COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1601S.01I Bill No.:SB 377 Subject:Office of Administration; Public ContractsType:Original Date:April 4, 2023Bill Summary:This proposal creates new provisions relating to public contracts.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue
Fund ($89,040)($97,303)($98,937)
Total Estimated Net
Effect on General
Revenue($89,040)($97,303)($98,937)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Conservation
Commission Fund
(Unknown, less than
$100,000)
(Unknown, less than
$100,000)
(Unknown, less than
$100,000)
Total Estimated Net
Effect on Other State
Funds
(Unknown, less than
$100,000)
(Unknown, less than
$100,000)
(Unknown, less than
$100,000)
Numbers within parentheses: () indicate costs or losses. L.R. No. 1601S.01I
Bill No. SB 377
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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 (DNR)
1 FTE1 FTE1 FTETotal Estimated Net
Effect on FTE1 FTE1 FTE1 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$0$0 L.R. No. 1601S.01I
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FISCAL ANALYSIS
ASSUMPTION
Section 34.650 – Contract Provisions
Officials from the Office of Administration (OA) state the proposed legislation will require OA
Purchasing to develop internal processes and self-certification/attestation form/language/exhibits.
OA-Purchasing will then need to amend existing contracts to include the self-
certification/attestation documents and for new procurements include vendor/contractor self-
certification/attestation language and exhibits to ensure that contracts are not awarded to such
entities that have the stipulations in the proposed legislation. OA-Purchasing assumes this would
take approximately 1,000 hours of staff time at an average hourly salary of $20.00 per hour to
develop the internal processes, forms/language/ exhibits, and to include the
forms/language/exhibit to any new procurements. Therefore, OA-Purchasing estimates the total
fiscal impact of this bill to be at least $20,000. At this time, it is believed that the additional staff
time and resources can be absorbed by OA-Purchasing. However, if there are multiple pieces of
legislation passed where OA-Purchasing has responded that the costs can be absorbed, OA-
Purchasing would need to reevaluate to see if additional staff and associated expenses would
then be required.
Additional fiscal impact could also result if OA-Purchasing’s assumption is incorrect that
compliance with this bill can be achieved with a self-certification/attestation form. The bill
language does not require OA-Purchasing to take any specific steps to investigate contractor’s
compliance with this requirement, but if such compliance checks are implied, then fiscally the
impact would be higher. Note that OA-Purchasing can only address those contracts issued by it,
and each state agency would have to do their own compliance checks or reviews for every one of
its purchases and contracts covered by the law.
Officials from the Office of Administration assume agency can absorb the cost of the proposal.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note.
Officials from the Department of Natural Resources (DNR) assume this proposal prohibits
public entities from entering into contracts with companies which engage in economic boycotts.
To meet the requirements of this bill, the Department of Natural Resources would have an
affidavit in all contracts, certifying that companies do not engage in economic boycotts.
DNR estimates that it processes 5,000 contracts per year. The affidavit would take 20 minutes
per contract, for a total of 100,000 additional minutes (1,666 hours) of time. This would require
one FTE (procurement specialist at $52,680 annually). L.R. No. 1601S.01I
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Oversight does not have any information to the contrary. Therefore, Oversight will reflect
estimated cost by DNR to the General Revenue Fund.
Officials from the Missouri Department of Conservation (MDC) anticipates an unknown
fiscal impact.
Oversight assumes this proposal could have an administrative fiscal impact on the Missouri
Department of Conservation. For fiscal note purposes, Oversight will assume an unknown cost
of less than $100,000 to the Conservation Commission Fund.
Officials from the Public Schools and Education Employee Retirement Systems
(PSRS/PEERS) state the their agency has an actuary firm, PricewaterhouseCoopers (PWC), that
prepares actuarial cost statements on any proposed legislation as well as the annual actuarial
valuation reports for the Systems. This legislation will be submitted to them for an actuarial
statement. As soon as the actuarial statement is available, they will be amending their fiscal
response to include their analysis.
PSRS/PEERS assume this legislation would significantly impact the Public School Retirement
System of Missouri (PSRS) and the Public Education Employee Retirement System (PEERS),
collectively referred to as the Systems. The Systems are evaluating the proposed legislation and
the overall impact on the Systems’ investment, service and consulting contracts. PSRS/PEERS
assumes this legislation would impact their ability to contract with private partners (particularly
investment relationships).
Officials from the Kansas City state that this legislation could have a negative fiscal impact on
Kansas City in an indeterminate amount if it exposes Kansas City to liability.
Officials from the City of Springfield anticipates there could be an undetermined negative fiscal
impact from this bill if it limits potential bidders for City contracts. The City does not have
sufficient data to determine if such an impact would occur.
Oversight assumes the potential for litigation, limitation of bidders and contract relationships are
speculative. Therefore, Oversight will reflect a zero impact in the fiscal note for retirement
systems and local political subdivisions.
Officials from the Attorney General’s Office, the Missouri Department of Transportation,
and the 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.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties were requested to respond to this proposed legislation but did L.R. No. 1601S.01I
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not. A listing of political subdivisions included in the Missouri Legislative Information System
(MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDCost - DNR Salaries($43,900)($53,734)($54,808) Fringe Benefits($29,411)($35,688)($36,090) Equipment and Expense($15,730)($7,882)($8,039)Total Cost - DNR($89,040)($97,303)($98,937) FTE Change – DNR1 FTE1 FTE1 FTEESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUND
($89,040)($97,303)($98,937)Estimated Net FTE Change to the
General Revenue Fund
1 FTE1 FTE1 FTECONSERVATION COMMISSION
FUND
Cost – MDC
Administrative Cost
(Unknown, less
than $100,000)
(Unknown, less
than $100,000)
(Unknown, less
than $100,000)
ESTIMATED NET EFFECT TO
THE CONSERVATION
COMMISSION FUND
(Unknown,
less than
$100,000)
(Unknown,
less than
$100,000)
(Unknown,
less than
$100,000)
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 1601S.01I
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FISCAL DESCRIPTION
Under this act, public entities are prohibited from entering into certain contracts with a company
unless the contract includes a written certification that the company is not currently engaged in,
and agrees for the duration of the contract not to engage in, any kind of economic boycott, as that
term is defined in the act. Any contract failing to comply with the provisions of this act shall be
void against public policy.
This act does not apply to contracts with a total potential value of less than $100,000 or to
contractors with fewer than 10 employees.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Attorney General’s Office
Department of Natural Resources
Missouri Department of Conservation
Missouri Department of Transportation
Missouri National Guard
Office of Administration
Kansas City
City of Springfield
Public Schools and Education Employee Retirement Systems
Julie MorffRoss StropeDirectorAssistant DirectorApril 4, 2023April 4, 2023