COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1694S.02I Bill No.:SB 428 Subject:Civil Rights; Religion; Political Subdivisions Type:Original Date:April 12, 2023Bill Summary:The proposal modifies the Missouri Human Rights Act.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue
Fund* ($64,085)($76,415)($77,631)
Total Estimated Net
Effect on General
Revenue($64,085)($76,415)($77,631)
*Oversight notes the above expense represents DOLIR’s 1 FTE (Human Rights Officer at
$43,400 annually plus fringe benefits) to assure implementation and compliance.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1694S.02I
Bill No. SB 428
Page 2 of
April 12, 2023
BB:LR:OD
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026General Revenue
Fund 1 FTE1 FTE1 FTE
Total Estimated Net
Effect on FTE1 FTE1 FTE1 FTE
☐ 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 2024FY 2025FY 2026Local Government$0$0$0 L.R. No. 1694S.02I
Bill No. SB 428
Page 3 of
April 12, 2023
BB:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Labor and Industrial Relations (DOLIR) assume that
MCHR would not have jurisdiction for several reasons, such as the MCHR doesn’t have
jurisdiction over religiously owned and operated organizations, it doesn’t have jurisdiction if a
charge is filed after the 180 day time limit (from the last adverse action), it doesn’t have
jurisdiction if there are not more than 6 employees; it doesn’t have jurisdiction if the employer or
property in questions is not located in Missouri and it does not have jurisdiction over the federal
government.
In 2013, the Missouri Supreme Court held in Farrow v. St. Francis Medical Center that non-
profit corporations could not be owned by their shareholders. Because Mercy Hospital Carthage
is a non-profit corporation, it cannot be owned by a religious organization. However, on August
28, 2017, the statutory definition of “Employer” was amended to exempt those corporations
“owned or operated” by religious organizations.
DOLIR would look at articles of incorporation and bylaws or how the employer or property in
question was subject to the supervision and control of the religious organization as to not only
programs, but also to designation of officers, directors and other functionaries. Furthermore,
Missouri corporate law establishes that their boards manage nonprofit corporations. Those
boards must adopt bylaws regulating and managing the affairs of the corporation.
Therefore, the cases would now need more extensive investigations, as such, a Human Rights
Officer (HRO) on average, handles 96 investigations per year. DOLIR anticipate the need for an
additional FTE as a result of this possible legislative change.
Oversight notes the DOLIR assumes the need for additional FTE to assure implementation and
compliance with the proposal. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a DOLIR’s 1 FTE impact in the fiscal note.
Officials from the Attorney General’s Office and the Office of Administration both assume
the proposal will have no fiscal impact on their respective organizations. Oversight does not
have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal
note for these agencies.
Officials from the City of Kansas City and the City of Springfield both assume the proposal
will have no fiscal impact on their respective organizations. Oversight does not have any
information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for
these cities. L.R. No. 1694S.02I
Bill No. SB 428
Page 4 of
April 12, 2023
BB:LR:OD
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUECosts – Section 213.010 (8) (g) Personnel Service($36,167)($44,268)($45,153) Fringe Benefits($26,518)($32,147)($32,478) Expense & Equipment($1,400)$0$0Total Costs – DOLIR (p. 3)($64,085)($76,415)($77,631)FTE Change1 FTE1 FTE1 FTEESTIMATED NET EFFECT ON
GENERAL REVENUE($64,085)($76,415)($77,631)
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026$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
Under current law, the Missouri Human Rights Act does not apply to corporations and
associations owned or operated by religious or sectarian organizations. This act expands that
exemption to corporations or associations that are tax-exempt under federal law and are either
owned or operated by one or more religious or sectarian organizations, or organized and operated
for religious purposes.
The act additionally modifies provisions relating to local enforcement of unlawful discriminatory
practices. Under this act, any local ordinances enacted relating to the enforcement of the
Missouri Human Rights Act or any local ordinances relating to unlawful discriminatory practices
must conform to and incorporate state law. Additionally, a local ordinance regulating unlawful
discriminatory practices may only regulate acts that constitute an unlawful discriminatory
practice under state law. The act prohibits political subdivisions from enacting ordinances that
purport to regulate an act that is not an unlawful discriminatory practice under state law.
Furthermore, no local ordinance regulating unlawful discriminatory practices shall be deemed to
create a private cause of action. L.R. No. 1694S.02I
Bill No. SB 428
Page 5 of
April 12, 2023
BB:LR:OD
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
Office of Administration
Attorney General’s Office
City of Kansas City
City of Springfield
Julie MorffRoss StropeDirectorAssistant DirectorApril 12, 2023April 12, 2023