half of one percent tax pending the decision in the lawsuit.
This proposal would remove this prohibited language from statutes and allow the voted on sales
tax in Jefferson County to continue. It should be noted that Jefferson County brought in
approximately $11 million from the one-half of one percent sales tax in 2022. No additional
fiscal impact is expected since they are already collecting the tax. This will not have any
administrative impact on DOR.
Oversight notes this section repeals the provision which provides that a sales tax for emergency
services or for providing central dispatching for emergency services shall not be greater than
one-quarter of one percent in Jefferson County. Therefore, Oversight will present a $0 (no
change in sales tax) to Unknown (increase in sales tax) impact for Jefferson County and a $0 (no
change in sales tax) to Unknown (increase in 1% collection fee) impact for the General Revenue
Fund.
§§190.460 and 650.335 - Prepaid wireless phone service charge
Officials from the Department of Revenue (DOR) state the law in §190.460, as of January 1,
2019, allows for the collection of a prepaid wireless emergency telephone service charge on each
retail transaction. However, if a county or city chose to adopt an ordinance they could stop the
collection of this wireless emergency charge in their political subdivision. If a county or city had
prohibited the collection of the fee and then wanted to change their mind they had to have
reinstated the change by November 15, 2019. This proposal allows any city or county to pass the
ordinance at any time as long as notice is provided to DOR within 60 days of passage. Therefore,
a city or county would now be allowed to change their mind about the tax in the future. DOR
notes that its records indicate this would pertain to Platte County only.
Section 650.335 currently provides that Poplar Bluff in Butler County may submit an application
for loan funds or other financial assistance to the board for the purpose of financing all or a
portion of the costs of 911 services. This proposal adds language that would allow the regional
planning commission identified in §70.515 to also submit an application. The commission
identified in §70.515 is the “Regional Investment District Compact” which is an agreement
between Missouri and Kansas to work on regional programs and initiatives to benefit and service
the Kansas City metropolitan areas.
These provisions will not administrative or fiscally impact DOR.
In response to similar legislation (SS for SCS for SB 46), officials from the Kansas City Police
Department and the St. Louis County Police Department each assumed 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 agencies. L.R. No. 1080H.08T
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Based on agency responses to similar legislation (SS for SCS for SB 46), Oversight assumes
these sections will have no fiscal impact on state or local governments.
§§190.1010 and 320.400 – Provision of resources to first responders for mental health;
§287.245 – Voluntary critical illness benefit pools
Officials from the Rock Community Fire Protection District Retirement Fund assume the
proposal would have an unknown, positive fiscal impact on their organization.
Officials from the Morgan County Public Water Supply District #2 assume the proposal will
have a fiscal impact on their organization. However, they are unsure whether the impact will be
positive or negative and, therefore, assume an unknown impact.
Officials from the Public Education Employees’ Retirement System (PEERS) state this
proposal has no substantial fiscal or operational impact on the Public School Retirement System
(PSRS) or PEERS of Missouri.
In response to the previous version of this proposal, officials from the Kansas City Police
Department and the Cole Camp Ambulance District each assumed 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 agencies.
Oversight notes creating or contributing to a pool is voluntary; therefore, Oversight will not
reflect a fiscal impact for the changes to Sections 287.245 & 320.400.
In response to the previous version of this proposal, officials from the Branson Police
Department responded but did not provide a statement of fiscal impact. Therefore, Oversight
assumes no fiscal impact for this organization.
§287.067 – Establishes post-traumatic stress disorder as an occupational disease
In response to similar legislation (SB 120), officials from the Department of Labor and
Industrial Relations (DOLIR) assumed the proposal would not have a direct fiscal impact on
their organization.
Oversight notes that in response to the similar proposal, HB 1249 (2021), DOLIR elaborated on
the proposal and determined that a change in coverage will not cost DOLIR/Division of
Workers’ Compensation (DWC) more money to administer. Additionally, since the vast majority
of “first responders” are public employees (not small business employees), this legislation should
not have a significant impact on private businesses (regardless of whether the premiums for
public employers may or may not rise).
