This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0799 - State Employees May Engage in Certain Political Activities
L.R. NO.  3020-01
BILL NO.  SB 799
SUBJECT:  Political Activities
TYPE:     Original
DATE:     February 13, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

General Revenue             (Unknown)       (Unknown)      (Unknown)

Total Estimated
Net Effect on All
State Funds                 (Unknown)       (Unknown)      (Unknown)

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None

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

                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Local Government                   $0              $0             $0


                              FISCAL ANALYSIS

ASSUMPTION

The following agencies do not expect to be fiscally impacted:  State Auditor
(SAU), Department of Social Services (DOS), Department of Agriculture (DOA),
State Treasurer (STO), Secretary of State (SOS), Department of Insurance
(INS), Department of Highway & Transportation (DHT), Department of
Conservation (MDC), Department of Health (DOH), Department of Mental Health
(DMH), Office of the Governor (GOV), Department of Revenue (DOR), Department
of Corrections (DOC), Department of Economic Development (DED), Tax
Commission (TAX), Highway & Transportation Employees' and Highway Patrol
Retirement System (HRS), House of Representatives (MHR), Attorney General
(AGO), Lottery Commission (LOT), Department of Labor & Industrial Relations
(DOL), Coordinating Board for Higher Education (CBH), and Senate (SEN).

The Department of Elementary & Secondary Education (DES) assumes that
allowing employees to contribute to political campaigns through payroll
deductions could impact its human services section.  It was assumed that any
costs could be managed through current resources.

The Office of Administration (OA), Division of Personnel does not expect to
be fiscally impacted as this proposal would parallel the political activity
provisions of the Hatch Act Reform Amendments of 1993 as they pertain to
state and local employees whose programs are financed in whole or in part by
federal loans and grants.  However, the Division of Accounting believes that
a statutory requirement that calls for establishment of an infinite number of
Voluntary Deduction Codes for Individual Political candidates and/or
campaigns without limitations would be cost prohibitive.  For purposes of
this fiscal note, Oversight has shown an unknown costs related to the
establishment of the new codes.

The Office of State Courts Administrator (CTS) does not expect removing some
of the restrictions on merit system employees' participation in political
activities to appreciably impact the budget of the judiciary.  Oversight
assumes the fiscal impact would be zero.

The Department of Natural Resources (DNR) believes that all instances of
alleged violations would have to be litigated to determine compliance with
the proposal.  DNR assumes that this could result in significant legal
expenses.  The related costs cannot be determined.  Oversight assumes based
on the response from the Office of Administration (OA), Division of Personnel
that DNR would not be significantly impacted by this proposal.  According to
OA, this proposal would parallel the political activity provisions of the
Hatch Act Reform Amendments of 1993 as they pertain to state and local
employees whose programs are financed in whole or in part by federal loans
and grants.


FISCAL IMPACT - State Government     FY 1997     FY 1998     FY 1999
                                    (10 Mo.)

GENERAL REVENUE

Costs-Office of Administration (OA)
Division of Accounting
Establishment of New Codes         (Unknown)   (Unknown)   (Unknown)

ESTIMATED NET EFFECT ON
GENERAL REVENUE                    (Unknown)   (Unknown)   (Unknown)

FISCAL IMPACT  - Local Government    FY 1997     FY 1998     FY 1999
                                    (10 Mo.)

                                          $0          $0          $0

DESCRIPTION

The proposal would eliminate the current prohibition against political
activity and allow an employee to take part in the activities of political
parties and political campaigns.  An employee would also be allowed to
request that contributions be deducted from the employee's compensation and
paid to an organization designated by the employee.

An employee would not be allowed to use his official authority or influence
to interfere with or affect an election; knowingly solicit, accept or receive
a political contribution from a subordinate employee, except on a voluntary
basis; run for the nomination or as a candidate for a partisan office; and
knowingly solicit or discourage participation in a political activity by any
person who has an some type of application, certificate, audit, investigation
or enforcement action pending.  An employee would retain the right to vote
has he chooses and to express his opinion on political subjects and
candidates.

The proposal would outline when an employee could not engage in political
activity.  It would be unlawful to intimidate, threaten, command or coerce
any employee to engage in or not engage in political activity.  A violation
of this provision would be a class three election offense punishable by a
term of imprisonment for not more than one year and a fine of not more than
$2,500, or both.

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

Attorney General
Coordinating Board for Higher Education
Office of State Courts Administrator
Department of Economic Development
Department of Elementary & Secondary Education
Department of Highway & Transportation
Department of Mental Health
Department of Natural Resources
Department of Agriculture
Department of Corrections
Department of Health
Department of Labor & Industrial Relations
Department of Revenue
Department of Social Services
Department of Public Safety
Office of the Governor
House of Representatives
State Highway Employees & Patrol Retirement System
Department of Insurance
Lottery Commission
Department of Conservation
Office of Administration
State Auditor
Secretary of State
Senate
Tax Commission
State Treasurer

NOT RESPONDING: Department of Public Safety