COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0363H.06C Bill No.:HCS for SS for SCS for SB Nos. 3 & 69 Subject:Economic Development; Department of Economic Development; Administrative
Rules
Type:Original Date:April 19, 2023Bill Summary:This proposal modifies provisions governing business organizations.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue
Fund*/**
Could exceed
($10,027,717)
Could Exceed
($11,161,829)
Could Exceed
($11,471,238)
Total Estimated Net
Effect on General
Revenue
Could exceed
($10,027,717)
Could Exceed
($11,161,829)
Could Exceed
($11,471,238)
*Oversight notes that this proposal provides for waiving of regulations (depending upon sandbox
participants) potentially resulting in a loss to general revenue, various state funds, and to local
political subdivisions. Additionally, this proposal may require additional FTE for DED under
Section (s) 620.3800 "Office of Entrepreneurship", and 620.3900 Regulatory Sandbox Act.
**Oversight notes the above expense to the general revenue include estimation of the SOS FTE
(75) due to changes to the Uniform Limited Liability Company Act.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Various State Funds
(OA, MDC, etc.)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Technology Trust
Fund (SOS 0266)($600,000)($650,000)($700,000)
Total Estimated Net
Effect on Other State
Funds
Could Exceed
($600,000)
Could Exceed
($650,000)
Could Exceed
($700,000)
Numbers within parentheses: () indicate costs or losses. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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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 2026General Revenue
Fund – DED3 FTE 3 FTE3 FTE
General Revenue
Fund – SOS 75 FTE75 FTE75 FTE
Total Estimated Net
Effect on FTE78 FTE78 FTE78 FTE
☒ 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. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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FISCAL ANALYSIS
ASSUMPTION
Section 34.195 Right to Start
In response to the similar proposal, HB 237 – 2023, officials from the Office of Administration
(OA) noted:
FMDC provided a revised response for Section 34.195. This bill requires OA to file a report
annually with the General Assembly about the number of contracts awarded to contractors who
have been in business for less than 3 years. This will require FMDC to examine each of its
awarded contractors to determine how long they have been in business and to track such
information in order to create the report. FMDC estimates that this will take approximately 1
hour per awarded contract. FMDC awards approximately 500 contracts per year. FMDC
estimates that it will take approximately 200 hours of initial work to develop and implement
these changes. Therefore, the estimate impact to staff time from this section is 700 hours at a rate
of $36.70 totaling $25,690.
Officials from FMDC revised its original response where it noted the need for 2 FTE; however,
at this time the FMDC assumes this section will requires OA to provide a report to the General
Assembly with recommendations on improving access and resources for new Missouri
businesses. FMDC assumes it would be part of OA’s effort at creating this report. FMDC
estimates that assisting with this report will require approximately 100 hours of staff time
totaling $3,690. For any newly awarded contracts after the bill goes into effect, OA/FMDC
assumes it will also need to update its bid/contract forms in order to gather necessary information
from contractors and update its internal policies and procedures to set standards about how this
determination will be made. FMDC estimates that it will take approximately 200 hours of initial
work to develop and implement these changes. The estimate impact to staff time from this
section is 300 hours at a rate of $36.70 totaling $11,010.
At this time, it is believed that the additional staff time and resources can be absorbed by FMDC.
However, if there are multiple pieces of legislation passed where FMDC has responded that the
costs can be absorbed, FMDC would need to reevaluate to see if additional staff and associated
expenses would then be required.
Oversight notes the officials from OA assume the proposal will have a direct fiscal impact on
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect an OA’s estimated impact in the fiscal note as one time cost in FY 2024.
(The proposal states the provision shall begin FY 2025; however, it promulgates rules that the
OA should have the report ready prior to the FY 2025) L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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Officials from the Office of Administration – Budget & Planning (B&P) assume this section
shall be known as the "Right-to-Start Act" which requires the commissioner of the office of
administration to file a report with the general assembly no later than June 30, 2025, and
annually thereafter that includes the number of contracts, percentage of the number of contracts,
total dollar amount of all contracts, and percentage of the total dollar amount awarded to
businesses, including minority-owned businesses that have been in operation for less than three
years. This section will not impact TSR or the calculation under Article X, Section 18(e).
Officials from the Department of Economic Development (DED) assume 34.195. Establishes
the "Right-to-Start Act", requiring reporting to the Office of Administration by state agencies.