Oversight has requested additional information from the DOLIR regarding their no impact
response and the potential of this legislation expanding workers compensation claims. Upon the L.R. No. 1080H.08T
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receipt of this information, Oversight will review to determine if an updated fiscal note should be
prepared and seek the necessary approval to publish a new fiscal note if needed. In the meantime,
Oversight will assume a $0 to negative unknown impact to the Worker’s Compensation Fund for
this proposal.
Oversight assumes DOLIR is provided with core funding to handle a certain amount of activity
each year. Oversight assumes DOLIR could absorb the costs to administer this part of the
proposal. If multiple bills pass which require additional staffing and duties at substantial costs,
DOLIR could request funding through the appropriation process. Therefore, Oversight will note
a $0 fiscal impact to DOLIR for purposes of this section of the fiscal note.
Officials from the Office of Administration (OA) state §287.069.9 of this legislation creates a
provision that PTSD is recognized as an occupational disease for first responders, as defined in
67.145. This change may affect the proof requirements to establish a compensable injury for first
responders with workers’ compensation claims based on PTSD. The costs to the state are
unknown. The amount of cost increase, if any, cannot be estimated as it would depend on the
facts and circumstances of each case and judicial interpretation of the changes.
Oversight notes, for illustrative purpose of this note, but excluding any proposals with data
including 2020 thru 2022 due to the COVID-19, South Carolina (SC) passed a similar bill, S429
(2016). The SC General Assembly noted the “this bill would have an expenditure impact on the
general fund, but an estimate could not be determined as the costs will depend upon the number
of workers' compensation claims filed in a given year.” This bill is not expected to impact federal
funds or other funds.” (Source:
https://www.masc.sc/Pages/programs/solutions/insurance/RiskLetter/Fall%202021/First-
Responder-PTSD-Assistance.aspx)
Additionally, “this bill would have a local expenditure impact on municipal and county
governments of $1,950,000 to $5,475,000 in FY 2015-16 based on estimates from the Municipal
Association and counties on increased premium costs and incurred claims expenses.” (Source:
https://www.scstatehouse.gov/sess121_2015-2016/prever/429_20150430.ht).
Oversight notes that the South Carolina General Assembly appropriated $500,000 annually to
the Workers Compensation Fund, since the passage of similar PTSD legislation S326 in 2016, to
pay for PTSD claims for first responders. (Source: https://www.scstatehouse.gov/sess123_2019-
2020/appropriations2019/tap1b.htm
Oversight notes that the Ohio General Assembly, while passing HB 308 concerning First
Responder PTSD legislation, estimated that it is possible the bill might in future years affect the
state and political subdivisions’ costs and liabilities related to PTSD compensation and benefits.
The General Assembly also noted that it will need to transfer $500,000 into a special fund
maintained by OMB Office to take care of such a claims.
(Source: https://www.legislature.ohio.gov/download?key=15338&format=pdf; L.R. No. 1080H.08T
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Oversight also notes that Florida Department on Financial Services stated, in regards to fiscal
analysis of a similar proposal (2018 House Bill 227 First Responders PTSD), that the proposal
would likely have a significant negative impact to the state and local political subdivisions.
However, the amount is indeterminate depending on variation of number of claims meeting the
requirements of the proposal.
(Source: http://gencourt.state.nh.us/SofS_Archives/2018/house/SB553H.pdf).
Oversight notes that the officials from OA stated there could be a potential direct impact on
State agencies but the amount of cost increase, if any, cannot be estimated.
Oversight does not have any information to the contrary. Therefore, Oversight will range the
impact from zero impact (no future claims of PTSD) to a negative Unknown (an unknown
number of employees will be filing PTSD claims and meet the requirement of the proposal) in
the fiscal note.
