COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0169H.01I Bill No.:HB 352 Subject:Political Subdivisions; County Officials; Newspapers and Publications; Public
Records, Public Meetings; Counties; Auditor, State
Type:Original Date:January 28, 2025Bill Summary:This proposal modifies provisions relating to financial statements of certain
local governments.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*
(Unknown, could
exceed $3,679,266)$0 to (Unknown)$0 to (Unknown)
Total Estimated Net
Effect on General
Revenue
(Unknown, could
exceed $3,679,266)$0 to (Unknown)$0 to (Unknown)
*Part of the fiscal impact to the state is the potential loss of the Department of Revenue’s 2%
collection fee. Oversight has ranged the impact from $0 (debt is already considered uncollectible
and DOR would not have received the 2% fee even without this proposal) to $3,679,266 (which
represents if DOR would have collected 100% of the $184 million of outstanding debt allowed to
be reduced by this proposal). Oversight assumes the actual loss to the state for these provisions
is on the very low end of this range.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0169H.01I
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
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 2028
Local Government*
Unknown, could
exceed $3,779,266
Unknown, could
exceed $100,000
Unknown, could
exceed $100,000
*(§105.145) Part of the net fiscal impact to the local political subdivision is the potential loss of
the Department of Revenue’s 2% collection fee. Oversight has ranged the impact from $0 (debt
is already considered uncollectible and DOR would not have received the 2% fee even without
this proposal) to $3,679,266 (which represents if DOR would have collected 100% of the $184
million of outstanding debt allowed to be reduced by this proposal). Oversight assumes the
actual impact is on the very low end of this range. L.R. No. 0169H.01I
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FISCAL ANALYSIS
ASSUMPTION
§§50.815 & 50.820 – County Financial Statements
In response to similar legislation from 2024, SB 1362, officials from the Office of
Administration - Budget and Planning (B&P) stated these provisions modify the requirements
associated with the publishing of political subdivision financial statements. B&P defers to the
county governments for the fiscal impact of these provisions.
In response to similar legislation from 2020, HB 1814, officials at Henry County assumed a
savings of $1,800 annually in publication costs from this proposal.
Oversight inquired with Henry County regarding this proposal. The County currently submits a
14 page document to the newspaper which lists out every dollar by vendor. Since this proposal
requires a summary of data to be published in the newspaper, Henry County’s publishing costs
would be reduced as the number of pages would be reduced that would be submitted to the
newspaper.
In response to similar legislation from 2020, HB 1814, officials at Lincoln County assumed a
savings of $2,000 annually in publication costs from this proposal.
In response to similar legislation from 2020, HB 1814, officials at Livingston County assumed a
savings of $2,500 annually in publication costs from this proposal.
Oversight assumes using the counties above as an example, if the average savings of the three
counties publication costs is $2,100 and 96 counties (2
nd
, 3
rd
and 4
th
class counties) in Missouri
published their financials in the newspaper, the potential savings could be up to $201,600
($2,100 * 96) per year. Therefore, Oversight will reflect a potential savings in publication costs
for counties to post their financials through a newspaper of general circulation in their county
that could exceed $100,000 annually from this proposal.
§105.145 – Financial Statements of Political Subdivisions
In response to similar legislation from 2024, SB 1362, officials from the Office of
Administration - Budget and Planning (B&P) stated this proposal excludes the fine for failure
to submit annual financial statements for political subdivisions with gross revenues of less than
$5,000, or for political subdivisions that have not levied or collected sales or use taxes in the
fiscal year. This may result in a revenue loss for both the state and schools.
It also provides grace from fines if the failure to timely submit the annual financial statement is
the result of fraud or other illegal conduct and allows a refund by DOR of any fines already paid
under these circumstances. The 90% downward adjustment DOR is allowed to make on L.R. No. 0169H.01I
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outstanding fine or penalty balances after January 1, 2023 results in the amount of collections
being reduced for both the state and DOR collection fees. A similar downward adjustment may
be made by DOR if the outstanding fines are deemed uncollectable. These downward
adjustments will likewise result in a revenue loss for both the state and schools.
Based on information from DOR, the department started imposing this fine in August 2017. B&P
defers to DOR for more specific estimates of fines and actual collection costs.
B&P also states §§50.800 and 50.810 of the proposal associated with the publishing of political
subdivision financial statements are repealed.
