COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4264S.01I Bill No.:SB 980 Subject:Office of Administration; Contracts and Contractors Type:Original Date:February 28, 2024Bill Summary:This proposal prohibits public entities from entering into certain contracts.
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. 4264S.01I
Bill No. SB 980
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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. 4264S.01I
Bill No. SB 980
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FISCAL ANALYSIS
ASSUMPTION
Section 34.650 – Contract Provisions
Officials from the Office of Administration (OA) assume the proposed legislation will require
OA Purchasing to develop internal processes and self-certification/attestation
form/language/exhibits. OA-Purchasing will then need to amend existing contracts to include the
self-certification/attestation documents and for new procurements, OA Purchasing will need to
include vendor/contractor self-certification/attestation language and to ensure that contracts are
not awarded to such entities that have the stipulations in the proposed legislation. OA-Purchasing
assumes this would take approximately 1,000 hours of staff time at an average hourly salary of
$23.52 per hour to develop the internal processes, forms/language/ exhibits, and to include the
forms/language/exhibits in any new procurements. Therefore, OA-Purchasing estimates the total
fiscal impact of this bill to be at least $23,520. At this time, it is believed that the additional staff
time and resources can be absorbed by OA-Purchasing. However, if there are multiple pieces of
legislation passed where OA-Purchasing has responded that the costs can be absorbed, OA-
Purchasing would need to reevaluate to see if additional staff and associated expenses would
then be required.
Additional fiscal impact could also result if OA-Purchasing’s assumption is incorrect that
compliance with this bill can be achieved with a self-certification/attestation form. The bill
language does not require OA-Purchasing to take any specific steps to investigate contractor’s
compliance with this requirement, but if such compliance checks are implied, then fiscally the
impact would be higher. Note that OA-Purchasing can only address those contracts issued by it,
and each state agency would have to do their own compliance checks or reviews for every one of
its purchases and contracts covered by the law.
Officials from the Office of Administration assume agency can absorb the cost of the proposal.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note for OA-Purchasing.
Officials from the Public Schools and Education Employee Retirement Systems
(PSRS/PEERS) state that their agency has an actuary firm, PricewaterhouseCoopers (PWC),
that prepares actuarial cost statements on any proposed legislation as well as the annual actuarial
valuation reports for the Systems. This legislation will be submitted to them for an actuarial
statement. As soon as the actuarial statement is available, they will be amending their fiscal
response to include their analysis.
In response to a similar proposal from last year (SB 430), officials from the PSRS/PEERS
assumed this legislation would significantly impact the Public School Retirement System of
Missouri (PSRS) and the Public Education Employee Retirement System (PEERS), collectively
referred to as the Systems. The Systems are evaluating the proposed legislation and the overall L.R. No. 4264S.01I
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impact on the Systems’ investment, service and consulting contracts. PSRS/PEERS assumes this
legislation would impact their ability to contract with private partners (particularly investment
relationships).
Officials from the Kansas City state that this legislation could have a negative fiscal impact if it
prohibits contracting with an entity that had the lowest contracting price.
In response to a similar proposal from last year (SB 430), officials from the City of Springfield
anticipates there could be an undetermined negative fiscal impact from this bill if it limits
potential bidders for City contracts. The City does not have sufficient data to determine if such
an impact would occur.
Oversight assumes the limitation of bidders and contract relationships are speculative.
Therefore, Oversight will reflect a zero impact in the fiscal note for retirement systems and local
political subdivisions.
Officials from the Department of Natural Resources, the Missouri Department of
Conservation and the Missouri Department of Transportation
have no fiscal impact on their respective organizations.
In response to a similar proposal from last year (SB 430), officials from the Attorney General’s
Office and the Department of Public Safety - Missouri National Guard each assumed 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.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties 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.
FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0 L.R. No. 4264S.01I
Bill No. SB 980
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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 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.
SOURCES OF INFORMATION
Attorney General’s Office
Department of Natural Resources
Missouri Department of Conservation
Missouri Department of Transportation
Missouri National Guard
Office of Administration
Kansas City
City of Springfield
Public Schools and Education Employee Retirement Systems
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 28, 2024February 28, 2024