COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0189H.01I Bill No.:HB 123 Subject:Workers Compensation; Labor and Management; Department of Labor and
Industrial Relations; Employees - Employers; Judges
Type:Original Date:February 18, 2025Bill Summary:This proposal modifies provisions related to workers' compensation
administrative law judges.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue*$0 or Unknown$0 or Unknown$0 or UnknownTotal Estimated Net
Effect on General
Revenue$0 or Unknown$0 or Unknown$0 or Unknown
*Oversight assumes an unknown savings for worker’s compensation claims and an unknown
savings from the restriction on ALJ salary increases. Oversight assumes the potential savings
could exceed $250,000.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0189H.01I
Bill No. HB 123
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0189H.01I
Bill No. HB 123
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FISCAL ANALYSIS
ASSUMPTION
§§287.200, 287.615 and 287.835 – Workers’ compensation administrative law judges
Officials from the Office of the State Courts Administrator did not respond to Oversight’s
request for fiscal impact for this proposal.
Officials from the Office of Administration (OA) state§287.200.3(2) of this proposal adds a
provision for an award of permanent total disability to suspend the lifetime payment when the
employee is restored to his or her regular work or its equivalent. This provision could potentially
decrease the cost of a workers’ compensation claim. The potential cost to the state is unknown.
The amount of cost decrease, if any, cannot be estimated as it would depend on the facts and
circumstances of each case and judicial interpretation of the changes.
Oversight has no information to the contrary and will range the fiscal impact of this proposal as
$0 to Unknown savings. It is assumed the potential savings would be less than $250,000
annually since the number of employees restored to his/her regular work would likely be very
low.
Officials from the Office of Administration - Budget and Planning (B&P) state §287.470.2 is
added which allows the name, information, and fee arrangement to be changed on a PTD
(permanent and total disability) and/or SIF (Second Injury Fund) file so long as written
permission is given by both the claimant and attorney. This addition will have no fiscal impact.
Section 287.610.8 is repealed 287.610.2, 287.610.3, 287.610.4 and 287.610.5 are modified
allowing the Director of the Division of Workers' Compensation (DWC) to file a complaint
against an Administrative Law Judge (ALJ) who has committed and/or been convicted of a
criminal offense, is guilty of misconduct, habitual intoxication, willful neglect of duty,
corruption in office, or incompetency, or committed any immoral act or oppression in office. The
DWC director shall notify the ALJ the reasons for the complaint before filling it with the
administrative hearing commission (AHC). The ALJ has 90 days from the date of the complaint
to remedy behavior considered willful neglect of duty or incompetency. If the AHC finds
grounds for disciplinary action are met, the DWC director may remove the ALJ from office,
suspend the ALJ from the performance of their duties for a period of time, or other disciplinary
action the director determined by the director. Events or acts committed by and ALJ are deemed
a threat to the administration of provisions in chapter 287, RSMo shall be considered cause for
suspension of duties with pay without notice. These provisions do not impact total state
revenues. L.R. No. 0189H.01I
Bill No. HB 123
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Section 287.615.1(2) repeals the position of chief legal counsel and provides that administrative
law judge salaries are set by statute and not subject to increase when pay raises for executive
employees are appropriated. These provisions do not impact total state revenues.
Section 287.835.1, which prohibits ALJs who are removed from office from receiving benefits,
is repealed. These provisions do not impact total state revenues.
Section 621.045.4 is added allowing the AHC to conduct hearings in cases of complaints made
by the director of the DWC against ALJs as provided in section 287.610. These provisions do not
impact total state revenues.
Oversight assumes there could be a potential savings that could exceed $250,000 if ALJs are not
subject to the increase when pay raises for executive employees are appropriated.
Officials from the Missouri State Employee's Retirement System (MOSERS) state as it
relates to MOSERS, this proposal, if enacted, would remove §287.835.1 and allow an
Administrative Law Judge (ALJ) and the ALJ’s beneficiary to remain entitled to ALJ plan
retirement benefits if the ALJ were removed from office by impeachment or for misconduct, or
disbarred from the practice of law.
This proposal would result in an unknown cost as it would allow the ALJ and the ALJ’s
beneficiary to receive a benefit that they would not otherwise receive under the current plan
provisions.
Oversight assumes this would impact a minimal number of ALJs. Therefore, Oversight assumes
this would not result in an increase in employer contributions.
Officials from the Joint Committee on Public Employee Retirement (JCPER) state its review
of the legislation indicates it would not affect retirement plan benefits as defined in §105.660(9).
Officials from the Office of Administration - Administrative Hearing Commission and the
Department of Labor and Industrial Relations each 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. L.R. No. 0189H.01I
Bill No. HB 123
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts Avoidance – OA (§287.200) –
potential savings in worker’s
compensation claims p.3$0 or Unknown$0 or Unknown$0 or Unknown
Cost Avoidance – ALJ’s – potential
savings in pay raises (§§287.615 &
287.835) p. 3$0 or Unknown$0 or Unknown$0 or Unknown
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$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
The bill provides that the compensation for Administrative Law Judges and chief administrative
law judges will be determined solely by the rate outlined in law and will not increase when pay
raises for executive employees are appropriated. (§287.615)
The bill repeals a prohibition on the payment of any retirement benefits under Workers'
Compensation law to any Administrative Law Judge who has been removed from office by
impeachment or for misconduct, or to any person who has been disbarred from the practice of
law, or to the beneficiary of any such persons. (§287.835)
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. 0189H.01I
Bill No. HB 123
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SOURCES OF INFORMATION
Office of Administration - Administrative Hearing Commission
Office of Administration - Budget and Planning
Department of Labor and Industrial Relations
Office of Administration
Joint Committee on Public Employee Retirement
Missouri State Employee's Retirement System
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 18, 2025February 18, 2025