Officials from the Department of Revenue (DOR) state currently local political subdivisions
are required to file annual financial statements with the State Auditor’s Office. Failure to file
those statements results in the political subdivision being assessed a fine of $500 per day per
statutes, which is deposited into local school district funds. DOR notes that the DOR started
imposing this fine in August 2017. DOR receives notice from the State Auditor’s Office if a
political subdivision does not file their annual financial statement. At that time, the DOR sends a
notice to the political subdivision and thirty days later the fee starts to accumulate.
The DOR collects the fine by offsetting any sales or use tax distributions due to the political
subdivision. In essence the DOR only gets to collect the fee if the political subdivision has a
sales or use tax. Most of these political subdivisions do not have a sales or use tax for the DOR
to collect, so the DOR assumes much of what is owed is uncollectable. This is not state money
but local political subdivision funds.
Currently, a transportation development district that has gross revenues of less than $5,000 in a
fiscal year is not subject to this fine. This provision will be expanded to any political
subdivisions that does not levy or collect tax will be exempt from the penalty.
The DOR notes that per statute DOR is allowed to retain 2% of the amount collected for
administration. Since the program began, DOR has collected $137,337 which has been
deposited into General Revenue. All DOR collection fees are deposited into General Revenue
and are not retained by the DOR.
In regard to the $500 per day fine, this proposal would not allow for the assessment of the fine if
a district does not have gross revenue over $5,000 or has not levied or collected taxes.
Current records of the DOR show total fines of $211,266,525 as of 11/30/2024 and that
$6,862,850 has been collected. DOR is unable to estimate the number of political subdivisions
that would qualify for this tax exemption. The DOR is showing the assessment of the fines by the
political subdivision type and by the county in which the district that owes the fine is located. L.R. No. 0169H.01I
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County
Sum of Total Fine
Imposed
Sum of Total Fine
Collected
Adair $1,948,500$1,500Andrew $622,500$0Atchison$1,374,000$0Audrain $1,154,500$0Barry $3,522,000$19,993Barton $0$0Bates $1,458,000$35,935Benton $1,045,500$0Bollinger$3,589,000$0Boone $259,000$38,825Buchanan$3,106,500$113,953Butler $3,429,500$53,829Caldwell $168,000$25,254Callaway$1,077,500$4,652Camden $3,761,025$71,588Cape Girardeau$1,532,000$0Carroll $6,309,000$0Carter $4,206,000$330,094Cass $8,278,000$17,261Cedar $755,000$49,500Chariton$1,216,500$41,500Christian$3,890,000$0Clark $1,238,000$37,500Clay $2,505,500$80,000Clinton $1,895,500$27,500Cole $1,166,000$9,153Cooper $2,118,500$17,500Crawford$2,383,000$38,359Dade $332,500$0Dallas $1,816,000$0Daviess $1,464,500$0Dekalb $1,310,000$0Dent $342,000$0Douglas $0$0Dunklin $2,852,000$35,240Franklin$2,284,000$131,846 L.R. No. 0169H.01I
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Gasconade $65,500$6,944Gentry $2,072,000$0Greene $1,257,500$23,147Grundy $1,541,500$0Harrison$1,306,500$0Henry $1,741,000$77,967Hickory $1,147,000$0Holt $3,646,000$11,948Howard $1,779,500$147,500Howell $1,145,000$11,000Iron $96,000$54,000Jackson $3,879,500$531,928Jasper $3,101,500$86,711Jefferson$2,317,500$25,945Johnson $1,216,500$12,000Knox $2,221,000$0Laclede $423,000$12,000Lafayette $938,500$42,292Lawrence$4,979,000$0Lewis $3,116,000$0Lincoln $2,197,000$42,500Linn $2,005,000$15,000Livingston$3,275,500$0Macon $504,000$0Madison $2,464,000$271,799Maries $733,500$41,500Marion $347,500$0McDonald $200,000$14,147Mercer $637,000$0Miller $1,094,500$10,331Mississippi$1,663,500$72,633Moniteau $0$0Monroe $47,000$10,000Montgomery$865,500$4,204Morgan $0$0New Madrid$2,906,500$157,690Newton $1,076,500$34,726Nodaway $5,047,500$23,500 L.R. No. 0169H.01I
