COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2975H.01P Bill No.:Perfected HB 1518 Subject:Religion; Civil Rights; Department of Higher Education and Workforce
Development
Type:Original Date:March 5, 2024Bill Summary:This proposal prohibits public institutions of higher learning from
discriminating against a religious student association or denying a religious
student association any benefit available to any other student association.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027General Revenue*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated Net
Effect on General
Revenue$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*Oversight notes §173.1556.2 allows aggrieved persons to assert a violation or threatened
violation as a claim in a judicial proceeding. Oversight assumes it is possible for lawsuits against
state institutions to be paid from the Legal Expense Fund, to reach the $250,000 threshold.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Other State**$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Legal Expense Fund*$0$0$0Colleges and
Universities**$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Total Estimated Net
Effect on Other State
Funds$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*Transfers in and distributions net to zero.
** Oversight assumes it is possible for lawsuits against state institutions to be paid from the
Legal Expense Fund, to reach the $250,000 threshold. L.R. No. 2975H.01P
Bill No. Perfected HB 1518
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Numbers within parentheses: () indicate costs or losses.
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Federal Funds*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated Net
Effect on All Federal
Funds$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
* Oversight assumes it is possible for lawsuits against state institutions to be paid from the Legal
Expense Fund, to reach the $250,000 threshold.
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 2975H.01P
Bill No. Perfected HB 1518
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FISCAL ANALYSIS
ASSUMPTION
§§173.1555 and 173.1556 – Prohibits public institutions of higher education from discriminating
against religious student associations or denying any benefit available to other student
associations
Officials from the Office of Administration state §173.1555 has the potential to increase costs
to the state Legal Expense Fund (LEF) for actions alleging violation of this provision against a
public institution of postsecondary education or a state employee in connection with their official
duties on behalf of the state. This change will be subject to judicial construction; therefore, the
cost impact to the state is unknown.
Officials from the Attorney General’s Office, the Office of Administration - Administrative
Hearing Commission, the Department of Higher Education and Workforce Development,
the University of Missouri System, Northwest Missouri State UniversityUniversity of
Central Missouri, and 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.
Oversight notes responding colleges or universities have stated the proposal would not have a
direct fiscal impact on their respective organizations. However, Oversight assumes there could
be an impact from potential litigation. Oversight will show a range of impact of $0 (no increase
in claims) to an unknown cost to colleges and universities from an increase in claims that are
submitted to the Legal Expense Fund for payment.
Oversight notes, based on data provided by the Office of Administration - Risk Management
(OARM), there were no discrimination claims paid during FY 2023. In FY 2021, there was
approximately $20,946 paid by the LEF in discrimination claims (4 discrimination
claims/$20,946 = $5,200 paid per claim). Based on the fact that no discrimination claims were
paid during the prior fiscal year, it is assumed the provisions of this proposal would have no
fiscal impact. However, Oversight assumes this proposal could result in an increase in claims
against colleges and universities which could impact the Legal Expense Fund. Oversight also
assumes it is possible for lawsuits paid from the LEF to exceed $250,000. L.R. No. 2975H.01P
Bill No. Perfected HB 1518
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Table I: Payment data by type of claim in FY 2023
Type of ClaimNumber of ClaimsCost of ClaimsMotor Vehicle139$895,277Dangerous Condition of Property26$683,006Employment88$3,136,826Sunshine Law Violation2$233,383Client Services4$2,185Civil Rights11$144,745Equitable Relief7$49,572Inmate35$11,007,412Unconstitutional State Statute1$152Civil Judicial Action16$235,259Statutory/Ballot Challenge5$22,918Class Action Law Suit1$121,672Tort 25$1,403,238Breach of Contract2$684Administrative Agency3$18,794Regulatory Enforcement1$493Attorney Fees1$7,983Medical Malpractice11$5,981,666STL & KC Police1$1,000,000Totals358$24,945,265
Source - OARM
