COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0834-08

Bill No.: SCS for SB 226

Subject: Boards, Commissions, Committees, Councils; Health, Public; Health Department

Type: Updated#

Date: March 6, 2001

#Updated to include funding for life sciences grants.


FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
General Revenue# $0 to ($45,800,000) $0 to (Unknown) $0 to (Unknown)
Life Sciences Research $0 to ($369,543) $0 to ($422,560) $0 to ($423,778)
Healthy Families Trust#** $0 $0 $0
Total Estimated

Net Effect on All

State Funds*#**

$0 TO ($46,169,543) $0 TO (MORE THAN $422,560) $0 TO (MORE THAN $423,778)

*Does not include auditing costs.

**Transfers and expenditures of $45.8 million annually would net to $0.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0


Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Office of State Treasurer assume this proposal would not fiscally impact their agency.



Department of Health (DOH) officials state as a result of this proposal the department would need one Public Health Manager ($51,888) to provide direction and leadership to the program and to the Board, one Management Analyst II ($43,308) would provide expertise in the development of grants and contracts for bidding and awarding the funds, and one Clerk IV ($26,460) would provide support to the Public Health Manager and the Management Analyst II. DOH states one Research Analyst III ($40,716) would provide the expertise for establishing protocols for research, evaluating the merits of the applications for research received and provide technical assistance to the grantees for ensuring the protocols are adhered to, one Attorney ($53,000) would review rules and regulations to implement the program and responsibilities of the board and provide expertise regarding the intellectual property rights as described in the proposed legislation, and review all grant applications and awards for propriety and compliance with the law and regulations, and one Clerk Typist II ($20,472) would support the Research Analyst III and the Attorney and provide backup to the Clerk IV.



DOH states board costs are based on operational costs for each board member per board meeting: $65 per night lodging, $45 per day meals, $75 mileage round trip. Eight two day meetings per year are estimated. 7 members x $65 lodging, $90 meals, $75 mileage = $1,610 x 8 meetings = $12,880 annual. No inflation has been assessed for board costs. DOH states they apply indirect costs to all non-General Revenue funds in accordance with the indirect cost rate negotiated with the federal government.



Oversight assumes a range of income and expenditures from $0 to ($45,800,000) from the Healthy Families Trust Fund and would net to $0. This amount reflects the amount of new funding requested from the Healthy Families Trust Fund in the FY2002 Governor's budget request upon receiving tobacco settlement funds. Oversight assumes that any funding is subject to appropriation.



Officials from the Office of Secretary of State (SOS) state this proposal creates within the Department of Health the Life Sciences Research Program and board which would promulgate rules. SOS states that based on experience with other divisions, the rules, regulations, and forms issued by the Life Sciences Research Board could require as many as 32 pages in the Code of State Regulations. For any given rule, roughly half again as many pages are published in the Missouri Register in the Code because cost statements, fiscal notes, and the like are not repeated ASSUMPTION (continued)



in Code. These costs are estimated. The estimated cost of a page in the Missouri Register is $23. The estimated cost of a page in the Code of State Regulations is $27. The actual cost could be

more or less than the numbers given. The fiscal impact of this proposal in future years in

unknown and depends upon the frequency and length of rules filed, amended, rescinded, or withdrawn.



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.



Officials from the State Auditor's Office (SAU) assumed one additional Staff Auditor II ($35,000) and related expense and equipment would be needed to perform the duties of this proposal.



Oversight has also not reflected any auditing costs due to expenditures being subject to appropriation.



Office of Attorney General officials did not respond to our fiscal impact request.



Oversight assumes that tobacco settlement funds would be deposited into the General Revenue Fund in absence of this proposal. Oversight also notes that Missouri's tobacco settlement funds have been, thus far, deposited in an escrow fund and assumes that payments for 1998 through 2000 would be deposited at one time and payments for 2001 would also be made during FY 2002; therefore, the figure for FY 2002 represents three years worth of estimated payments (There were no payments in calendar year 1999).



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
GENERAL REVENUE FUND#
Loss - General Revenue Fund
Tobacco settlement revenue# ($45,800,000) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND#



($45,800,000)


(UNKNOWN)


(UNKNOWN)
LIFE SCIENCES RESEARCH FUND
Cost - Department of Health
Personal services (6 FTE) $0 to ($201,450) $0 to ($247,784) $0 to ($253,978)
Fringe benefits $0 to ($67,143) $0 to ($82,586) $0 to ($84,651)
Expense and equipment $0 to ($100,950) $0 to ($92,190) $0 to ($85,149)
Total Cost - Department of Health $0 to ($369,543) $0 to ($422,560) $0 to ($423,778)
ESTIMATED NET EFFECT ON LIFE SCIENCES RESEARCH FUND*

$0 TO ($369,543)


$0 TO ($422,560)


$0 TO ($423,778)
*Does not include grant expenditures and auditing costs.
HEALTHY FAMILIES TRUST FUND#
Income - State of Missouri
Tobacco settlement# $0 to $45,800,000 $0 to Unknown $0 to Unknown
Costs - Life Sciences Research Board
Grant expenditures# $0 to ($45,800,000) $0 to (Unknown) $0 to (Unknown)
ESTIMATED NET EFFECT ON HEALTHY FAMILIES TRUST FUND#



$0




$0




$0


FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0









FISCAL IMPACT - Small Business



Small businesses would expect to be fiscally impacted to the extent they may receive grant-in-aids and incur additional expenses as a result of this proposal.



DESCRIPTION



This proposal would create a Life Sciences Research Program within the Department of Health. A nine member Life Sciences Research Board would distribute grants to increase the capacity

and infrastructure for, and improve the quantity and quality of, life science research in the state. The Board may make provisions for peer review panels to research and review grant proposals. Grant recipients would have the duty to ensure timely disclosure of their research findings to the scientific community, and to promote public availability of their inventions and other intellectual property developed in the performance of research funded by a grant award. Institutions or organizations receiving grant awards would retain intellectual property rights, but the Life Sciences Board would be authorized to adopt reasonable regulations to insure that intellectual property rights are utilized in the public interest.



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



Department of Health

Office of State Auditor

Office of Secretary of State

Office of State Treasurer



NOT RESPONDING: Office of Attorney General

















Jeanne Jarrett, CPA

Director



March 6, 2001