COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1974H.01I Bill No.:HB 737 Subject:Children and Minors; Children's Division; Department of Social Services; Crimes
and Punishment; Criminal Procedure
Type:Original Date:January 21, 2025Bill Summary:This proposal modifies provisions relating to the protection of children.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue
(Unknown, Could
exceed $7,792,028)
(Unknown, Could
exceed $7,792,028)
(Unknown, Could
exceed $7,792,028)
Total Estimated Net
Effect on General
Revenue
(Unknown, Could
exceed $7,792,028)
(Unknown, Could
exceed $7,792,028)
(Unknown, Could
exceed $7,792,028)
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. 1974H.01I
Bill No. HB 737
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January 21, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Federal* $0$0$0Total Estimated Net
Effect on All Federal
Funds $0$0$0
* Income and expenses are estimated to be “Unknown, up to $2.9 million annually and net to $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 2028Local Government$0$0$0 L.R. No. 1974H.01I
Bill No. HB 737
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FISCAL ANALYSIS
ASSUMPTION
§ 210.560 - Money held by the Children’s Division for the benefit of a child
Officials from the Department of Social Services (DSS), Children’s Division (CD) state this
bill requires CD to determine whether a child coming into the custody of the Division is eligible
for or receiving U.S. Railroad Retirement Board, Social Security, or Veterans Administration
benefits within 60 days of entering the Division's legal custody.
The Division is required to apply for such benefits on the child's behalf if he or she is eligible,
and shall only serve as a representative payee if no other candidate is suitable.
CD is required to annually review cases of children in the division's custody to determine
whether a child may have become eligible for benefits after the division's initial assessment.
Currently, money in the child's accounts may be used by CD to pay for care or services for the
child.
Under this act, such money shall not be used to pay for care or services for the child. However,
U.S. Railroad Retirement Board, Social Security, or Veterans Administration benefits may be
used by the Division for the child's unmet needs beyond what the Division is otherwise obligated
to pay.
Finally, the accounts in which the child's benefits shall be placed shall be established in a manner
consistent with federal and state asset and resource limits.
Research on November 6, 2024 for month of October 2024 showed the following:
619 youth in foster care receive Supplemental Security Income (SSI);
593 youth in care receive Old-Age, Survivors and Disability Insurance (OASDI); and
75 youth in care receive both types of benefit
Currently, KIDS accounts (money held by others for benefit of a child) include both SSI and
OASDI benefit types. In FY 2024, CD had expenditures in the amount of $10,697,457 using
KIDS accounts on foster care maintenance and services for the child. These funds would need to
be replaced to pay for the care of the child. Some of the costs could be eligible for federal match
from other programs such as Title IV-E and TANF. The expected federal match rate overall is
27.16%. The impact due to the loss of these revenues based on the current earnings rate would be
as follows: L.R. No. 1974H.01I
Bill No. HB 737
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$7,792,028 GR
+$2,905,429 Federal
$10,697,457 Total
Additionally, the Department’s federal earning rate of 27.16% could increase with the decrease
of SSI and OASDI benefits.
Therefore, for the impact of reduction of SSI and OASDI revenues, the Department is projecting
unknown but up to $10,697,457 cost.
Children’s Division can set up ABLE (Achieving a Better Life Experience) accounts for children
in care, when CD is the payee. However, the Children’s Division does not have staff in place to
supervise the continuing management of these accounts when they leave CD custody. Therefore
additional resources would be needed to establish accounts where CD is not the payee and to
manage the ABLE accounts.
The bill, as drafted, requires CD to annually review cases of kids in care to determine if they are
eligible for benefits, and to apply for benefits on behalf of the child if CD determines that the
child is eligible. The Department of Social Services and the Children’s Division do not have
sufficient staff and resources to implement the statute as written. DSS has determined that it
would need to enter into contracts with qualified lawyers and/or companies to effectively
implement this proposed statute.
There are lawyers and private companies that handle these types of cases on behalf of children
and adults. They have the training, experience and staff to handle these cases. If the program is
structured properly, they will also be able to ensure that there is continuity of assistance and
representation if the child is discharged from CD custody or ages out of the system. Therefore,
DSS would need to enter into contracts to administer this program.
