COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO. 2808-01

BILL NO. SB 648

SUBJECT: Administrative Law; Attorneys

TYPE: Original

DATE: January 14, 2000




FISCAL SUMMARY


ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
General Revenue ($52,989) ($54,628) ($56,056)
Total Estimated

Net Effect on All

State Funds

($52,989) ($54,628) ($56,056)



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Office of the Attorney General (AGO) assume they would need one additional FTE Assistant Attorney General I ($31,500 per year), equipment and operating expenses to carry out the provisions of the proposed legislation with an estimated cost of approximately $54,000 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.



In response to a similar proposal, officials from the Department of Social Services - Division of Legal Services assumed corporations could prolong the length of hearings by non-attorneys being 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 proposal, 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: Department of Natural Resources, 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, Department of Labor and Industrial Relations, Missouri Department of Transportation, Department of Insurance, Department of Mental Health, Department of Public Safety, Department of Revenue, Department of Social Services, and Office of State Courts Administrator.



In response to a similar proposal, officials from the Office of the Secretary of State assumed there would be no fiscal impact on their agency.















FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003

(10 Mo.)

GENERAL REVENUE FUND



Costs - Office of the Attorney General (AGO)

Personal Service (1 FTE) ($26,250) ($32,288) ($33,095)

Fringe Benefits (8,072) (9,928) (10,177)

Equipment and Expense (18,667) (12,412) (12,784)



ESTIMATED NET EFFECT ON

GENERAL REVENUE FUND ($52,989) ($54,628) ($56,056)





FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003

(10 Mo.)



$0 $0 $0



FISCAL IMPACT - Small Business



Small businesses seeking relief in administrative hearings could experience a savings in legal expenses, as they would no longer be required to employ an attorney for such hearings.



DESCRIPTION



The proposal would allow corporations to designate an individual who is not an attorney to represent them in any proceeding before the Administrative Hearing Commission or any other state agency. Such representation would not deemed to be the practice of 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



Office of the Attorney General

Department of Social Services -- Division of Legal Services

Department of Natural Resources

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

Department of Labor and Industrial Relations

Missouri Department of Transportation

Department of Insurance

Department of Mental Health

Department of Public Safety

Department of Revenue

Department of Social Services

Office of State Courts Administrator

Office of the Secretary of State











Jeanne Jarrett, CPA

Director

January 14, 2000