COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0104S.01I Bill No.:SB 55 Subject:Department of Elementary and Secondary Education; Education, Elementary and Secondary; Athletics; Higher Education; Department of Higher Education and Workforce Development; Appropriations Type:Original Date:January 20, 2025Bill Summary:This proposal prohibits elementary and secondary schools and institutions of postsecondary education from being members of athletic organizations that allow students to use performance enhancing drugs. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue*$0 or Unknown$0 or Unknown$0 or UnknownTotal Estimated Net Effect on General Revenue$0 or Unknown$0 or Unknown$0 or Unknown *The fiscal note reflects the potential withholding of funds from public schools and institutions of higher education if the financial penalty provisions of the bill are enacted. Oversight is uncertain how many schools may be non-compliant; therefore, Oversight assumes this gain to General Revenue could exceed the $250,000 threshold. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028University Funds*$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) *Oversight assumes the loss could exceed $250,000. Numbers within parentheses: () indicate costs or losses. L.R. No. 0104S.01I Bill No. SB 55 Page 2 of January 20, 2025 SK:LR:OD 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 2028Local Government$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 0104S.01I Bill No. SB 55 Page 3 of January 20, 2025 SK:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Elementary and Secondary Education and the Department of Higher Education and Workforce Development both assume the proposal will have no fiscal impact on their respective organizations. Oversight notes Section 163.048.6 states a private school, public school district, public charter school, or public or private institution of postsecondary education that violates subdivision (1) of subsection 3 of this section or subsection 4 of this section shall not receive any state aid under this chapter or chapter 173 or any other revenues from the state. Oversight will show a range of impact of $0 (no violations) to an unknown savings to General Revenue and an unknown loss to school districts, charter schools and colleges. Oversight assumes this savings (from potential funding withholds) to General Revenue could exceed $250,000. Officials from the University of Central MissouriNorthwest Missouri State University both assume the proposal will have no fiscal impact on their organizations. In response to similar legislation, SB 1440 (2024), officials from the Missouri State University assumed the proposal will have no fiscal impact on their organizations. Oversight notes Section 163.048.7 states the parent or guardian of any student, or any student who is over eighteen years old, who is deprived of an athletic opportunity as a result of a violation of the act shall have a cause of action for injunctive or other equitable relief as described in the act. Therefore, Oversight will show a range of impact of $0 (no violations) to an unknown cost to school districts for attorney fees and other legal costs. Oversight assumes there could be a loss to public schools, colleges and universities that fail to comply with the requirements in the proposal. The penalty would be any moneys appropriated by the general assembly. Based on the amounts appropriated, Oversight assumes the loss could exceed $250,000. Rule Promulgation Officials from the Joint Committee on Administrative Rules assume this proposal is not anticipated to cause a fiscal impact beyond its current appropriation. 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 L.R. No. 0104S.01I Bill No. SB 55 Page 4 of January 20, 2025 SK:LR:OD 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 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 REVENUERevenue Gain – potential funding withheld from colleges and universities for violating section §163.048$0 or Unknown$0 or Unknown$0 or Unknown Revenue Gain – potential funding withheld from community colleges for violating section §163.048$0 or Unknown$0 or Unknown$0 or Unknown Revenue Gain – potential funding withheld from school districts and charter schools for violations$0 to Unknown$0 to Unknown$0 to Unknown ESTIMATED NET EFFECT ON GENERAL REVENUE $0 to Unknown $0 to Unknown $0 to Unknown UNIVERSITY FUNDSLoss - funding withheld for violating section §163.048 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Costs - for attorney fees and other legal costs $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON UNIVERSITY FUNDS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) L.R. No. 0104S.01I Bill No. SB 55 Page 5 of January 20, 2025 SK:LR:OD FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028LOCAL POLITICAL SUBDIVISIONS Cost - School Districts, Charter Schools, Community Colleges - for attorney fees and other legal costs $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Loss - School Districts & Charter Schools - funding withheld for violating section §163.048 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) Loss – Community Colleges - funding withheld for violating section §163.048 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS $0 or (Unknown) $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 act provides that no public school, private school, public charter school, public school district, or public or private institution of postsecondary education shall be a member of any statewide athletic activities association or national intercollegiate athletics organization that allows students to take performance enhancing drugs. Any public school, private school, public charter school, public school district, or public or private institution of postsecondary education that violates this act shall not receive any state aid or other revenues from the state. The parent or guardian of any student, or any student who is over eighteen years old, who is deprived of an athletic opportunity as a result of a violation of the act shall have a cause of action for injunctive or other equitable relief as described in the act. The provisions of this act shall expire on August 28, 2027. 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. 0104S.01I Bill No. SB 55 Page 6 of January 20, 2025 SK:LR:OD SOURCES OF INFORMATION Department of Elementary and Secondary Education Department of Higher Education and Workforce Development Office of the Secretary of State Joint Committee on Administrative Rules University of Central Missouri Northwest Missouri State University. Missouri State University Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 20, 2025January 20, 2025