$250,000 threshold of negative impact to the General Revenue
Oversight notes the Budget Request 2023 shows there are 1,393 State Troopers in Missouri. If
only 6.5% (please see the explanation for the percentage below) of those request PTSD
treatment, and each deemed as a valid case, the State of Missouri would have minimal expense
of $105,560 (91 * $1,160 – lower estimate for treatment) to $429,884 (91 * $4,724).
Oversight notes that the above estimates are based on lowest possible percentage of such cases
filed within the first responders sub-group, therefore, the expense could reach greater amount of
expense in the future years.
Officials from the Department of Public Safety - Missouri Highway Patrol defer to the
Missouri Department of Transportation for the potential fiscal impact of this proposal.
Officials from the City of Kansas City assume this legislation could have a negative fiscal
impact on Kansas City of an indeterminate amount.
Officials from the City of Springfield assume the proposal would have a direct fiscal impact on
their organization and the City of Springfield estimates a negative fiscal impact of $500,000 per
year from this bill based on estimated increased claims related to PTSD being defined as an
occupational disease.
In response to similar legislation (SB 120), officials from the St. Joseph Police Department
assumed the proposal will have a potential negative fiscal impact to the City due to work comp
claims regarding occupational-related PTSD, as well as loss of staffing which may require
overtime.
Oversight notes that for purpose of this note “first responders” is defined in RSMo 67.145.2 as
“emergency first responders, police officers, sheriffs, deputy sheriffs, firefighters, ambulance L.R. No. 1080H.08T
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attendants and attendant drivers, emergency medical technicians, mobile emergency medical
technicians, emergency medical technician-paramedics, registered nurses, or physicians.”
Oversight notes that according to the U.S National Library of Medicine – National Institute of
Health, the rates of PTSD among firefighters appear elevated, with point prevalence estimates
ranging from 6.5% to 30%. (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5825264/
Oversight estimates there to be around 25,000 fire fighters, police officers, EMTs and
Paramedics in the State of Missouri according the Bureau of Labor Statistics 2020.
Oversight notes that if only 6.5 % of the above group are diagnosed with PTSD it would
represent 1,625 first responders with PTSD.
A study by Rand Company found that the annual cost ranges from about $1,160 to $4,724 per
person (though this data is from 2008, Tanielian says there is little reason to think that these
numbers would have changed significantly). https://www.marketwatch.com/story/what-ptsd-
costs-families-2014-04-04
Additionally, the total annual cost for health care for a veteran who had PTSD was estimated to
be $11,342, which was more than double the annual VA health care cost of a veteran without
PTSD; 73.1% of health care costs for veterans who had PTSD was for non-mental health
services (Watkins et al., 2011). https://www.ncbi.nlm.nih.gov/books/NBK224872/
Oversight notes that above estimated amount indicates the total price is a partially mental health
and partially non-mental health services. The actual cost for only mental health service is as
follows:
Total PTSD expense per person $ 11,342 -Non-mental health services (73.1%) $ 8,291 =Mental health services cost only $ 3,051
Oversight notes, that for purpose of this fiscal note, the Oversight will estimate the cost using
the RAND study.
Oversight notes that using the lower spectrum of those affected with PTSD (6.5%), within the
first responder sub group (firefighters) could potentially require additional cost ranging from
$1,885,000 (1,625*$1,160) to $7,676,500 (1,625*$4,724) to the local political subdivisions.
In response to similar legislation (HCS for SS for SCS for SBs 119 & 120), officials from the St.
Joseph Police Department assumed the proposal would have a direct fiscal impact on their
organization. L.R. No. 1080H.08T
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Oversight does not have any information to the contrary. Therefore, Oversight will reflect a
range the impact from $0 (no cases of PTSD are diagnosed) to a potentially significant negative
unknown (the employees are diagnosed with PTSD) to local governments in the fiscal note.
In response to similar legislation (HCS for SS for SCS for SBs 119 & 120), officials from the
Kansas City Police DepartmentFruitland Area Fire Protection District and the Cole
Camp Ambulance District each assumed 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 agencies for this section.
