COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4348H.01I Bill No.:HB 1720 Subject:Sunshine Law; Education, Elementary and Secondary Type:Original Date:January 15, 2024Bill Summary:This proposal modifies provisions of the sunshine law. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027General Revenue(Up to $428,961)(Up to $432,079)(Up to $439,218)Total Estimated Net Effect on General Revenue(Up to $428,961)(Up to $432,079)(Up to $439,218) ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 4348H.01I Bill No. HB 1720 Page 2 of January 15, 2024 NM:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027General RevenueUp to 5 FTEUp to 5 FTEUp to 5 FTETotal Estimated Net Effect on FTEUp to 5 FTEUp to 5 FTEUp to 5 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 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 4348H.01I Bill No. HB 1720 Page 3 of January 15, 2024 NM:LR:OD FISCAL ANALYSIS ASSUMPTION §610.021 – Sunshine Law Officials from the Office of Administration – Division of Purchasing (PURCH) assume the following: Without an exemption for state bid and contract records, the proposed legislation would cause the PURCH to have to limit access to the division’s public bid and contract records in order to be compliant with sub section (27). This would have a substantial negative impact to staff time in the division resulting from needing to divert resources from conducting procurements for customer agencies instead to reviewing the bid and contract documents before they are available to the public in order not to violate the law. PURCH and state agency procurement officers would have to make significant redactions to remove most names in each bid and proposal from vendors before such records could be made public. The Office of Administration strongly recommends the language in (27) should include an exemption from bid and contract records similar to the exemption language added to section 105.1500.6, RSMo. Officials from the Department of Health and Senior Services (DHSS) assume §610.021(27) of the proposal requires that information not be released that “may be used to individually identify a constituent of a public governmental body.” The section then defines a constituent as “any person who is within the boundaries of the public governmental body, any person who owns real property within the boundaries of the public governmental body, or any person who owns a business interest in a business operating within the boundaries of the of the public governmental body.” The DHSS is a public governmental body for the purposes of this rule. The DHSS constituency is every Missouri resident, all of those who the DHSS regulate (including out-of- state residents holding an interest in a DHSS licensed entity), and any person visiting the State of Missouri. Because of some of the more controversial topics that DHSS handles (abortion, vaccination, etc.), DHSS receives communications from a variety of people and those communications are often responsive to broad sunshine requests. Arguably, most of the DHSS employees are also constituents and communication between them and outside parties is also responsive to sunshine requests. To comply with this policy, DHSS would first have to determine if every person named in a record is a constituent and then do the additional redaction. The additional workload would require one (1.00 FTE) Legal Counsel at an estimated annual salary of $79,480. DHSS does not have the capacity to absorb the additional workload. DHSS also assumes this proposal will require the staff member to be located in Jefferson City and have additional office space at a cost of $4,140 ($18 * 230 sq. ft. * 1 FTE). Officials from the Missouri Department of Agriculture (MDA) require MDA to hire an additional person. All documents responsive to an open records request would have to be combed for Personal Identifying Information by a staff member and that information would have to be redacted. L.R. No. 4348H.01I Bill No. HB 1720 Page 4 of January 15, 2024 NM:LR:OD Oversight does not have information to the contrary and therefore, Oversight will reflect the estimates as provided by the PURCH, DHSS and the MDA. Officials from the Office of Administration - Administrative Hearing Commission and Budget and PlanningDepartment of Commerce and InsuranceDepartment of Economic DevelopmentDepartment of Elementary and Secondary Education, the Department of Higher Education and Workforce Development, the Department of Mental Health, the Department of Natural Resources, the Department of Corrections, the Department of Labor and Industrial Relations, the Department of Revenue Department of Public Safety (Division of Alcohol and Tobacco Control, Capitol Police, Fire Safety, Office of the Director, Missouri Gaming Commission, Missouri Highway Patrol, Missouri Veterans Commission, State Emergency Management Agency), the Department of Social Services, the Office of the Governor, the Missouri Department of Conservation, the Missouri Ethics Commission, the Missouri Department of Transportation, the Missouri National Guard, the MoDOT & Patrol Employees’ Retirement System, the Petroleum Storage Tank Insurance Fund, the Office of the State Public DefenderOffice of the State Treasurer, the University of Missouri System, the City of Kansas City, the Office of the State Auditor, the Missouri House of RepresentativesJoint Committee on Administrative Rules, the Joint Committee on Education, the Joint Committee on Public Employee Retirement, Legislative Research, the Oversight Division, the Missouri Senate, the Missouri Lottery Commission, the Missouri Consolidated Health Care Plan, the Missouri Higher Education Loan Authority, the Missouri Office of Prosecution Services, the Missouri State Employee's Retirement System, the Office of the State Courts Administrator and the State Tax Commission 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. 