DED assume this provision will have no fiscal impact to DED.
Officials from the Department of Revenue (DOR) assume this proposal requires the
Commissioner of the Office of Administration to file a report about new businesses and state
contracts. This will not fiscally impact the DOR.
Section 135.460, 287.037, 347.700 – 347.1228 Repeals the Missouri Limited Liability
Company Act and establishes the Uniform Limited Liability Company Act
Officials from the Department of Economic Development (DED) assume the proposal shall be
known, and may be cited as, the "Uniform Limited Liability Company Act". Language in
Section(s) 135.460; 287.037; 347.700 to 347.720; 356.071 related to limited liability companies
is modified accordingly.
Officials from the Department of Revenue (DOR) assume this section(s) modifies a sectional
references and creates the Uniform Limited Liability Act. This will not have a fiscal impact on
DOR.
Officials from the Office of the Secretary of State (SOS) assume the Section 347.1028
requiring registered agent letter of consent at application will require review/manual processing
of each filing. This change will not only require additional FTE, it will stop all filings that
currently auto process from doing so.
347.1060. 3 requires rejections be provided within 15 business days. This would require all
LLC’s filings to be processed within 15 days resulting in the addition of FTE positions. Current
processing time is 15-30 business days.
The corporations division currently has 5 individuals who can be considered dedicated to
processing LLC filing. Each can process an estimated 5,200 filings per year. With an increase in
all filings requiring manual review and the requirement of no less than 15 days to process SOS
anticipates needing not less than 10 new FTE in the division. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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347.1064 implements an annual report requirement for LLC’s which would result in
approximately 900,000 reports each year. This would require additional FTE to meet the 15 day
requirement referenced in 347.1060, Section 3 as well as a new form and system modifications.
It is estimated that 35% of the 900,000 entities will file a report. This will result in 60 FTE for
processing and 5 FTE for supervisors.
FTE Salary Corp Spec I costs of $35,268 per position plus benefits
FTE Supervisor Salary costs of $ 48,132 per position plus benefits
FTE Equipment costs estimated at $1,200
The Secretary of State reserves the right to offset or request additional resources for estimated
fiscal note impacts during the budget process.
Oversight notes the SOS assume the proposal will require 70 FTE (Corporation Specialist I at
$35,268 annually plus fringe benefits and E&E) due to the Section(s) 347.1060 3 (10 FTE) ,and
347.1064 (60 FTE).
Oversight notes the SOS assume additional need for and additional 5 FTE, due to the change in
Section 347.1064 (Corporation Supervisor IV at $48,132 annually, plus fringe benefits and
E&E).
Officials from the SOS also note the proposal does not contain filing fees which will result in a
reduction of revenue, additional postage cost and will require additional FTE.
Filing fees collected for FY 2020-2022:
2020: General Revenue - $3,014,661 Tech Fee - $399,710 – Total - $3,414,371
2021: General Revenue - $3,721,682 Tech Fee - $542,115 – Total - $4,263,797
2022: General Revenue - $4,913,152 Tech Fee - $644,010 – Total - $5,557,162
SOS estimate the next three years based on the last three years for revenue loss as shown below:
FY2024: General Revenue - $5,000,000 Tech Fee - $600,000
FY2025: General Revenue - $5,250,000 Tech Fee - $650,000
FY2026: General Revenue - $5.500,000 Tech Fee - $700,000
Lastly, SOS note all changes to software would require working with a third party vendor and/or
the Information Technology department.
Oversight notes, with additional information from the SOS via e-mail, the SOS collects a
technology trust fund fee on all filings regarding a fee in Chapter 347. If the GR fee is removed
(347.179) then SOS cannot charge the tech fee under 347.740. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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Section 347.740. Additional fee — expiration date. — The Secretary of State may collect an
additional fee of five dollars on each and every fee required in this chapter. All fees collected as
provided in this section shall be deposited in the state treasury and credited to the secretary of
state's technology trust fund account. The provisions of this section shall expire on December
31, 2026.
As the proposed language would not provide for any fees, a negative is shown on the fiscal
summary for Technology Trust Fund, this is its own line item and does not go into GR. The
fiscal note excel spreadsheet breaks this out and the word doc worksheet also breaks it out called
Tech Fee by year in the same row as the GR.
