COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0984H.01I Bill No.:HB 209 Subject:Law Enforcement Officers and Agencies; Criminal Procedure Type:Original Date:February 28, 2025Bill Summary:This proposal establishes the "Preserving Freedom from Unwarranted Surveillance Act" and modifies provisions relating to the use of unmanned aircraft. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated Net Effect on General Revenue*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) *Oversight does not have any information to suggest that the civil judgements resulting from this proposal would go over the $250,000 threshold at this time. Therefore, Oversight will assume the fund above will not reach that threshold. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Other State and Federal $0 to (Unknown)$0 to (Unknown)$0 to (Unknown) Legal Expense **$0$0$0Colleges and Universities***$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) Total Estimated Net Effect on Other State Funds$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) *Oversight does not have any other information to suggest that the civil judgements resulting from this proposal would go over the $250,000 threshold at this time. Therefore, Oversight will assume the funds above will not hit the threshold from this proposal. **Income less cost distributions net to zero. ***Oversight assumes the fiscal impact to colleges and universities will not exceed the $250,000 threshold. Numbers within parentheses: () indicate costs or losses. L.R. No. 0984H.01I Bill No. HB 209 Page 2 of February 28, 2025 HWC:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Various – transfer to Legal Expense Fund**$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) Total Estimated Net Effect on All Federal Funds$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) *Oversight does not have any other information to suggest that the civil judgements resulting from this proposal would go over the $250,000 threshold at this time. Therefore, Oversight will assume the fund above will not hit the threshold from this proposal. ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 0984H.01I Bill No. HB 209 Page 3 of February 28, 2025 HWC:LR:OD FISCAL ANALYSIS ASSUMPTION §§305.635, 305.637, 305.639, 305.641, 542.525 and 577.800 – Unmanned aircraft Officials from the Department of Public Safety - Missouri Highway Patrol (MHP or Patrol) state the waiver of sovereign immunity for MHP personnel in §305.641.3 of this proposal could result in significant financial exposure. Due to the varied nature of unmanned aircraft operations and an unknown number of civil litigations resulting from this legislation, the fiscal impact to the Patrol would be unknown. General Revenue, the Highway Fund (0644) and the Water Patrol Fund (0400) represent the main funding sources for the MHP’s enforcement personnel and would be the most affected. Oversight has no information to the contrary and will range MHP’s impact as $0 to (Unknown) for the General Revenue Fund. A $0 to (Unknown) fiscal impact to the Highway Fund and Water Patrol Fund will be shown as part of Other State Funds. Officials from the Office of Administration (OA) assume §§305.635 to 305.641 prohibits drones from being used to "conduct surveillance or observation" of any individual without a warrant. This legislation has the potential to increase costs to the state Legal Expense Fund (LEF) for actions alleging a violation of these sections against a state agency or state employee in connection with their official duties on behalf of the state. §305.641.1 states that any aggrieved party may obtain all appropriate relief to prevent or remedy a violation, and under §305.641.3 sovereign immunity for the state is waived. Potential costs to the state are unknown. The state self-assumes its own liability under the LEF, §105.711 RSMo. It is a self-funding mechanism whereby funds are made available for the payment of any claim or judgment rendered against the state in regard to the waivers of sovereign immunity or against employees and specified individuals. Investigation, defense, negotiation or settlement of such claims is provided by the Office of the Attorney General. Payment is made by the Commissioner of Administration with the approval of the Attorney General. Section 305.637.3 prohibits drones from being used to "conduct surveillance or observation" of any individual. As surveillance and observation are not defined, this could potentially be interpreted broadly to prohibit inadvertent capture of individuals by a drone. If interpreted broadly, this could potentially present a problem for use of drones on state property by OA and other state agencies for non-investigative purposes. For example, FMDC and/or its consultants have, on occasion, used drones during projects. There is an exemption for professionals engaged in surveying or engineering but it is unclear if this would be sufficient to cover all potential drone uses on state property. This also creates a civil cause of action that would impact the Legal Expense Fund. L.R. No. 0984H.01I Bill No. HB 209 Page 4 of February 28, 2025 HWC:LR:OD Oversight notes that the proposal makes local political subdivisions and colleges and universities subject to civil suits