COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:2126S.01I Bill No.:SB 566 Subject:Business and Commerce; Department of Economic Development; Veterans Type:Original Date:March 25, 2025Bill Summary:This proposal modifies provisions relating to certain veteran-owned small businesses. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on General Revenue $0$0$0 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. 2126S.01I Bill No. SB 566 Page 2 of March 25, 2025 BB: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$0$0 L.R. No. 2126S.01I Bill No. SB 566 Page 3 of March 25, 2025 BB:LR:OD FISCAL ANALYSIS ASSUMPTION §620.3250 - Boots to Business Program Officials from the Office of Administration – Budget & Planning, the Economic Development Department of Higher Education and Workforce Development, the Department of Public Safety – Director’s OfficeDepartment of Public Safety – Veterans Commission, and the Treasurer each assume 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 for these agencies. For informational purposes, Oversight has provided the number of linked deposits approved to veteran-owned businesses according to the Office of the State Treasurer website (Linked Deposit Annual Reports) for the MO BUCKS program. Program Year Participants / Veterans Total Amount Average Loan amount per participant 202415$8,347,901$556,527202327$12,561,025$465,22320225$5,595,779$1,119,15520215$1,729,603$345,921 Oversight notes current law requires any veteran who receives a small business loan through the State Treasurer's linked deposit program to complete a boots-to-business program approved by the Department of Economic Development. This proposal makes participation in such program optional. Oversight notes that the Small Business Administration (SBA) offers the Boots to Business program at no cost for all veterans who provide a valid Department of Defense I.D. Therefore, Oversight will reflect a zero impact in the fiscal note. 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 L.R. No. 2126S.01I Bill No. SB 566 Page 4 of March 25, 2025 BB:LR:OD 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 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 2028$0$0$0FISCAL 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 The proposed legislation appears to have no direct fiscal impact. 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. 2126S.01I Bill No. SB 566 Page 5 of March 25, 2025 BB:LR:OD SOURCES OF INFORMATION Office of Administration – Budget & Planning Department of Economic Development Department of Higher Education and Workforce Development Department of Revenue Department of Public Safety – Director’s Office Department of Public Safety – Veterans Commission Office of the State Treasurer Office of the Secretary of State Joint Committee on Administrative Rules Julie MorffJessica HarrisDirectorAssistant DirectorMarch 25, 2025March 25, 2025