COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3214H.02I Bill No.:HJR 125 Subject:Constitutional Amendments; Department of Conservation; Department of Natural
Resources; Political Subdivisions; Taxation and Revenue - Sales and Use;
Taxation and Revenue - Property
Type:Original Date:April 16, 2024Bill Summary:This joint resolution proposes a constitutional amendment changing the
membership of the Conservation Commission, the conservation sales and
use tax, and the Department of Conservation's property tax exemption.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027
General Revenue*
$0 or (More than
$8,000,000)$0$0
Total Estimated Net
Effect on General
Revenue
$0 or (More than
$8,000,000)$0$0
*Costs only if the Governor calls a special election.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Conservation
Commission Funds*$0 or ($15,980,000)$0 or ($31,960,000)$0 or ($31,960,000)
Division of State
Parks Funds (DNR)*$0 or $7,990,000$0 or $15,980,000$0 or $15,980,000
Total Estimated Net
Effect on Other State
Funds$0 or ($7,990,000)$0 or ($15,980,000)$0 or ($15,980,000)
*Oversight notes the joint resolution diverts 10% of total funds from the conservation sales and
use tax to the Department of Natural Resources (Division of State Parks) and 10% to local
political subdivisions in which land owned by the MDC is located. Oversight has reflected the
impact as “$0 or” depending upon voter approval.
Numbers within parentheses: () indicate costs or losses. L.R. No. 3214H.02I
Bill No. HJR 125
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April 16, 2024
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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 or $7,990,000$0 or $15,980,000$0 or $15,980,000 L.R. No. 3214H.02I
Bill No. HJR 125
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April 16, 2024
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri Department of Conservation (MDC) assume this proposal will
have an unknown negative fiscal impact greater than $250,000.
Oversight notes the joint resolution diverts 10% of total funds from the conservation sales and
use tax to the Department of Natural Resources (Division of State Parks) and another 10% to
local political subdivisions in which land owned by the MDC is located.
Oversight notes, according to MDC’s budget information, the department collected $159.8
million in conservation sales tax revenue in FY 2023. This would equate to $15,980,000 being
redistributed to the Department of Natural Resources and $15,980,000 to local political
subdivisions. Oversight will reflect a $0 (voters do not approve of the constitutional amendment)
to a $15,980,000 increase in revenue to Department of Natural Resources and $15,980,000 to
local political subdivisions. Oversight will reflect a $0 (voters do not approve of the
constitutional amendment) to a loss of $31,960,000 to MDC. If approved, Oversight will assume
six months (starting January 1, 2025) of impact in FY 2025.
Officials from the Department of Natural Resources (DNR)
of Conservation for the potential fiscal impact of this proposal.
Officials from the Office of the Governor, Missouri House of RepresentativesMissouri
Senate, Department of Social Services, State Tax Commission and Joint Committee on
Administrative Rules 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 City of Kansas City assume the proposal will have no fiscal impact on their
organization. Oversight does not have any information to the contrary. Therefore, Oversight will
reflect a zero impact in the fiscal note.
Oversight assumes there could be a potential increase to property tax revenue to the Blind
Pension Fund and local political subdivisions from Article IV, Section 43(b).2 for property
acquired by the commission. However, Oversight assumes this amount would be minimal.
Therefore, Oversight will reflect a zero impact in the fiscal note for this provision.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other local political subdivisions 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. 3214H.02I
Bill No. HJR 125
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April 16, 2024
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Officials from Office of the Secretary of State (SOS) assume, each year, a number of joint
resolutions that would refer to a vote of the people a constitutional amendment and bills that
would refer to a vote of the people the statutory issue in the legislation may be considered by the
General Assembly.
Unless a special election is called for the purpose, Joint Resolutions proposing a constitutional
amendment are submitted to a vote of the people at the next general election. Article XII section
2(b) of the Missouri Constitution authorizes the governor to order a special election for
constitutional amendments referred to the people. If a special election is called to submit a Joint
Resolution to a vote of the people, section 115.063.2 RSMo requires the state to pay the costs.
The cost of the special election has been estimated to be $8 million based on the cost of the 2022
primary and general election reimbursements.
The Secretary of State’s office is required to pay for publishing in local newspapers the full text
of each statewide ballot measure as directed by Article XII, Section 2(b) of the Missouri
Constitution and Section 116.230-116.290, RSMo. Funding for this item is adjusted each year
depending upon the election cycle. A new decision item is requested in odd numbered fiscal
years and the amount requested is dependent upon the estimated number of ballot measures that
will be approved by the General Assembly and the initiative petitions certified for the ballot. In
FY 2014, the General Assembly changed the appropriation so that it was no longer an estimated
appropriation.
For the FY25 petitions cycle, the SOS estimates publication costs at $60,000 per page. This
amount is subject to change based on number of petitions received, length of those petitions and
rates charged by newspaper publishers.
The Secretary of State’s office will continue to assume, for the purposes of this fiscal note, that it
should have the full appropriation authority it needs to meet the publishing requirements.
