COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         1804-01

Bill No.:          Truly Agreed To and Finally Passed SB 433

Subject:           Employees-Employers, Unemployment Compensation, Veterans.

Type:              Original

Date:               May 18, 2007

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

FISCAL SUMMARY

*Net of revenues and expenditures.

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ 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).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Administration, Office of the State Treasurer 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.

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:

War on Terror Veteran Administrative Penalty

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.

War on Terror Veteran Non-Valid Claims Applications

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

ASSUMPTION (continued)

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.

War on Terror Veteran Paid Claim

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.

FISCAL IMPACT - Small Business

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

FISCAL DESCRIPTION

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.

SOURCES OF INFORMATION

Office of the Secretary of State

Office of Administration

            Division of Budget and Planning

Department of Labor and Industrial Relations

Missouri Veterans Commission

Office of the State Treasurer

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                May 18, 2007