This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0709 - Expands the Powers of the Ethics Commission
L.R. NO. 2891-09
BILL NO. HCS for SS for SB 709
SUBJECT: Boards: Elections
TYPE: Original
DATE: May 7, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue ($75,624 ($64,768 ($66,402
to to to
$575,624) ($564,768) ($566,402)
Total Estimated ($75,624 ($64,768 ($66,402
Net Effect on All to to to
State Funds $575,624) ($564,768) ($566,402)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
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 Unknown Unknown Unknown
FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri Ethics Commission (MEC) assume the proposed
legislation would require an appropriation for the Commission to pay for
special prosecutors. The amount of the appropriation cannot be determined.
This is because the staff does not know the number of complaints that will be
referred for prosecution, the amount of time needed for such prosecution, nor
the charges submitted by the special prosecutors. However, based on further
discussion with MEC, there were approximately 50 cases referred last year to
the Office of Prosecution Services. The costs could range from $500 to
$10,000 per case. Oversight assumes costs to pay for special prosecutors
would range from $0 to $500,000 annually.
MEC assumes the proposal would require two additional staff, one Data Base
Administrator and one Internet Coordinator, both at $22,500 per year. This
legislation would require the development of multiple databases. It would
require a procedure where individuals could request certain campaign
disclosure reports. These requests would come through a computer system and
it is anticipated these reports would be placed on the "computer Internet
system". It is anticipated a minimum of 150,000 pages would be placed on the
Internet for access and would require storage on the host computer.
Officials from the Office of State Courts Administrator (CTS) assume the
proposed legislation would expand the power of the Missouri Ethics Commission
by providing for civil actions and, in some instances, the appointment of a
special prosecutor. After a period of adjustment, CTS would anticipate
substantial compliance with the provisions of the Ethics Commission-related
statutes, and would not expect a significant increase in the number of cases
filed.
Officials from the Department of Revenue (DOR) assume DOR would collect and
deposit to general revenue any penalties collected by the MEC and would
perform duties with existing staff.
Officials from the Office of Prosecution Services (OPS) assume the proposal
would have no fiscal impact on their agency, but could result in savings to
the counties.
Officials from the Office of Attorney General (AGO), Office of State Auditor
(SAU) and the Office of State Public Defender (SPD), Department of Highway
and Transportation (DHT), Coordinating Board for Higher Education, Department
of Economic Development, Department of Social Services, Department of Mental
Health and Department of Agriculture assume the proposal would have no fiscal
impact on their agencies.
Due to time constraints, officials from the following agencies did not
respond to our fiscal impact request: Office of Secretary of State,
Department of Elementary and Secondary Education, Department of Corrections,
Department of Health, Department of Labor and Industrial
Relations, Department of Public Safety, Department of Insurance and Missouri
Department of Conservation. However, Oversight assumes the proposal would
have either no or minimal fiscal impact on those agencies.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE FUND
Costs-Missouri Ethics Commission (MEC)
Fees for special prosecutors $0 $0 $0
to to to
($500,000) ($500,000) ($500,000)
Personal Service (2 FTE) (38,436) (47,278) (48,460)
Fringe Benefits (11,808) (14,524) (14,887)
Expense and Equipment (25,380) (2,966) (3,055)
ESTIMATED NET EFFECT TO ($75,624 ($64,768 ($66,402
GENERAL REVENUE FUND to to to
$575,624) ($564,768) ($566,402)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Unknown Unknown Unknown
DESCRIPTION
The proposed legislation would allow the Missouri Ethics Commission (MEC) to
promulgate rules and regulations establishing a civil penalty for violations
of the lobbying, personal financial disclosure and campaign laws of Missouri.
Additionally, MEC would be required to pay for special prosecutors appointed
to file criminal charges if it has sufficient funds appropriated, when in its
opinion, a criminal violation has occurred. However, if MEC does not have
sufficient funds for the payment of a special prosecutor, MEC would refer the
case to the prosecutor or prosecutors having criminal jurisdiction.
Individuals who are full time lobbyists and their employers are prohibited
from providing an honorarium, meals, entertainment or other gift to public
officials, their spouses and their children, with certain exceptions. The
proposal would expand the definition of "expenditure" and prohibit certain
expenditures on behalf of any public official or a staff member, employee,
spouse or dependent child of a public official.
The directors of each department would be required to report certain
expenditures annually to MEC.
Each lobbyist would be required to file standardized registration forms,
verified by a written declaration it is made under the penalties for perjury.
The proposal would specify due dates for reports and would require
information regarding total of all expenditures made on behalf of all public
officials, their staffs and employees, as well as a list of the name of the
recipients and the category and amount of each expenditure. The MEC would
maintain all lobbyists' filings, which would be open to the public. There
would be provisions for a public official or any other person whose name
appears in any lobbyist report to contest the accuracy of the report and
petition the MEC for an audit of such report.
Officials of political subdivisions with annual operating budgets greater
than $5 million would be required to file financial interest statements.
Currently, those with budgets over $1 million are required to file.
MEC would be required to establish and maintain an electronic reporting
system for lobbying reports. The reports would be maintained and secured in
the electronic machine readable format by the Commission. The general public
could request copies of such reports. The access system would allow an
individual to obtain information concerning all reportable expenditures made
by lobbyists or lobbyist principals to or on behalf of certain public
officials.
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
Missouri Ethics Commission
Office of State Courts Administrator
Department of Revenue
Office of Prosecution Services
Office of Attorney General
Office of State Auditor
Office of State Public Defender
Department of Highway and Transportation
Coordinating Board for Higher Education
Department of Economic Development
Department of Mental Health
Department of Agriculture
Department of Social Services
NOT RESPONDING:
Office of Secretary of State
Department of Elementary and Secondary Education
Department of Corrections
Department of Health
Department of Labor and Industrial Relations
Department of Public Safety
Department of Insurance
Missouri Department of Conservation