SB 0634 - Fiscal Note

Fiscal Note - SB 0634 - Newspaper Rates For Public Notices

L.R. NO.  2442-04
BILL NO.  HCS for SB 634
SUBJECT:  Political Subdivisions: Newspaper rates
TYPE:     Original
DATE:     May 8, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

NONE

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


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

NONE

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


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government*        (Unknown)           (Unknown)         (Unknown)

*expected to exceed $100,000 per fiscal year


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Highways and Transportation (DHT) stated
that their department currently pays the regular local classified advertising
rate allowed due to section 493.025, therefore, officials assume no fiscal
impact.

Officials from the Office of Secretary of State (SOS) and the Missouri
Department of Conservation (MDC) assume no fiscal impact.

Officials from the Office of Administration (OA) assume no state fiscal
impact to their department, however, officials stated that the impact on
first class counties and the City of St. Louis could increase.  Officials
stated that the actual impact on local governments would be affected based on
their quantity of advertising and the regular rates charged by the newspapers
they utilize.

Officials from Clay County assume fiscal impact to be minimal to no impact.

Officials from St. Louis City assume no fiscal impact.

St. Louis County officials stated that an estimate of increased cost could
not be determined.  Officials stated that the county in 1995 budgeted a total
of $380,000 for advertising and public notices in all county agencies
combined.  Regular local classified advertising rates in the St. Louis
Metropolitan area average ten times more than the maximum now allowed for in
Section 493.027 which this proposal would repeal.  Officials estimate that
this proposal would cause an increase of thousands of dollars in publication
costs.

Oversight assumes there would be cost increases;  however the amount of
increase would be dependent upon the size of the governmental body.  Based on
St. Louis County's response, Oversight estimates costs to local governments
could exceed $100,000 in given years.

Officials from Green County assume no fiscal impact.

FISCAL IMPACT - State Government      FY 1997     FY 1998     FY 1999
                                     (10 Mo.)

                                           $0          $0          $0

FISCAL IMPACT  - Local Government     FY 1997     FY 1998     FY 1999
                                     (10 Mo.)

Cost to Local Governments          (Unknown)*  (Unknown)*  (Unknown)*

*expected to exceed $100,000 per fiscal year



DESCRIPTION

This act regulates the rate that newspapers in first classification counties
or in St. Louis City could charge to run certain pubic notices such as
proposed constitutional amendments.  The maximum rate would be the regular
local advertising rate as advertised by such newspaper.

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

Secretary of State
Office of Administration
Department of Highways & Transportation
Missouri Department of Conservation
Clay County
St. Louis County
Greene County

NOT RESPONDING: Jackson County, St. Charles County, Jefferson County, Boone
County and Buchanan County.