Fiscal Note - SB 0167 - Flood Plain Management
L.R. NO. 0844-01
BILL NO. SB 167
SUBJECT: Agriculture Department; Counties; Insurance-Flood Plains
TYPE: Original
DATE: January 20, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($333,653) ($335,697) ($348,365)
Levee Tax $0 $0 $0
Partial Estimated
Net Effect on State
Funds* ($333,653) ($335,697) ($348,365)
* Estimates do not include the potential costs of flood-proofing existing
state structures and obtaining additional flood insurance, which are subject
to appropriations.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 to Unknown $0 to Unknown $0 to Unknown
FISCAL ANALYSIS
ASSUMPTION
Officials of the following departments assume that this proposal would not
fiscally impact their agency: Department of Economic Development - Public
Service Commission and Office of the Public Counsel, Department of Insurance,
Department of Revenue, and the State Courts Administrator.
Officials of the Department of Natural Resources (DNR) assume that the
structures referred to in the legislation would include structures within the
29 state parks and historic sites located in a floodway.
They estimate costs for surveys to identify flood elevations on specific
structures at about $673,000. $325,000 for hydrology studies of the five
parks which are in areas where flood hazard zones have not been identified on
Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps and
$348,000 for horizontal controls on each structure within all 29 parks and
historic sites. Costs for flood-proofing specific structures would not be
known until the studies were done. DNR officials estimate that they would
exceed $100,000.
DNR officials would request personal service costs, fringe benefits, and
related equipment and expense for .5 FTE (Hydrologist II) for duties related
to the legislation, including review of applications for levee permits,
assistance with identifying DNR structures in the floodway, flood-proofing
structures, and providing technical support to the floodplain insurance fraud
task force in the Attorney General's Office. Oversight assumes that existing
staff would be able to review permit applications. If the number of permit
applications would be greater than anticipated, DNR could request additional
resources, based upon workload measures, through a decision item in the
budget.
Officials of the Department of Agriculture (AGR) indicate that one-half of an
existing Planner III's time would be spent in carrying out the legislation's
provisions. They would request personal service costs, fringe benefits, and
related equipment and expense. Oversight assumes that existing staff would be
able to review permit applications. If the number of permit applications
would be greater than anticipated, AGR could request additional resources,
based upon workload measures, through a decision item in the budget.
In a similar proposal officials of the Office of the Attorney General
indicated that establishment of the Flood Plain Insurance Fraud Task Force
would require the addition of two FTE (one Assistant Attorney General I and
one legal secretary), plus related fringe benefits, equipment and expense.
Officials of the State Emergency Management Agency state that their current
budget has three FTE who handle floodplain management. An additional six
employees would be requested in order to adequately administer the permitting
process, ensure compliance in the local jurisdictions and provide technical
assistance and data. Oversight has allowed only one vehicle instead of the
three requested and has adjusted the fringe benefit percentage to 28.53%.
Officials of the Missouri Department of Conservation (MDC) assume that the
legislation's definition of "floodway" and "structure" would not contradict
the federal definitions. Given these assumptions the Department of
Conservation would not be significantly impacted by the requirement to
flood-proof existing state structures.
Section 49.629 would establish a "Levee Tax Fund" in the state treasury.
Money for this Fund would come from a one-tenth of one percent tax on the
assessed value of all properties protected by industrial levees (500-yr levee
or greater). Levee Tax Fund monies could be supplemented by appropriations
from the General Revenue Fund and from the Conservation Fund. The Levee Tax
Fund would be used to provide the 20% cost share (P.L. 84-99) for those
landowners who voluntarily sign an agreement that, after the next flood
event, they would not rebuild their agricultural levee beyond the twenty year
level of protection. Using Conservation Funds monies for the provisions of
this proposal conflicts with the Missouri Constitution. Given that most
levees along the Missouri River are below the 20-year protection level, it is
assumed most levee districts would be eligible and take advantage of the
proposed "Levee Tax Fund". The one-tenth of one percent tax on industrial
levee protection can occur no more than once every ten years and the amount
that tax would generate is unknown. Oversight assumes that any income
derived from assessments would be used to provide funds to levee districts
and that the net effect to the levee Tax Fund would be zero.
