COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3782-01
Bill No.: SB 954
Subject: Employees - Employers; Employment Security
Type: Original
Date: January 31, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None* | |||
| Total Estimated
Net Effect on All Federal Funds |
$0* | $0* | $0* |
* Does not reflect potential loss of federal administrative grants due to a possible noncompliance with federal law.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Labor and Industrial Relations (DOL) state the proposal may not conform to Federal law. DOL state that the United States Department of Labor has informally responded to the proposed legislation and indicates a potential conformity issue exists. If Missouri's law is determined to be out of conformity with Federal standards, the consequence could be a loss of certification for Federal Unemployment Tax Act (FUTA) credits. DOL estimates that a loss of certification could cause (1) contributing Missouri employers to lose as much as $992 million annually in FUTA credits and (2) the Division of Employment Security to lose approximately $40 million annually in administrative funds.
Oversight assumes that any loss of federal funds would depend upon determination of a nonconformity/noncompliance by the U. S. Department of Labor and the imposition of sanctions by the U. S. Department of Labor. The likelihood of such sanctions would be speculative. For fiscal note purposes, no impact to federal funds is reflected.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0* | $0* | $0* | |
| * DOES NOT REFLECT POTENTIAL LOSS OF FEDERAL ADMINISTRATIVE GRANTS DUE TO A POSSIBLE NONCOMPLIANCE WITH FEDERAL LAW. | |||
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 | |
FISCAL IMPACT - Small Business
No direct fiscal impact to small business would be expected as a result of this proposal, depending upon conformity with federal law and any sanctions imposed by the U. S. Department of Labor. However, this proposal could cause an additional tax on businesses to cover Federal Unemployment Tax Act moneys that would no longer come to the state.
DESCRIPTION
This proposal expands the definition of "totally unemployed" in the context of employment security to include workers who have been suspended from employment, greater than 30 days, pending a final determination regarding alleged misconduct or employment status.
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 Labor and Industrial Relations
Mickey Wilson, CPA
Acting Director
February 1, 2002