COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.: 2056-01

Bill No.: HB 593

Subject: Administration, Office of; State Departments; State Employees

Type: Original

Date: March 17, 2003

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 7 pages.

ASSUMPTIONS

Officials from the Gaming Commission, the Department of Labor and Industrial Relations, the Department of Economic Development, the State Tax Commission, the Missouri House of Representatives, the Department of Elementary and Secondary Education, the Office of the State Treasurer, the Department of Conservation, the Office of Administration, Division of Budget and Planning, the Office of State Public Defender, the Office of the State Auditor, the Department of Revenue, the Missouri Consolidated Health Care Plan, the Office of State Courts Administrator, the Department of Insurance, the Department of Mental Health, the Missouri Senate, the Department Of Higher Education, the Office of the Lieutenant Governor, and the Department Of Social Services, assume this proposal would have no impact on their organizations.

Officials from the Department of Public Safety; and the Division of Fire Safety, the Division of Highway Safety, the Division of Liquor Safety, and the State Emergency Management Agency, assume this proposal would have no impact on their organization.

ASSUMPTION (continued)

Officials from the Department of Economic Development, Public Service Commission, assume the proposal would have no direct fiscal impact on their organization; however, they assume the provisions which waive sovereign immunity could result in additional claims and suits against the state. Defending against the claims and suits would require additional resources, and claims substantiated would require payment by the state.

Officials from the Missouri Veterans Commission assume this proposal would have an unknown impact on their organization.

Office of Administration, Division of General Services, Risk Management Section, assume this proposal has potential cost if there would be a violation under workers' compensation or the FMLA laws. The proposed legislation would subject the State of Missouri, as an employer, through the waivers of sovereign immunity, to liability for the wrongful discharge or discrimination against an employee for exercising the employee's rights under workers' compensation. It also subjects the State of Missouri, through the waivers of sovereign immunity, to liability claims for violation of the Family Medical Leave Act. The proposed legislation appears to be in response to US Supreme Court rulings. We have no history of such claims prior to the US Supreme Court rulings and therefore cannot quantify a cost impact. The Office of the Attorney General would be the appropriate resource in regard to cost of litigation resulting from the proposed legislation.

Officials from the Department of Transportation (DOT) assume this proposal could increase the number of lawsuits filed but is unable to determine the direct fiscal impact to their organization. DOT officials assume the proposal would have an impact ranging from zero to negative unknown.

Officials from the Office of the Attorney General assume that any potential costs arising from the proposal could be absorbed with existing resources.

Oversight assumes the proposal could result in potential liability to the state from the provisions included in the proposal, regarding collective bargaining, the state Workers Compensation Law, and the federal Family and Medical Leave Act. In addition, Oversight assumes that any training for managers could be absorbed with existing resources and that any potential losses or costs to defend potential claims would be incurred several years after enactment of the proposal.

ASSUMPTION (continued)

Officials from the Department of Agriculture, the Department of Natural Resources, the Department of Corrections, the Department of Health and Senior Services, and the Missouri Lottery did not respond to our request for information on this proposal.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would establish the State Employees' Protection Act.

• Receipt of benefits from or participation in a collective bargaining organization would not constitute an authorization for a payroll deduction unless the employee personally executes a written authorization for such deduction.



• No state department, official, division, or agency could enter into any agreement that requires a state employee to make a contribution, deduction, payment of fair representation fee, or any other payment to a collective bargaining organization.



• No deduction could be made from a state employee's compensation warrant unless ordered by a court of competent jurisdiction, or unless specifically authorized in writing by such employee, or unless withheld pursuant to federal, state, or local statute, regulation, or ordinance relating to taxes, Social Security, railroad retirement, Medicare, or Medicaid.



• No employer or agent, including the state or any agency, department, or division thereof, could discharge or in any way discriminate against any employee for exercising any of the employee's rights under the state Workers' Compensation Law. Any employee discharged or discriminated against would have a civil action for damages against his or her employer. For purposes of this section, the state would waive its sovereign immunity and submit to suit for claims up to the limits established in section 537.610, RSMo.



• The state of Missouri, in its capacity as an employer, would be subject to the provisions the federal Family and Medical Leave Act, 29 U.S.C. Section 2601, et seq., and would be liable for any violation of such act. The state of Missouri would waive its sovereign immunity for purposes of enforcement of such act; except that no judgment entered against the state of Missouri could exceed the liability limits established in section 537.610, RSMo.

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

Department of Economic Development

Public Service Commission

Gaming Commission

Department of Labor and Industrial Relations

Office of Administration

Division of Budget and Planning

Division of General Services

Risk Management Section

State Tax Commission

Missouri Veterans Commission

Missouri House of Representatives

Office of the Attorney General

Office of the State Auditor

Department of Public Safety

Division of Fire Safety

State Emergency Management Agency

Division of Highway Safety

Division of Liquor Control

Department of Elementary and Secondary Education

Office of the State Treasurer

Department of Conservation

Office of the State Public Defender

Department of Revenue

Missouri Consolidated Health Care Plan

Department Of Social Services

Office of State Courts Administrator

Department of Insurance

Department of Mental Health

Missouri Senate

Department Of Higher Education

Department of Transportation

Office of the Lieutenant Governor

NOT RESPONDING

Department of Agriculture

Department of Natural Resources

Department of Corrections

Department of Health and Senior Services

Missouri Lottery

Mickey Wilson, CPA

Director

March 17, 2003