Tech Fee is appropriated/authorized to the SOS by chapter 28.
Oversight notes the officials from the SOS assume the proposal will have direct fiscal impact on
their organization and the general revenue fund. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect the SOS estimated impact in the fiscal note.
Section(s) 356.071, 407.205, 407.2110
Oversight notes Section 356.071 requires that the name of a professional corporation or of a
foreign professional corporation must be identified by a special abbreviation.
Officials from the Department of Economic Development (DED) note:
Section 407.205 Establishes requirements for businesses offering automatic renewal offers or
continuous services offers to consumers. No fiscal impact to DED.
Section 407.2110 Establishes that lessors of technology products can return the equipment in
person. No fiscal impact to DED.
Oversight notes 407.205 thru 407.2110 clarify language where Missouri business initial order
for the automatic renewal or continuous service and return of goods and services to the physical
location(s) of the business if available.
Oversight notes this specific section (407.205) contains a delayed effective date of July 1, 2024.
2024.
Oversight note DED assume the above provisions will have no 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 DED for these sections of the proposal.
Section 431.202 A Reasonable Covenant in Writing for Health Care Professionals L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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Officials from the DED assume Section 431.202 modifies language restricting the use of non-
compete covenants for health care professionals. DED assume this provision will have no fiscal
impact to DED.
Oversight notes the proposal states that no "facility" in this state shall require any "health care
professional” who is working in a non-research role to sign any covenant not to compete as a
condition of employment. Oversight assumes this provision would not have a direct fiscal impact
on the state or local political subdivisions.
Section 536.050, 536.300-303 - Modifies requirements related to small business impacts,
and repeals the Small Business Regulatory Fairness Board
Officials from the Department of Economic Development (DED) assume this provision will
have no fiscal impact to DED.
Oversight notes the DED assumes this provision will have no fiscal impact on their
organization. Oversight assumes this would not have a direct fiscal impact on the state or local
political subdivisions.
Oversight assumes the removal of sections 536.303, 536.310, 536.315, 536.323, 536.325, and
536.328 could result in a savings to state agencies, including the Department of Economic
Development. Oversight will reflect this potential savings as $0 or Unknown to the General
Revenue Fund.
Section 620.3800. Creates within DED the "Office of Entrepreneurship"
Officials from the Department of Economic Development (DED) note
DED is responsible for administering the “Office of Entrepreneurship” and shall employ an
individual to promote policies and initiatives to support the growth of entrepreneurship in the
state. The Office of Entrepreneurship is also responsible for preparing a report for the general
assembly making recommendations on improving access and resources for new Missouri
businesses that have been in operation for less than three years. DED will need 1.0 FTE to
administer the Office of Entrepreneurship.
Oversight notes the officials from the DED assume the proposal will directly impact their
organization. Oversight does not have any information to the contrary. Therefore, Oversight will
reflect DED’s 1 FTE impact in the fiscal note.
Officials from the Office of Administration – Budget & Planning (B&P) assume this section
would create the “Office of Entrepreneurship” under DED. This section will not impact TSR or
the calculation under Article X, Section 18(e). Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for B&P for this
section. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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Officials from the Department of Revenue (DOR) assume this proposal will not fiscally affect
the Department. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect a zero impact in the fiscal note for DOR for this section.
Sections 620.3900 – 620.3930 Regulatory Sandbox
Officials from the Department of Economic Development (DED) note:
Section 620.3905.1 states that the regulatory relief office will be administered by a sandbox
program director. DED has estimated personal service costs by taking a mid-range salary of a
typical Program Director (Designated Principal Assistant) at DED who oversees an office but
does not supervise staff. DED also believes additional review (e.g., reviews of state laws) would
require a legal counsel FTE. If DED determines that additional staff are needed to administer the
sandbox program, DED will request additional 2 FTE through the normal budget process.
Oversight notes that DED assumes the proposal will have a direct fiscal impact on their
organization. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect DED’s FTE costs for a Division Program Director at $80,000 and a Legal Counsel at
$62,508 annually to fulfill compliance under Section 620.3900 and 2 FTE Economic
Development Specialist at $74,666 annually under Section 620.3800, in the fiscal note.