§287.715 - Sunset extension of 1% Supplemental Surcharge through CY 2026
Officials from the Department of Labor and Industrial Relations (DOLIR) state the Division
of Workers’ Compensation (DWC) announced the supplemental surcharge rate for CY 2023 and
set the rate at 0% surcharge. However, the maximum impact is up to a potential 1% collection
amount of $16,288,501 (as the maximum allowed collection amount per the proposal if 1% is
announce by the DOLIR by October 31st of 2023) in the fiscal note. The $16,288,501 is an
average of 2018-2021 collections if they were at a rate of 1%.
Oversight notes the current law, as per SB 303 (TAFP) and signed by the Governor in 2021,
requires that Missouri employers contribute a 2.5% supplemental surcharge into the Second
Injury Fund (SIF) for calendar year 2023.
Oversight notes, on average, DOLIR collects $16.28 million for each 1% of supplemental
surcharge from Missouri employers each fiscal year. (Please see the breakdown of charges for
last five years below).
Oversight extracted DOLIR’s Second Injury Fund surcharge collections from 2017 to 2021
period shown below:
CY
5% - 6 %
Collections1% collections
FY 1%
Surcharge
Collections
2017
$ 107,413,99
4
$ 17,902,332
2018
$ 102,442,32
5
$ 17,073,721
$ 17,488,027
2019$ 86,683,062 $ 17,336,612 $ 17,205,167
2020
$ 87,
401,807
$ 14,566,968
$ 15,951,790
2021$ 84,308,838$ 14,451,073 $ 14,509,021 $ 16,288,501
https://labor.mo.gov/data L.R. No. 1080H.08T
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Oversight calculated the potential impact to the SIF for FY 2024, and beyond, by dividing the
total FY annual collections by 4 years totaling $16,288,501 ($65,154,004/4).
Oversight shows the potential maximum collection in FY 2024 to FY 2026 below:
Fiscal Year FY 2024FY 2025FY 2026Totals$8,144,251 $16,288,501 $ 16,288,501
Therefore, Oversight will note the continued positive fiscal impact to the Second Injury Fund in
the fiscal note in FY 2024 (6 Mo.), FY 2025 and FY 2026.
Oversight notes, upon further conversation with the DOLIR, the Department annually reviews
the Actuarial Report determining the solvency of the fund. The Director, as per RSMO 287.690
is also required to announce the relevant rate no later than October 31, each year, in order to
adjust the rate accordingly.
Oversight notes, as per conversation with the DOLIR, the DWC announced the rate for CY
2023 and set the rate at 0% surcharge. Therefore, Oversight will note the maximum impact Up
to potential 1% collection amount $16,288,501 (as the maximum allowed collection amount per
the proposal if 1% is announce by the DOLIR by October 31
st
of 2023) in the fiscal note.
In response to a similar proposal from 2021 (SB 303), officials from MoDOT noted:
Currently, MoDOT pays a 3% Second Injury Fund (SIF) surcharge and a supplemental rate of
0%. This amount will vary based on each year’s premiums, but for 2020, they paid $405,512 for
the SIF surcharge and $270,347 for the supplemental rate. They pay quarterly, but these are the
annual figures.
2017-2019 had a 3% SIF surcharge and a 3% supplemental rate. They paid the following
annually:
2019 - $400,919 for each (surcharge and supplemental)
2018 - $403,463 for each
2017 - $413,749 for each
Oversight notes that MoDOT paid approximately $270,000 annually for 3% supplemental
surcharge in FY 2021; therefore, Oversight will show $0 to $90,000 in FY 2024 and beyond as a
representation of the 1% supplemental surcharge.
Officials from the Department of Public Safety - Missouri Highway Patrol defer to the
Missouri Department of Transportation for the potential fiscal impact of this proposal. L.R. No. 1080H.08T
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In response to a similar proposal from 2021 (SB 303), officials from the Office of
Administration (OA) assumed:
Section 287.715.6 – This legislation changes the maximum supplemental surcharge from 3% to
2.5% in CY 2023. If the division of workers’ compensation collects the maximum of 2.5%, this
change could decrease the total supplemental surcharge the state would pay by a total of
$184,156.20 for GR and $2,953.11 for Conservation.
