COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5303H.01I Bill No.:HB 2489 Subject:Department of Labor and Industrial Relations; Immigration; Employees -
Employers; Contracts and Contractors; Business and Commerce; Licenses -
Miscellaneous; Department of Revenue, Taxation and Revenue - General
Type:Original Date:January 29, 2024Bill Summary:This proposal modifies provisions relating to employment and creates new
requirements relating to the verification of the immigration status of certain
persons.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
General Revenue
Fund*
Up to
($2,252,707)
Up to
($2,828,035)
Up to
($2,943,469)
Up to
($3,187,880)
Total Estimated
Net Effect on
General
Revenue
Up to
($2,252,707)
Up to
($2,828,035)
Up to
($2,943,469)
Up to
($3,187,880)
*Oversight notes the above expenditures reflect DOC’s increased incarceration costs, 3 FTE for
DOLIR (Regulatory Auditors w/ Team member), and up to 20 FTE for AGO (up to 15 AAG and
5 support staff).
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Total Estimated
Net Effect on
Other State
Funds $0$0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 5303H.01I
Bill No. HB 2489
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Total Estimated
Net Effect on
All Federal
Funds $0$0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
General Revenue
- AGO20 FTE20 FTE20 FTE20 FTE
General Revenue
- DOLIR
3 FTE3 FTE3 FTE3 FTE
General Revenue
– DOC 0 FTE0 FTE0 FTE1 FTE
Total Estimated
Net Effect on
FTE 23 FTE23 FTE23 FTE24 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
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Local
Government$0$0$0$0 L.R. No. 5303H.01I
Bill No. HB 2489
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January 29, 2024
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FISCAL ANALYSIS
ASSUMPTION
In response to the similar proposal, HB 1515 – 2024, officials from the Department of Labor
and Industrial Relations (DOLIR) noted:
Per Section 285.530 all businesses must use E-Verify. If the businesses being deemed to be out
of compliance, they will need to provide an affidavit to the department, necessitating a database
for the department to maintain. The department will turn over to the AGO those out of
compliance. 285.545 requires the department to develop and maintain a registry of those
qualified aliens that are eligible to work in Missouri. That section also requires investigations by
the department in response to written complaints. Section 2 within that section also requires the
department to enforce against an employer regarding unpaid wages. DOLIR estimates that
section 285.530 will require an additional AOSA and section 285.545 will require at least two
additional Regulatory Auditors (investigators). Section 290.045 (there is currently a 290.045, this
does not replace it) adds 16 and 17 year olds, requiring them to get work certificates, creating the
need for more investigations and office support.
Additionally, DOLIR noted:
Per Department of Labor Standards (DLS), time spent on E-Verify and submitting names of
"Qualified Aliens" to DOLIR. This legislation adds 16 and 17 year olds to the Youth
Employment laws (hours of work, etc.) limiting employers options.
Per Department of Employment Security (DES), there are over 171,000 small businesses covered
by Missouri's unemployment insurance system. Changes to Missouri's unemployment insurance
laws have the potential to increase or decrease the amount of unemployment taxes small
businesses pay depending on the state's average unemployment rate.
Oversight notes officials from DOLIR assumed the need for 2 Regulatory Auditors (at 45,000/
each annually) and 1 Admin Support Assistant (36,847 annually) for the provisions related to
Section(s) 285.530 and 285.545 and 1 additional Regulatory Auditor is for the Section 290.045.
DOLIR – ITSD
DOLIR noted per Department of Labor Standards, a database of all "Qualified Aliens" must be
developed and maintained by DOLIR. The ITSD can create a new application based off a model
of the similar applications DOLIR-Web team has completed in the past. The EFS system that
would be needed for the Section 285.545 can be modeled off a combination of other applications
reducing the development time needed.
Oversight notes the DOLIR-ITSD will require modification to its database in order to comply
with the rules under the proposal. Therefore, Oversight will note DOLIR’s estimate of $24,456 L.R. No. 5303H.01I
Bill No. HB 2489
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January 29, 2024
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(254.88 Hrs. x $95 per Hour) in FY 2025, $5,062 in FY 2026, and $5,189 in FY 2027 cost, for
implementation of changes in first year and an ongoing maintenance thereafter, to the general
revenue fund.
In response to the similar proposal, HB 1515, officials from the Department of Corrections
(DOC) noted:
This proposal modifies provisions relating to employment and creates new requirements relating
to the verification of the immigration status of certain persons.