Officials from the Office of Administration – Budget & Planning note:
An applicant shall remit to the regulatory relief office an application fee of three hundred dollars
per application for each innovative offering. It is not specified in the bill where this money will
be deposited, therefore B&P assumes it will be GR. This will have an unknown positive impact
on GR and TSR.
Section 536.300 has been modified removing a requirement that a small business impact
statement be submitted prior to submitting proposed rules and a reference to sections 536.300 to
536.310.
This bill would also provide that during the demonstration period, a sandbox participant shall not
be subject to the enforcement of state laws or regulations identified in the written agreement
between the regulatory relief office and the sandbox participant. There is not enough information
on what laws or regulations may be waived or what impact such a waiver might have on TSR.
Section(s) 536.300 to 536.310, 536.315, 536.323, 536.325, and 536.328, which refer to small
businesses and the "Small Business Regulatory Fairness Board" are repealed.
Oversight notes that an applicant shall remit to the regulatory relief office an application fee of
$300 per application for each innovative offering. Therefore, Oversight will reflect a potential
positive fiscal impact on the General Revenue Fund for this application fee. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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Oversight, for the purpose of this fiscal note, retrieved average patent filings in the State of
Missouri to estimate how many entrepreneurs would potentially be participating in this pool.
According to the U.S. Patent and Trademark Office – Patent Technology Monitoring Data
(PTMT) there were on average 868 patents filed by Missourians annually from FY 2000 to FY
2015.
Oversight notes that the proposal assesses a $300 fee that must be paid in order to participate in
this program. Oversight assumes that the fee structure could potentially result in additional
revenue of $260,400 ($300 x 868 potential innovative entrepreneurs). Therefore, for purpose of
this fiscal note, Oversight will reflect a positive unknown amount to the General Revenue Fund
Oversight assumes that the fee paid to participate will be remitted to GR for purpose of this
fiscal note, and as shown above the amounts collected could reach the $250,000 threshold.
Officials from the Department of Revenue (DOR) note:
The proposal would create a new government entity, the “regulatory relief office,” which may
enter into agreements to essentially waive the requirements of Missouri’s statutes and regulations
on certain participating businesses. This office is allowed to make suggestions as to which state
laws and regulations are burdensome, but does not define burdensome. This is concerning for
DOR as most people would consider taxes burdensome. Depending on the laws waived this
could result in increased costs to DOR for tracking these participants and changes to their
individual income tax system. These computer changes are estimated at $7,193.
The proposal directs the regulatory relief office to consult with applicable agencies, regarding the
acceptance of the applicant in the sandbox and the agreement of rules to be waived. The agencies
are asked to notify the office if the applicable agency has previously investigated, sanctioned, or
pursued legal action against the applicant. The office is allowed to enter into agreement with the
applicant to participate in the sandbox and have rules waived. The proposed legislation prohibits
these agreements from exempting an applicant “from any income, property, or sales tax liability
unless such applicant otherwise qualifies for an exemption from such tax.” This may require
DOR to provide information on their relationships with a participating business to the regulatory
relief office. Some of this information is currently protected under DOR's confidentially laws.
At this time, DOR is unable to determine if there is additional costs from this provision.
This proposal says that the sandbox agreement cannot exempt an applicant from income,
property or sales tax liability. Property tax is handled by the State Tax Commission. DOR has
numerous other tax types besides the income tax and sales tax exempted under this proposal.
Examples include, withholding tax, tire and battery fee taxes, use taxes, marijuana taxes and
more that do not appear protected under this proposal. Allowing participants in the program to
not pay taxes will result in a loss of state and local revenue.
This proposal gives the regulatory relief office authority to waive state law and regulations.
DOR is concerned this would result in filing deadlines being moved or changes for some filers
and not others, or payments being waived. This would result in a negative fiscal impact to state
and local revenue. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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At this time, DOR is unable to estimate an exact fiscal impact from this proposal. DOR could
possibly need additional FTE to work with the regulatory relief office depending on the number
of participants, as well as have losses to state and local revenue if participants are allowed to not
pay taxes.
Officials from the Department of Commerce and Insurance (DCI) assume Section(s)
620.3900 to 620.3930 could have potential Unknown fiscal impact on DCI depending on the
number of businesses and individuals that would request to participate in the Sandbox Program.
