COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3481-01

Bill No.:          HB 1424

Subject:           Employees - Employers; Employment Security

Type:              Original

Date:               January 29, 2008

Bill Summary:            This proposal reinstates federal standards for overtime wages.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 7 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 at the Office of Administration (OA) assume this proposal affects all state agencies since it changes overtime provisions of state law. However, the main impact of the proposed legislation is upon the Department of Corrections, the Adjutant General of the Department of Public Safety, and the Missouri State Highway Patrol. Those state agencies employ flexible schedules for overtime calculations under federal law.

            The Department of Corrections would have 133 employees affected at an average salary             of $27,628 per annum.

            The Adjutant General has 24 employees affected at an average salary of $35,735.

The OA estimate of General Revenue Fund costs which could be avoided fi the proposal was implemented totaled $240,379 for FY09, $247,590 for FY10 and $255,017 for FY11. Costs avoided for Federal Funds were estimated at $182,374 for FY09, $187,845 for FY 10, and $193,481 for FY11. The OA estimate represents the overtime costs if the same number of hours were worked on a forty-hour work week basis as opposed to the current 28-day schedules. Benefits are calculated at 27.05%, instead of 44.22% as the cost estimates affect existing employees and does not require the addition of more employees.

Officials at the Missouri Highway Patrol assume that there is no fiscal impact from this proposal.

Officials at the City of Webb City assume a significant savings in overtime pay.

Officials at the City of West Plains assume a positive impact of $50,000 per year for the city from passage of this proposal.

Officials at the City of Kansas City assume this could have a positive fiscal impact on the City.

Officials at the City of North Kansas City assume this proposal would save between $500,000 and $700,000 a year in overtime costs for fire and police.

Officials at the City of Harrisonville assume this proposal saves $214,000 a year.

ASSUMPTION (continued)

Officials at the Department of Revenue, Department of Social Services, Department of Public Safety, Alcohol and Tobacco Control, Division of Fire Safety, Joint Committee on Public Employee Retirement, Truman State University, City of Centralia, Missouri State University, Missouri Veterans Commission, East Central College, Metropolitan Community College, Missouri Consolidated Health Care Plan, Department of Conservation, Office of the Lt. Governor, Office of the State Courts Administrator, Department of Higher Education, State Tax Commission, Office of the State Auditor, Office of the State Treasurer, Department of Elementary and Secondary Education, University of Central Missouri, Department of Economic Development, Department of Health and Senior Services, Department of Insurance, Financial Institutions and Professional Registration, St. Louis County Government, Linn State Technical College, Office of the Attorney General, Missouri Highway Patrol, Department of Labor and Industrial Relations, Department of Mental Health, Budget and Planning, Missouri Department of Transportation, Department of Natural Resources, State Emergency Management Agency, University of Missouri, Administrative Hearing Commission and the Office of the State Public Defender assume that there is no fiscal impact from this proposal.

Officials from the Office of the Secretary of State (SOS) state 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, the SOS also recognizes 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 the office can sustain with the core budget. Therefore, the SOS reserves 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.

Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process.

FISCAL IMPACT - Small Business

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

FISCAL DESCRIPTION

This bill re-enacts the federal overtime standards in effect prior to the passage of Proposition B (2006) regarding the minimum wage increase, including the exemptions for firefighters, commissioned employees, and flex-time pay rate employees. The bill contains an emergency clause.

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 Revenue

Department of Social Services

Office of the Adjutant General/MO National Guard

City of Webb City

Office of Administration

Department of Public Safety

            Division of Fire Safety

            Alcohol & Tobacco Control

            State Emergency Management Agency

City of West Plains

Joint Committee on Public Employee Retirement

City of Kansas City

City of North Kansas City

Truman State University

City of Centralia

Missouri State University

Missouri Veterans Commission

East Central College

Metropolitan Community College

City of Harrisonville

Missouri Consolidated Health Care Plan

Department of Conservation

Office of the Lt. Governor

Office of the State Courts Administrator

Department of Higher Education

State Tax Commission

Office of the State Auditor

Office of the State Treasurer

SOURCES OF INFORMATION (continued)

Department of Elementary and Secondary Education

University of Central Missouri

Department of Economic Development

Department of Health and Senior Services

Department of Insurance, Financial Institutions and Professional Registration

St. Louis County Government

Linn State Technical College

Office of the State Public Defender

Office of the Attorney General

Missouri Highway Patrol

Department of Labor and Industrial Relations

Department of Mental Health

University of Missouri

Office of the Secretary of State

Budget and Planning

Missouri Department of Transportation

Department of Natural Resources

University of Missouri

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                January 29, 2008