COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0654-01

Bill No.: SB 189

Subject: Employees - Employers; Employment Security; Labor and Industrial Relations Dept.; Labor and Management

Type: Original

Date: January 8, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0





ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.





ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0








FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Labor and Industrial Relations (DOL) state this proposal is federally mandated as a result of Section 166 of the Community Renewal Tax Relief Act of 2000 as enacted by the Consolidated Appropriations Act, 2001(CAA), PL 106-554 and requires states to make certain provisions for businesses solely owned by federally recognized Indian Tribes.



DOL notes the costs for reprinting forms and pamphlets due to changes created by the proposal would be absorbed. DOL notes current law does not conform to federal statutes and failure to pass the proposal could cost Missouri employers as much as $997 million annually due to the loss of Federal Unemployment Tax Act credits and the Division of Employment Security an estimated $40 million in federal funds.



Officials from the Office of the Attorney General assume costs of any actions to enforce the provisions of this proposal can be absorbed with existing resources.



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0





FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0





FISCAL IMPACT - Small Business



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





DESCRIPTION



This proposal treats Indian tribes like any other employer for the purposes of unemployment reimbursement, requiring them to either pay contributions or make payments in lieu of contributions to the Unemployment Compensation Trust Fund.



This proposal is federally mandated.



This proposal would not duplicate any other program and would not require additional capital improvements or rental space.





SOURCES OF INFORMATION



Department of Labor and Industrial Relations

Office of the Attorney General

Mickey Wilson, CPA

Director



January 8, 2003