DESE is currently aware of only one county (St. Charles County) that has implemented a county municipal court. The districts in St. Charles County and their fine revenue in the 2005 fiscal year are:                                                                                                                                           

            092-087          Ft. Zumwalt                $532,939 

            092-088          Francis Howell           $555,148 

            092-089          Wentzville                  $225,337 

            092-090          St. Charles R-VI         $178,034 

            092-091          Orchard Farm R-V     $ 38,007

                                                                        $1,529,465                                                       

The additional state payment pursuant to this proposal would be no more than that specified for the respective district. However, should other counties create county municipal courts, the potential exists for the state payment to greatly exceed this total.                                          

ASSUMPTION (continued)

Information was provided by St Charles County outlining the number of traffic and misdemeanor tickets issued by the St Charles Sheriff for FY 2002 and FY 2003, along with the percentage of cases filed that are dismissed. St Charles County also provided the total disbursements for FY 2003 through FY 2006. Based on information from St Charles County, Oversight makes the following assumptions regarding this proposal:

The base amount upon which calculations are made is $1,655,861. The amount of fines collected by a newly created county municipal court average 40% of the total fines collected. Fine revenue is increasing at an average rate of 10% a year.

Fine revenue collections for 2008, net of the amount assumed to go through the county municipal court, and projections for 2009 are as follows:

            Year                Net Revenue               Base                             +/-

            2008                $1,502,964       $1,655,861                    ($152,897)

            2009                $1,653,260       $1,655,861                    ($ 2,601)

Based on these assumptions, by FY 2010 the net fine revenue would not be less than the base amount; therefore, no longer requiring payment by the Department of Elementary and Secondary Education to make up the difference.

CERTAIN SCHOOL DISTRICT MODIFIER - (Section 163.016):

Section 163.016 provides that any school district located in more than one county and whose headquarters are located within Monroe City and located in more than one county, the county signified in the school district number shall be the county in the district with the highest dollar value modifier.

Officials of the Department of Elementary and Secondary Education assume estimate the cost of providing additional state aid would be $33,707 in FY 2008; $50,657 in FY 2009; and $50,657 in FY 2010. Officials assume costs would affect the State General Revenue Fund.

ASSUMPTION (continued)

AMBULANCE DISTRICTS - BOARD MEMBERS: TRAINING

Section 190.053 requires ambulance board members first elected after January 1, 2008 to complete educational training.

Officials of the Department of Health and Senior Services stated this proposal would have no fiscal impact on their department’s appropriations. Officials assume ambulance districts would have some costs. Officials could not estimate cost.

Oversight assumes the amount of cost per ambulance district would depend upon the number of members requiring training, location of training, and whether board members would have to travel, require lodging, and meals. Oversight will show costs as $0 to (unknown).

COMMUNITY HEALTH DISTRICT: (Section 205.563)

 This bill authorizes any city of the fourth class with more than two hundred but fewer than three hundred inhabitants and located in a second class county with more than forty-eight thousand two hundred, but fewer than forty-eight thousand three hundred inhabitants to levy, upon voter approval, a tax of up to 35 cents on each $100 of assessed valuation on taxable real property to fund the establishment of a community health district.

Oversight assumes this section is permissive and would require action by the governing body with voter approval before fiscal impact would be realized. For purposes of this fiscal note, Oversight assumes no fiscal impact.

PUBLIC WATER SUPPLY DISTRICT DIRECTORS: (Section 247.060)

Officials of the Department of Natural Resources assume no fiscal impact.

Oversight sent fiscal note response requests to several public water supply districts, and none have responded.

Oversight assumes there could be some election costs savings by lengthening the terms to every three years for directors from the date of being first elected rather than under the current staggered election cycle. Oversight would expect election costs savings per water district to be minimal.

ASSUMPTION (continued)

FIRE PROTECTION DISTRICTS - BOARD MEMBERS: TRAINING

Section 321.162 requires board members of fire protection districts, first elected after January 1, 2008, to complete educational training.