However, the division of workers’ compensation currently collects 2%, which is less than their
maximum allowed amount; therefore, the proposed legislation would result in an increase in
costs to the state as compared to the actual amount collected by the division of workers’
compensation. This is based on expenditures shown below for 3% SIF and 2% surcharge:
FY21 expenditures for CY2020 taxes GR: $1,841,562.00
FY21 expenditures for CY2020 taxes Conservation: $29,531.06
Increasing the surcharge to 2.5% could increase general revenue costs by $184,156.20 and
Conservation by $2,953.11. Current figures based on 2020 payroll, 2020 insurance rates and
2020/21 experience modification. Other factors that could increase/decrease FY22/23 would be
CY2021/22 payroll, insurance rates and experience modification changes.
Summary of OA’s surcharge paid into SIF:
FY
Summary of Total Tax
Collected into Second
Injury Fund by OA
2022 $ 2,492,9872021 $ 2,539,5332020 $ 2,482,8102019 $ 2,539,133 2018 $ 3,268,504 Average $ 2,664,593
Source: https://oa.mo.gov/sites/default/files/FY_2020_Executive_Budget_Final.pdf
Oversight notes that the OA pays its Workers’ Compensation tax and Second Injury Fund
assessments based on billings received from the Department of Revenue and the Division of
Workers’ Compensation.
Oversight notes MoDOT and OA both will be required to continue to make up to 1 % surcharge
supplemental payments into the Second Injury Fund because of the extension of the surcharge
payment until 2027 under the proposal. Oversight will note “Up to an average 1 % surcharge tax
expense of $532,919 ($2,664,593 / 5) x 1)) to the general revenue fund” in the fiscal note, until
FY 2026. L.R. No. 1080H.08T
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Officials from the City of Kansas City assume the proposal will have negative fiscal impact of
an indeterminate amount.
Officials from the Metropolitan St. Louis Sewer District (MSD)
would impact MSD to the extent that the workers compensation surcharge continues to be
assessed. MSD estimates it will pay approximately $111,252 for the 3% workers compensation
surcharge in 2023. If MSD must pay 1% through 2026, the annual payment would be
approximately $37,085 based on the 2023 assessment.
In response to a similar proposal from this year (SB 521), officials the City of St. Louis –
Budget Division noted:
The proposal reduces the supplemental surcharge charged to employees who pay into the state’s
Second Injury Fund from 3% to 2.5% and extends the supplemental surcharge until 2028. The
City of St. Louis pays $859,714 annually into this fund. This fee is made up of the 3% surcharge
plus a 1% supplemental surcharge. Reducing the supplemental surcharge from 3% to 2.5% will
have no fiscal impact on the City because the City currently pays a 1% supplemental surcharge.
However, extending the supplemental surcharge until 2028 will have a fiscal impact. Extending
this supplemental surcharge will keep the City’s payment at $859,714 annually until 2028; if the
supplemental surcharge were allowed to sunset, the City’s payment would be $644,785 a
decrease of $214,928. Extending the supplemental surcharge will cost the City a total of $1M
($214,928 x 5) over the next five years until 2028.
The above local political subdivisions noted the proposal would have a direct fiscal impact on
their organizations due to the extension of the supplemental surcharge beyond CY 2023.
Therefore, Oversight will reflect a zero to negative unknown cost to the local political
subdivisions in the fiscal note until FY 2026.
In response to similar legislation (HCS for HB 1017), officials from the University of Central
Missouri assumed the proposal will have an indeterminate fiscal impact on their organization.
Oversight notes colleges and universities will be responsible for a continuous payment, 1 %
supplemental surcharge, to be submitted on behalf of its employees if DOLIR announce the 1%
new rate for FY 2024. Therefore, Oversight will reflect a zero to negative unknown cost to the
colleges and universities in the fiscal note.
