Did the Missouri AG approve the State Auditor's fiscal note summary for the Winston Apple initiative on Chapters 286 and 143?

Plain-English summary

This opinion handles the fiscal-note review for Winston Apple's initiative petition 20-048, a proposed amendment to Chapter 286 (Labor and Industrial Relations) and Chapter 143 (Income Tax) of the Revised Statutes of Missouri. The State Auditor's summary stated:

"State governmental entities estimate unknown annual revenue increases to fund the proposed program, one-time costs of approximately $800,000, and annual operating costs of at least $3 million. Local governmental entities expect no fiscal impact."

Attorney General Eric Schmitt approved the legal content and form of that fiscal note summary under § 116.175.4. The letter states expressly that this statutory review is not an endorsement of the petition. The petition text itself is not reproduced in this short letter (only the fiscal note summary is), so the opinion does not describe the petition's specific provisions beyond naming the chapters it would amend.

Currency note

This opinion was issued in 2019. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What is a fiscal note summary?

A short (capped-word) plain-language statement of the projected fiscal impact of an initiative measure on state and local government. It is drafted by the State Auditor under § 116.175 and appears alongside the summary statement on the ballot.

What does "unknown annual revenue increases" mean here?

It means the Auditor could not pin down the size of the revenue increase the proposal would produce, only that one was expected. Initiative measures with revenue projections that depend on uptake, behavioral response, or rate elasticity often get described as "unknown" in the fiscal note, with a directional statement (revenue up, revenue down) but no point estimate.

What do the cost numbers mean?

The Auditor projected roughly $800,000 in one-time implementation costs (think: IT systems, rulemaking, staff training) and at least $3 million per year in ongoing operating costs for state government. Local-government impact was zero.

What does Chapter 286 cover, and what about Chapter 143?

Chapter 286 of RSMo is the labor and industrial relations chapter; Chapter 143 is the income-tax chapter. The petition proposed to amend provisions in both. The fiscal note summary describes "revenue increases to fund the proposed program," but the opinion does not lay out the program's details.

Does AG approval of the fiscal note mean the numbers are right?

No. The AG reviews legal content and form, that is, whether the summary is legally accurate and properly formatted. The accuracy of the projections themselves is the State Auditor's professional judgment.

Background and statutory framework

§ 116.175 directs the State Auditor to prepare a fiscal note and fiscal note summary for every initiative petition. § 116.175.4 covers the AG's review of the fiscal note summary for legal content and form. That summary, together with the Secretary of State's summary statement (reviewed separately), is the plain-language text that appears on the ballot.

Citations

• § 116.175, RSMo (fiscal note and summary preparation by State Auditor)
• § 116.175.4, RSMo (AG review of fiscal note summary for legal content and form)
• Chapter 286, RSMo (Labor and Industrial Relations)
• Chapter 143, RSMo (Income Tax)
• Mo. Const. art. III, §§ 49 to 53 (initiative and referendum process)
• Initiative Petition 20-048 (Apple, Chapters 286 and 143)

Source

• Landing page: https://ago.mo.gov/other-resources/ag-opinions/
• Original PDF: https://ago.mo.gov/wp-content/uploads/attachments/67-2019.pdf?sfvrsn=2

Original opinion text

ATTORNEY GENERAL OF MISSOURI
ERIC SCHMITT
JEFFERSON CITY
ATTORNEY GENERAL
65102
P.O. Box 899
(573) 751-3321

April 5, 2019

OPINION LETTER NO. 67-2019

The Honorable Nicole Galloway
Missouri State Auditor
State Capitol, Room 121
Jefferson City, MO 65101

Dear Auditor Galloway:

This office received your letter of March 28, 2019, submitting a fiscal note and fiscal note summary prepared under § 116.175, RSMo, for an initiative petition submitted by Winston Apple (20-048). The fiscal note summary that you submitted is as follows:

State governmental entities estimate unknown annual revenue increases to fund the proposed program, one-time costs of approximately $800,000, and annual operating costs of at least $3 million. Local governmental entities expect no fiscal impact.

Under § 116.175.4, RSMo, we approve the legal content and form of the fiscal note summary. Because our review of the fiscal note summary is mandated by statute, no action that we take with respect to such review should be construed as an endorsement of the initiative petition or as the expression of any view regarding the objectives of its proponents.

Very truly yours,

ERIC S. SCHMITT
Attorney General

OP-2019-0068