Subject: Boards, Commissions, Committees, Councils; Business and Commerce; Economic Development Department

Bill Summary: This proposal changes laws relating to the Missouri Small Business Regulatory Fairness Board

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2009	FY 2010	FY 2011
General Revenue	($119,424)	($130,559)	($134,474)

Total Estimated Net Effect on General Revenue Fund	($119,424)	($130,559)	($134,474)

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on Other State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


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

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2009	FY 2010	FY 2011
General Revenue	1.5 FTE	1.5 FTE	1.5 FTE

Total Estimated Net Effect on FTE	1.5 FTE	1.5 FTE	1.5 FTE

☐ 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 2009	FY 2010	FY 2011
Local Government	$0	$0	$0

Officials from the Department of Economic Development (DED) state they would be required to staff the Small Business Regulatory Fairness Board (SBRF) with 2 personnel and pay all support cost for meetings. No FTE and only $12,000 is currently budgeted for DED assistance to the SBRF. DED would need additional staffing and support funds to staff the SBRF as directed by this legislation. Support costs would include expenses of the 9 member board anticipated at $2,446 per meeting times 12 meetings per year. (Lodging $80 per person for one night, mileage for 240 miles per person times .475, meals at $50 per meeting per person, and misc. meeting costs for room and printing of $250 per meeting). Cost for meetings for the board would be $29,352 per year less $12,000 budgeted. This is how the $17,352 requested is calculated. An additional $6,000 is included for printing and binding of board reports.

DED assumes the total additional cost of the 2 FTE, the printing/binding expense and the meeting fees to be roughly $210,000 per year.

Oversight assumes the changes in statutes from the proposal allow DED to add one full time FTE for a professional position and one-half FTE for clerical support. Oversight assumes both of the FTE in DED’s response would be considered professional positions; therefore, Oversight assumes DED would need the Fiscal & Adm. Manager B1 as requested, along with ½ FTE Office Support Assistant (instead of the FTE requested Economic Development Info. & Adv. Coordinator).

Officials from the Office of the Secretary of State (SOS) assume 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 $2,500. The SOS 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 Conservation assume the proposal would have a negative impact the their agency; however, the exact amount of impact is unknown.

Oversight assumes the proposal would not have a direct negative impact on the Department of Conservation Funds.

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

This proposal requires the Department of Economic Development to provide at least one full-time professional employee, one-half full-time employee for clerical support, and an adequate budget for the Small Business Regulatory Fairness Board to meet its responsibilities.

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 2009 (10 Mo.)	FY 2010	FY 2011

GENERAL REVENUE FUND

Costs - DED
Personal Service (1.5 FTE)	($51,804)	($64,030)	($65,950)
Fringe Benefits	($23,446)	($28,980)	($29,849)
Expense and Equipment	($24,714)	($13,496)	($13,901)
Printing and Binding	($5,000)	($6,180)	($6,365)
Board Meeting costs	($14,460)	($17,873)	($18,409)
Total Costs - DED	($119,424)	($130,559)	($134,474)
FTE Change - DED	1.5 FTE	1.5 FTE	1.5 FTE

ESTIMATED NET EFFECT TO THE GENERAL REVENUE FUND	($119,424)	($130,559)	($134,474)

Estimated Net FTE Change for General Revenue Fund	1.5 FTE	1.5 FTE	1.5 FTE