SB 0733 - Fiscal Note

Fiscal Note - SB 0733 - Workcomp. Ins. Certif. From Contractors Only for Bus. Lic.

L.R. NO.  2899-01
BILL NO.  Perfected SB 733
SUBJECT:  Workers' Compensation, Labor, Cities, Counties
TYPE:     Original
DATE:     February  15, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None

Total Estimated
Net Effect on All
State Funds                      $0              $0              $0


                   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 from the Department of Insurance (INS) stated that passage of this
legislation will have no fiscal impact on their department.  However, the
passage of more than one similar proposal could require the INS to request
increased appropriations to cover cumulative administrative cost.

Officials from the Department of Labor stated that passage of this
legislation would generate less than $1,000 in cost for the development,
printing and distribution of forms to certify that an employer is exempt from
workers compensation insurance coverage.

Oversight assumes this small cost can be absorbed by the Department's current
budget.

Officials from the Kansas City stated that passage of this legislation would
reduce the number of  occupational licenses that would require verification
of workers compensation coverage from 15,458 to 3,328. This reduction in
workload would save overtime and printing and form cost of $5,855.

Oversight assumes this proposal would have no fiscal impact on Kansas City.

Officials from the Greene County stated that passage of this legislation will
have no fiscal impact on the county.

Officials from the City of St. Louis,  St. Louis County, Jackson County, Cole
County, and the City of Springfield did not respond to our fiscal impact
request.


FISCAL IMPACT - State Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

                                         $0        $0        $0


FISCAL IMPACT - Local Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

                                         $0        $0        $0


DESCRIPTION

Currently, any city or county is required to receive a certificate of
workers' compensation insurance from any applicant before issuing an
occupational or business license. This act would limit the requirement to
contractors only.  This act is almost identical to HB 1582 (1994).

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 Insurance
Department of Labor
Greene County
Kansas City

Not Responding:  City of St. Louis,  St. Louis County,  Jackson County, Cole
County, City of Springfield