Officials of the Department of Public Safety - Division of Fire Safety stated they currently have a training program that will meet the requirements outlined in this legislation and assume no fiscal impact.

Officials of the DeSoto Rural Fire Protection District stated that they would estimate their costs at $500 each year that an election was held, provided there were new board members elected. Officials assume if training were held within a reasonable traveling distance, costs would be less.

Oversight assumes costs of training for each fire protection district would depend upon the number of newly elected board members, the distance the members would have to travel to have training, would lodging be necessary, and the number of meals required. Oversight will show fiscal impact as $0 to (Unknown), and expects costs per fire district to be minimal.

Sections 644.597, 644.598, and 644.599 STORM WATER CONTROL:

Officials from the Office of Administration - Division of Accounting assume, although there would be no fiscal impact relating to this authorization increase, there would be a fiscal impact if any of the currently outstanding authorization is actually issued. There would need to be approximately $700,000 for principal and interest for every $10 million dollars issued and one time costs of approximately $192,509 for each issuance.

Officials from the Department of Natural Resources assume the proposal would authorize the Board of Fund Commissioners to sell $40 million in bonds for stormwater control plans, studies and projects under Article III, Sections 37(h), (g), and (e).

Bonds are sold on as-needed basis.

37(e) money is approved for $10 million to be spend as follows:
$7 Million for the 40% State Construction Grant Programs
$3 Million for the Rural Water and Sewer grants

ASSUMPTION (continued)

37(g) money is approved for $10 Million to be spent as follows:
$5 Million for Rural Water grants and loans
$5 Million for Rural Sewer grants and loans

47(h) money is approved for $20 Million to be spent as follows:
$10 Million for stormwater grants
$10 Million for stormwater loans

Oversight is unable to determine when bonds would be sold and has ranged the sale from $0 to $40 million. Oversight has ranged the annual income and annual repayment of bonds sold from $0 to $3,570,033.

SECTIONS 2 : HIGHWAYS IN ST. CHARLES COUNTY:

Officials of the Missouri Department of Transportation (MoDOT) made the following fiscal impact statement:

Section 2 - Restricts truck travel in the far left lane on an interstate highway at a specific location on I-70 within 3 miles of MO 340. MoDOT would have to install 16 total traffic signs to alert drivers of this change. The department would need to install 8 signs in each direction. This would include, in each direction, 1 set of advance notice signs prior to the restricted zone, 2 sets of regulatory signs within the zone & 1 set of signs indicating the end of the zone. The total cost for the 16 signs is approximately $8,400. This cost reflects the cost of materials needed to fabricate the signs and does not inclue any labor or maintenance cost.                                                                                                                                                                                                          Officials of the Office of Secretary of State - Rules Division assume this proposal provides for rulemaking authority in various sections. Officials stated that many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The Secretary of State’s office 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 Secretary of State’s office for Administrative Rules is less than $2,500. The Secretary of State’s office recognizes that this is a small amount and does not expect that additional funding would be required to meet these costs. However, we also recognize 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 our office can sustain with our core budget. Therefore, we reserve 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.

ASSUMPTION (continued)

Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years

                                                                                                                                                            The following list of respondents stated there would be no fiscal impact to their agencies:

Department of Health and Senior Services, Department of Economic Development- Tourism Division, Department of Revenue, Office of the State Auditor, Office of the State Treasurer, Office of State Courts Administrator, Missouri Joint Committee on Public Employee Retirement, Department of Public Safety - Fire Safety Division, Department of Corrections, Little Blue Valley Sewer District, Office of Prosecution Services, Local Government Employees Retirement System, Office of Administration - Admin. Hearing Commission, Office of the Secretary of State- State Librarian, Department of Agriculture, Department of Economic Development - Public Service Commission, State Tax Commission, Police Retirement System of St. Louis, Police Retirement System of Kansas City, Civilian Employees’ Retirement System of the Kansas City Police Department,

LOCAL GOVERNMENT RESPONSES:

Oversight sent response request to many local governments and only a few responded.

Officials of the Texas County Clerk’s Office assume no fiscal impact.

