Bill Summary: Would change laws relating to unemployment compensation for veterans.

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on General Revenue Fund	$0	$0	$0

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
War on Terror Unemployment Compensation Fund *	$557	($413)	($547)

Total Estimated Net Effect on Other State Funds *	$557	($413)	($547)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010


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

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on FTE	0	0	0

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
Local Government	$0	$0	$0

Officials from the Office of Administration, Administrative Hearing Commission, the Department of Economic Development, and the Missouri Veterans Commission assumed this proposal would have no fiscal impact on their organizations.

Officials from the Office of the Secretary of State (SOS) provided the following response. Many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact for this fiscal note to the SOS for Administrative Rules is less than $2,500. The SOS recognizes that this is a small amount and does not expect that additional funding would be required to meet these costs. However, we also recognize that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what our office can sustain with our core budget. Therefore, we reserve the right to request funding for the cost of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the governor.

Although officials from the Office of the State Treasurer (STO) did not respond to our request for information, STO has assumed that similar proposals would have no fiscal impact on their organization.

Officials from the Department of Labor and Industrial Relations (DOLIR) assume the proposed legislation would correct several areas that contain conformity issues with federal Unemployment Compensation law.

The Division of Employment Security (DES) assumes it would apply one (1) administrative "war on terror veteran" penalty, process ten (10) "war on terror veteran" claim applications, and pay one (1) "war on terror veteran" claim each year. The cost associated with each action is explained below:

The DES assumes the administrative penalty process would require ten (10) hours of attorney time at an average cost per hour of $44.50 for a total of $445.00. In addition, the process would require an estimated eight (8) hours of claims technician time at an average cost per hour of $20.17 per hour, for a total of $161.36. The total estimated cost of the process is $606.36.

The DES estimates it will receive ten (10) "war on terror veteran" non-valid claims applications per year. The DES estimates each claim application will require one (1) hour of claims technician time at an average cost of $20.17. This calculation result is $201.70. In addition, the DES assumes each claim application will require eight (8) hours of attorney time at an average cost per hour of $44.50. This calculation result is $3,560.00. The total cost associated with the claims application process is $3,761.70.

The maximum weekly amount of a "war on terror veteran" paid claim is $1,153.64, payable for 26 weeks. The maximum claim amount equals $29,994.64. The DES estimates it will take two (2) hours of claims technician time to process each claim at an average cost of $20.17 per hour. This calculation result is $40.34. The total cost associated with a paid claim is $30,034.98.

Adding the total cost of the three processes equates to an overall yearly cost of $34,403.04.

This proposal could have a fiscal impact to a small businesses which has a deployed military employee.

This proposal would change laws relating to unemployment compensation for veterans.

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

FISCAL IMPACT - State Government	FY 2008 (10 Mo.)	FY 2009	FY 2010
WAR ON TERROR UNEMPLOYMENT COMPENSATION FUND

Revenues - DES
Administrative penalty	$35,000	$35,000	$35,000

Cost - DES
Personal Service	($2,883)	($3,546)	($3,634)
Fringe Benefits	($1,305)	($1,605)	($1,645)
Expense and Equipment	($220)	($227)	($233)
Claims paid	($30,035)	($30,035)	($30,035)
	($34,443)	($35,413)	($35,547)

ESTIMATED NET EFFECT ON WAR ON TERROR UNEMPLOYMENT COMPENSATION FUND	$557	($413)	($547)