COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:2310H.01I Bill No.:HB 954 Subject:Military Affairs; Veterans; National Guard; Employees - Employers; Labor and Management; Department of Labor and Industrial Relations; Attorney General Type:Original Date:March 2, 2025Bill Summary:This proposal provides Federal Servicemember Civil Relief Act (SCRA) protections to national guard members called to state duty. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on General Revenue $0$0$0 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. 2310H.01I Bill No. HB 954 Page 2 of March 2, 2025 BB:LR:OD 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 to Unknown$0 to Unknown$0 to Unknown *Penalty and fine revenue to school districts. L.R. No. 2310H.01I Bill No. HB 954 Page 3 of March 2, 2025 BB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Attorney General’s Office (AGO) assume any potential litigation costs arising from this proposal can be absorbed with existing resources. The AGO may seek additional appropriations if the proposal results in a significant increase in litigation or investigation costs. Oversight notes that the AGO assumes the Departments could absorb any cost associated with potential litigation in the future. Therefore, Oversight assumes AGO could absorb the costs related to this proposal. If multiple bills pass which require additional staffing and duties at substantial costs, AGO could request funding through the appropriation process. Officials from the Department of Labor and Industrial Relations (DOLIR) assume the Division of Labor Standards (DLS) would be able to absorb the impact of creating and providing the posters required to be posted in the provisions of this proposal. Oversight notes that Section 40.490 3. requires the DOLIR provide notice to all employers about a “certain protected employment and reemployment rights”. Oversight notes the DOLIR assumes it can absorb the fiscal impact stemming from the proposal. If multiple bills pass which require additional staffing and duties at substantial costs, DOLIR could request funding through the appropriation process. Officials from the Office of Administration – Budget & Planning (B&P) assumethis legislation would add requirements for employers under the Servicemembers Civil Relief Act. Article IX, Section 7 of the Missouri Constitution requires that penalties, forfeitures, and fines collected for violations of state law be distributed to the schools. To the extent any additional such revenues are deposited into the state treasury, TSR may increase. Oversight notes per Article IX Section 7 of the Missouri Constitution fines and penalties collected by counties are distributed to school districts. Fines vary widely from year to year and are distributed to the school district where the violation occurred. Oversight will reflect a positive fiscal impact of $0 (no violation of this Section) to Unknown (Missouri employer violated this Section and penalties were assessed) to local school districts. For simplicity, Oversight will not reflect the possibility that fine revenue paid to school districts may act as a subtraction in the foundation formula. Officials from the Department of Economic DevelopmentDepartment of Elementary and Secondary Education, the Department of Higher Education and Workforce Development, the Department of Health and Senior Services, the Health, the Department of Natural Resources, the Department of Corrections, the Department of Labor and Industrial Relations, the Department of Revenue the L.R. No. 2310H.01I Bill No. HB 954 Page 4 of March 2, 2025 BB:LR:OD Department of Public Safety (Office of the Director Alcohol & Tobacco Control, Fire Safety, Gaming Commission, Missouri Highway Patrol State Emergency Management Agency and Veterans Commission), the Missouri National Guard the Department of Social ServicesOffice of the Governor, the Joint Committee on Administrative Rules Joint Committee on Public Employee Retirement, the Missouri Lottery Commission, the Missouri Consolidated Health Care Plan, the Joint Committee on Education, the Department of Agriculture the Missouri Department of Conservation, the Missouri Ethics Commission, the Missouri House of Representatives, the Department of Transportation the Petroleum Storage Tank Insurance Fund, the Office of Administration - Administrative Hearing Commission, the Legislative Research, the Oversight Division, the Office of the State Auditor, the Missouri Senate, the Missouri State Employees Retirement System, the Office of the State Public Defender, the Missouri Office of Prosecution Services, Office of the State Courts Administrator the Office of the State Treasurer and the Commission each 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 organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note. Officials from the Office of Administration (OA) assumethe 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. Officials from the Department of Commerce and Insurance and the Department of Mental Health, both defer to the OA for the potential fiscal impact of this proposal. Officials from the Northwest Missouri State University, the University of Central Missouri, and the 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. Officials from the City of Kansas City 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. 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 L.R. No. 2310H.01I Bill No. HB 954 Page 5 of March 2, 2025 BB:LR:OD 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 GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028SCHOOL DISTRICTS Revenue Gain - Section 40.490 – penalties and fines $0 to Unknown$0 to Unknown$0 to Unknown NET ESTIMATED EFFECT ON THE SCHOOL DISTRICTS $0 to Unknown $0 to Unknown $0 to Unknown FISCAL IMPACT – Small Business A direct fiscal impact to small businesses would be expected as a result of the violation of this proposal. FISCAL DESCRIPTION This bill extends Federal protections of the Servicemembers Civil Relief Act (SCRA) currently in Federal law for Federal servicemembers to members of the Missouri National Guard who are called to active state duty by the Governor and any Missouri employees who are members of the National Guard of another state and are called to active state duty by the Governor of that state, upon being relieved of such duty. The bill requires the Department of Labor and Industrial Relations to make available a notice, which every employer will post in employment establishments, that covers certain employment L.R. No. 2310H.01I Bill No. HB 954 Page 6 of March 2, 2025 BB:LR:OD rights, reemployment rights, and civil relief rights that apply to members of the Missouri National Guard. This bill allows members of the Missouri National Guard or any Missouri employee who is a member of the National Guard of another state who believes his or her rights have been violated to bring suit in any court of competent jurisdiction and appropriate venue. The office of the Attorney General may also bring suit against an employer who violates the provisions of this bill. 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 Attorney General’s Office 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 Labor and Industrial Relations Department of Revenue Department of Public Safety Office of the Director Division of Alcohol and Tobacco Control Fire Safety Missouri Gaming Commission Missouri Highway Patrol State Emergency Management Agency Missouri Veterans Commission Missouri National Guard Department of Social Services Office of the Governor Joint Committee on Administrative Rule Joint Committee on Public Employee Retirement Joint Committee on Administrative Rules Joint Committee on Education Missouri Lottery Commission Legislative Research Oversight Division Missouri Consolidated Health Care Plan Missouri Department of Agriculture L.R. No. 2310H.01I Bill No. HB 954 Page 7 of March 2, 2025 BB:LR:OD Missouri Department of Conservation Missouri Ethics Commission Missouri House of Representatives Missouri Department of Transportation Missouri State Employee's Retirement System MoDOT & Patrol Employees’ Retirement System Office of Administration Administrative Hearing Commission Facilities Management, Design and Construction Budget & Planning Office of the State Auditor Missouri Office of Prosecution Services Office of the State Courts Administrator Missouri Senate Office of the Secretary of State Office of the State Public Defender Office of the State Treasurer State Tax Commission Northwest Missouri State University University of Central Missouri University of Missouri System City of Kansas City Julie MorffJessica HarrisDirectorAssistant DirectorMarch 2, 2025March 2, 2025