COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5812H.01I Bill No.:HB 2803 Subject:Department of Social Services; Office of Administration; Contracts and
Contractors; Education, Elementary and Secondary
Type:Original Date:March 8, 2024Bill Summary:This proposal creates new provisions for contracting and purchasing by the
Department of Social Services and the Department of Elementary and
Secondary Education.
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. 5812H.01I
Bill No. HB 2803
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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. 5812H.01I
Bill No. HB 2803
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FISCAL ANALYSIS
ASSUMPTION
§§161.1150 & 660.830 – Contract Provisions
Officials from the Department of Social Services (DSS) assume the proposed new section
660.830 establishes provisions prohibiting entities that contract with the department for the
purpose of disbursing funds through partnerships to community programs that provide human
services from collecting fees in excess of five percent, if the amount of funds received from the
department is under one million dollars or three percent if the amount of funds received from the
department is one million dollars or more.
The administrative funding for programs fully funded by General Revenue could be
implemented as outlined in this legislation. However, programs utilizing federal awards must
adhere to 2 CFR 200.414(f) which permits a non-federal entity receiving a federal award to claim
a ten percent de Minimis indirect cost rate. To comply with the federal regulations, the
department would be required to allow an entity to claim up to ten percent for administrative
costs. If the department were to restrict the administrative funding to three or five percent as
outlined in this legislation, there is a risk of being noncompliant with federal regulations.
It is unknown how this would affect DSS’s federal funding. Therefore, the fiscal impact to FSD
unknown.
Oversight assumes the proposed language is permissive; therefore, Oversight assumes DSS will
continue to comply with federal regulations and adhere to 2 CFR 200.414(f) should this proposal
potentially put DSS in non-compliance with federal regulations. Oversight will reflect a zero
impact in the fiscal note.
Officials from the Office of Administration and the Department of Elementary and
Secondary Education 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.
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. L.R. No. 5812H.01I
Bill No. HB 2803
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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.
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
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.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 5812H.01I
Bill No. HB 2803
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SOURCES OF INFORMATION
Office of Administration
Department of Elementary and Secondary Education
Joint Committee on Administrative Rules
Office of the Secretary of State
Department of Social Services
Julie MorffRoss StropeDirectorAssistant DirectorMarch 8, 2024March 8, 2024