Because these requirements are mandatory, the SOS reserves the right to request funding to meet
the cost of the publishing requirements if the Governor and the General Assembly again change
the amount or continue to not designate it as an estimated appropriation.
Oversight has reflected, in this fiscal note, the state potentially reimbursing local political
subdivisions the cost of having this joint resolution voted on during a special election in fiscal
year 2025. This reflects the decision made by the Joint Committee on Legislative Research that
the cost of the elections should be shown in the fiscal note. The next scheduled statewide general
election is in November 2024 (FY 2025). It is assumed the subject within this proposal could be
on this ballot; however, it could also be on a special election called for by the Governor (a
different date). Therefore, Oversight will reflect a potential election cost reimbursement to local
political subdivisions in FY 2025. L.R. No. 3214H.02I
Bill No. HJR 125
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April 16, 2024
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FISCAL IMPACT – State GovernmentFY 2025
(6 Mo.)
FY 2026FY 2027GENERAL REVENUE FUNDTransfer Out - SOS - reimbursement of
local election authority election costs if
a special election is called by the
Governor
$0 or (More
than
$8,000,000)$0$0
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
$0 or (More
than
$8,000,000)$0$0
CONSERVATION COMMISSION
FUNDS
Transfer Out – MDC – 20% to DNR
and local political subdivisions
$0 or
($15,980,000)
$0 or
($31,960,000)
$0 or
($31,960,000)
ESTIMATED NET EFFECT ON
CONSERVATION COMMISSION
FUNDS
$0 or
($15,980,000)
$0 or
($31,960,000)
$0 or
($31,960,000)
DIVISION OF STATE PARKS
FUNDS (DNR)
Transfer In – DNR – 10% of
conservation sales and use tax proceeds
$0 or
$7,990,000
$0 or
$15,980,000
$0 or
$15,980,000
ESTIMATED NET EFFECT ON
DIVISION OF STATE PARKS
FUNDS (DNR)
$0 or
$7,990,000
$0 or
$15,980,000
$0 or
$15,980,000 L.R. No. 3214H.02I
Bill No. HJR 125
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April 16, 2024
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FISCAL IMPACT – Local GovernmentFY 2025
(6 Mo.)
FY 2026FY 2027LOCAL POLITICAL
SUBDIVISIONS
Transfer In - 10% of conservation sales
and use tax proceeds
$0 or
$7,990,000
$0 or
$15,980,000
$0 or
$15,980,000
Transfer In - Local Election Authorities
- reimbursement of election costs by the
State for a special election
$0 or More
than
$8,000,000$0$0
Costs - Local Election Authorities - cost
of a special election if called for by the
Governor
$0 or (More
than
$8,000,000)$0$0
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or
$7,990,000
$0 or
$15,980,000
$0 or
$15,980,000
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Currently, the Conservation Commission consists of four members appointed by the Governor
with not more than two members from the same political party. If approved by the voters, this
resolution would allow the number, qualifications, and terms of the Commission members to be
set by law, with no more than half of the members from the same political party and each
member residing in a different Congressional district, as specified in the bill.
The resolution specifies that if the Governor fails to fill a vacancy on the Commission within 30
days, the remaining members shall fill the vacancy by a majority vote from a list of 10
individuals provided by the General Assembly. The General Assembly will develop the list of
individuals as specified in the resolution.
The resolution also would prohibit any member from accepting a gift of any value from anyone
who receives or has received compensation from or performs a service for the Commission. If a
member receives a gift, the Missouri Ethic Commission must investigate as specified in the bill.
If found to have violated the prohibition, the Commission member shall vacate the office. The
Ethic Commission must forward its findings to the Attorney General for prosecution. L.R. No. 3214H.02I
Bill No. HJR 125
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April 16, 2024
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Anyone who enters into a contract with the Conservation Commission must report, as specified
in the resolution, each item, service, or thing of value provided to each member of the
Commission or any person related to a Commissioner within the first degree of consanguinity.
The resolution also specifies that beginning on January 1 the year following approval, 10% of
revenue derived from the Conservation Sales and Use Tax will go for duties and responsibilities
of the Division of State Parks within the Department of Natural Resources and 10% for the
duties and responsibilities of local political subdivisions in which land owned by the Department
of Conservation is located.
The resolution specifies the manner in which the portion of the revenues to local political
subdivisions is to be distributed.
The resolution also requires the Department of Conservation to pay property taxes on real
property in the amount not less than that private citizens would be required to pay. The General
Assembly must also review any proposed sale or purchase of real property by the Department of
Conservation prior to the transaction being final.
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
Missouri Department of Conservation
Department of Natural Resources
Office of the Governor
Missouri House of Representatives
Missouri Senate
Joint Committee on Administrative Rules
Office of the Secretary of State
State Tax Commission
Department of Social Services
City of Kansas City
Julie MorffRoss StropeDirectorAssistant DirectorApril 16, 2024April 16, 2024