COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4503H.01T Bill No.:Truly Agreed To and Finally Passed HB 2111 Subject:Auditor, State; County Officials Type:Original Date:May 28, 2024Bill Summary:This proposal modifies powers of the Missouri State Auditor.
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. 4503H.01T
Bill No. Truly Agreed To and Finally Passed HB 2111
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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. 4503H.01T
Bill No. Truly Agreed To and Finally Passed HB 2111
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri State Auditor, Missouri Office of Prosecution Services and the
Department of Commerce and Insurance each assume the proposal will have no fiscal impact
on their respective organizations.
In response to a previous version, officials from Jackson County assumed the proposal would
not have a fiscal impact to their county.
Oversight notes that the above mentioned agencies have stated the 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 on the fiscal note.
Oversight only reflects the responses that we have received from state agencies and political
subdivisions; however, other counties were requested to respond to this proposed legislation but
did not. A general listing of political subdivisions included in our database is available upon
request.
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
ISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation appears to have no direct fiscal impact. L.R. No. 4503H.01T
Bill No. Truly Agreed To and Finally Passed HB 2111
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This bill defines "improper governmental activity," as official misconduct, fraud,
misappropriation, mismanagement, waste of resources, or a violation of State or Federal law,
rule, or regulation.
The bill specifies that the auditor or their authorized representative may audit all or part of any
political subdivision or government entity if, after an investigation, the auditor believes improper
governmental activity has occurred, or when requested to by a prosecuting attorney, circuit
attorney, or law enforcement agency as part of an investigation.
This bill provides that testimony and records obtained through subpoenas issued by the auditor
shall be subject to the same confidentiality and disclosure requirements for audit workpapers and
related supportive material.
Currently, each fiscal year, the State Auditor must audit, adjust and settle all receipts and
disbursements in the insurance dedicated fund and the insurance examiners' fund, and taxes
certified and collected on foreign and domestic insurance premiums, surplus line premiums, and
county taxes on property owned by insurance companies. This bill repeals the requirement to
audit taxes certified and collected on foreign and domestic insurance premiums, surplus line
premiums, and county taxes on property owned by insurance companies and requires that the
results of audits of the Insurance Dedicated Fund and the Insurance Examiners' Fund shall be
reported as part of the annual audit of the State's financial statements.
The bill adds records relating to reports of allegations of improper governmental activities to the
list of records exempt from public disclosure.
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
Office of the State Auditor
Department of Commerce and Insurance
Missouri Office of Prosecution Services
Jackson County
Julie MorffRoss StropeDirectorAssistant DirectorMay 28, 2024May 28, 2024