COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         1264-01

Bill No.:          HB 684

Subject:           Easements and Conveyances; Saint Louis

Type:              Authorizes the conveyance of certain state properties

Date:               March 7, 2007

Bill Summary:            Authorizes the conveyance of certain state properties.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ 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).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Administration - Division of Facilities Management, Design and Construction, Governor's Office, City of Park Hills, City of Cabool and Texas County assume no fiscal impact to their agencies.

Officials from the Department of Labor and Industrial Relations (DOLOR) assume the proposal authorizes the conveyance of property in Springfield, Missouri beginning on the south side of St. Louis Street known as the WJ McDaniel Lot. This property was originally purchased and improved in 1973. The original investment by the Division of Employment Security was $73,791.01 of which $43,249 was from the Special Employment Security Fund and $30,542.01 from Unemployment Insurance Federal Grant Funds. The equity breakout of that lot is 58.61% Special ES Fund and 41.39% Federal UI Grant.

The federal participation means that federal regulations for disposition of real property must be followed. The DOLIR has sent these regulations to Oversight. The regulations require that the state make a request to the US Department of Labor on how to dispose of the property and requesting permission to sell it. In addition, the federal share of the proceeds must be reinvested in other real property or real property improvements in buildings that house a federally supported unemployment insurance program or be returned to the federal government upon disposition.

The Department is not aware of the fair market value of this property in order to estimate the potential impact on department funds, therefore estimates an unknown impact not less than the original investment.

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 authorizes the conveyance of certain state properties and will have an effect on federal funds.

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 Administration -

     Division of Facilities Management, Design and Construction

Governor's Office

Department of Labor and Industrial Relations

City of Park Hills

City of Cabool

Texas County

NOT RESPONDING

City of St. Louis

City of Chillicothe

City of Springfield

Livingston County

St. Francois County

Greene County

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                March 7, 2007