Officials of the Boone County Collector’s Office assume no fiscal impact.

Officials of the Taney County Ambulance District assume no fiscal impact.

* Oversight assume costs of providing defined services would not exceed income, resulting in either a $0 or positive annual fund balance. Oversight assumes for purposes of this fiscal note a $0 annual fund balance.

FISCAL IMPACT - Small Business

Small business located within districts that impose voter approved sales taxes or certain businesses that would be required to collect a transient guest tax would have to collect and administer the tax.

DESCRIPTION

This proposal modifies the laws regarding political subdivisions.

Sections 52.290 and 52.312 changes provisions governing the collection of delinquent property taxes, and increases the fee imposed upon delinquent and back tax statements for the collection of such taxes for Jackson County from two percent to three percent. This proposal also modifies mailing requirements for notices of tax sale proceedings.

Section 64.907 allows any political subdivision subject to EPA rules concerning storm water discharges to adopt rules necessary to comply with the federal rules, rather than only counties. Any such political subdivision is authorized to establish a storm water control utility to administer the rules and a tax, upon voter approval to be used for storm water control.

Section 67.320 Currently, Jefferson County may adopt orders with penal provisions consistent with state law in the areas of traffic violations, solid waste management, and animal control. Under this section the county would be able to adopt such orders in any area covered by the county’s ordinances.

Section 67.997 allows Perry County to impose, upon voter approval, a sales tax of up to one-fourth of 1% to equally fund senior services and youth programs.

Section 67.1181 requires political subdivisions that collect and expend tax revenues for advertising and tourism promotion to perform an audit at least every five years if no other statutory auditing requirement exists for such political subdivision. The political subdivision shall pay the actual cost of the audit from the revenues for operating costs. The first audit shall be completed by January 1, 2009.

Section 67.1003 allows the City of Gladstone to impose, upon voter approval, a transient guest tax of up to 5% on hotel and motel rooms to be used for the promotion of tourism.

Section 67.1016 allows counties of the Second, Third, and Fourth Classification to impose with voter approval, a transient guest tax to be used for the promotion of tourism.

67.1360 allows the City of Sullivan and the portion of the Sullivan C-2 School District located in Franklin County to levy a transient guest tax on charges for sleeping rooms paid by guest of hotels, motels, bed and breakfast inns, and campgrounds or docking facilities. The proposed tax must be approved by the voters and could not be less than 2% or greater than 5% per occupied room per night.

DESCRIPTION (continued)

Section 67.1360 adds the City of Hollister to the list of cities that can levy a voter approved transient guest tax.

Section 67.2040 allows Pulaski County to impose, upon voter approval, a sales tax of one-eight of 1% to fund construction of a women’s and children’s shelter.

Section 67.2510 allows cities, towns, and villages within Clay County, Franklin County, Boone and Jackson County to form a Theater, Cultural Arts, and Entertainment District. St. Charles County may also form a district. The current law provides for funding by a voter approved sales tax.

Section 70.515 Kansas and Missouri Compact:

Currently, there is a Kansas and Missouri Regional Investment District Compact. Under, this act, if the state of Kansas has not enacted the compact by August 28, 2007, the district shall still be created and shall be entitled the "Missouri Regional Investment District".

This act adds Buchanan County to the list of political subdivisions which are considered regional investment districts.

Section 88.832 provides that in any third class city that imposes a storm water user fee based on runoff rate of storm water on impervious surfaces, would not be allowed to impose said fee on property owned by any church, public school, nonprofit organization, or political subdivision.

The act also provides the areas of Kansas which will be included in the district if Kansas adopts the compact.

All members of the commission governing the Regional Investment District shall be from a jurisdiction in a state that has adopted the compact.

Currently, counties in the district may, upon voter approval, submit a sales tax not to exceed

one-half of one percent to support a regional program for a public transit system. This act removes a provision stating that such a sales tax shall not be levied by any county unless a majority of the qualified electors of at least Johnson and Wyandotte Counties in Kansas and Jackson County in Missouri approve the such a levy.

