SB 0511 - Fiscal Note

Fiscal Note - SB 0511 - Requires permits for development within flood hazard areas

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2377-01

BILL NO. SB 511

SUBJECT: Agriculture: AGO, Construction

TYPE: Original

DATE: January 26, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General	($265,525)	($246,848)	($257,159)
Levee Tax	$0	$0	$0
Soil and Water Sales and Use Tax Fund	$0 to (Unknown)	$0 to (Unknown)	$0 to (Unknown)
Partial Estimated Net Effect on All State Funds*	($265,525 to Unknown)	($246,848 to Unknown)	($257,159 to Unknown)

*Estimates do not include potential costs of flood proofing existing state structures and obtaining additional flood insurance all of which are subject to appropriation by the General Assembly.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0 to Unknown	$0 to Unknown	$0 to Unknown

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 7 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Natural Resources (DNR) stated there are 30 state parks/historic sites located entirely or partially within a floodway. Flood proofing these structures may require reconstruction of most. The estimated costs is unknown, however, officials assume costs would exceed $785,000.

Officials stated that in areas where flood hazard zones have not been mapped, (which includes 5 state parks.), a hydrology study would be required. The costs are estimated at $325,000, ($65,000 x 5 parks), officials stated they would need to complete horizontal controls on each structure located within the 30 state parks and historic sites. The costs are estimated to be $360,000 ($12,000 x 30 parks). Total costs are $685,000 ($325,000 + $360,000) to provide benchmark data required to initiate the permitting process.

The department assumes the Division of Flood Plain Management would require only limited advice related to hydrological issues. If the Division of Flood Plain Management requests greater hydrological assistance, such as flood plain mapping, the department would request additional resources, consistent with the level of assistance needed. The department does not have existing funds or staff to perform the job requirements being requested in this proposed legislation.

The department would be responsible for reviewing permit applications for the DNR, where appropriate, and provide written responses to the Division of Flood Plain Management. The response may include our preliminary advice as to the potential affects on hydrology. The department assumes that less than 50 permits per year would require cursory review and less than 10 would require detailed review. If the actual workload is greater than these projections, additional resources would be necessary.

ASSUMPTION (continued)

The department assumes communities will be performing the required studies with the support of the Division of Flood Plain Management's staff and the DNR's technical assistance would be limited to comments/advice. If hydrologic design work or studies are required in addition to those associated with the department's state parks and state historic sites, additional FTE's would be required.

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, and flood-proofing structures. 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 State Emergency Management Agency states their current budget has 3 FTE's to handle flood plain management for the whole state of Missouri. Officials assume additional employees would be required in the years to follow in order to administer the permitting process, ensure compliance in the local jurisdictions and provide technical assistance and data. officials assume the following (6) FTE's would be required.

Engineer- Inspections of permits for levees and structures.

Hydrologist-Verifies information, provides data to communities.

GIS Data Analysis-Assimilation in the Geographic Information System Program.

Flood plain Management Officer-Working with the communities regarding ordinances, assisting communities that have problems from suspension, work with local officials regarding their floodplain management programs, liaison between the communities and FEMA.

Executive I-Executive assistant to Branch Chief

Clerk Typist III-Clerical duties

Oversight will allow 2 vehicles instead of 3 requested and has adjusted fringe benefits percentage to 28.03%.

Personnel costs in FY99-$126,470 plus fringe benefits of $35,449; FY2000-$157,833 plus fringe benefit costs of $44,241; and in FY2001-personnel costs total $164,145 with fringe benefits of $46,010:

There would be one-time equipment costs totaling $76,306 in FY99, and expenses total of $103,606 in FY99; $44,774 in FY2000; and $47,004 in FY2001.

ASSUMPTION (continued)

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.

Officials of the following departments or agencies assume this proposal would have no fiscal impact to their departments: office of Administration-Division of Design and Construction, Office of the Attorney General, and the University of Missouri, and the Department of Conservation.

