ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2008	FY 2009	FY 2010
General Revenue	$0	$189,200	$189,200

Total Estimated Net Effect on General Revenue Fund	$0	$189,200	$189,200

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
Propane Inspection Fund	$0	$110,800	$110,800

Total Estimated Net Effect on Other State Funds	$0	$110,800	$110,800

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2008	FY 2009	FY 2010
General Revenue	0	-2	-2
Propane Inspection Fund	0	2	2
Total Estimated Net Effect on FTE	0	0	0

☒ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
Local Government	$0	$0	$0

Officials from the Department of Economic Development - Public Service Commission assume no fiscal impact to their agency.

Officials from the Secretary of State's Office assume 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.

Officials from the Department of Agriculture (AGR) assume this proposal removes the AGR from performing the duties set forth in Chapter 323 and replaces it with a commission. The commission is to be housed in the AGR and is solely responsible for administering the provisions of Chapter 323. Currently, there are two general revenue employees in the propane inspection program. These employees perform meter proving inspections. This is a specialized weights and measures function and should remain with the Department of Agriculture, Division of Weights and Measures. Safety inspections are not being performed due to budget reductions.

This proposal imposes an assessment fee on the propane industry to fund the program. The initial assessment fee of one-tenth of one cent per gallon is expected to generate approximately $300,000 of additional state revenue. However, it is unclear how the program will operate until an adequate balance is available in the fund. Monies collected for meter inspections that are currently deposited into the general revenue fund (i.e. about $15,000 annually) would be re-directed into the propane inspection fund. There are no fees for permits, licenses or certificates associated with this program. It would be difficult for AGR to determine the impact of these fees for individuals involved in the handling, transporting, storing of propane or involved in the business of installing, repairing or servicing of piping, equipment or appliances for use with propane.

There are two penalty provisions. One for safety violations, which is set at not more than $500 per day per violation. The other refers to penalties for failure to remit any assessment or fee required, which is not less than $500 nor more than $5,000 for each violation. Each violation will be a separate offense. All fees and penalties are to be determined by the Director of the Commission.

There will be a reduction of approximately $15,000 per year in general revenue due to the redirection of propane meter testing fees from GR to the Propane Inspection Fund. This fiscal note also assumes the loss of two existing MDA employees with a total current costs of $204,200 GR. Net effect on GR will be $189,200 annually.

An assessment fee of one-tenth of one cent per gallon of odorized propane would generate $300,000.00 per year based upon 2005 consumption reports. It should be noted that these fees will fluctuate depending on usage (e.g. a mild winter).

AGR is unable to determine the amount of expenditures from the propane inspection program because it appears that the commission will be responsible for determining the methods to carry out the provisions of Chapter 323.

No direct fiscal impact to small businesses would be expected as a result of this proposal.

The proposed legislation creates the Missouri Propane Safety Act and appears to have an effect on general revenue and the propane inspection fund.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

FISCAL IMPACT - State Government	FY 2008 (10 Mo.)	FY 2009	FY 2010
GENERAL REVENUE FUND

Revenue - Department of Agriculture
Propane Insepction Meter Fees	$0	($15,000)	($15,000)

Savings - Department of Agriculture
Salaries	$0	$128,000	$128,000
Fringe Beneifts	$0	$51,200	$51,200
Equipment & Expense	$0	$25,000	$25,000

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND	$0	$189,200	$189,200

Estimated Net Change for General Revenue Fund	0	-2	-2

PROPANE INSPECTION FUND

Revenue - Department of Agriculture
Propane Assessment Fee	$0	$300,000	$300,000

Transfer In - Propane Inspection Meter Fees	$0	$15,000	$15,000

Cost -Propane Inspection Fund
Salaries	$0	($128,000)	($128,000)
Fringe Benefits	$0	($51,200)	($51,200)
Equipment & Expense	$0	($25,000)	($25,000)

ESTIMATED NET EFFECTON PROPANE INSPECTION FUND	$0	$110,800	$110,800

Estimated Net Change for Propane Inspection Fund	0	2	2