Section 285.535.8 is modified to include penalty provisions for knowingly employing an
unauthorized alien to perform work within the state of Missouri. A second violation of 285.530
is a class D felony.
Section 285.535.9 is modified to include penalty provisions for knowingly employing an
unauthorized alien to perform work within the state of Missouri when awarded a state contract or
grant or receiving a state-administered tax credit, tax abatement, or loan from the state. A second
violation of 285.530 is a class D felony.
The bill creates section 285.545, to be known as the “Immigrant Employment Registration and
Taxation Protection Act.” In that section, it creates a class D felony offense for “any qualified
immigrant worker or an individual seeking employment who fails to provide the employer-
requested documentation that is required to verify work authorization status with the
employer…within thirty days of the date of the request.”
The intent of the bill is to create three new class D felony offenses. For each new nonviolent
class D felony, the department estimates three people could be sentenced to prison and five to
probation. The average sentence for a nonviolent class D felony offense is 5 years, of which 2.8
years could be served in prison with 1.7 years to first release. The remaining 2.2 years could be
on parole. Probation sentences could be 3 years.
The cumulative impact on the department is estimated to be 24 additional offenders in prison and
66 additional offenders on field supervision by FY 2029. L.R. No. 5303H.01I
Bill No. HB 2489
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January 29, 2024
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# to
prison
Cost per
year
Total Costs for
prison
Change in
probation
& parole
officers
Total cost
for
probation
and
parole
# to
probation
& parole
Grand Total -
Prison and
Probation
(includes 2%
inflation)
Year 19($9,689)($72,668)0 $0 15 ($72,668)Year 218($9,689)($177,890)0 $0 30 ($177,890)Year 324($9,689)($241,930)0 $0 48 ($241,930)Year 424($9,689)($246,769)1 ($92,771)57 ($339,540)Year 524($9,689)($251,704)1 ($81,159)66 ($332,863)Year 624($9,689)($256,739)1 ($81,970)66 ($338,709)Year 724($9,689)($261,873)1 ($82,790)66 ($344,663)Year 824($9,689)($267,111)1 ($83,618)66 ($350,729)Year 924($9,689)($272,453)1 ($84,455)66 ($356,908)Year 1024($9,689)($277,902)1 ($85,299)66 ($363,201)
* If this impact statement has changed from statements submitted in previous years, it could be
due to an increase/decrease in the number of offenders, a change in the cost per day for
institutional offenders, and/or an increase in staff salaries.
If the projected impact of legislation is less than 1,500 offenders added to or subtracted from the
department’s institutional caseload, the marginal cost of incarceration will be utilized. This cost
of incarceration is $26.545 per day or an annual cost of $9,689 per offender and includes such
costs as medical, food, and operational E&E. However, if the projected impact of legislation is
1,500 or more offenders added or removed to the department’s institutional caseload, the full
cost of incarceration will be used, which includes fixed costs. This cost is $99.90 per day or an
annual cost of $36,464 per offender and includes personal services, all institutional E&E,
C
hange in prison admissions and probation openings with legislation
F
Y2025
F
Y2026
F
Y2027
F
Y2028
F
Y2029
F
Y2030
F
Y2031
F
Y2032
F
Y2033
F
Y2034
N
ew Admissions
C
urrent Law
0 0 0 0 0 0 0 0 0 0
A
fter Legislation
9 9 9 9 9 9 9 9 9 9
P
robation
C
urrent Law
0 0 0 0 0 0 0 0 0 0
A
fter Legislation
1
5
1
5
1
5
1
5
1
5
1
5
1
5
1
5
1
5
1
5
C
hange (After Legislation - Current Law)
A
dmissions
9 9 9 9 9 9 9 9 9 9
P
robations
1
5
1
5
1
5
1
5
1
5
1
5
1
5
1
5
1
5
1
5
C
umulative Populations
P
rison
9 1
8
2
4
2
4
2
4
2
4
2
4
2
4
2
4
2
4
P
arole
0 0 3 1
2
2
1
2
1
2
1
2
1
2
1
2
1
P
robation
1
5
3
0
4
5
4
5
4
5
4
5
4
5
4
5
4
5
4
5
I
mpact
P
rison Population
9 1
8
2
4
2
4
2
4
2
4
2
4
2
4
2
4
2
4
F
ield Population
1
5
3
0
4
8
5
7
6
6
6
6
6
6
6
6
6
6
6
6
P
opulation Change
2
4
4
8
7
2
8
1
9
0
9
0
9
0
9
0
9
0
9
0 L.R. No. 5303H.01I
Bill No. HB 2489
Page 6 of
January 29, 2024
BB:LR:OD
medical and mental health, fringe, and miscellaneous expenses. None of these costs include
construction to increase institutional capacity.