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. Oversight only reflects the responses received from state agencies and political subdivisions; however, other cities, counties and local school districts were requested to respond to this proposed legislation but did not. A listing of political subdivisions included in the Missouri Legislative Information System (MOLIS) database is available upon request. L.R. No. 4348H.01I Bill No. HB 1720 Page 5 of January 15, 2024 NM:LR:OD FISCAL IMPACT – State GovernmentFY 2025 (10 Mo.) FY 2026FY 2027GENERAL REVENUECosts – PURCH §610.021Up toUp toUp to Personnel Service($95,432)($116,809)($119,145) Fringe Benefits($74,537)($90,332)($91,237) Expense & Equipment($40,261)$0$0Total Costs - PURCH($210,229)($207,141)($210,382)FTE ChangeUp to 3 FTEUp to 3 FTEUp to 3 FTECosts – DHSS §610.021 Personnel Service($66,233)($81,070)($82,691) Fringe Benefits($38,188)($46,442)($47,070) Expense & Equipment($9,800)($5,582)($5,694)Total Costs - DHSS($114,221)($133,094)($135,455)FTE Change1 FTE1 FTE1 FTECosts – MDA §610.021 Personnel Service($50,546)($51,557)($52,588) Fringe Benefits($34,611)($35,002)($35,402) Expense & Equipment($19,354)($5,285)($5,391)Total Costs - MDA($104,511)($91,844)($93,381)FTE Change1 FTE1 FTE1 FTEESTIMATED NET EFFECT ON GENERAL REVENUE (Up to $428,961) (Up to $432,079) (Up to $439,218) Estimated Net FTE Change on General RevenueUp to 5 FTEUp to 5 FTEUp to 5 FTE FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$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. 4348H.01I Bill No. HB 1720 Page 6 of January 15, 2024 NM:LR:OD FISCAL DESCRIPTION This bill allows for the closure of certain records under the Sunshine law. This bill authorizes a public governmental body to close records that contain individually identifiable information, including email addresses and telephone numbers, submitted to the body by individuals or entities for the sole purpose of receiving electronic or other communications, as specified in the bill. This bill also authorizes the closure of public records that may be used to individually identify a constituent of the public body. The bill defines the term "constituent" to exclude a lobbyist or lobbyist principal, a statewide elected official, or an elected official of a political subdivision, or an employee of such elected official. The bill authorizes the closing of records held by political subdivisions containing individually identifiable information of a minor, or the minor's parent or legal guardian. Further, any record may be closed that is retained in the office of a member of the General Assembly, or employees of the General Assembly, that contain information regarding proposed legislation or the legislative process. These authorizations to close records shall not apply if the record has been offered in a public meeting of either house of the General Assembly or if the record was addressed to, or from, a lobbyist or lobbyist principal. 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 Health and Senior Services Missouri Department of Agriculture Office of Administration Administrative Hearing Commission Budget and Planning Division of Purchasing Department of Commerce and Insurance Department of Economic Development Department of Elementary and Secondary Education Department of Higher Education and Workforce Development Department of Mental Health Department of Natural Resources Department of Corrections Department of Labor and Industrial Relations Department of Revenue Department of Public Safety L.R. No. 4348H.01I Bill No. HB 1720 Page 7 of January 15, 2024 NM:LR:OD Department of Social Services Office of the Governor Missouri Department of Conservation Missouri Ethics Commission Missouri Department of Transportation Missouri National Guard MoDOT & Patrol Employees’ Retirement System Petroleum Storage Tank Insurance Fund Office of the State Public Defender Office of the State Treasurer University of Missouri System City of Kansas City Office of the State Auditor Missouri House of Representatives Joint Committee on Administrative Rules Joint Committee on Education Joint Committee on Public Employee Retirement Legislative Research Oversight Division Missouri Senate Missouri Lottery Commission Missouri Consolidated Health Care Plan Missouri Higher Education Loan Authority Missouri Office of Prosecution Services Missouri State Employee's Retirement System Office of the State Courts Administrator State Tax Commission Julie MorffRoss StropeDirectorAssistant DirectorJanuary 15, 2024January 15, 2024