Oversight notes most LEF costs are reimbursed from the General Revenue Fund (GR). GR has
paid for the majority of payments from the LEF since payments on LEF cases for agencies with
designated reimbursable funds have been relatively small. According to the OARM, broader
budget authority to transfer from Federal and Other Funds beginning in FY 18 allowed for an
increase of percentage of payments from Federal and Other Funds. Table II below shows LEF
costs broken down for GR versus Federal Funds/Other Funds. L.R. No. 2975H.01P
Bill No. Perfected HB 1518
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Table II: Legal Expense Fund payments from GR and Fed/Other
GRFed/OtherTotalGR %Fed/Other %FY 15$9,197,461$661,555$9,859,01693%7%FY 16$11,386,339$600,489$11,986,82895%5%FY 17$19,983,784$4,217,582$24,201,36683%17%FY 18$18,625,000$9,649,513$28,274,51366%34%FY 19$23,542,940 $692,718 $24,234,953 97%3%FY 20$9,026,829 $1,128,397 $10,155,227 89%11%FY 21$5,427,292 $446,485 $5,873,777 92%8%FY 22$11,972,573$871,644$12,844,21893%7%FY 23$24,409,567$535,699$24,945,26598%2%Total$133,571,785 $18,804,082 $152,375,163 88%12%
Source: Office of Administration
Oversight notes the cost of any potential liability would be entirely dependent of the number of
claims and circumstances of the claims filed; therefore the cost is ultimately unknown. Oversight
will show a range of impact of $0 (no increase in claims) to an unknown cost to the Legal
Expense Fund with a corresponding transfer-out from General Revenue, Federal Funds or Other
State Funds.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other colleges and universities were requested to respond to this proposed legislation
but did not. A general listing of political subdivisions included in the Missouri Legislative
Information System (MOLIS) database is available upon request. L.R. No. 2975H.01P
Bill No. Perfected HB 1518
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FISCAL IMPACT – State Government
FY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUECost - Potential increase in payments to
Legal Expense Fund for increase in
claims (§§173.1555 and 173.1556) p.5
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
OTHER STATE FUNDSCost - Potential increase in payments to
Legal Expense Fund for increase in
claims (§§173.1555 and 173.1556) p.5
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
OTHER STATE FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
LEGAL EXPENSE FUND (0692)Transfer In - from GR, Federal, and Other
State Funds - potential increase in claims
(§§173.1555 and 173.1556) p.5
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Transfer Out - payment of
discrimination claims (§§173.1555 and
173.1556) p.5
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
THE LEGAL EXPENSE FUND$0$0$0 L.R. No. 2975H.01P
Bill No. Perfected HB 1518
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FISCAL IMPACT – State
Government (continued)
FY 2025
(10 Mo.)
FY 2026FY 2027COLLEGE AND UNIVERSITY
FUNDS
Cost - Colleges and Universities -
Potential increase in claims
(§§173.1555 and 173.1556) p.3
$0 to (Unknown)$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
COLLEGE AND UNIVERSITY
FUNDS
$0 to (Unknown)$0 to
(Unknown)
$0 to
(Unknown)
FEDERAL FUNDSCost - Potential increase in claims
(§§173.1555 and 173.1556) p.5
$0 to
(Unknown)
$0 to
(Unknown)
$0 to (Unknown)ESTIMATED NET EFFECT TO
FEDERAL FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to (Unknown)FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027COMMUNITY COLLEGE FUNDSCost - Colleges and Universities -
Potential increase in claims
(§§173.1555 and 173.1556) p.3
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
COMMUNITY COLLEGE FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 2975H.01P
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FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill defines "adverse action", "belief-based student association" and "benefit" and prohibits
public institutions of higher learning from taking any action or enforcing any policy that denies a
belief based student association benefits available to other student associations. The bill also
prohibits discrimination against a belief based student association based on its requirement that
leaders of the association adhere to its sincerely held beliefs, sincere practice requirements, or
standards of conduct.
The bill also authorizes aggrieved belief based student associations to seek appropriate relief in a
judicial or administrative proceeding against a public institution of higher learning that violates
the requirements of the bill. (§§173.1555 and 173.1556)
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 - Administrative Hearing Commission
Department of Higher Education and Workforce Development
Office of Administration – Risk Management
University of Missouri System
Northwest Missouri State University
University of Central Missouri
Office of the State Courts Administrator
Julie MorffRoss StropeDirectorAssistant DirectorMarch 5, 2024March 5, 2024