COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:3752H.01I Bill No.:HB 1724 Subject:Public Officers; Contracts and Contractors; Political Subdivisions Type:Original Date:February 27, 2024Bill Summary:This proposal modifies provisions relating to contracts with public entities. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on General Revenue $0$0$0 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. 3752H.01I Bill No. HB 1724 Page 2 of February 27, 2024 KC: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 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$0$0 L.R. No. 3752H.01I Bill No. HB 1724 Page 3 of February 27, 2024 KC:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Commerce and Insurance, the Department of Economic Development, the Department of Elementary and Secondary Education, the Department of Higher Education and Workforce Development, the Department of Health and Senior Services Department of Mental Health, the Department of Natural Resources, the Department of Corrections, the Department of Labor and Industrial Relations, the Department of Revenue, the Department of Public Safety ( Capitol Police Alcohol & Tobacco Control, Fire Safety, Gaming Commission, Missouri Highway Patrol, Missouri National Guard, State Emergency Management Agency and Veterans Commission the Department of Social Services, the Office of the Governor, the Joint Committee on Public Employee Retirement, the Missouri Lottery Commission, the Missouri Consolidated Health Care Plan, the Department of Agriculture, the Missouri Department of Conservation, the Missouri House of Representatives, the Department of Transportation the Office of Prosecution Services, the Office of Administration, the Office of the State Courts Administrator, the Office of the State Auditor, the Missouri Senate, the Office of the State Public Defender, State Tax Commission and Kansas City each assume the proposal will have no fiscal impact on their respective organizations. Oversight notes that the above mentioned agencies have stated the proposal would not have a direct 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. Officials from the Missouri Department of AgricultureDepartment of Public Safety – Office of the Director and the Department of Mental Health defer to the Office of Administration for the potential fiscal impact of this proposal. 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 L.R. No. 3752H.01I Bill No. HB 1724 Page 4 of February 27, 2024 KC:LR:OD 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. FISCAL IMPACT – State GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$0$0$0FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$0$0$0 FISCAL IMPACT – Small Business A direct fiscal impact to small contracting businesses would be expected as a result of this proposal. FISCAL DESCRIPTION The proposed legislation appears to have no direct fiscal impact. 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 Commerce and Insurance Department of Economic Development Department of Elementary and Secondary Education Department of Higher Education and Workforce Development 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 Safety Department of Social Services Office of the Governor Joint Committee on Public Employee Retirement L.R. No. 3752H.01I Bill No. HB 1724 Page 5 of February 27, 2024 KC:LR:OD Joint Committee on Administrative Rules Missouri Lottery Commission Legislative Research Oversight Division Local Government Employees Retirement System Missouri Consolidated Health Care Plan Missouri Department of Agriculture Missouri Department of Conservation Missouri House of Representatives Office of the Lieutenant Governor Missouri Department of Transportation Missouri State Employee's Retirement System MoDOT & Patrol Employees’ Retirement System Missouri Office of Prosecution Services Office of Administration Facilities Management, Design and Construction Office of the State Courts Administrator Office of the State Auditor Missouri Senate Office of the Secretary of State Office of the State Public Defender Office of the State Treasurer Public Schools and Education Employee Retirement Systems State Tax Commission Kansas City Julie MorffRoss StropeDirectorAssistant DirectorFebruary 27, 2024February 27, 2024