COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4855H.01I Bill No.:HB 2090 Subject:State Employees; Office of Administration Type:Original Date:January 18, 2022Bill Summary:This proposal allows state employees to be paid biweekly.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue
Fund*
$0 or
($143,640)$0$0
Total Estimated Net
Effect on General
Revenue
$0 or
($143,640)
$0$0
*This amount reflects programming to include the change into the current SAM II accounting
system. ITSD notes that there is a current effort underway to replace the SAM II system, with
two week payrolls likely to be included in the new system. If the proposed changes can be
delayed until the replacement system is implemented, there would be no fiscal impact for this
fiscal note. Oversight notes this change from semimonthly installments to biweekly installments
is “as designated by the Commissioner of Administration.” Therefore, Oversight has ranged the
fiscal impact from $0 (such designation change is not implemented within the current SAM II
system) to the estimated ITSD costs to make the change immediately.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 4855H.01I
Bill No. HB 2090
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January 18, 2022
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0$0$0 L.R. No. 4855H.01I
Bill No. HB 2090
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January 18, 2022
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FISCAL ANALYSIS
ASSUMPTION
Section 33.100 – Bi-weekly Pay Periods
Officials from the Office of Administration state if the bill passed, it would be difficult to
implement currently in SAM II-HR due to programming of the payroll system. However,
implementing a bi-weekly pay schedule in the future ERP is more feasible. It is expected to be
in place in 2024-2025. If the bill was to pass with “bi-weekly” as an added possibility for
frequency for State employees to be paid there would not be a cost in terms of actual payroll.
The salaries would be calculated by dividing by 26 pay periods versus 24 pay periods.
Oversight notes in a similar proposal from last year (HB 407), officials from the Office of
Administration - Information Technology Services Division (ITSD) assumed the proposed
legislation would require state employees to be paid every 14 days. Currently, employees are
paid on the 15th of the month and the last day of the month, with adjustment for weekend and
holidays. The change would require modifications to SAM II. This effort would be a major
undertaking in the SAM II system requiring changes to many projects and systems. ITSD would
likely see impacts to data and reports along with other errors occur after implementation until all
the changes mature because of the complex program interaction and ability to test all possible
scenarios that could occur.
ITSD estimates a cost of $143,640 to the General Revenue Fund in FY 2022. The estimate
assumes work for project management coding and testing the changes. The business staff would
need to be heavily involved in the analysis and requirements gathering as well as the testing.
ITSD has not accounted for Business staff hours in this estimate.
Oversight notes ITSD assumes that every new IT project/system will be bid out because all their
resources are at full capacity. For this bill, ITSD assumes they will contract out project
management coding and testing the changes needed for SAM II. ITSD estimated the project
would take 1,512 hours at a contract rate of $95 for a total cost of $143,640. Oversight notes that
an average salary for a current IT Specialist within ITSD is approximately $54,641, which totals
roughly $85,000 per year when fringe benefits are added. Assuming that all ITSD resources are
at full capacity, Oversight assumes ITSD may (instead of contracting out the programming) hire
an additional IT Specialist to perform the work required from this bill; however, for fiscal note
purposes, Oversight will reflect the ITSD estimated cost of $143,640 in FY 2023. However, as
the bill states, the choice between biweekly, semimonthly, or monthly installments is “as
designated by the Commissioner of Administration.” Therefore, Oversight will range the cost
from $0 (OA Commissioner decides not to shift to biweekly pay installments, or a cost to include
upgrading the current SAM II system. L.R. No. 4855H.01I
Bill No. HB 2090
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ITSD
payrolls likely to be included in the new system. If the proposed changes can be delayed until
the replacement system is implemented, (estimated to be 3-5 years) there would be no fiscal
impact for this fiscal note.
Officials from the Department of Economic DevelopmentDepartment of Elementary
and Secondary Education, the Department of Higher Education and Workforce
Development, the Department of Natural Resources, the Department of Corrections, the
Department of Public Safety (Office of the Director Capitol Police, Alcohol & Tobacco
Control, Fire Safety, Gaming Commission, Missouri Highway Patrol, Missouri National
Guard, State Emergency Management Agency and Veterans Commission the Department
of Social Services, the Office of the Governor, the Missouri Lottery Commission, the
Missouri Consolidated Health Care Plan, the Department of Agriculture, the Missouri
Department of Conservation, the Missouri Ethics Commission, the Missouri House of
Representatives, the Office of Prosecution Services, the Office of the State Courts
Administrator, the Office of the State Auditor, the Missouri Senate, the Office of the
Secretary of State the Office of the State Public Defender, the Office of the State Treasurer
and theeach assume the proposal will have no fiscal impact on their
respective organizations for this proposal.
Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their organizations. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact on the fiscal note.
Officials from the Department of Commerce and Insurance, the Department of Health and
Senior Services and the Department of Mental Health defer to the Office of Administration
for the potential fiscal impact of this proposal.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note 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 $5,000. 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 its 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. L.R. No. 4855H.01I
Bill No. HB 2090
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUECost - OA – ITSD §33.100 p. 3
Coding and Testing Changes
$0 or
($143,640)$0$0
ESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUND
$0 or
($143,640)$0$0
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill requires that the pay period for all state employees shall not exceed 14 days unless
otherwise provided for under law.
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 Commerce and Insurance
Department of Economic Development
Department of Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Health and Senior Services
Department of Mental Health
Department of Natural Resources
Department of Corrections
Department of Public Safety L.R. No. 4855H.01I
Bill No. HB 2090
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January 18, 2022
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Department of Social Services
Office of the Governor
Joint Committee on Public Employee Retirement
Joint Committee on Administrative Rules
Missouri Lottery Commission
Legislative Research
Oversight Division
Missouri Department of Agriculture
Missouri Department of Conservation
Missouri Ethics Commission
Missouri House of Representatives
Office of the Lieutenant Governor
Missouri Office of Prosecution Services
Office of Administration
Office of the State Courts Administrator
Office of the State Auditor
Missouri Senate
Office of the Secretary of State
Office of the State Public Defender
Office of the State Treasurer
State Tax Commission
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 18, 2022January 18, 2022