Oversight assumes DCI is provided with core funding to handle a certain amount of activity
each year. Oversight assumes DCI could absorb the costs related to this proposal at this time. If
multiple bills pass which require additional staffing and duties at substantial costs, DCI could
request funding through the appropriation process.
In response to the similar proposal, SB 69 – 2023, officials from the Department of Labor and
Industrial Relations (DOLIR) assumed the proposal under the Regulatory Sandbox Act
provisions 620.3900 and specifically under 620.3915.5 (3) and .6 proposes requirements for
applicable agencies to review applications and a timeframe to complete reporting regarding an
application for participation in the Regulatory Sandbox program. Unknown impact however,
there appears to be an impact to agencies that would be required to meeting the reporting
requirements of this legislation.
In response to the previous version of the bill, officials from the Missouri Department of
Agriculture (MDA) defer to the OA for the potential fiscal impact of this proposal.
Oversight notes that in response to the similar proposal, SB 69 – 2023, officials from the MDA
noted the proposal, specifically Section 620.3905 (3) 2 could result in a loss of fee funds to the
Missouri Department of Agriculture. If fees are not required to be paid in accordance with
current regulations, guidelines, and policies, the fee-fund revenue to the Department could
substantially decrease. The fee funds support many FTE within MDA, in accordance with their
respective divisions and the fees associated with such; the loss of fee funds could result in the
need for reductions in staff due to unavailability of funding. This loss in fee-fund revenue will
result in a need for general revenue to support these necessary positions across the state of
Missouri.
In response to the previous version of the bill, officials from the Missouri Department of
Conservation (MDC) assumed the proposal will have an unknown fiscal impact on their
organization.
Oversight notes that the Conservation Sales Tax funds are derived from one-eighth of one
percent sales and use tax pursuant to Article IV Section 43 (a) of the Missouri Constitution, thus
MDC’s sales taxes are constitutional mandates. Additionally, Oversight notes the Park, Soil, and
Water Sales Tax funds are derived from the one-tenth of one percent sales and use tax pursuant
to Article IV Section 47 (a) thus DNR’s sales taxes are constitutional mandates. L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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Oversight notes, in response to the previous version of the bill, officials from theDOR, the
DOLIR, the MDA, the B&P, the DCI, and the MDC each assume the proposal would allow for
selected companies, who participate in the Sandbox program, to receive relief from various
taxes, which would have an effect on General Revenue and Other State Funds. Additionally, the
DOR assumes the need for additional FTE to ensure compliance with this proposal. Oversight
does not have any information to the contrary. Therefore, Oversight will reflect a potential ($0
or unknown) negative impact to the General Revenue and Other State Funds, as a result of
reduction in a various tax revenues and potential FTE costs for various state agencies, in the
fiscal note.
Oversight notes that there are few examples of various agency costs in similar Sandbox
proposals filed in the States of Utah, Ohio, Nebraska, Nevada, and the Arizona. Each fiscal note
addresses the difficulty of projecting any costs associated with the proposals. However, a recent
fiscal note submitted to the Nebraska Legislature for consideration of similar bill LB 1127
(Nebraska Sandbox proposal - 2022) from various agencies claiming costs associated with the
proposal, are provided in the Table 1.
Oversight notes that the Missouri Sandbox proposal requires, among other duties, the
Administrator to:
being of consumers
agencies and other states
Oversight notes that there are many other duties required from the Sandbox Office under this
proposal. Therefore, it is probable that the agencies tasked with the regulatory implementation of
this program, such as DOR or DED, will need additional FTE in order to provide the regulatory
framework and compliance procedures for this Act.
Oversight notes that Missouri population is at least 3 times greater (6.6M – Missouri population
/ 1.94M –Nebraska Population) than that of Nebraska, thus the costs could potentially reach a
higher level of expenditure in Missouri. Therefore, for purpose of this fiscal note, Oversight will
note an unknown negative impact to the General Revenue and Other State Funds, which could
potentially exceed $250,000 in various FTE and forgone tax revenue costs to various state funds
in the fiscal note. L.R. No. 0363H.06C
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Table 1.
In response to the similar version of the proposal, HB 2587 – 2022, officials from the Office of
the Governor (GOV) assumed the proposal adds to the governor’s current load of appointment
duties. Individually, additional requirements should not fiscally impact the Office of the
Governor. However, the cumulative impact of additional appointment duties across all enacted
legislation may require additional resources for the Office of the Governor.
