This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0720 - Judgments Without Exhausting Administrative Remedies
L.R. NO.  2594-01
BILL NO.  Truly Agreed To and Finally Passed SB 720
SUBJECT:  Administrative Review
TYPE:     Original
DATE:     April 18, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue                $0*                 $0*               $0*

Total Estimated
Net Effect on All
State Funds                    $0*                 $0*               $0*
* This total does not include unknown costs to the Office of the Attorney
General.


                   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 the proposed
legislation could have a fiscal impact on their office as issues could go
directly to the courts and the AGO represents all regulatory state agencies
at the circuit court level.  Administrative Hearing Commission (AHC)
proceedings are currently held here in Jefferson City.  This proposal would
allow cases to be filed in courts all over the state, or even at both levels
- with the circuit court and with the administrative hearing tribunal.
Therefore, AGO officials have no basis for determining the number of
additional court cases and cannot make a reasonable estimate of the increased
costs involved.

In response to a similar proposal, officials from the Department of Insurance
(INS) assumed the proposed legislation would cause an increase of ten percent
in their legal section because it would eliminate the requirement to exhaust
administrative remedies prior to requesting declaratory judgments in circuit
court.  INS officials assumed they would need 0.50 FTE Senior Counsel
($32,000 per year) plus equipment and operating expenses to carry out the
provisions of a similar proposal with an estimated cost of approximately
$29,000 per full fiscal year to the General Revenue Fund.

Oversight assumes that any costs incurred by INS as a result of this proposal
could be absorbed with existing resources.  However, passage of more than one
similar bill could require INS to request increased appropriations to cover
the costs involved.

In response to a similar proposal this session, officials from Southwest
Missouri State University (SMS) assumed this legislation could cause their
agency to incur additional administrative, office and communication expenses
in the approximate amount of $50,000 per full fiscal year.

Oversight assumes that any costs incurred by SMS as a result of this proposal
could be absorbed with existing resources.  However, passage of more than one
similar bill could require SMS to request increased appropriations to cover
the costs involved.

Officials from the Office of State Courts Administrator (CTS) would not
expect the numbers of cases which fall into the enumerated categories to be
very large and, therefore, would not expect the increased workload to the
judiciary to be very substantial.  CTS officials feel this proposal would
require some additional work to conduct the initial jurisdictional hearings;
however, a number of these cases are already appealed to the courts each
year.  Overall, CTS officials assume the increased potential workload would
not be significant.

In response to a similar proposal this session, officials from the Office of
Administration assumed they could have additional costs, as more proceedings
would be litigated in court; however, they felt the cost was difficult to
quantify.

Officials from the following agencies assume the proposed legislation would
have no fiscal impact on their respective budgets:  Department of Highways
and Transportation, Department of Natural Resources, Department of Health,
Department of Mental Health, Office of the Governor, Department of Public
Safety, Office of Secretary of State, Missouri Department of Agriculture,
Office of Prosecution Services, Department of Elementary and Secondary
Education, Department of Economic Development, Department of Revenue,
Department of Labor and Industrial Relations (Division of Employment
Security; Division of Workers' Compensation; Labor and Industrial Relations
Commission).

In response to a similar proposal earlier this session, officials from the
following agencies assumed there would be no fiscal impact on their
respective budgets:  Missouri Lottery Commission, Office of the State Public
Defender, Highway and Transportation Employees' and Highway Patrol Retirement
System, Office of State Auditor, Missouri House of Representatives, Missouri
Department of Conservation, State Tax Commission, Secretary of Missouri
Senate, Office of State Treasurer, Department of Corrections, Missouri Gaming
Commission, Harris-Stowe College, Missouri Western State College, Department
of Social Services, Missouri Veterans Commission, Department of Health, and
Northeast Missouri State University.

Officials from Central Missouri State University, Lincoln University,
Missouri Southern State College, Northwest Missouri State University,
Southeast Missouri State University, State Fair Community College, and the
University of Missouri -Columbia did not respond to our fiscal impact
request.

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

Total Costs - Office of Attorney General (Unknown) (Unknown) (Unknown)

ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND                           $0*       $0*       $0*

* This total does not include unknown costs to the Office of the Attorney
General.


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

                                                $0        $0        $0


DESCRIPTION

The proposed legislation would repeal the provision placing jurisdiction
within the Administrative Hearing Commission for complaints questioning the
validity or applicability of an administrative rule or regulation.  Further,
the proposal would permit a plaintiff to seek a declaratory judgment from a
court regarding the validity of an agency rule without having to exhaust all
administrative remedies when:  1) the court determines that the
administrative agency has no authority to grant the relief sought; 2) the
only issue presented for adjudication is a constitutional issue or other
question of law; or 3) the delay would cause the plaintiff to suffer
irreparable harm.

This proposal would exempt any matters covered by Chapters 288, 302, and 303
(Employment Security, Drivers' and Commercial Drivers' Licenses, and Motor
Vehicle Responsibility Law).

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
Office of Attorney General
Southwest Missouri State University
Office of State Courts Administrator
Department of Highways and Transportation
Department of Natural Resources
Department of Mental Health
Department of Social Services
Office of Administration
Administrative Hearing Commission
Office of the Governor
Missouri Lottery Commission
Department of Public Safety
Office of the State Public Defender
Highway and Transportation Employees' and Highway Patrol Retirement System
Office of Secretary of State
Office of State Auditor
Secretary of Missouri House of Representatives
Missouri Department of Conservation
Missouri Department of Agriculture
Office of Prosecution Services
Department of Elementary and Secondary Education
State Tax Commission
Missouri Veterans Commission
Department of Economic Development
Secretary of Missouri Senate
Office of State Treasurer
Department of Health
Department of Corrections
Department of Labor and Industrial Relations (Division of Workers'
  Compensation; Labor and Industrial Relations Commission; Division of
Employment Security)
Missouri Gaming Commission
Northeast Missouri State University
Missouri Western State College
Harris-Stowe College


NOT RESPONDING:  Central Missouri State University; Lincoln University;
Missouri Southern State College; Northwest Missouri State University;
Southeast Missouri State University; State Fair Community College; and
University of Missouri-Columbia.