This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0557 - Corporate Counsel Not Mandatory in Proceedings Before AHC
L.R. NO. 2168-01
BILL NO. SB 557
SUBJECT: Attorneys: Administrative Rules
TYPE: Original
DATE: January 8, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue ($49,428) ($52,615) ($53,992)
Total Estimated
Net Effect on All
State Funds ($49,428) ($52,615) ($53,992)
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 Office of the Attorney General (AGO) assume they would
need one additional FTE Assistant Attorney General I ($30,000 per year),
equipment and operating expenses to carry out the provisions of this proposal
with an estimated cost of approximately $53,000 per full fiscal year to the
General Revenue Fund.
AGO provides legal representation for the majority of state agencies in
proceedings before the Administrative Hearing Commission. For example, the
Division of Liquor Control imposes approximately 500 license suspensions per
year, most of which are currently not appealed to the Administrative Hearing
Commission. It is anticipated that the proposed legislation would result in
an increase in the number of suspensions appealed and would require
additional representation from the AGO.
Officials from the Department of Labor and Industrial Relations (Employment
Security) assume the proposed legislation would create costs of approximately
$1,000 in Fiscal Year 1997. Oversight assumes these costs could be absorbed
though existing staff and resources.
Officials from the Department of Labor and Industrial Relations (Division of
Labor Standards) assume there could be a potential increase in appeals to
unemployment compensation claims and contribution rate determinations if the
proposed legislation were to allow accounting or actuarial firms to file
appeals as a general operational practice. If the Division of Labor
Standards experiences a significant increase in staff time and resources
required to implement this legislation, there could be a corresponding budget
request.
Officials from the Department of Natural Resources (DNR) assume the proposed
legislation may allow corporations to request multiple hearings if they do
not believe the designated person adequately represents the corporation or
for various other reasons. If DNR experiences a significant increase in
staff time and resources to implement this legislation, there could be a
corresponding budget request.
Officials from the Department of Social Services - Division of Legal Services
assume the proposed legislation may allow corporations to prolong the length
of hearings where non-attorneys are allowed to make objections, present
evidence, etc. If the Division of Legal Services experiences a significant
increase in staff time and resources to implement this legislation, there
could be a corresponding budget request.
Officials from the following agencies assume that costs incurred as a result
of the proposed legislation would be zero to minimal and could be absorbed
within their respective budgets: Office of Administration, Department of
Agriculture, Department of Conservation, Department of Corrections,
Department of Economic Development, Department of Elementary and Secondary
Education, Department of Health, Department of Higher Education, State
Highway and Transportation Department, Department of Insurance, Department of
Mental Health, Department of Public Safety, Department of Revenue, Office of
State Courts Administrator, State Horse Racing Commission, State Lottery
Commission, State Tax Commission, Highway Department and Highway Patrol
Employees Retirement System, Office of the Senate, Office of the State
Auditor, Office of the Governor, Office of the Secretary of State, Office of
the State Treasurer, Central Missouri State University, Missouri Western
State College, Missouri Southern State College, Truman State University, and
the University of Missouri.
Officials from Harris-Stowe College, Lincoln University, Northwest Missouri
State University, Southeast Missouri State University, Southwest Missouri
State University, and State Fair Community College did not respond to our
fiscal impact request.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE FUND
Costs - Office of the Attorney General (AGO)
Personal Service (1 FTE) ($25,000) ($30,750) ($31,519)
Fringe Benefits (7,685) (9,453) (9,689)
Equipment and Expense (16,743) (12,412) (12,784)
Total Costs - AGO ($49,428) ($52,615) ($53,992)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($49,428) ($52,615) ($53,992)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
$0 $0 $0
DESCRIPTION
The proposed legislation would eliminate the requirement that all Missouri
corporations be represented by an attorney in proceedings before the
Administrative Hearing Commission or any state agency so long as the
corporation is represented by the president, CEO, or other designated
corporate employee. Representation by the corporate employee shall not be
construed to be the "practice of law" as that term is defined in Section
474.010, RSMo.
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
Office of Administration
Department of Agriculture
Department of Conservation
Department of Corrections
Department of Economic Development
Department of Elementary and Secondary Education
Department of Health
Department of Higher Education
State Highway and Transportation Department
Department of Insurance
Department of Mental Health
Department of Public Safety
Department of Revenue
Office of State Courts Administrator
State Horse Racing Commission
State Lottery Commission
State Tax Commission
Highway Department and Highway Patrol Employees Retirement System
Office of the Senate
Office of the State Auditor
Office of the Governor
Office of the Secretary of State
Office of the State Treasurer
Central Missouri State University
Missouri Western State College
Missouri Southern State College
Truman State University
University of Missouri
NOT RESPONDING: Harris-Stowe College, Lincoln University, Northwest Missouri
State University, Southeast Missouri State University, Southwest Missouri
State University, and State Fair Community College.