The Division does not know yet how this contract would be structured. Therefore, the cost to
implement is unknown.
Since the estimate of lost revenues is most likely high, and the cost to implement is
unknown, the Department is providing an impact of unknown, but cost could be up to
$10,697,457 ($7,792,028 GR; $2,905,429 Federal), which is the highest amount of estimated
potential lost revenues.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by the DSS, CD.
In response to a similar proposal from the 2024 Session (HCS for HB 2227), officials from the
Office of Administration - Budget and Planning deferred to DSS for the potential fiscal
impact of this proposal. L.R. No. 1974H.01I
Bill No. HB 737
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Responses regarding the proposed legislation as a whole
Officials from the Administrative Hearing CommissionDepartment of Elementary and
Secondary Education, the Department of Higher Education and Workforce Development,
the Department of Labor and Industrial Relations, the Department of Public Safety -
Missouri Highway PatrolDepartment of Revenue, the Office of Administration, the
Phelps County Sheriff’s Department, the Kansas City Police Department, the St. Louis
County Police Department, Northwest Missouri State University and the University Of
Central Missouri 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.
In response to a similar proposal from the 2024 Session (HCS for HB 2227), officials from the
Office of the State Courts Administrator and the Office of the State Treasurer each assumed
the proposal would 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 circuit clerks, public administrators, schools, colleges and local law enforcement
agencies 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
Government
FY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUND Costs – DSS, CD (§ 210.560) Program
Implementation p. 3-4(Unknown)(Unknown)(Unknown)
Losses - DSS, CD (§ 210.560)
Reduction of SSI and OASDI
revenues p. 3-4
Up to
($7,792,028)
Up to
($7,792,028)
Up to
($7,792,028)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
(Unknown,
Could exceed
$7,792,028)
(Unknown,
Could exceed
$7,792,028)
(Unknown,
Could exceed
$7,792,028) L.R. No. 1974H.01I
Bill No. HB 737
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FISCAL IMPACT – State
Government
FY 2026
(10 Mo.)
FY 2027FY 2028FEDERAL FUNDS Income – DSS, CD (§210.560)
Reimbursement for Program
Implementation p. 3-4UnknownUnknownUnknown
Savings - DSS, CD (§210.560)
Reduction of SSI and OASDI
disbursements p. 3-4
Up to
$2,905,429
Up to
$2,905,429
Up to
$2,905,429
Costs – DSS, CD (§210.560) Program
Implementation p. 3-4(Unknown)(Unknown)(Unknown)
Losses - DSS, CD (§210.560)
Reduction of SSI and OASDI
revenues p. 3-4
Up to
($2,905,429)
Up to
($2,905,429)
Up to
($2,905,429)
ESTIMATED NET EFFECT ON
FEDERAL FUNDS$0$0$0
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$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
This bill specifies that in the case of benefits administered by the Railroad Retirement Board, the
Social Security Administration, or the Veterans Administration, the Children's Division is
required to determine whether a child in custody of the Division is receiving or otherwise
eligible to receive such benefits within 60 days after placement into custody.
The Division is to apply for benefits on behalf of the child, if the child is deemed to be eligible,
and if benefits are already being received before placement into the Division's custody or the
Division applies for benefits on behalf of the child, the Division is responsible for identifying a
representative payee and must apply to become such if no other suitable candidate is available. L.R. No. 1974H.01I
Bill No. HB 737
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Any moneys received by the Division and in the account of a child are prohibited from being
expended by the Division for certain services or care. However, this bill provides that the
Division may use the benefits administered by the Railroad Retirement Board, the Social
Security Administration, or the Veterans Administration for the child's unmet needs, as are
defined in the bill, beyond what the Division is required or agrees to pay. (§ 210.560)
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
Administrative Hearing Commission
Budget and Planning
Department of Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Labor and Industrial Relations
Department of Public Safety - Missouri Highway Patrol
Department of Revenue
Department of Social Services
Office of Administration
Office of the State Courts Administrator
Office of the State Treasurer
Phelps County Sheriff’s Department
Kansas City Police Department
St. Louis County Police Department
Northwest Missouri State University
University Of Central Missouri
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 21, 2025January 21, 2025