COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4005S.01I Bill No.:SJR 71 Subject:Attorneys; Constitutional Amendments; Courts; County Officials; Fees; Law Enforcement Officers and Agencies; Public Officers Type:Original Date:January 30, 2024Bill Summary:This proposal provides for the levying of certain costs and fees to support the salaries and benefits of certain state and county personnel. 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 *The potential fiscal impact of “(More than $8,000,000)” would be realized only if a special election were called by the Governor to submit this joint resolution to voters. 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. 4005S.01I Bill No. SJR 71 Page 2 of January 30, 2024 NM: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 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 or Unknown$0 or Unknown *Transfer out and transfer in net to zero if the Governor calls a special election. L.R. No. 4005S.01I Bill No. SJR 71 Page 3 of January 30, 2024 NM:LR:OD FISCAL ANALYSIS ASSUMPTION §14, Article I - Levying of Fees to Support the Salaries and Benefits of Certain State and County Personnel 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 L.R. No. 4005S.01I Bill No. SJR 71 Page 4 of January 30, 2024 NM:LR:OD 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. Officials from the Office of Administration - Budget and Planning (B&P) assume this legislation requires that fees be charged by the Judiciary in order to fund salaries and benefits of state and county law enforcement personnel. B&P defers to the Office of State Courts Administrator for potential state revenue estimates. Officials from the Office of State Courts Administrator (OSCA) state there may be some impact but there is no way to quantify that currently. Any significant changes will be reflected in future budget requests. In response to a similar proposal (HJR 92), officials from Joint Committee on Public Employee Retirement (JCPER) stated they have reviewed the proposal. The bill has no direct fiscal impact to the Joint Committee on Public Employee Retirement. According to actuarial information provided by the retirement system, this proposal would constitute a “substantial proposed change” in future plan benefits as defined in section 105.660(10). Pursuant to section 105.670, an actuarial cost statement must be filed with the Chief Clerk of the House of Representatives, the Secretary of the Senate, and the Joint Committee on Public Employee Retirement as public information for at least five legislative days prior to final passage. Oversight notes according to the 2023 Annual Report to the General Assembly by the Joint Committee on Public Employee Retirement, the Sheriffs’ Retirement System had the following activity: Employer contributions: $973,559 Market Value (2021) $53,526,623 Actuarial Value (2021) $50,537,005 Liabilities (2021) $46,965,919 In response to a similar proposal (HJR 92), officials from the Sheriffs’ Retirement System stated the impact is unknown at this time. If the constitutional amendment passes, it would restore the court fine collection in current statute for the MO Sheriffs' Retirement System. Officials from the Attorney General’s Office, the Department of Natural Resources, the Department of Public Safety (Capitol Police, Office of the Director, Missouri Highway Patrol)Missouri Department of Conservation, the Office of the State Public Defender and the 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. L.R. No. 4005S.01I Bill No. SJR 71 Page 5 of January 30, 2024 NM:LR:OD In response to similar legislation from 2023, SJR 46, officials from the Missouri Office of Prosecution Services assumed 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 only reflects the responses received from state agencies and political subdivisions; however, other counties, county circuit clerks, county prosecutors and sheriff offices 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 2027GENERAL REVENUETransfer 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 GENERAL REVENUE $0 or (More than $8,000,000)$0$0 FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027LOCAL POLITICAL SUBDIVISIONS Savings – Sheriffs - from reduced employer contributions for the Missouri Sheriffs’ Retirement System if funding through court costs is restored$0$0 or Unknown$0 or Unknown 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 L.R. No. 4005S.01I Bill No. SJR 71 Page 6 of January 30, 2024 NM:LR:OD FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS$0 $0 or Unknown $0 or Unknown FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This proposed constitutional amendment, if approved by the voters, provides that the administration of justice shall include levying costs and fees to support salaries and benefits for certain state and county law enforcement personnel whose duties are reasonably related to the operation of the justice system, including sheriffs, prosecuting attorneys, and circuit attorneys. 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 Office of Administration - Budget and Planning Office of the State Courts Administrator Attorney General’s Office Department of Natural Resources Department of Public Safety Missouri Department of Conservation Office of the State Public Defender Phelps County Sheriff’s Office Missouri Office of Prosecution Services Joint Committee on Public Employee Retirement Sheriffs’ Retirement System Julie MorffRoss StropeDirectorAssistant DirectorJanuary 30, 2024January 30, 2024