COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5507H.03I Bill No.:HCR 60 Subject:Banks and Financial Institutions; State Retirement; State Employees Type:Original Date:April 9, 2024Bill Summary:This proposal urges state retirement funds to investigate expanding to bitcoin
and other digital currencies.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027General Revenue*$0 or (Unknown)$0$0Total Estimated Net
Effect on General
Revenue$0 or (Unknown)$0$0
*Oversight assumes this cost would not reach the $250,000 threshold.
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. 5507H.03I
Bill No. HCR 60
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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. 5507H.03I
Bill No. HCR 60
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FISCAL ANALYSIS
ASSUMPTION
Oversight has requested additional information related to this proposal but was unable to receive
some of the agency responses in a timely manner. Oversight has presented this fiscal note on the
best current information available. Upon the receipt of additional responses, Oversight will
review to determine if an updated fiscal note should be prepared and seek the necessary approval
to publish a new fiscal note.
Officials from the Joint Committee on Public Employee Retirement (JCPER) state the
proposal has no direct fiscal impact to the JCPER. The JCPER’s review of the proposal indicates
it will not affect retirement plan benefits as defined in Section 105.660(9).
Officials from Missouri State Employee's Retirement System (MOSERS) state this
resolution, if enacted, encourages “the state retirement agency” to consider the implications of
including a digital-asset ETF in their investment portfolios. The state retirement agency would be
required to:
Bitcoin and digital-asset ETFs;
digital-asset exchange-traded funds by September 30, 2024.
At this time, MOSERS has not undertaken any analysis into the potential risks and benefits of
investing in Bitcoin and digital-asset ETFs or consulted with firms with SEC approval to offer
digital-asset ETFs.
MOSERS assumes the “the state retirement agency” in this resolution refers to the Joint
Committee on Public Employee Retirement. Therefore, MOSERS estimates that this resolution
will have no fiscal impact on the system.
If that assumption is incorrect, MOSERS does not anticipate any fiscal impact based upon the
assumption the State Treasurer does not direct MOSERS to use or acquire any new specific
services that the system is not already contracted with.
Officials from the MoDOT & Patrol Employees’ Retirement System (MPERS) state, if
passed, HCR 60 would require the Joint Committee on Public Employee Retirement (JCPER) to
work with the Treasurer’s office to evaluate the potential risks and benefits of investing in
Bitcoin and provide a comprehensive report on the feasibility, risks, and potential benefits of
directing a portion of statutory retirement funds into digital-asset ETFs. L.R. No. 5507H.03I
Bill No. HCR 60
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While the legislation does not specifically name JCPER, it directs the “state retirement agency”
to perform such work as stated above. JCPER seemed to be a logical conclusion because there is
no single state retirement agency, and directing all individual public retirement plans to perform
such research and work would seem inefficient.
There would be no fiscal impact unless MPERS (as well as all other Missouri public pension
plans) performed the research and reporting, in which case MPERS would be required to hire a
specialty consultant to perform such work. In the event a consultant must be hired, the cost is
unknown at this time.
Officials from the Office of the State Treasurer (STO) state they will need 1 FTE. The costs
noted are based on the current pay level for that position and recent purchases of IT and office
equipment. The square footage costs are from the latest budget numbers provided by FMDC.
Upon further inquiry, the STO stated they would need someone who is an expert on bitcoin or
has the capacity to learn. They would be responsible for “…[evaluating] the potential risks and
benefits of investing in Bitcoin and digital-asset ETFs.” As the STO does not currently allow
these types of investments in the State’s portfolio, the STO does not have this expertise.
Furthermore, the FTE would need to be involved, in some capacity, with drafting the
comprehensive report.
For purposes of this fiscal note, Oversight will adopt MOSERS’ and MPERS’ assumption that
the JCPER is the ‘state retirement agency’ noted in this proposal and will perform the
requirements of this proposal. Oversight assumes the JCPER will work with the STO to prepare
a comprehensive report on directing state retirement funds into digital-asset ETFs by October of
2024 (3 months before the 2025 legislative session).
Oversight assumes there could be potential costs for the STO and/or the JCPER to hire
temporary staff or a consultant to perform the requirements of the proposal. Therefore, Oversight
will show an unknown cost in FY 2025 but assumes there would be no on-going. Oversight
assumes this cost would not reach the $250,000 threshold. L.R. No. 5507H.03I
Bill No. HCR 60
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUECosts – JCPER/STO to hire a
temporary expert or consultant
$0 or
(Unknown)$0$0
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 or
(Unknown)$0$0
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.
FISCAL DESCRIPTION
The proposed legislation relates to state retirement investment in Bitcoin.
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
Joint Committee on Public Employee Retirement
Missouri State Employee's Retirement System
MoDOT & Patrol Employees’ Retirement System
Office of the State Treasurer
Julie MorffRoss StropeDirectorAssistant DirectorApril 9, 2024April 9, 2024