COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5303H.02C Bill No.:HCS for 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:March 7, 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*
Could Exceed
($2,256,485)
Could Exceed
($2,835,894)
Could Exceed
($2,951,642)
Could Exceed
($3,200,923)
Total Estimated
Net Effect on
General
Revenue
Could Exceed
($2,256,485)
Could Exceed
($2,835,894)
Could Exceed
($2,951,642)
Could Exceed
($3,200,923)
*Oversight notes the above expenditures reflect DOC’s increased incarceration costs, 4 FTE for
DOLIR, up to 20 FTE for AGO, and SPD FTEs for reasonable representation.
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.02C
Bill No. HCS for HB 2489
Page 2 of
March 7, 2024
BB:LR:OD
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
4 FTE4 FTE4 FTE4 FTE
General Revenue
– DOC 0 FTE0 FTE0 FTE1 FTE
General Revenue
- SPD UnknownUnknownUnknownUnknown
Total Estimated
Net Effect on
FTE
Could Exceed
24 FTE
Could Exceed
24 FTE
Could Exceed
24 FTE
Could Exceed
25 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.02C
Bill No. HCS for HB 2489
Page 3 of
March 7, 2024
BB:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Labor and Industrial Relations (DOLIR) note:
Section 285.530 requires all businesses to use E-Verify. If they are found 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 Attorney General’s Office 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. The department estimates
that section 285.530 will require an additional Administrative Office Support Assistant (AOSA)
and section 285.545 will require at least three additional Regulatory Auditors (investigators).
Upon further inquiry, officials from the Department of Labor and Industrial Relations stated
the Division is requesting the third auditor due to the unknown but likely highly voluminous
number of “qualified alien” workers for which documentation will need to be archived and
coordinate with the Attorney General’s Office on investigations. The youth employment duties
were to be absorbed as a part of the third auditor FTE responsibilities.
Therefore, Oversight will reflect the DOLIR costs of 3 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.
DOLIR – ITSD
DOLIR noted per Department of Labor Standards, a database of all "Qualified Aliens" must be
developed and maintained by DOLIR. By modeling the new application of similar ones already
developed, or in development, the cost to create the database may be reduced.
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
(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.
Officials from the Department of Corrections (DOC) note:
This proposal modifies provisions relating to employment and creates new requirements relating
to the verification of the immigration status of certain persons. L.R. No. 5303H.02C
Bill No. HCS for HB 2489
Page 4 of
March 7, 2024
BB:LR:OD
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.
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.02C
Bill No. HCS for HB 2489
Page 5 of
March 7, 2024
BB:LR:OD
# 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,
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 American Immigration Council the
immigrant share of Total Population is approximately 4% at any given time (or 245,087). As
provided by the DOLIR currently there are 171,000 businesses covered by Missouri's L.R. No. 5303H.02C
Bill No. HCS for HB 2489
Page 6 of
March 7, 2024
BB:LR:OD
unemployment insurance system.
Oversight notes the DOC projections of various violations of the proposal could be probable
given the immigrant population and number of 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 notes that if this proposal resulted in an increased caseload representing 0.1% of the
immigrant population, it would create 210 potential cases (245,087 immigrant population in
Missouri * .8550 = 209,549 working age immigrant population * .001 = 210).
Oversight will reflect a fiscal impact of “up to” AGO’s high end (20 FTE) estimated impact in
the fiscal note.
Officials from the Office of the State Public Defender (SPD) note:
Per the recently released National Public Defense Workload Study, the new charge contemplated
by the change to Section 285.545 would take approximately thirty-five hours of SPD work for
reasonably effective representation. If one hundred cases were filed under this section in a fiscal
year, representation would result in a need for an additional one to two attorneys. Because the
number of cases that will be filed under this statute is unknown, the exact additional number of
attorneys necessary is unknown. Each case would also result in unknown increased costs in the
need for core staff, travel, and litigation expenses.
Oversight notes, based on the potential caseload noted above, Oversight assumes the SPD may
require additional staff. Therefore, Oversight will reflect a zero (number of cases does not rise
beyond SPD current capacity) to Unknown (number of cases rises beyond SPD current capacity)
impact in the fiscal note.
