This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0566 - Removes Highway Patrol From Riverboats
L.R. NO. 1757-01
BILL NO. SB 566
SUBJECT: Highway Patrol Officers on Excursion Gambling Boats
TYPE: #Updated
DATE: February 12, 1996
#Updated to reflect new information.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS#
FUND AFFECTED FY 1997 FY 1998 FY 1999
Gaming
Commission Fund# $1,770,397 $2,178,953 $2,233,936
Total Estimated
Net Effect on All
State Funds $1,770,397 $2,178,953 $2,233,936
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Public Safety - Missouri State Highway Patrol
(MSHP) stated that they currently have seventy (70) officers assigned to
riverboat gambling -- eighteen (18) of them are assigned to offices and are
performing background investigations, while fifty-two (52) of them are
actually on riverboats. MSHP officials assume that the fifty-two officers
currently assigned to work on riverboats would be transferred back to road
duty and would be paid from Highway funds instead of Gaming Commission funds.
Those fifty-two officers had $185,858 in salaries paid on the December 1995
payroll which would be $2,230,296 per year ($185,858 x 12 months). MSHP
officials assume that other expenses that would be transferred from Gaming
Commission funds to Highway funds would be uniform allowance, leather
replacement, and vehicle maintenance.
MSHP officials assume that approximately one-half of those officers, or
twenty-six officers, would need to be moved to a location somewhere else in
the state to work (the average cost of a move is $9,000). They assumed
moving expenses would be paid from Highway funds.
MSHP officials stated that personal equipment and the cars that the fifty-two
officers are currently driving were purchased with Gaming Commission funds.
MSHP officials also assume that the Gaming Commission would want to retain
them. Therefore, Highway funds would be used to purchase fifty-two new sets
of personal equipment and fifty-two cars, along with the related radios,
radar, lights, fire extinguishers, etc. MSHP staff assumed that they would
incur vehicle maintenance costs and would be covering other new expenses such
as officers' ammunition and ticket books.
Officials of the Missouri Gaming Commission (Commission) assume that while
under this proposal the Commission would not pay the MSHP for officers, they
would continue to incur the on-going expense for salaries and fringe benefits
for gaming agents which would be hired by the Commission if this proposal
were enacted. Commission officials assume that this proposal would go into
effect August 28, 1996. Because they do not believe that they can complete
the selection process, hiring, and training of fifty- two new officers by
August, Commission officials assume they would have to close the current
licensed riverboats until those gaming agents could be hired and properly
trained. Commission officials stated this could result in lost gaming tax
revenues of approximately $8.6 million per month. Commission officials also
assume that additional legislation would have to be proposed to allow gaming
agents to have full police powers to enforce the gaming laws on the gambling
excursion boats. Commission staff assume that they would request four (4)
additional human resource personnel to implement this proposal.
Oversight assumes for purposes of this fiscal note that this proposal, as
written, does not require MSHP to continue to employ the fifty-two officers
currently serving on gambling excursion boats. This proposal would remove
those officers from the gambling excursion boats and eliminate their current
duties. If MSHP elected to retain those affected officers, it should be
addressed in the normal budgetary process.
#Oversight officials contacted Pinkerton Security Services and Wells Fargo
Guard Services to investigate costs for contracting armed security guards.
Pinkerton Security Services did not provide Oversight with specific
information.
#Wells Fargo Guard Services officials stated that the cost for armed security
guards is $16.15/hour. Included in that cost are the following: 1)
professional uniforms supplied; 2) transcripts of training maintained in
employee files; 3) all armed security guards must have had prior training in
law enforcement prior to being considered for employment; 4) all insurance,
taxes and benefits are provided by Wells Fargo; 5) a forty-hour work week
(additional hours are treated as overtime); and 6) continuing education
courses offered and many of those courses are mandatory.
#Wells Fargo Guard Services officials stated that all Security Patrol
Officers are commissioned through the Kansas City Board of Police
Commissioners. In that process, they are required to attend the Kansas City
Police Department Security Officer training class and must qualify with a
firearm on the police department firing range. Newly hired Security Patrol
Officers are required to complete the in-house training program which
includes Civil Liability, Firearms Policy, Use and Abuse of Force, Emergency
Situations, Security and the Law, Patrolling and Reporting, Burglary and
Prowler Apprehension, Operational Procedures; Public Relations; First Aid and
CPR.
#For purposes of this fiscal note, Oversight assumed that the Gaming
Commission would contract for Security Patrol Officers. Oversight assumed
there were 1,856 working hours in a year. At $16.15/hour there would be a
cost of $29,974 annually for each Security Patrol Officer. Fifty-two
Security Patrol Officers would be a total annual cost to the Gaming
Commission Fund of $1,558,648. Oversight assumes that with contracted
Security Patrol Officers, the Commission would not require additional staff
to oversee training and personnel issues related to the fifty-two officers as
those services are included in the $16.15/hour contract price. Also, the
Commission would not incur additional training costs as training is also
included in the contract price. Inflation of 2.5% was used to project the
costs of contracted Security Patrol Officers in FY's 97, 98 and 99.
#There would be savings to the Gaming Commission Fund for salaries, fringes,
and ongoing training/equipment costs for fifty-two patrolmen. According to
MSHP the 52 officers on the gaming boats had salaries in December 1995 of
$185,858. $185,858 x 12 months = $2,230,296/annually in salaries. $185,858
/ 52 officers = $3,574.19/mo. salary; $3,574.19 x 12 = $42,890.28/yr. avg.
salary for each of the 52 officers. Uniformed patrolmen have fringe benefits
of 58.54% ($42,890.28 x 58.54% = $25,107.97 annually in fringes for each
patrolman). Salaries and fringes combined for each officer is a cost of
$67,998.25 x 52 officers = $3,535,909 a year.
#In response to another proposal MSHP officials stated that it costs
$1,896.83 annually to train and equip each patrolman. ($1,896.83 x 52
patrolmen = $98,635.16 annually for training/equipment for 52 patrolmen).
#Therefore, Oversight assumes there would be a total savings annually to the
Gaming Commission Fund of $3,634,544. Inflation of 2.5% was applied to both
salaries and fringes to project savings in FY's 97, 98 and 99.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GAMING COMMISSION FUND#
#Savings-Missouri Gaming Commission
#Personal Service (52 FTE) $1,904,281 $2,343,203 $2,401,783
#Fringe Benefits 1,114,766 1,371,711 1,406,004
#Expense and Equipment 82,163 101,594 104,642
#Savings-Missouri Gaming Commission $3,101,210 $3,816,508 $3,912,429
#Cost-Missouri Gaming Commission
#Contracted Security Officers (52 FTE) ($1,330,813)($1,637,555)($1,678,493)
#Total Cost-Missouri Gaming Commission ($1,330,813)($1,637,555)($1,678,493)
ESTIMATED NET EFFECT TO
GAMING COMMISSION FUND# $1,770,397 $2,178,953 $2,233,936
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
DESCRIPTION
This proposal would remove the authority for the Gaming Commission to use the
Highway Patrol in a manner which is inconsistent with enforcing the traffic
laws and promoting safety upon the highways. Currently, Highway Patrol
officers are assigned oversight duties on excursion gambling boats. This
proposal would exclude any patrolmen currently assigned to riverboat gambling
from the personnel count for purposes of determining whether the statuary
limit in section 43.050 had been exceeded. This exclusion would apply until
August 28, 2000.
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 Public Safety - Missouri State Highway Patrol
Missouri Gaming Commission
Wells Fargo Guard Service
Pinkerton Security Services