This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0973 - Clarifies Sovereign Immunity Law
L.R. NO. 3577-02
BILL NO. SB 973
SUBJECT: Courts: Sovereign Immunity
TYPE: Original
DATE: March 19, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue (Unknown) (Unknown) (Unknown)
Conservation
Commission Fund (Unknown) (Unknown) (Unknown)
State Parks Fund (Unknown)* (Unknown)* (Unknown)*
Total Estimated
Net Effect on All
State Funds (Unknown)* (Unknown)* (Unknown)*
* Unknown fiscal impact (cost or loss) - expected to exceed $100,000
in any given year.
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 (Exceeds (Exceeds (Exceeds
$1,000,000) $1,000,000) $1,000,000)
FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri Department of Conservation (MDC) assume the
proposed legislation would have a significant fiscal impact on their budget.
MDC officials assume this proposal would make their agency responsible for
proprietary functions such as boat rentals. MDC did not specify an exact
fiscal impact. However, in response to similar proposals, they have stated
that it would be reasonable to expect their 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 Department of Highways and Transportation assume the
proposed legislation would have no fiscal impact on their agency as long as
the two waivers of sovereign immunity in Section 537.600 remain exactly as
written.
Officials from the Office of Administration - Division of Risk Management
assume the proposed legislation would have no fiscal impact on their
budget.
Officials from the Office of the Attorney General (AGO) assume the proposal
legislation would have a significant fiscal impact on their agency. AGO has
stated that the amount of the costs are unknown, as they will be dependent on
the amount of litigation resulting from this proposal.
Officials from the Department of Natural Resources (DNR) assume the proposed
legislation would result in significant costs to the State Parks Fund. DNR
assumes that claimants would be allowed to file or refile an action against
public entities up to one year after the effective date of this legislation.
The costs associated with this proposal would be associated with increased
litigation and would create considerable exposure for the State Parks Fund.
DNR is unable to determine the costs involved; however, they are expected to
exceed $100,000 annually.
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 the City of Kansas City, the City of St. Louis, and all other
cities. In response to a similar proposal last session, both CKC and STL
reported a cost of over $1,000,000 annually. Significant costs would result
for all municipalities, as they would no longer be granted sovereign immunity
for proprietary functions.
Officials from the Department of Public Safety (Missouri State Highway
Patrol, Capitol Police, Division of Fire Safety, State Emergency Management
Agency, Missouri State Water Patrol, Division of Liquor Control, and Division
of Highway Safety) assume this proposal would have no fiscal impact on their
agency.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE FUND
Costs - Office of Attorney General (AGO)
Total fiscal impact is unknown, but costs could exceed $100,000
annually.
CONSERVATION COMMISSION FUND
Total fiscal impact is unknown, but costs could exceed $100,000
annually.
STATE PARKS FUND
Total fiscal impact is unknown, but costs are expected to exceed
$100,000 annually. This would be entirely dependent on the number of
claims filed and the award of judgments resulting.
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
KANSAS CITY GENERAL REVENUE FUND
Total fiscal impact is unknown, but costs would likely exceed
$1,000,000 annually. This would be 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, , but costs would likely exceed
$1,000,000 annually. This would be entirely dependent on the number of
claims filed and the award of judgments resulting.
DESCRIPTION
The proposed legislation would clarify the sovereign immunity law with regard
to proprietary functions. The proposal would state that a proprietary
function, which means: 1) an activity in competition with private
enterprise; or 2) an activity engaged in for a special benefit or profit, is
not entitled to sovereign immunity protection, the decision of Wollard v.
City of Kansas City notwithstanding. For the purpose of determining whether
an activity is in competition or for profit, the activity shall be viewed in
light of the economic and competitive conditions existing at the time the
injury occurred.
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
Department of Public Safety - Missouri State Highway Patrol; Capitol Police;
Division of Fire Safety; State Emergency Management Agency; Missouri
State Water Patrol; Division of Liquor Control; and Division of Highway
Safety
NOT RESPONDING: City of Kansas City - Budget Division; City of St. Louis -
Budget Division.