In response to the previous version of the bill, officials from the Missouri State Senate assumed
the proposal will have a negative fiscal impact to the senate contingent appropriation to
reimburse 2 senators for travel to meetings of the General Regulatory Sandbox Program
Advisory Committee. Details are in the attached analysis. In summary, it will cost approximately
$281.60 per meeting.
Oversight notes the Missouri State Senate assumes no fiscal responsibility for the other
committee members.
Oversight notes that the Missouri State Senate assumed the proposal will have a direct fiscal
impact on their organization. Oversight assumes the impact to the SEN will not be material and
therefore, will no reflect a negative fiscal impact in the fiscal note for SEN for these sections.
Section 536.300 Administrative Rules
Officials from the Department of Revenue (DOR) note:
A
GENCY
F
Y 2023
F
Y 2024
D
epartment of Economic Development
5
20,380.00
$
6
41,930.00
$
D
epartment of Banking and Finance
2
23,025.00
$
2
15,325.00
$
B
oard of Engineers and Architects
3
,300.00
$
3
,300.00
$
D
epartment of Environment and Energy
2
02,371.00
$
2
02,371.00
$
D
epartment of Agriculture
7
7,500.00
$
7
7,500.00
$
L
iquor Control Commission NFI NFI
N
o Fiscal Impact
N
o Fiscal Impact
M
otor Vehicle Industry Licensing Board No discernable impact No discernable impact
N
o Discernable impact
N
o Discernable impact
N
ebraska State Electrical Division Indeterminable Indeterminable
I
ndeterminable
I
ndeterminable
B
oard of Barber Examiners Indeterminable Indeterminable
I
ndeterminable
I
ndeterminable
A
ttorney General NFI NFI
N
o Fiscal Impact
N
o Fiscal Impact
N
ebraska Real Estate Commission Negligible to significant Negligible to significant
N
egligible to Significant
N
egligible to Significant
S
upreme Court NFI NFI
N
o Fiscal Impact
N
o Fiscal Impact
D
epartment of Labor NFI NFI
N
o Fiscal Impact
N
o Fiscal Impact
D
epartment of Administrative Services
7
1,200.00
$
7
7,000.00
$
D
epartment of Insurance
1
68,900.00
$
1
73,317.00
$
T
otal
1
,127,776.00
$
1
,217,426.00
$
F
TE total
9
.5
1
0.5 L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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This removes the requirement to file a small business impact statement with DED on the day
administrative rules are filed with JCAR. This will not have a fiscal impact on DOR.
Oversight notes the officials from the Joint Committee on Administrative Rules (JCAR) assume
the proposal will have no impact on their respective organizations. Therefore, Oversight will
reflect a zero impact in the fiscal note for JCAR for this section.
Bill as whole:
Senate Amendment(s) I and II offer language clarification in Section 620.3915 and Section
34.195 and will not fiscally affect the overall cost stemming from the proposal.
Officials from the Attorney General’s Office, the
Education, the Department of Mental Health, the Department of Natural Resources, the
Department of Corrections, the Missouri Department of
Transportation, the Office of the State Public Defender, the Department of Public Safety
(the Highway Patrol, the Gaming Commission, the Director’s Office, and the State
Emergency Management Agency), the Missouri House of Representatives, the Office of the
State Auditor, the Joint Committee on Public Employee Retirement, the Office of
Legislative Research, the Office of Legislative Oversight, the Missouri Lottery, the Missouri
Consolidated Health Care Plan, the Missouri Higher Education Loan Authority, the Office
of the State Auditor, the Missouri State Employee's Retirement System, the State Tax
Commission, and the Joint Committee on Education 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 organizations.
In response to a previous version of the bill, officials from the Department of Higher
Education and Workforce Development, the Department of Public Safety (the Capitol
Police, the Alcohol & Tobacco Control, the Fire Safety Missouri National Guard, and
the Veterans Commission), the Missouri Ethic Commission, the
Employees’ Retirement System, the Office of Administration - Administrative Hearing
Commission, the Office of Governor, 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 organizations.
In response to a previous version of the bill, officials from the City of Kansas City, the City of
Jefferson, the City of O’Fallon, and the City of Springfield each assumed this proposal would
not have a direct 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 local political subdivisions.