Oversight assumes that the legislation will require flood-proofing all
existing state structures within the floodway, as well as obtaining insurance
on all state structures within the floodway to meet the minimum national
flood insurance program standards, subject to appropriation. It is assumed
that all affected state agencies would request necessary funding during the
normal budgeting process.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Costs-Department of Public Safety
Division of Flood Plain Management
Personal services (6 FTE) ($126,470) ($157,833) ($164,145)
Fringe benefits (35,082) (45,030) (46,831)
Equipment and expense (87,206) (44,774) (47,004)
Administrative Costs
Division of Flood Plain Management ($248,758) ($247,637) ($257,980)
Costs-Attorney General's Office (AGO)
Personal services (2 FTE) ($40,000) ($49,200) ($50,430)
Fringe benefits (11,412) (14,037) (14,388)
Equipment and expense (33,483) (24,823) (25,568)
Administrative Costs-AGO ($84,895) ($88,060) ($90,385)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND * ($333,653) ($335,697) ($348,365)
* Estimates do not include the potential costs of flood-proofing existing
state structures and obtaining additional flood insurance, which are subject
to appropriations.
LEVEE TAX FUND
Income
Assessments Against Industrial Levee
Systems $0 $0 $0
to to to
Unknown Unknown Unknown
Cost
Aid to Levee districts ($0 ($0 ($0
to to to
Unknown) Unknown) Unknown)
NET EFFECT ON
LEVEE TAX FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
LEVEE DISTRICTS
Aid from Levy Tax Fund $0 $0 $0
to to to
Unknown Unknown Unknown
FISCAL IMPACT - Small Business
The proposal could affect all small businesses located in flood plains.
DESCRIPTION
This legislation would establish the Division of Flood Plain Management
within the State Emergency Management Agency for the purpose of implementing
flood plain management policies for the state.
The Division's responsibilities would include issuing permits for the
building of certain structures, including levees, in certain areas within the
one-hundred year flood plain, as well as working with the U.S. Army Corps of
Engineers in establishing elevations for all levees in the state.
Notice of permit applications would be forwarded to the Department of Natural
Resources and the Department of Agriculture for review and comment.
A levy district could enter into an agreement with the Division to restrict
the reconstruction of its levee, after the next flood, to the 20 year level.
If district officials signed an agreement, the district would be eligible for
state funds from the "Levee Tax Fund", created by this act in the state
treasury, to meet the 20% cost-share required to obtain federal funds for
levee reconstruction.
No more than once every ten years, the Division could levy an assessment
against all property located in a levee system with at least a five-hundred
year level of protection. The levy would be one-tenth of one percent of the
assessed valuation of the property located in those levee systems. Monies
collected would be credited into the newly-established "Levee Tax Fund."
The proposal would require that no new state construction be located in the
one-hundred year flood plain (unless the Division certified that there were
no practical alternative), and that all existing state structures located in
the floodway be flood-proof, subject to appropriations. All projects of the
state in flood plains would meet the standards of the national flood
insurance program, and all state structures existing within the one-hundred
year floodway are to be insured to the minimum national flood insurance
program standards, subject to appropriations.
The legislation would create within the Attorney General's Office a Flood
Plain Insurance Fraud Task Force for the purpose of reviewing all federal and
state monies appropriated to aid in flood recovery during FY 1994 and 1995
and determining whether any such money has been obtained fraudulently.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space, and could affect total state revenue.
SOURCES OF INFORMATION
Department of Economic Development
Department of Natural Resources
Department of Agriculture
Office of the Attorney General
Department of Public Safety - State Emergency Management Agency
Department of Conservation
Department of Insurance
Department of Revenue
Department of Transportation
This Fiscal Note is not an official copy and should not be quoted or cited.