DOC’s cost of probation or parole is determined by the number of P&P Officer II positions that
are needed to cover its caseload. The DOC average district caseload across the state is 51
offender cases per officer. An increase/decrease of 51 cases would result in a cost/cost avoidance
equal to the salary, fringe, and equipment and expenses of one P&P Officer II.
Increases/decreases smaller than 51 offender cases are assumed to be absorbable.
In instances where the proposed legislation would only affect a specific caseload, such as sex
offenders, the DOC will use the average caseload figure for that specific type of offender to
calculate cost increases/decreases.
Oversight notes that according to the latest data from Higher Ed Immigration Portal there are
53,499 undocumented immigrants in State. Additionally, the immigrant share of Total
Population is approximately 4% at any given time (or approximately 245,000). As provided by
the DOLIR currently there are 171,000 businesses covered by Missouri's unemployment
insurance system throughout Missouri.
Oversight notes the DOC projections of various violations of the proposal could be probable
given the amount of immigrant population of immigrants and employers in the State. Therefore,
Oversight will reflect a DOC impact in the fiscal note.
In response to the similar proposal, HB 1515 – 2024, officials from the Attorney General’s
Office (AGO) assumed this proposal will increase caseloads. AGO requests an additional twenty
(20) attorneys to manage the additional cases. Additional support staff are also requested to
support the additional attorneys.
Oversight notes that Section 285.545 states an enforcement action is initiated through a signed,
written complaint to the AGO by any state official, business entity or state resident. Additionally
the AGO needs to inform and cooperate with DOR on various investigations.
Oversight will reflect a fiscal impact of “up to” AGO’s high end (20 FTE) estimated impact in
the fiscal note.
Officials from the Department of Public Safety – Highway Patrol assume the proposal will
have no fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for Highway Patrol.
In response to the similar proposal, HB 1515-2024, officials from the Office of Administration
- Administrative Hearing Commission, the Department of Public Safety – Capital Police,
and theeach assumed the proposal will have L.R. No. 5303H.01I
Bill No. HB 2489
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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.
In response to the similar proposal, HB 1515 – 2024, officials from the Northwest Missouri
State University and the University of Central Missouri both assumed 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
organizations.
Officials from the University of Missouri System, the City of Kansas City, the Phelps County
Sheriff, the Kansas City Police Department, and the Saint Louis County Police Department
each assumed 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 organizations.
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.
FISCAL IMPACT – State
Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
GENERAL REVENUECosts – AGO – Section(s)
285.530 and 285.545 (p.7)Up to…Up to…Up to…Up to…
Personnel Service($1,062,500)($1,300,500)($1,326,510)($1,353,040) Fringe Benefits($662,163)($804,480)($814,562)($830,853) Expense & Equipment($257,660)($196,819)($200,756)($204,771)Total Costs - ($1,982,323)($2,301,799)($2,341,828)($2,388,664) L.R. No. 5303H.01I
Bill No. HB 2489
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FISCAL IMPACT – State
Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
FTE ChangeUp to 20
FTE
Up to 20
FTE
Up to 20
FTE
Up to 20
FTE
Costs – DOLIR – Section(s)
285.530 and 285.545 (p.3)
Personnel Service($85,924)($178,721)($185,870)($189,587) Fringe Benefits($63,316)($129,203)($131,878)($134,516) Expense & Equipment($24,020)($35,360)($36,774)($37,509)Total Costs - ($173,260)($343,284)($354,522)($361,612)FTE Change3 FTE3 FTE3 FTE3 FTECosts – DOLIR ITSD
modifications – p.5($24,456)($5,062)($5,189)($5,293)
Cost – DOC (p. 3-6) (§§569.100
and 570.030) Increase in P&P
officers
Personal service$0$0$0($46,757) Fringe benefits$0$0$0($33,598) Equipment and expense$0$0$0($12,416)Total cost – DOC($0)($0)($0)($92,771) FTE Change – DOC0 FTE0 FTE0 FTE1 FTECosts - Increased incarceration
costs – (§§569.100 and 570.030) ($72,668)($177,890)($241,930)($339,540)
ESTIMATED NET EFFECT
ON GENERAL REVENUE
Up to
($2,252,707)
Up to
($2,828,035)
Up to
($2,943,469)
Up to
($3,187,880)
Estimated Net FTE Change on
General Revenue
Up to
23 FTE
Up to
23 FTE
Up to
23 FTE
Up to
24 FTE
FISCAL IMPACT – Local
Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
$0$0$0$0 L.R. No. 5303H.01I
Bill No. HB 2489
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FISCAL IMPACT – Small Business
Small businesses would now be required to participate in verification of employment eligibility
of every employee starting January 1, 2025.