§320.336 – Reemployment rights of members of Missouri Tax Force Once
In response to similar legislation (HB 392), officials the University of Missouri Systems
assumed 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 on the fiscal note
for this section. L.R. No. 1080H.08T
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In response to similar legislation (HB 392), officials from the University of Central Missouri
assumed the proposal will have an indeterminate impact on their organization.
Oversight assumes University of Central Missouri is provided with core funding to handle a
certain amount of activity each year. Oversight assumes UCM could absorb the costs related to
this proposal. If multiple bills pass which require additional staffing and duties at substantial
costs, UCM could request funding through the appropriation process.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note 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.
Bill as a whole
Officials from the Attorney General’s Office, the Department of Economic Development, the
Department of Mental Health, the Department of Natural Resources, the Department of
Corrections, the Department of Public Safety, Divisions of: Capitol PoliceDirector’s
OfficeFire Safety, Missouri Highway Patrol, State Emergency Management Agency, the
Department of Social Services, the Missouri Department of Conservation, the Missouri
Department of Transportation, the City of Urich, the Phelps County Sheriff, the County
Employees Retirement Fund, the Kansas City Public School Retirement System, the
Sheriff’s Retirement System, the South River Drainage District, the St. Charles County
Public Water Supply District #2, Urich Water/Wastewater, the Wayne County Public
Water Supply District #2, Missouri State University, St. Charles Community College
the Office of the State Courts Administrator 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 agencies. L.R. No. 1080H.08T
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FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDRevenue –DOR (§190.327) - potential
1% collection fee due to local sales tax
increase p. 8-9
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Revenue Reduction – (§135.327) –
increase in Adoption Tax Credit
Participation p. 4-8$0
$0 to
(Unknown)
$0 to
(Unknown)
Cost –payments to treat PTSD cases
(§287.067) p. 10-14
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Costs – DESE (§161.244) – subject to
appropriation, shall to provide grants
directly to private entities for the
provision of early childhood education
services p.8
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Cost –OA – (§287.715.6) –
supplemental surcharge extended
beyond 12/31/23 p.16
Up to
($266,460)
Up to
($532,919)
Up to
($532,919)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
(Could exceed
$266,460)
(Could exceed
$532,919)
(Could exceed
$532,919) L.R. No. 1080H.08T
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FISCAL IMPACT – State Government
(continued)
FY 2024
(10 Mo.)
FY 2025FY 2026WORKERS’ COMPENSATION
FUND (0653)
Cost – claims being expanded to
include PTSD (§287.067) p. 10-11
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
THE WORKERS’
COMPENSATION FUND
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
OTHER STATE FUNDS Colleges & Universities – (§287.067)
p. 9-14
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
OTHER STATE FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
STATE ROAD FUND (0320)Cost –MoDOT – (§287.715.6) –
supplemental surcharge extended
beyond 12/31/23 p.14-15
Up to
($45,000)
Up to
($90,000)
Up to
($90,000)
NET EFFECT ON STATE ROAD
FUND
Up to
($45,000)
Up to
($90,000)
Up to
($90,000) L.R. No. 1080H.08T
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FISCAL IMPACT – State Government
(continued)
FY 2024
(10 Mo.)