Officials of the Missouri Department of Transportation assume that the requirement to obtain flood plain development permits from State Emergency Management System and local governments would delay projects. The fiscal impact of delays cannot be estimated.

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.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Costs to State Emergency Management
Agency
Personal Service (6 FTE)	($126,470)	($157,833)	($164,145)
Fringe Benefits	($35,449)	($44,241)	($46,010)
Equipment	($76,306)	$0	$0
Expense	($27,300)	($44,774)	($47,004)
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(continued)	(10 Mo.)
ESTIMATED NET PARTIAL
EFFECT ON GENERAL
REVENUE FUND	($265,525)*	($246,848)*	($257,159)*
*Estimates do not include the potential costs of flood proofing to existing state structures, obtaining additional flood insurance for state property.
LEVEE TAX FUND
Income to Levee Tax Fund
From General Revenue and Soil
and Water Sales Tax Fund	$0 to	$0 to	$0 to
	Unknown	Unknown	Unknown
Cost to Levee Tax Fund
20% reimbursement to Levee
Districts	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT
TO LEVEE TAX FUND	$0*	$0*	$0*
*Oversight assumes, in a given year, costs would not exceed income resulting in a zero or positive fund balance. Income to Levee Fund is subject to appropriation by the General Assembly.
SOIL AND WATER SALES AND
USE TAX FUND
Costs to Soil and Water Sales
and Use Tax Fund	$0 to	$0 to	$0 to
	(Unknown)	(Unknown)	(Unknown)
Costs to this fund cannot be determined, however, any costs would be subject to appropriation by the General Assembly.
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
LEVEE DISTRICTS
OR SYSTEMS
Income to Levee Districts
and/or Levee System
From State of Mo. Levee
Tax Fund for 20%
Reimbursement	$0 to	$0 to	$0 to
	Unknown	Unknown	Unknown
FISCAL IMPACT - Small Business

Small business located in the 100 year flood plain would have to build in compliance with the local flood plain management ordinance.

DESCRIPTION

This act regulates development within flood plains.

This bill is identical to the Senate Committee Substitute for Senate Bill 167 (1997).

The major provisions of the act:

1. Create a Division of Flood Plain Management within the State Emergency Management Agency (SEMA);

2. Require SEMA issued permits for developments within special flood hazard areas that do not have planning and zoning, or a permits from the jurisdiction affected if zoning ordinances exist;

3. Require SEMA to obtain comments from the Department of Natural Resources and Agriculture prior to issuing permits.

4. Mandate all state development, except transportation projects, to adhere to the standards of the National Flood Insurance Program (NFIP);

5. Eligibility for Federal Emergency Management Agency (FEMA) or Community Development Block Grant (CDBG) flood assistance will be restricted to communities participating in the NFIP and all relevant documentation for such funds are deemed public records that must be permanently maintained;

6. Designate any fraud or abuse in applications for flood assistance funds as a felony with investigative jurisdiction vested in the local prosecutor or the attorney general;

DESCRIPTION (continued)

7. Require appraisers, real estate brokers and salesmen to disclose the relevant status of any property in relation to special flood hazard areas;

8. Direct pipeline levee crossings to be done in a specified manner that does not impact the structural integrity of the levee;

9. Necessitate that insurance policies must indicate whether coverage extends to loss caused by floods;

10. Compel the Division to work with the Corps of Engineers to establish 20, 100 and 500 year flood level maps;

11. Allow levee districts to enter into agreements to not rebuild any levee above the 20 year level in order to participate in the 20% cost-share Levee Tax Fund program (supplemented by the Soil and Water Sales and Use Tax Fund); and

12. Classify any levee built above the 500 year level as an industrial levee.

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

Office of Administration-Division of Design and Construction

Department of Agriculture

Office of the Attorney General

Department of Transportation

Department of Natural Resources

Missouri Department of Conservation

State Emergency Management Agency

Jeanne Jarrett, CPA

Director

January 26, 1998