Section 92.500 allows the City of St. Louis to impose, upon voter approval, a sales tax for public safety.

DESCRIPTION (continued)

Section 94.660 This section provides that the “coupling provision of section 94.660" (requires both the city and county to approve a transportation sales tax before a transportation sales tax can go into effect in either jurisdiction) shall not apply to any transportation sales tax approved by the voters in such city or such county on or after August 28, 2007.

Section 94.870 provides that any municipality located in Pemiscot County would be allowed to levy a transient guest tax, upon voter approval. The tax would be for promoting tourism.

Section 94.950 allows the City of Joplin to impose, upon voter approval, a sales tax of up to 0.5% to be used for operation, renovation, and construction of historical locations and museums for the purpose of tourism.

Section 99.1200 DISTRESSED AREAS LAND ASSEMBLAGE TAX CREDIT PROGRAM:

This section creates the distressed areas land assemblage tax credit program, administered by the department of economic development. Tax credits issued under the distressed area land assemblage tax credit act, are non-refundable, fully transferrable income, corporate franchise, and financial institutions, tax credits. Tax credits issued under the act will be equal to fifty percent of the acquisition costs for the land, and one hundred percent of the interest costs. The tax credit program is capped at one hundred million dollars and the total amount of tax credits issued annually is limited to twelve million dollars.

Sections 144.030 & 144.062 - SALES TAX EXEMPTIONS FOR SPORTS AUTHORITIES :

allows sports complexes an exemption from sales tax, and Section 144.062 allows an exemption for sports complexes for constructing, repairing, or remodeling facilities.

Section 163.011 grants school districts, located at least partially within a county, an additional payment equal to the decrease, if any, in the amount the district receives from fines in the current year from revenue the district received in fiscal year 2005.

Section 190.053 requires members of ambulance district boards first elected after January 1, 2008, to complete educational training. The training shall be offered by a statewide association organized for the benefit of ambulance districts or approved by the State Advisory Council on Emergency Medical Services.

DESCRIPTION (continued)

The content of the training must include the duties of the ambulance district director, all ambulance district statutes and regulations, ethics and sunshine laws, financial and fiduciary responsibilities, and laws relating to the setting of tax rates and revenue limitations. If a board member does not receive the required training within one year of taking office, the board member shall not receive an attendance fee until the training is completed

Section 247.060 modifies the length of term for directors of public water supply districts elected in 2008, 2009, and 2010, due to a change in the date of their election from June to April in statute.

Section 321.162 requires members of fire protection district (FPD) boards first elected after January 1, 2008, to complete educational training. The content of the training will be determined by the State Fire Marshal but must include the duties of the FPD director, all FPD statutes and regulations, ethics and sunshine laws, financial and fiduciary responsibilities, and laws relating to the setting of tax rates and revenue limitations.

If a board member does not receive the required training within one year of taking office, the board member shall not receive an attendance fee until the training is completed.

Sections 644.597, 644.598, and 644.599 authorizes the Board of Fund Commissioners to issue additional bonds for the purposes of stormwater and water pollution control, clean drinking water and other projects in Section 640, RSMo.. A total of $40 million was authorized.

Section 163.016 For any school district located in more than one county and whose headquarters are located within Monroe City and located in more than one county, the county signified in the school district number shall be the county in the district with the highest dollar value modifier.

Section 2 restricts truck traffic to the far left lane on certain interstate highways in Missouri. The Department of Transportation would have to provide signs informing the trucks of Missouri law.

All sections that are from Chapter 204 that are in this proposal have 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

Office of the Secretary of State - Rules and State Librarian

Office of the State Auditor

Office of the State Treasurer

Office of State Courts Administrator

Missouri Department of Transportation

Missouri Department of Corrections

Department of Natural Resources

Department of Elementary and Secondary Education

Office of Administration - Commissioner

Office of Administration - Information Technology

Office of Administration - Budget and Planning

Department of Public Safety - Fire Safety Division

Department of Agriculture

State Tax Commission

Department of Social Services

Department of Health and Senior Services