COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 4657-01

BILL NO.: SB 1075

SUBJECT: Employment Security

TYPE: Original

DATE: March 10, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials of the Office of Administration - Division of Personnel assume the denial of unemployment benefits should not result in fiscal impact. They note they do not have the data to evaluate the potential increase or decrease in state funds.



Officials of the Department of Labor and Industrial Relations - Division of Employment Security (DES) assume that the proposal is intended to apply to a claimant who was separated from the same employer with whom the offense occurred which led to the claimant's name being added to a disqualification list. Otherwise, this would predicate the claimant's eligibility for benefits solely on their name being on the "employee disqualification list" maintained by an agency for an act of misconduct, which may have occurred years ago with another employer. This would not appear to be an approved condition under the Federal withdrawal standards for unemployment compensation, since this is not a factor related to the individual's unemployment. The result could be the loss of FUTA credits for Missouri employers and the loss of Federal grants for the Division's administrative fund.



However, currently if an individual is found by the deputy to be discharged or suspended for misconduct connected with the work, the individual is denied with the appropriate separation penalty. The proposal continues to allow the deputy to find misconduct for actions causing their name to be on the list. If DES's assumption is correct, and if the individual was separated from the same employer with whom the offense occurred, then it would appear no change or impact to the current unemployment compensation program would occur. If the assumption is not correct, then the impact would be unknown but possibly substantial.





FISCAL IMPACT - State Government
FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Local Government
FY 2001

(10 Mo.)

FY 2002 FY 2003
$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 denies unemployment benefits to a person who is listed on an employee disqualification list by an administrative agency.



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 Administration - Division of Personnel

Department of Labor and Industrial Relations - Division of Employment Security









Jeanne Jarrett, CPA

Director

March 10, 2000