COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0578S.01I Bill No.:SB 300 Subject:Advertising and Signs; Contracts and Contractors; Crimes and Punishment; Military Affairs; Veterans Type:Original Date:January 26, 2025Bill Summary:This proposal modifies provisions relating to compensation for assisting or advising in veteran benefits matters. 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. 0578S.01I Bill No. SB 300 Page 2 of January 26, 2025 MR: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$0$0 L.R. No. 0578S.01I Bill No. SB 300 Page 3 of January 26, 2025 MR:LR:OD FISCAL ANALYSIS ASSUMPTION §42.028 – Compensation for assisting with veterans’ benefits Officials from the Office of the State Public Defender state per the National Public Defense Workload Study, the new charge contemplated by this change to Section 42.038 would take approximately twenty-two 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 attorney. 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. However, if the charge was classified as a class D misdemeanor no jail time would be authorized, and the cases would not qualify for SPD representation. Oversight assumes this proposal will create a minimal number of new cases and that the SPD can absorb the additional caseload required by this proposal with current staff and resources. Therefore, Oversight will reflect no fiscal impact to the SPD for fiscal note purposes. However, if multiple bills pass which require additional staffing and duties, the SPD may request funding through the appropriation process. Officials from the Missouri Office of Prosecution Services (MOPS) assume the proposal will have no measurable fiscal impact on MOPS. The enactment of a new crime (§42.028.10) creates additional responsibilities for county prosecutors and the circuit attorney which may, in turn, result in additional costs, which are difficult to determine. Oversight notes this act provides that no person shall receive compensation for advising or assisting, or referring to another person for such purposes, any individual with regard to any veteran’s benefits matter, as described in the act, unless such individual provides a written agreement containing the terms of the fees, provides certain disclosures, and complies with requirements under federal law. Additionally, no person shall advertise for such services without including a disclosure as specified in the act. Furthermore, no person shall receive compensation for any services rendered before the date on which a notice of disagreement is filed with the United States Department of Veterans Affairs and no person shall guarantee the receipt of specific veteran benefits. Any person who violates this act shall be guilty of a class A misdemeanor. Oversight assumes this will have a minimal fiscal impact and will not present an impact for fiscal note purposes. Officials from the Department of Commerce and Insurance, the Department of Public Safety - Missouri Veterans Commission, the Missouri National Guard, and Office of the State Courts Administrator 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. 0578S.01I Bill No. SB 300 Page 4 of January 26, 2025 MR:LR:OD FISCAL IMPACT – State GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0 FISCAL IMPACT – Small Business This proposal may negatively impact certain small businesses that currently provide services to veterans for a fee. FISCAL DESCRIPTION The proposed legislation appears to have no direct fiscal impact. 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 Commerce and Insurance Department of Public Safety – Missouri Veterans Commission Missouri National Guard Office of the State Public Defender Office of the State Courts Administrator Missouri Office of Prosecution Services Julie MorffJessica HarrisDirectorAssistant Director L.R. No. 0578S.01I Bill No. SB 300 Page 5 of January 26, 2025 MR:LR:OD January 26, 2025January 26, 2025