Officials from the Department of Public Safety – Highway Patrol, the Office of
Administration (OA), the Office of Administration - Administrative Hearing Commission,
the Department of Public Safety – Director’s Office, the Office of the State Courts
Administrator, and the Missouri Office of Prosecution Services (MOPS) each 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, OA and MOPS. L.R. No. 5303H.02C
Bill No. HCS for HB 2489
Page 7 of
March 7, 2024
BB:LR:OD
In response to the previous version of the bill officials from the Department of Public Safety –
Capital Police (DPS-Capitol Police)
respective organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for the DPS-Capital Police.
Officials from the Department of Revenue (DOR) note:
This proposal, 285.545. 11 (6), would authorize the Office of the Attorney General (AGO) to
inform DOR if they find evidence of unpaid income tax, failure to file tax returns, tax evasion or
other violations of Chapter 143. DOR notes that they are already able to receive information
from the AGO, other state agencies or members of the general public who are reporting
suspected tax fraud. DOR assumes this provision would not have any additional fiscal impact on
DOR.
Oversight notes the officials from the DOR 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 DOR.
Officials from the Northwest Missouri State University and the University of Missouri
System 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 City of Kansas City, the City of O’Fallon, the Phelps County Sheriff
Kansas City Police DepartmentBranson 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 local political organizations.
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. 5303H.02C
Bill No. HCS for HB 2489
Page 8 of
March 7, 2024
BB:LR:OD
FISCAL IMPACT – State
Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
GENERAL REVENUECosts – AGO – Section(s)
285.530 and 285.545 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 – AGO p.7($1,982,323)($2,301,799)($2,341,828)($2,388,664)
FTE Change
Up to 20
FTE
Up to 20
FTE
Up to 20
FTE
Up to 20
FTE
Costs – DOLIR – Section(s)
285.530 and 285.545
Personnel Service($88,673)($184,440)($191,818)($199,491) Fringe Benefits($64,345)($131,343)($134,103)($136,919) Expense & Equipment($24,020)($35,360)($36,774)($38,245)Total Costs – DOLIR p. 3($177,038)($351,143)($362,695)($374,655)FTE Change4 FTE4 FTE4 FTE4 FTECosts – DOLIR ITSD
modifications – p.3($24,456)($5,062)($5,189)($5,293)
Costs – Section 285.545 - SPD –
potential FTE for reasonable
representation p.6
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Cost – DOC - Section(s) 285.530
and 285.545) 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 p.4-6($0)($0)($0)($92,771) FTE Change – DOC0 FTE0 FTE0 FTE1 FTECosts - Increased incarceration
costs – (Section(s) 285.530 and
285.545) p.6($72,668)($177,890)($241,930)($339,540) L.R. No. 5303H.02C
Bill No. HCS for HB 2489
Page 9 of
March 7, 2024
BB:LR:OD
FISCAL IMPACT – State
Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
ESTIMATED NET EFFECT
ON GENERAL REVENUE
Could
Exceed
($2,256,485)
Could
Exceed
($2,835,894)
Could
Exceed
($2,951,642)
Could
Exceed
($3,200,923)
Estimated Net FTE Change on
General Revenue
Could
Exceed
24 FTE
Could
Exceed
24 FTE
Could
Exceed
24 FTE
Could
Exceed
25 FTE
FISCAL IMPACT – Local
Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
$0$0$0$0
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). L.R. No. 5303H.02C
Bill No. HCS for HB 2489
Page 10 of 11
March 7, 2024
BB:LR:OD
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
(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).
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. L.R. No. 5303H.02C
Bill No. HCS for HB 2489
Page 11 of 11
March 7, 2024
BB:LR:OD
SOURCES OF INFORMATION
Department of Labor and Industrial Relations
Office of Administration
Department of Corrections
Department of Revenue
Department of Public Safety – Highway Patrol
Office of Administration - Administrative Hearing Commission
Department of Public Safety – Director’s Office
Office of the State Courts Administrator
Missouri Office of Prosecution Services
Office of the Secretary of State
Joint Committee on Administrative Rules
Northwest Missouri State University
Missouri University System
City of Kansas City
Phelps County Sheriff
Kansas City Police Department
Saint Louis County Police Department
City of O’Fallon
City of Kansas City
Julie MorffRoss StropeDirectorAssistant DirectorMarch 7, 2024March 7, 2024