This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0479 - Sovereign Immunity Changes
L.R. NO. 2192-02
BILL NO. SB 479
SUBJECT: Courts: Sovereign Immunity
TYPE: Original
DATE: January 16, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue ($212,322) ($219,155) ($225,678)
Conservation (more than (more than (more than
Commission Fund $100,000) $100,000) $100,000)
State Parks Fund (Unknown) (Unknown) (Unknown)
State Road Fund (more than (more than (more than
$100,000) $100,000) $100,000)
Total Estimated (Unknown but (Unknown but (Unknown but
Net Effect on All would exceed would exceed would exceed
State Funds $400,000) $400,000) 400,000)
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 (Unknown) (Unknown) (Unknown)
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Highways and Transportation (DHT) assume the
proposed legislation could result in a substantial cost to the State Road
Fund; however, the cost would depend on the number of claims filed and the
size of the verdicts entered in those cases. Based on the claims and
verdicts handled in FY 92 through FY 94, this proposal would cost DHT an
additional $1,017,000. Therefore, DHT officials assume the fiscal impact
would exceed $100,000 annually.
Officials from the Missouri Department of Conservation (MDC) assume the
proposed legislation would have a fiscal impact on their budget. MDC
officials could not specify an exact fiscal impact, although they assume it
would be reasonable to expect costs to exceed $100,000 annually.
Officials from the Office of State Courts Administrator assume the proposed
legislation would not appreciably impact the budget of the judiciary.
Officials from the Office of Administration - Division of Risk Management
(COA) assume the proposed legislation would have a significant fiscal impact
on their budget. COA officials have conservatively estimated the fiscal
impact on their budget to be approximately $200,000 annually.
Officials from the Office of the Attorney General (AGO) assume they would
need .25 FTE Assistant Attorney General I ($30,000 per year), equipment and
operating expenses to carry out the provisions of this bill with an estimated
annual cost of $13,000 to the General Revenue Fund.
Officials from the Department of Natural Resources (DNR) assume the proposed
legislation would result in significant costs to the State Parks Fund. No
additional resources or staffing would be required. Anticipated costs would
arise in reimbursement of attorneys fees from the Attorney General's office
and judgment awards. Office of Administration - Division of Risk Management
would calculate risk associated with the proposal. Exact costs that would
result from passage of the proposed legislation are unknown.
Officials from the City of Kansas City (CKC) and the City of St. Louis -
Budget Division (STL) did not respond to our fiscal impact request.
Oversight assumes the proposed legislation would have a significant fiscal
impact on CKC and STL based on their responses to a similar fiscal note last
session. Many cases are currently settled for $100,000; therefore, there is
a possibility that numerous cases that were previously settled out of court
would now go to trial and may result in large judgments against CKC and STL.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE FUND
Costs - Office of Administration ($200,000) ($206,000) ($212,180)
Costs - Office of Attorney General (AGO)
Personal Service (.25 FTE) ($ 6,250) ($ 7,688) ($ 7,880)
Fringe Benefits (1,921) (2,363) (2,422)
Equipment and Expense (4,151) (3,104) (3,196)
Total Costs - AGO ($12,322) ($13,155) ($13,498)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($212,322) ($219,155) ($225,678)
CONSERVATION COMMISSION FUND
Total fiscal impact is unknown but costs are expected to exceed $100,000
annually.
STATE ROAD FUND
Total fiscal impact is unknown but costs are expected to exceed $100,000
annually.
STATE PARKS FUND
Total fiscal impact is unknown. Entirely dependent on the number of
claims filed and the award of judgments resulting.
FISCAL IMPACT - Local Government FY 1996 FY 1997 FY 1998
(10 Mo.)
KANSAS CITY GENERAL REVENUE FUND
Total fiscal impact is unknown. Entirely dependent on the number of
claims filed and the award of judgments resulting.
CITY OF ST. LOUIS GENERAL REVENUE FUND
Total fiscal impact is unknown. Entirely dependent on the number of
claims filed and the award of judgments resulting.
DESCRIPTION
The proposed legislation would make several revisions relating to sovereign
immunity. The intent of Section 537.600, RSMo would be clarified to specify
that this section is not intended to create sovereign immunity where it did
not previously exist.
An insurer would not be able to assert a defense of sovereign immunity in
cases where a public entity had liability insurance covering tortious acts of
the entity or its employees. The procedures for assessing damages in tort
cases would not be affected by any insurance maintained by the public entity.
Public entities would be able to acquire liability coverage for up to
$500,000 for an action brought by a single claimant, up from $100,000.
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 State Courts Administrator
Office of the Attorney General
Missouri Department of Conservation
Department of Natural Resources
Department of Highways and Transportation
Office of Administration - Division of Risk Management
NOT RESPONDING: City of Kansas City - Budget Division; City of St. Louis -
Budget Division.