COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:1549H.05C Bill No.:HCS for HB Nos. 434 & 459Subject:Courts; Firearms; Federal - State Relations Type:Original Date:April 27, 2025Bill Summary:This proposal establishes the "Anti-Red Flag Gun Seizure Act". 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 assumes the addition of a civil penalty of $50,000 per occurrence for any violations of §1.486 could reach the $250,000 threshold. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Other State Funds*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)State Legal Expense Fund (0692)**$0$0$0 Colleges and Universities*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) State Highways and Transportation Department Fund (0644)*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) Water Patrol Division Fund (0400)*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) Total Estimated Net Effect on Other State Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) **Indicates numbers that net to zero. Numbers within parentheses: () indicate costs or losses. L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 2 of April 27, 2025 DD:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Federal Funds* $0 or (Unknown)$0 or (Unknown)$0 or (Unknown)Total Estimated Net Effect on All Federal Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) *Oversight assumes the loss of federal funds could reach the $250,000 threshold. 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* $0 or Unknown to (Unknown) $0 or Unknown to (Unknown) $0 or Unknown to (Unknown) L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 3 of April 27, 2025 DD:LR:OD FISCAL ANALYSIS ASSUMPTION §1.486 – Anti-Red Flag Gun Seizure Act Officials from the Office of Administration (OA) state this legislation creates provisions and damages relating to seizure of firearms and includes a waiver of sovereign immunity for actions brought under this section. This has the potential to increase costs to the LEF but would be subject to judicial construction; therefore, the cost is unknown. Oversight does not have any information contrary to that provided by OA. Therefore, Oversight will reflect OA’s potential unknown impact for fiscal note purposes to the State Legal Expense Fund. Oversight notes the Legal Expense Fund is funded by the General Revenue Fund as well as other state funds. Oversight notes this possible litigation exposure as described by OA could also apply to colleges and universities, federal funds, as well as local political subdivisions. Officials from the Department of Public Safety - Missouri Highway Patrol (MHP) section 1.486.7(1) creates a right to sue the law enforcement agency for a minimum of $50,000 per occurrence along with punitive damages and attorney's fees. The Patrol has no way of computing the number of allegations it may have to defend. Due to this, the impact is listed as unknown to General Revenue, the State Highways and Transportation Department Fund (0644), the Water Patrol Division Fund (0400), and Federal Funds (0152). The three impacted state funds are the primary funding sources for enforcement personnel. Additionally, section 1.486.2 and section 1.486.4 could have a fiscal impact as it might eliminate federal grant money that pays for the salaries of four (4) troopers and some overtime for troopers assigned to a federal task force or are assigned to work with a specified federal law enforcement agency. Finally, section 1.486.7(5) appears to waive sovereign immunity, which could account for funding for the defense of future civil litigation and would be a considerable departure from current law. Oversight does not have any information contrary to that provided by MHP. Therefore, Oversight will reflect MHP’s impact as $0 or an Unknown loss to the funds listed above. Oversight assumes the amounts of federal funding received by the state related to a red flag law would reach the $250,000 threshold. In response to a previous version, officials from the Office of Administration - Budget and Planning (B&P) stated Article IX, Section 7 of the Missouri Constitution requires that penalties, forfeitures, and fines collected for violations of state law be distributed to the schools. To the extent any additional such revenues are deposited into the state treasury, TSR may increase. L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 4 of April 27, 2025 DD:LR:OD Oversight notes that violations of section 1.486.7(1) could result in fines or penalties. Oversight also notes per Article IX Section 7 of the Missouri Constitution fines and penalties collected by counties are distributed to school districts. Fines vary widely from year to year and are distributed to the school district where the violation occurred. Oversight will reflect a positive fiscal impact of $0 to Unknown to local school districts. For simplicity, Oversight will not reflect the possibility that fine revenue paid to school districts may act as a subtraction in the foundation formula. 