COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3657-01
Bill No.: SJR 31
Subject: Constitutional Amendments: Tobacco Settlement
Type: Original
Date: January 29, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | ($87,600) | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($87,600) | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials of the Department of Social Services, Department of Health, Department of Mental Health, Department of Revenue (DOR), Office of Administration, and Office of the Treasurer (STO) assume the proposed legislation would have no fiscal impact on their agencies or that they could accomplish duties under this proposal with existing resources.
DOR officials point out that if, as a result of the election, there is an article X distribution or distributions there would be mailing costs of $951,142 for each year there is a distribution.
STO officials not that if, as a result of the election, there is an Article X distribution, the state would issue 2.8 million checks. It costs about 6.75 cents per check to pay a check. Officials estimate that 97% of checks would clear. Costs would be about $184,000 (40% of these costs would be to the General Revenue Fund, 2.65% of costs would be to the State Road Fund, and 57.35% of costs would be to other funds invested in the general pool.) The interest on these funds would be lost. STO officials note that the 3% of checks which remain uncashed would become the responsibility of the Unclaimed Property Unit. The unit's cost are 2.85 cents per dollar collected. Unclaimed Property received 74,000 article X refund checks from the 1999 distribution in 2000. The checks were valued at about $3,400,000 resulting in a cost of $97,000 (79% General Revenue and 21% Abandoned Fund).
Advertisement costs for the proposal would be $4,380 per newspaper column inch for three printings of the text of the proposal, the introduction, title, fiscal note summary, and affidavit. The proposal would be on the ballot for the November 2002 general election.
| FISCAL IMPACT - State Government | FY 2003 | FY 2004 | FY 2005 |
| Cost to General Revenue Fund
Secretary of State Newspaper Advertisements |
($87,600) |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2003 | FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would present two propositions to Missouri voters.
One would require that any funds received by the state of Missouri as a result of any tobacco-related legal settlement or award be deposited in the Missouri Tobacco Settlement Trust Fund, excluded from the definition of "total state revenues" and would be subject to appropriation to the Healthy Families Trust Fund for purposes specified in the proposal.
The other would require that any funds received by the state of Missouri as a result of any tobacco-related legal settlement or award be deposited in the Missouri Tobacco Settlement Trust Fund, included in the definition of "total state revenues" and would be subject to appropriation to the Healthy Families Trust Fund for purposes specified in the proposal.
This legislation is not federally mandated, would not duplicate any other program, would not require additional capital improvements or rental space. The proposal might affect Total State Revenue.
SOURCES OF INFORMATION
Department of Health
Department of Mental Health
Department of Revenue
Department of Social Services
Office of Administration
Division of Accounting
Division of Budget and Planning
State Treasurer
Mickey Wilson, CPA
Acting Director
January 29, 2002