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Oregon $137,500$136,500Osage $1,610,500$19,822Ozark $43,000$43,000Pemiscot$3,752,000$7,059Perry $2,729,500$0Pettis $1,232,000$15,500Phelps $966,000$63,761Pike $202,500$127,500Platte $1,978,500$300,023Polk $867,500$43,621Pulaski $2,914,500$17,431Putnam $52,000$24,500Ralls $255,500$53,598Randolph$2,328,000$13,358Ray $5,074,000$0Reynolds$1,136,500$10,821Ripley $224,500$0Saline $1,889,500$35Schuyler $453,500$18,500Scotland$1,655,000$0Scott $3,469,000$47,957Shannon $287,000$172,986Shelby $15,500$15,500St. Charles$2,917,000$142,395St. Clair$3,601,500$376St. Francois$478,500$36,220St. Louis$6,796,500$1,957,273St. Louis City$9,565,000$251,298Ste. Genevieve $0$0Stoddard$2,402,500$154,500Stone $1,485,500$88,500Sullivan$1,198,000$0Taney $3,484,500$36,500Texas $1,689,500$42,500Vernon $3,236,500$12,000Warren $10,500$10,500Washington$856,500$12,000Wayne $1,454,000$1,661 L.R. No. 0169H.01I
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Webster $733,500$0Worth $300,500$0Wright $0$0(blank) $319,000$63,262Grand Total$211,266,525$6,862,850
DOR assumes this proposal would result in fewer future fines being assessed. As stated
previously, many of these current political subdivisions do not have any sales or use tax
collected, so they may be able to avoid the current large penalties.
This proposal also allows for a one-time reduction of a political subdivision’s current
outstanding balance. Should a political subdivision file its reports by August 28, 2025, they will
be entitled to a one-time downward adjustment of their existing fine by 90%.
The current outstanding balance is $204,403,675 ($211,266,525 owed - $6,862,950 collected).
This is money the DOR notes is owed, but most likely uncollectable. Should it be collected, it
would be forwarded to the local school district funds. If all the fine money is eligible for the
one-time reduction this would result in $183,963,308 ($204,403,675 * .90) no longer being
owed.
Oversight notes if all political subdivisions file their report and receive the reduction, it would
be a loss of $180,284,042 to the local school districts from not receiving the fine money, a loss to
the state of $3,679,266 in collection fees and a gain to the local political subdivisions of
$183,963,308($204,403,675 * 90%).
Reducing the future fines would help save the local political subdivisions money, however; due
to the un-collectability of most of this money the DOR assumes no additional impact to the state.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a
potential loss of fine revenue stated by DOR to the General Revenue Fund for this proposal.
Also, Oversight notes that because of the new language for certain local political subdivisions
who have gross revenues of less than $5,000 or who have not levied or collected a sales and use
tax in the fiscal year or if the failure to file a financial statement is the result of fraud or illegal
conduct by an employee or officer of the political subdivision and the political subdivision
complies with filing the financial statement within thirty days of the discovery of the fraud or
illegal conduct, then the fine shall not be assessed and could result in a savings to local political
subdivisions on fine fees. Therefore, Oversight will also reflect a savings to local political
subdivisions of $0 to unknown for this proposal.
DOR states their computer programs would require updating at a cost of $1,832. Oversight
assumes DOR is provided with core funding to handle a certain amount of computer updating
each year. Oversight assumes DOR could absorb the costs related to this proposal. If multiple L.R. No. 0169H.01I
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bills pass which require additional staffing and duties at substantial costs, DOR could request
funding through the appropriation process.
Oversight also notes this proposal is allowing a political subdivision that files its financial
statement before August 28, 2025 to receive a one-time 90% reduction of their outstanding
balance of their fines owed.
Oversight also notes that the loss in fine revenue collected by DOR would result in a savings to
the local political subdivisions who would no longer need to pay the fine revenue. It would also
result in a loss of revenue to School Districts from these fines no longer being collected.
Therefore, Oversight will reflect a savings to local political subdivisions on the fines no longer
being collected and a loss of 98% of the fine revenue no longer going to the school districts for
this proposal. Oversight notes that the DOR is allowed to retain two percent of the fine revenue
collected (per §105.145.11). Oversight assumes a large majority of the $204,403,675 of
outstanding fines to be uncollectible. Therefore, Oversight will range the fiscal impact from this
proposal from $0 to DOR’s estimates.