FY 2025FY 2026SECOND INJURY FUND (0653)Revenue Gain - Section 287.715.6 –
supplemental surcharge extended
beyond 12/31/23 p.14-15
Up to
$8,144,251
Up to
$16,288,501
Up to
$16,288,501
NET EFFECT ON SECOND
INJURY FUND
Up to
$8,144,251
Up to
$16,288,501
Up to
$16,288,501
COLLEGES AND UNIVERSITIESCost – (§287.715.6) – supplemental
surcharge extended beyond 12/31/23
p.15-16(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
COLLEGES AND UNIVERSITIES(Unknown)(Unknown)(Unknown) L.R. No. 1080H.08T
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Revenue –Jefferson County (§190.327)
Potential sales tax increase p.8-9
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Cost –payments to treat PTSD cases
(§287.067) p. 10-14
$0 to
(Unknown -
potentially
significant
amount)
$0 to
(Unknown -
potentially
significant
amount)
$0 to
(Unknown -
potentially
significant
amount)
Cost – (§287.715) - continuance of
supplemental surcharge past beyond
12/31/2023 p.15-16(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
(Unknown –
potentially
significant)
(Unknown –
potentially
significant)
(Unknown –
potentially
significant)
FISCAL IMPACT – Small Business
A direct fiscal impact to small businesses would be expected as a result of this proposal due to
the continuance of a 1 % supplemental surcharge beyond CY 2023. (§287.715)
FISCAL DESCRIPTION
Adoption Tax Credit (§135.327)
This legislation modifies various benevolent tax credits.
Grants for early childhood education (§161.244)
Subject to appropriation, the department of elementary and secondary education shall provide
grants to private entities for the provision of early childhood education services.
Sales Tax for Emergency Services (§190.327) L.R. No. 1080H.08T
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Currently, an emergency services board operating in Jefferson County shall not have a sales tax
for emergency services or for providing central dispatching for emergency services greater than
one-quarter of one percent. This act repeals this provision.
Workers Compensation for First Responders (§287.067)
This act establishes post-traumatic stress disorder (PTSD), as described in the Diagnostic and
Statistical Manual of Mental Health Disorders, Fifth Edition, (DSM-5) as a compensable
occupational disease under workers' compensation when diagnosed in first responders. A first
responder shall not require a physical injury in order to be eligible for benefits, but preexisting
PTSD is not compensable. The time for notice of injury or death in cases of compensable PTSD
is measured from exposure to one of the qualifying stressors listed in the DSM-5 criteria, or the
diagnosis of the disorder, whichever is later. Any claim for compensation for an injury shall be
properly noticed to the Division of Workers' Compensation within 52 weeks after the qualifying
exposure, or the diagnosis of the disorder, whichever is later.
Extends the sunset of second injury fund supplemental surcharge (§287.715)
Under current law, for calendar year 2023, the Director of the Division of Workers'
Compensation is required to collect a supplemental surcharge not to exceed 2.5% of the
policyholder's or self-insured's workers' compensation net deposits, net premiums, or net
assessments for the previous policy year, rounded up to the nearest one-half of a percentage
point. This provision expires December 31, 2023. This act extends that expiration date to
December 31, 2026 and makes the 1% surcharge permanent for that duration, rather than revert
to 3%.
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
Office of Administration - Budget and Planning
Department of Commerce and Insurance
Department of Economic Development
Department of Elementary and Secondary Education
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
Department of Social Services
Missouri Department of Conservation L.R. No. 1080H.08T
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Missouri Department of Transportation
Office of Administration
Office of the Secretary of State
University of Missouri Systems
City of Kansas City
City of Springfield
City of St. Louis – Budget Division
City of Urich
Phelps County Sheriff
Branson Police Department
Kansas City Police Department
St. Joseph Police Department
St. Louis County Police Department
Webster Groves Fire Department
Fruitland Area Fire Protection District
Cole Camp Ambulance District
Local Government Employees Retirement System
County Employees Retirement Fund
Kansas City Public School Retirement System
Public Education Employees’ Retirement System
Rock Community Fire Protection District Retirement Fund
Sheriff’s Retirement System
Metropolitan St. Louis Sewer District
Morgan County Public Water Supply District #2
South River Drainage District
St. Charles County Public Water Supply District #2
Urich Water/Wastewater
Wayne County Public Water Supply District #2
Missouri State University
University of Central Missouri
St. Charles Community College
Joint Committee on Administrative Rules
Office of the State Courts Administrator
Julie MorffRoss StropeDirectorAssistant DirectorJune 12, 2023June 12, 2023