In response to a previous version of the bill, officials from the Metropolitan St. Louis Sewer
District – 7B Sewer,South River Drainage District – 7D Levee Little Blue
Valley Sewer District – 7B Sewer each assume this proposal would not have a direct fiscal L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
Page 14 of 17
April 19, 2023
BB:LR:OD
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 local
political subdivisions.
Oversight notes many counties and cities assess sales or use taxes on the sale of goods in
Missouri. The tax remitted to various local political subdivisions serves the local political
subdivisions needs. DOR assumes the companies could receive relief from various taxes. DOR
noted that the bill forbids exemption from income tax, sales taxes or property taxes. However,
the local political subdivisions impose other taxes. Therefore, Oversight will note a potential
unknown negative impact to the local political subdivision funds in the fiscal note, depending
upon sandbox participants and applications.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDCost – OA – Section 34.195
Right To Start Act p. 3($40,390)$0$0
Reduction of Revenue – Section
347.1028 (reduction in filing fees) p. 5($5,000,000)($5,250,000)($5,500,000)
Costs – SOS – changes in Section(s)
347.1060 3., and 347.1064 p. 4-5
Personnel Service($2,257,850)(2,736,514)(2,763,879) Fringe Benefits($1,818,832)(2,192,735)(2,202,972) Expense & Equipment($90,000)$0$0 Other Expense (Postage)($502,500)($618,075)(633,527)Total Costs - SOS($4,669,182)($5,547,324)($5,600,378)FTE Change75 FTE75 FTE75 FTERevenue Gain – $300 Fee Paid to
participation in the Sandbox program
(p.7) §620.3915.2
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Savings – various state agencies
removal of Sections 536.303 – 536.328
related to the Small Business
Regulatory Fairness Board (p.6)
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
Page 15 of 17
April 19, 2023
BB:LR:OD
Cost – Reduction in Revenues – various
tax not paid (p.8)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Cost – DOR– FTE necessary to comply
with the proposal (p.9)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs – DED 2 FTE for Section
620.3905 & 1 FTE for Section
620.3800 (p.6)
Personnel Service($180,977)($221,515)($225,946) Fringe Benefits($106,668)($129,627)($131,284) Expense & Equipment($30,500)($13,363)($13,630)Total Costs - ($318,145)($364,505)($370,860)FTE Change3 FTE3 FTE3 FTEESTIMATED NET EFFECT ON
GENERAL REVENUE
Could exceed
($10,027,717)
Could Exceed
($11,161,829)
Could Exceed
($11,471,238)
Estimated Net FTE Change on General
Revenue
78 FTE78 FTE78 FTEOTHER STATE FUNDS Loss of Revenues - to various State
Funds – various tax or fees not paid
OA, MDC, DCI, MDA (p.5)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Cost – SOS – Technology Trust Fund
(0266) (Limited Liability Company
Changes) (p. 5)($600,000)($650,000)($700,000)
NET EFFECT ON THE OTHER
STATE FUNDS
Could Exceed
($600,000)
Could Exceed
($650,000)
Could Exceed
($700,000) L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
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April 19, 2023
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Loss of Revenues - to various local
funds –various tax not paid (p.12)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
NET EFFECT ON THE LOCAL
POLITICAL SUBDIVISIONS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Small Business
Small businesses, who will participate in the Sandbox program, will be able to receive potential
tax and/or fee reductions and regulation exemptions.
FISCAL DESCRIPTION
The proposal modifies provisions relating to business organizations.
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 Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Mental Health
Department of Natural Resources
Department of Public Safety
L.R. No. 0363H.06C
Bill No. HCS for SS for SCS for SB Nos. 3 & 69
Page 17 of 17
April 19, 2023
BB:LR:OD
Veterans Commission
Department of Social Services
Missouri Ethic Commission
Missouri Department of Transportation
MODOT – Patrol Employees’ Retirement System
Missouri House of Representatives
Department of Transportation
Office of Administration - Administrative Hearing Commission
Office of Missouri Governor
Office of the State Auditor
Joint Committee on Public Employee Retirement
Office of Legislative Research
Office of Legislative Oversight
Joint Committee on Education
City of Kansas City
Jefferson City
City of O’Fallon
City of Springfield
Julie MorffRoss StropeDirectorAssistant DirectorApril 19, 2023April 19, 2023