and therefore, Oversight will reflect possible costs to all state funds (including federal funds for transfers to the LEF). Oversight also notes that the LEF does not cover costs for local political subdivisions or colleges and universities in most cases. For fiscal note purposes only, Oversight will range costs from $0 to (Unknown) for all funds. Oversight does not have any information to suggest that the civil judgements resulting from this proposal would go over the $250,000 threshold at this time. Therefore, Oversight will assume the unknown impact will not reach that threshold. Oversight notes the provisions of §577.800.4 provide that the unlawful use of an unmanned aircraft over an open-air facility, with exceptions, is guilty of a class A misdemeanor. Class A misdemeanors carry a penalty of $2,000 for each offense in addition to any individual county/municipal fees and court costs. The fine revenue for the offense goes to local school funds and court costs go to various state and local funds. Oversight assumes there will be some (less than $250,000) amount of fine revenue from violations of the statute. Therefore, the impact to various state funds and local governments will be presented as less than $250,000. For simplicity, Oversight will not reflect the possibility that fine revenue paid to school districts may act as a subtraction in the foundation formula. Bill as a Whole Officials from the University of Missouri System states the bill creates potential for fiscal costs by establishing a new source of potential liability but it is not possible to estimate the amount of such costs with any certainty. Officials from the University of Central Missouri (UCM) state this proposal will have an indeterminate impact on UCM. Oversight does not have any information to the contrary. Oversight assumes the University of Missouri and UCM, as well as other colleges and universities, may experience a negative unknown fiscal impact as the result of an increase in potential judgements for actions alleging a violation of the provisions of this bill. 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 there is a significant increase in litigation or investigation costs. 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. 0984H.01I Bill No. HB 209 Page 5 of February 28, 2025 HWC:LR:OD Officials from Office of Administration - Administrative Hearing Commission the Department of Commerce and Insurance, the Department of Higher Education and Workforce Development, the Department of Natural Resources, the Department of Corrections, the Department of Labor and Industrial Relations, the Department of Public Safety, Divisions of: Capitol Police Fire Safety, Director’s Office, Missouri Veterans Commission, and the State Emergency Management Agency, the Department of Social ServicesMissouri Department of AgricultureMissouri Department of Conservation, the Missouri Department of Transportation, the Missouri National Guard, the Office of State Public Defender, the City of Kansas CityPhelps County Sheriff, the Kansas City Police DepartmentSt. Louis County Police Department, the Metropolitan St. Louis Sewer District, the South River Drainage District, the St. Charles County Public Water Supply District #2, the Wayne County Public Water Supply District #2, Northwest Missouri State University, the Missouri Office of Prosecution Services, the Office of the State Courts AdministratorState Tax Commission 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 no fiscal impact for these organizations. Oversight notes officials from the Morgan County Public Water Supply District #2 responded to our request for a statement of fiscal impact but did not provide any information in their response. Oversight only reflects the responses received from state agencies and political subdivisions; however, other cities, counties, local law enforcement agencies, fire protection districts, colleges and universities, utilities and cooperatives 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 2026 (10 Mo.) FY 2027FY 2028GENERAL REVENUECost – MHP and other state agencies (§§305.635, 305.637, 305.639, 305.641) Potential contributions to Legal Expense Fund to pay judgements from civil suits p. 3 $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON GENERAL REVENUE $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) L.R. No. 0984H.01I Bill No. HB 209 Page 6 of February 28, 2025 HWC:LR:OD OTHER STATE FUNDSRevenue – (§577.800) Court costs p. 4 Less than $250,000 Less than $250,000 Less than $250,000 Cost – (§§305.635, 305.637, 305.639, 305.641) Transfers to Legal Expense Fund to pay for successful civil suits p. 3 $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON OTHER STATE FUNDS $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) LEGAL EXPENSE FUNDIncome – (§§305.635, 305.637, 305.639, 305.641) Transfers in to cover costs of payouts from civil suits won by litigants p. 3 $0 to Unknown $0 to Unknown $0 to Unknown Cost – All State Agencies (§§305.635, 305.637, 305.639, 305.641) Potential increase of payouts from civil suits won by litigants claiming violation of provisions p. 3 $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON THE LEGAL EXPENSE FUND$0$0 $0 COLLEGES AND UNIVERSITIESCost - (§§305.635, 305.637, 305.639, 