COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4188S.01I Bill No.:SB 724 Subject:Elections; Secretary of State Type:Original Date:March 1, 2024Bill Summary:This proposal creates the Office of Election Crimes and Security within the Secretary of State's office. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027 General Revenue (Unknown greater than $126,600) (Unknown greater than $257,363) (Unknown greater than $261,609) Total Estimated Net Effect on General Revenue (Unknown greater than $126,600) (Unknown greater than $257,363) (Unknown greater than $261,609) 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. 4188S.01I Bill No. SB 724 Page 2 of March 1, 2024 BR: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 2027General Revenue (SOS) 3 FTE3 FTE3 FTE Total Estimated Net Effect on FTE3 FTE3 FTE3 FTE ☒ 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. 4188S.01I Bill No. SB 724 Page 3 of March 1, 2024 BR:LR:OD FISCAL ANALYSIS ASSUMPTION Section 115.642 – Creates the Office of Election Crimes and Security within the Secretary of State's office. The Office of the Secretary of State (SOS) states the bill would create an Office of Election Crimes and Security under the Secretary of State which would be responsible for reviewing and investigating all complaints of election law violations made under Chapter 115 of the Revised Statutes of Missouri. Actions taken by this new office would include maintaining a voter fraud hotline as well as issuing subpoenas for records pertaining to the review of complaints and possibly traveling to local election sites to investigate violations on an election day. The exact scope of positions and resources to be granted to this office shall be established by and subject to the legislative appropriations process. However, the text of this bill states that the Secretary of State shall appoint a director of the office and that the office "shall employ investigators" (the plural implying that at least two investigators must be employed). New FTEs for one director at $63,000 and two investigators at $43,500 each will result in a total personnel cost of $150,000 (plus benefits) beginning in FY 2025. Due to the delayed effective date of this bill, the six months’ salary and benefits incurred in FY 2025 will require the SOS to make a supplemental budget request. Additional costs relating to the operation of this office would include the cost of creating and/or maintaining a Voter Fraud Hotline as well as expenses incurred in the process of either issuing subpoenas or traveling for investigative purposes. The exact scope of these expenses is unknown. Oversight has no information to the contrary. However, Oversight will present an unknown fiscal impact to the General Revenue Fund for the voter fraud hotline and subpoena/travel costs. Therefore, Oversight assumes SOS costs will be unknown greater than $250,000 annually. Officials from the Office of Attorney General (AGO) arising from this proposal can be absorbed with existing resources. However, the AGO may seek additional appropriations if the proposal results in a significant increase in litigation or investigation. Oversight does not have any information to the contrary. Therefore, Oversight assumes the AGO will be able to perform any additional duties required by this proposal with current staff and resources and will reflect no fiscal impact to the AGO for fiscal note purposes. L.R. No. 4188S.01I Bill No. SB 724 Page 4 of March 1, 2024 BR:LR:OD Officials from the Missouri Highway Patrol Office of the State Courts Administrator and the 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. FISCAL IMPACT – State GovernmentFY 2025 (6 Mo.) FY 2026FY 2027GENERAL REVENUE FUNDCosts – SOS (§115.642) P.3Personal Service($75,000)($153,000)($156,060)Fringe Benefits($51,600)($104,363)($105,549)Voter Fraud Hotline (Unknown)(Unknown)(Unknown)Subpoenas/Travel(Unknown)(Unknown)(Unknown)Total Costs - SOS(Unknown greater than $126,600) (Unknown greater than $257,363) (Unknown greater than $261,609) FTE Change - SOS3 FTE3 FTE3 FTEESTIMATED NET EFFECT ON THE GENERAL REVENUE FUND (Unknown greater than $126,600) (Unknown greater than $257,363) (Unknown greater than $261,609) Estimated Net Effect FTE Change on the General Revenue Fund3 FTE3 FTE3 FTE 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. L.R. No. 4188S.01I Bill No. SB 724 Page 5 of March 1, 2024 BR:LR:OD FISCAL DESCRIPTION This act creates the Office of Election Crimes and Security within the Secretary of State's office. The Secretary of State is responsible for appointing a director and investigators for the Office. The Office is given the following responsibilities and authority: election laws; election laws; conduct investigations as deemed necessary; violations of state election law; and 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 Secretary of State Attorney General’s Office Missouri Highway Patrol Office of the State Courts Administrator Office of the State Public Defender Julie MorffRoss StropeDirectorAssistant DirectorMarch 1, 2024March 1, 2024