Responses regarding the proposed legislation as a whole
Officials from the Department of Corrections, the Missouri Highway Patrol, the Missouri
Department of Transportation, Kansas City, Jackson County Board of Elections, the Platte
County Board of Elections, the St. Louis City Board of Elections, the St. Louis County
Board of Elections, the Clay County Auditor’s OfficePhelps County Sheriff’s Office,
the Office of the State Auditor and the Joint Committee on Administrative Rules
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.
In response to similar legislation from this year, SB 2, officials from the City of O’Fallon
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.
In response to similar legislation from 2024, SB 1362, officials from the Christian County
Auditor’s Office assumed the proposal will have no fiscal impact on their organization.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding L.R. No. 0169H.01I
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for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUELoss – DOR – 2% of collection fee on
future potential fines no longer assessed
because LPS no longer required to file
due to changes in the bill (§105.145)
p.8-9
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Loss – DOR – 2% collection fee that
may have been collected if not for the
one-time decrease of 90% of the
outstanding balance from the local
political subdivision if they submit a
timely financial statement by 1/01/23
(§105.145) p. 8-9
$0 or up to
($3,679,266)$0$0
ESTIMATED NET EFFECT ON
GENERAL REVENUE
(Unknown,
could exceed
$3,679,266)
$0 to
(Unknown)
$0 to
(Unknown)
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL POLITICAL
SUBDIVISION
Savings – in publication costs on
financials posted in a newspaper of
general circulation (§§50.815 &
50.820) p. 3
Could exceed
$100,000
Could exceed
$100,000
Could exceed
$100,000
Savings – on potential fines for certain
LPS (§105.145) p. 8-9$0 to Unknown$0 to Unknown$0 to Unknown L.R. No. 0169H.01I
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FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028Loss – School districts receiving less
fine revenue (from savings above)
(§105.145) p. 8-9
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Savings – on fine revenue that is
reduced with a one-time reduction of
90% on the outstanding balance due if
they submit a timely financial statement
by 8/28/25 (§105.145) p. 8-9
$0 or up to
$183,963,308$0$0
Loss – School Districts – reduction in
fine revenue from one-time adjustment
of fine revenue (§105.145) p. 8-9
$0 or up to
($180,284,042)$0$0
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
Unknown,
could exceed
$3,779,266
Unknown,
could exceed
$100,000
Unknown,
could exceed
$100,000
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Currently, counties of the first classification without a charter form of government are required
to prepare and publish in a qualified paper a financial statement for the previous year by the first
Monday in March.
This bill requires all non-charter counties to prepare and publish in a qualified newspaper a
financial statement for the previous year by June 30th.
The financial statement also must include the name, office, and current gross annual salary of
each elected or appointed county official.
The county clerk or other officer responsible for the preparation of the financial statement must
preserve the documents relied upon in the making of the financial statements and provide an
electronic copy free of charge to any newspaper requesting a copy of the data.
Newspapers are prohibited from charging any more than the standard rate for advertising to
publish these financial statements. L.R. No. 0169H.01I
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Currently, any political subdivision that fails to file the required annual financial statement with
the State Auditor is subject to a fine. This bill exempts any political subdivision that has gross
revenues of less than $5,000 from that fine. It also exempts a political subdivision from the fine
if the failure to submit the statement is a result of fraud or other illegal conduct by an officer or
employee of the political subdivision if the financial statement is filed within 30 days of the
discovery of the fraud or illegal conduct.
If a political subdivision has outstanding fines due when filing its first annual financial statement
after August 28, 2025, the Director of the Department of Revenue will make a one-time
downward adjustment of the total amount due by no less than 90%. In addition, the Director has
the authority to make a one-time downward adjustment to any fine he or she deems uncollectible.
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 Administration - Budget and Planning
Henry County
Lincoln County
Livingston County
Department of Revenue
Department of Corrections
Missouri Highway Patrol
Missouri Department of Transportation
Kansas City
City of O’Fallon
Jackson County Board of Elections
Platte County Board of Elections
St. Louis City Board of Elections
St. Louis County Board of Elections
Christian County Auditor’s Office
Clay County Auditor’s Office L.R. No. 0169H.01I
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Phelps County Sheriff’s Office
Office of the State Auditor
Joint Committee on Administrative Rules
Office of the Secretary of State
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 28, 2025January 28, 2025