SB 0232 - Fiscal Note

Fiscal Note - SB 0232 - Requires the addition of fire sprinklers in certain buildings

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0848-01

BILL NO.: SB 232

SUBJECT: Fire Protection; Construction and Building Codes

TYPE: Original

DATE: January 29, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	$7,500	$0	$0
Total Estimated Net Effect on All State Funds	$7,500	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	($7,500)	$0	($1,531,250)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Office of Prosecution Services, State Courts Administrator, State Public Defender, Department of Revenue and Office of Administration - Design and Construction (COA) assume this proposal would have no fiscal impact to their agencies.

COA officials stated that they looked at state-owned buildings that would qualify for the sprinkler system requirement and they found that all that they contacted that would qualify already have a sprinkler system in place.

Officials of the Office of the Attorney General assume costs could be absorbed within existing resources.

Officials of the Department of Public Safety - Division of Fire Safety (DFS) assume owners of high rise buildings which are not, as of September 1, 1999, protected by an approved fire protection sprinkler system would be required by this proposal to submit a written master plan to the State Fire Marshal by January 1, 2000 outlining their schedule for compliance. The State Fire Marshal's office would be responsible for promulgating rules. This proposal would allow fees to be collected by the State Fire Marshal's office for reviewing plans.

DFS officials stated that they were still in the process of gathering information from St. Louis, Kansas City and Springfield to determine how many high rise buildings there are in the state that would be affected by this proposal, but officials from those areas indicated that DFS's assumption was probably reflective of the number of buildings that would be affected. DFS officials determined a charge of $150 for reviewing and approving plans. Assuming approximately 50 buildings in the state would be affected, DFS officials assume $7,500 in fees would paid in FY2000. DFS officials assume that their office could review the plans with existing staff and would not request additional FTE at this time.

DFS officials estimate that there would be 50 buildings in the sate that would be required to install sprinkler systems by January 1, 2005. The majority of these buildings would be in the St. Louis and Kansas City areas. DFS staff estimated that 25% of the buildings would be in compliance in FY2002 and the remaining would be thereafter, after the fiscal note period.

DFS staff estimate 50 buildings above 75 feet from street level (approximately 7 stories). Each story is approximately 10,000 square feet. DFS officials stated it would cost an average of $1.75 square foot to install a sprinkler system in an existing building according to the National Sprinkler's Association.

ASSUMPTION (continued)

7 story building @ 10,000 sq. ft. per story = 70,000 sq. ft. per building

70,000 x $1.75 per sq. ft. for installation = $122,500 cost per building

$122,500 x 50 buildings = $6,125,000

In addition, there would be a local cost to submit plans to the State Fire Marshal. There would be a charge of $150 per plan review. Total impact to all political subdivisions = $7,500. Plans would be required to be submitted to the State Fire Marshal by January 1, 2000.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
Income - Department of Public Safety
Division of Fire Safety (DFS)
Fees	$7,500
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
Cost - Political Subdivisions
Plan reviews	($7,500)
Capital Improvements/sprinkler systems	0		0 ($1,531,250)
Long-Range Fiscal Impact
Political subdivisions not in compliance within the fiscal note period would have to be in compliance by 2005. DFS officials estimated there would be fiscal impact of $4,593,750 outside the fiscal note period for affected buildings to be retrofitted with an approved sprinkler system.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would require the addition of fire sprinklers in certain buildings. It would require all high rise buildings built before 1990, and used for human occupation above 75 feet (the height of most fire truck ladders) to be retrofitted with an approved sprinkler system by 2005.

The State Fire Marshal would have the authority to make rules regarding the sprinkler systems. The rules would be based on the national standard for sprinkler systems.

Owners of high rise buildings which do not have a sprinkler system by 1999 would be required to submit a written plan to the State Fire Marshal giving a schedule of how they intend to install the sprinkler system.

Violations of this act would be deemed a class B misdemeanor. Penalties would be a fine of up to $500, imprisonment up to 6 months, or both.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would affect Total State Revenues.

SOURCES OF INFORMATION

State Courts Administrator

Department of Public Safety - Division of Fire Safety

Office of Prosecution Services

Office of the Attorney General

Office of Administration - Design and Construction

State Public Defender

Department of Revenue

Jeanne Jarrett, CPA

Director

January 29, 1999