HS HCS HB 1051 & 1276 -- CLAIMS AGAINST THE STATE (May, 108)

This substitute increases the maximum liability coverage that
the state or its subdivisions may purchase for tort claims.  The
state and its subdivisions may purchase insurance to cover $2
million for all claims arising out of a single occurrence.
Also, the coverage may not exceed $300,000 for any one person in
a single occurrence.  The substitute increases the state's
liability limit for tort claims to those amounts and provides
for the amounts to be adjusted on an annual basis according to
the federal Implicit Price Deflator for Personal Consumption
Expenditures.  Current limits are $1 million per occurrence and
$100,000 per person.

In addition, the substitute:

(1)  Specifies that the Missouri Public Entity Risk Management
Fund (MOPERM) may be used to pay tort claims against an officer
or employee of a participating entity only in accordance with
the coverage obtained by the entity;

(2)  Clarifies that MOPERM's board of trustees will defend a
claim only in accordance with the entity's coverage;

(3)  Modifies the rules of joint and several liability so that
the liability of the state and its political subdivisions may
not exceed the proportion of fault directly attributable to the
entity; and

(4)  Limits the applicability of the provisions increasing the
state's liability to those causes of action that accrue on or
after the substitute's effective date.

FISCAL NOTE:  Cost to General Revenue Fund of Unknown in FY
1999, FY 2000, and FY 2001.  Total fiscal impact is unknown, but
costs are expected to be at least $200,000 annually.  Cost to
State Road Fund of $2,300,000 in FY 1999, $2,335,200 in FY 2000,
and $2,411,725 in FY 2001.  Cost to Conservation Commission
Fund, Insurance Dedicated Fund, and Department of Natural
Resources Funds is Unknown in FY 1999, FY 2000, and FY 2001.

HCS HB 1051 & 1276 -- CLAIMS AGAINST THE STATE

SPONSOR:  May (108)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 13 to 4.

This substitute increases the maximum liability coverage that
the state or its subdivisions may purchase for tort claims.  The
state and its subdivisions may purchase insurance to cover $2
million for all claims arising out of a single occurrence.
Also, the coverage may not exceed $300,000 for any one person in
a single occurrence.  The substitute increases the state's
liability limit for tort claims to those amounts and provides
for the amounts to be adjusted on an annual basis according to
the federal Implicit Price Deflator for Personal Consumption
Expenditures.  Current limits are $1 million per occurrence and
$100,000 per person.

In addition, the substitute:

(1)  Specifies that the Missouri Public Entity Risk Management
Fund (MOPERM) may be used to pay tort claims against an officer
or employee of a participating entity only in accordance with
the coverage obtained by the entity;

(2)  Clarifies that MOPERM's board of trustees will defend a
claim only in accordance with the entity's coverage;

(3)  Provides any peace officer with civil immunity when
responding to a request for assistance at an incident involving
injuries outside of the officer's jurisdiction; and

(4)  States that Missouri's public policy is that no insurance
policy covering a peace officer's tortious acts should deny
coverage because the officer's acts occurred outside of the
officer's jurisdiction.

FISCAL NOTE:  Cost to General Revenue Fund of Unknown in FY
1999, FY 2000, and FY 2001.  Total fiscal impact is unknown, but
costs are expected to be at least $200,000 annually.  Cost to
State Road Fund of $3,133,000 in FY 1999, FY 2000, and FY 2001.
Cost to Conservation Commission Fund, Insurance Dedicated Fund,
and Department of Natural Resources Funds is Unknown in FY 1999,
FY 2000, and FY 2001.

PROPONENTS:  Supporters say that the liability limits for
governmental entities have not been increased for years and are
inadequate to cover an injured person's medical expenses in many
instances.  The current limits are unfair because the amounts
are too low to allow a governmental entity to be responsible
when it commits a wrong.  The provisions relating to civil
immunity for law enforcement officers would be particularly
helpful in outstate Missouri where it is often more expedient
for an officer in a neighboring jurisdiction to respond to an
emergency situation.  It is necessary to clarify MOPERM's right
to exclude certain types of coverage in its policies.

Testifying for the bill were Representatives Monaco, Thomason,
and Backer; Missouri Association of Trial Attorneys; City of
Lake Lotawana; Tim Howard; Kathy Wiederholt; Missouri Police
Chiefs Association; Missouri State Lodge of the Fraternal Order
of Police; and Missouri Public Entity Risk Management Fund.

OPPONENTS:  Those who oppose the bill say that because
governmental entities often have to assume duties and provide
services that are unprofitable, they should not be subject to
unlimited liability for tort claims.  The bill's provisions
concerning unlimited medical expenses subject governmental
entities to unlimited liability.  (The provisions relating to
unlimited medical expenses were deleted in the committee's
substitute bill.)  Without tort reform regarding joint and
several liability, increasing the liability of governmental
entities will result in the taxpayers being responsible for the
liability of another party.  Increasing the liability limits
should be addressed on a periodic basis by policymakers and not
through an automatic inflation provision.  The provisions
relating to peace officers' immunity require clarification so
they will not be interpreted too broadly.

Testifying against the bill were City of St. Louis; Missouri
Department of Transportation; Missouri Municipal League;
Missouri Organization of Defense Lawyers; City of Kansas City;
Missouri Association of Counties; Missouri United School
Insurance Council; and Missouri Association of Trial Attorneys
(limited to clarifying the immunity provisions relating to law
enforcement officers).

Katharine Hickel, Legislative Analyst

HB 1051 -- Law Enforcement Immunity

Sponsor:  Thomason

This bill provides any law enforcement officer with civil
immunity when responding to a request for assistance or an
accident involving injuries outside the officer's jurisdiction.
The officer's immunity is the same as if the accident or injury
happened within the officer's jurisdiction.