305.641) Increase in potential judgements p. 3 $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON COLLEGES AND UNIVERSITIES $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) L.R. No. 0984H.01I Bill No. HB 209 Page 7 of February 28, 2025 HWC:LR:OD FEDERAL FUNDSCost – (§§305.635, 305.637, 305.639, 305.641) Transfers to Legal Expense Fund to pay for successful civil suits from litigants p. 3 $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON FEDERAL FUNDS $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028LOCAL POLITICAL SUBDIVISIONS Revenue – (§577.800) Court costs p. 4 Less than $250,000 Less than $250,000 Less than $250,000 Revenue – Schools (§577.800) Fine revenue p. Less than $250,000 Less than $250,000 Less than $250,000 Cost – LPS (§§305.635, 305.637, 305.639, 305.641) Potential increase of payouts from civil suits won by litigants claiming violation of provisions p. 3 $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This bill establishes the "Preserving Freedom from Unwarranted Surveillance Act". L.R. No. 0984H.01I Bill No. HB 209 Page 8 of February 28, 2025 HWC:LR:OD The bill specifies that no state agency, county, or municipal law enforcement agency is permitted to use a drone or other unmanned aircraft, as defined in the bill, to gather evidence or other information pertaining to criminal conduct, except to the extent authorized in a warrant. A law enforcement agency may use a drone or unmanned aircraft in response to state, national, or local emergency situations, as specified in the bill. No person, entity, or state agency may use a drone or other unmanned aircraft to conduct surveillance or observation of any individual or property, as specified in the bill, without the consent of that individual or property owner. A person, entity, or state agency can only launch or operate a drone or other unmanned aircraft within the operating limitations provided in 14 CFR 107.51. No person, entity, or state agency will launch or operate a drone or other unmanned aircraft within the property line of private property without the consent of the property owner or occupant. This bill does not prohibit the use of a manned aircraft, drone, or unmanned aircraft for purposes listed in the bill, including: a person performing duties on behalf of a fire department; higher education institution in the State conducting educational, research, or training programs; certain activities of manufacturers or sellers of aircraft and drones; certain activities of public utilities; for use by any branch of the United States Armed Forces or National Guard; or a professional engaged in surveying or mapping. This bill does not prohibit the use of a model aircraft. Any aggrieved party may in a civil action obtain all appropriate relief to prevent or remedy a violation of the provisions of this bill. No information obtained in violation of the provisions of this bill will be admissible as evidence in a criminal proceeding. Sovereign immunity for the State is waived for any civil action resulting from a violation of the provisions of this bill. Currently, employees of a state agency or a political subdivision are prohibited from placing a surveillance camera or game camera on private property without the consent of the landowner or landowner's designee, a search warrant, or permission from the highest ranking law enforcement chief or officer of the agency under certain conditions. This bill repeals the ability for the highest ranking law enforcement chief or officer to approve the placement of a camera on private property. (§§305.635, 305.637, 305.639, 305.641, 542.525) This bill changes the offense of unlawful use of an unmanned aircraft over an open-air facility from an infraction to a class A misdemeanor. (§577.800) This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. L.R. No. 0984H.01I Bill No. HB 209 Page 9 of February 28, 2025 HWC:LR:OD SOURCES OF INFORMATION Attorney General’s Office Office of Administration - Administrative Hearing Commission Department of Commerce and Insurance Department of Higher Education and Workforce Development Department of Natural Resources Department of Corrections Department of Labor and Industrial Relations Department of Public Safety – Capitol Police Fire Safety Director’s Office Missouri Highway Patrol Missouri Veterans Commission State Emergency Management Agency Department of Social Services Missouri Department of Agriculture Missouri Department of Conservation Missouri Department of Transportation Missouri National Guard Office of Administration Office of the State Public Defender University of Missouri System City of Kansas City Phelps County Sheriff’s Office Kansas City Police Department St. Louis County Police Department Metropolitan St. Louis Sewer District Morgan County Public Water Supply District #2 South River Drainage District St. Charles County Public Water Supply District #2 Wayne County Public Water Supply District #2 Northwest Missouri State University L.R. No. 0984H.01I Bill No. HB 209 Page 10 of 10 February 28, 2025 HWC:LR:OD University of Central Missouri Missouri Office of Prosecution Services Office of the State Courts Administrator State Tax Commission Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 28, 2025February 28, 2025