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. Oversight notes OSCA assumes this proposal may have some impact on their organization although it can’t be quantified at this time. As OSCA is unable to provide additional information regarding the potential impact, Oversight assumes the proposed legislation will have a $0 to (Unknown) cost to the General Revenue Fund. For fiscal note purposes, Oversight also assumes the impact will be under $250,000 annually. If this assumption is incorrect, this would alter the fiscal impact as presented in this fiscal note. If additional information is received, Oversight will review it to determine if an updated fiscal note should be prepared and seek approval to publish a new fiscal note. In response to a previous version, officials from the Office of Attorney General (AGO) assumed any potential litigation costs arising from this proposal can be absorbed with existing resources. The AGO may seek additional appropriations if the proposal results in 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. Officials from the City of Kansas City state this legislation has a potentially negative fiscal impact as it potentially increases the City's liability. Officials from the Branson Police Department negative impact fiscally on their agency. Officials from the Department of Social Services, the Missouri Department of Conservation, the Phelps County Sheriff’s Department, and the Kansas City Police Department each assume the proposal will have no fiscal impact on their respective organizations. In response to a previous version, officials from the Missouri Office of Prosecution Services and the impact on their respective organizations. L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 5 of April 27, 2025 DD:LR:OD 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, counties, and local law enforcement 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. This proposal has an emergency clause. FISCAL IMPACT – State GovernmentFY 2026FY 2027FY 2028GENERAL REVENUECost – MHP (§1.486) Potential loss of funding $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Cost – OSCA (§1.486) Potential cost relating to “Anti-Red Flag Gun Seizure Act” $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) Transfer Out – to the State Legal Expense Fund (§1.486) Potential increase in litigation $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON GENERAL REVENUE $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) OTHER STATE FUNDSCost Increase - (§1.486) Potential increase in transfer to LEF $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON OTHER STATE FUNDS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 6 of April 27, 2025 DD:LR:OD FISCAL IMPACT – State GovernmentFY 2026FY 2027FY 2028STATE LEGAL EXPENSE FUND (0692) Transfer In – (§1.486) From General Revenue $0 to Unknown $0 to Unknown $0 to Unknown Cost Increase - (§1.486) Potential increase in litigation $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON THE LEGAL EXPENSE FUND$0$0$0 COLLEGES AND UNIVERSITIESCost Increase - (§1.486) Potential increase in litigation $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON COLLEGES AND UNIVERSITIES $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) STATE HIGHWAYS AND TRANSPORTATION DEPARTMENT FUND (0644) Cost – MHP (§1.486) Potential loss of funding $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON THE STATE HIGHWAYS AND TRANSPORTATION FUND $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 7 of April 27, 2025 DD:LR:OD FISCAL IMPACT – State GovernmentFY 2026FY 2027FY 2028WATER PATROL DIVISION FUND (0400) Cost – MHP (§1.486) Potential loss of funding $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON THE WATER PATROL DIVISION FUND $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FEDERAL FUNDSCost Increase - (§1.486) Potential increase in litigation $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Cost – MHP (§1.486) Potential loss of funding $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT TO FEDERAL FUNDS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Local GovernmentFY 2026FY 2027FY 2028LOCAL POLITICAL SUBDIVISIONS Revenue – School districts (§1.486) Fines from violations $0 to Unknown $0 to Unknown $0 to Unknown Cost - (§1.486) Potential increase in litigation and/or civil penalty costs $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS $0 or Unknown to (Unknown) $0 or Unknown to (Unknown) $0 or Unknown to (Unknown) L.R. No. 1549H.05C Bill No. HCS for HB Nos. 434 & 459 Page 8 of April 27, 2025 DD:LR:OD FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION ANTI-RED FLAG GUN SEIZURE ACT (Section 1.486) This bill establishes the "Anti-Red Flag Gun Seizure Act". This bill contains an emergency clause. 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 Public Safety - Missouri Highway Patrol Department of Social Services Missouri Department of Conservation Office of Administration Missouri Office of Prosecution Services Office of the State Courts Administrator City of Kansas City Phelps County Sheriff’s Department Branson Police Department Kansas City Police Department St. Louis County Police Department Julie MorffJessica HarrisDirectorAssistant DirectorApril 27, 2025April 27, 2025