FISCAL DESCRIPTION
This bill modifies provisions relating to employment and creates new requirements relating to
the verification of the immigration status of certain persons.
The provisions relating to municipal sanctuary policies under Section 67.307, RSMo do not
apply to qualified immigrant workers registered in the Missouri Department of Labor and
Industrial Relations (DOLIR) database established by this bill (Section 67.307).
Currently, public employers must enroll and actively participate in a Federal work authorization
program, this bill adds private employers and business entities. Beginning January 1, 2025, an
employer or business entity is required to verify the employment eligibility of every employee
who is hired after the employer or business entity enrolls in the program. If the private employer
or business entity fails to comply, it must provide an affidavit as specified in the bill. If a general
contractor or subcontractor of any tier knows its direct subcontractor has knowingly employed an
unauthorized alien, such contractor or subcontractor must report to DOLIR. If the contractor or
subcontractor fails to report to DOLIR, it will be subject to the same penalty for the violation as
the direct subcontractor (Section 285.530).
Currently, upon a court's finding that a business entity has knowingly violated Subsection 1 of
Section 285.530, the court must direct the applicable county or municipal governing body to
suspend the entity's business license and other applicable licenses and exemptions for 14 days.
The bill raises the length of the suspension to 120 days. A second or subsequent violation is a
class D felony, as is a second or subsequent violation by a business entity awarded a State
contract or receiving a State- administered tax credit, tax abatement, or loan from the State.
(Section 285.535)
This bill establishes the "Immigrant Employment Registration and Taxation Protection Act". The
bill defines, among other terms, "alien" and "unauthorized alien", and provides that a "qualified
immigrant worker" is a person who:
(1) Is an alien, but not an unauthorized alien, legally authorized under Federal law to accept
employment;
(2) Has obtained a valid work permit; and L.R. No. 5303H.01I
Bill No. HB 2489
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(3) Is a new hire or employed in the state of Missouri. The Department is required to maintain a
database or registry of qualified immigrant workers, and must provide employers with a
mechanism to verify registration of any qualified immigrant worker. A qualified immigrant
worker is required to sign an affidavit of understanding detailing the conditions under which the
worker may be employed. Further, upon receiving documentation from a qualified immigrant
worker, the employer is required to provide the documentation to DOLIR as specified in the bill,
and DOLIR must provide written confirmation of the worker's registration. The Attorney
General (AG) shall enforce the Act. An enforcement action is initiated through a signed, written
complaint to the AG by any state official, business entity, or state resident. The bill details the
course of action taken by the AG upon receipt of a valid complaint. The bill authorizes the AG to
inform and cooperate with the Department of Revenue for investigation and enforcement of any
additional criminal liabilities under Chapter
143. A qualified immigrant worker who fails to provide the employer-requested documentation
required to verify work authorization status is guilty of a class D felony. Nothing in the section
shall be construed to imply the state of Missouri is an advocate for a legal immigration status
relating to a qualified immigrant worker or worker (Section 285.545).
This bill requires that a person who is 16 years of age or older but under 18 years of age, enrolled
in a secondary school as a full-time student, and employed for wages not be permitted or forced
to work beyond 10:00 p.m. on an evening before a school day when the school is in session
unless the requirements of the section are waived by the Director of the Department of Labor and
Industrial Relations. A person employed by or working under the direct control of the person's
parent or legal guardian, a student who attends home school, and a full-time student who is
eligible to receive credit for work performed during the school year are exempt from this
requirement (Section 290.045).
Currently, any State or local agency administering one or more Federal public benefit programs
is exempt from the requirements of subsections 1 and 3 of Section 650.475, which prohibit a
government entity, or official from restricting a government entity or official from
communicating or providing information with respect to the immigration status, lawful or
unlawful, of any individual. A qualified immigrant worker registered in the DOLIR database is
added to the exemption (Section 650.475).
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 the Secretary of State
Joint Committee on Administrative Rules
University of Missouri System
City of Kansas City
Phelps County Sheriff L.R. No. 5303H.01I
Bill No. HB 2489
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Kansas City Police Department
Saint Louis County Police Department
Department of Public Safety – Highway Patrol
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 29, 2024January 29, 2024