L.R. NO. 4335-02
BILL NO. SB 950
SUBJECT: Courts: Sovereign Immunity
TYPE: Original
DATE: February 15, 2000
Net Effect on All
State Funds * Unknown fiscal impact (cost or loss) - expected to exceed $100,000 in any given year. Net Effect on All
Federal Funds
FUND AFFECTED
FY 2001
FY 2002
FY 2003 General Revenue
(Unknown)
(Unknown)
(Unknown) Conservation
Commission Fund
(Unknown)
(Unknown)
(Unknown) Dedicated Funds
(Unknown)
(Unknown)
(Unknown) Highway Fund
(Unknown)
(Unknown)
(Unknown) Total Estimated
(Unknown)*
(Unknown)*
(Unknown)*
FUND AFFECTED
FY 2001
FY 2002
FY 2003 DNR Federal Funds
(Unknown)
(Unknown)
(Unknown) Total Estimated
(Unknown)
(Unknown)
(Unknown)
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | (Exceeds $1,000,000) | (Exceeds $1,000,000) | (Exceeds $1,000,000) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
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 (DHT) assume the proposed legislation will most likely subject DHT to additional claims. They stated that it is impossible to estimate the number of additional claims and the amount to which the DHT may be liable as a result of such claims; however, the amount could be substantial and could exceed $100,000 per year.
Officials from the Office of Administration - Division of Risk Management (COA) assume the proposed legislation would have a fiscal impact on their budget. They could not specify an exact fiscal impact but assume it would be reasonable to expect costs to exceed $100,000 per year. Due to the nature of these types of claims, the state could experience several years of low losses and then be hit with a significantly costly case.
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 increased litigation. The costs associated with this proposal would be associated with the increased litigation. 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.
ASSUMPTION (continued)
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 2001 FY 2002 FY 2003
(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.
HIGHWAY FUND
Total fiscal impact is unknown, but costs could exceed $100,000 annually.
DEDICATED FUNDS
Costs - Department of Natural Resources
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.
FEDERAL FUNDS
Costs - Department of Natural Resources
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 2001 FY 2002 FY 2003
(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. The proposed legislation also clarifies the "dangerous condition" exception to sovereign immunity, stating that it is not limited to a defect on the property. A dangerous condition maintained may also give rise to liability.
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.
Jeanne Jarrett, CPA
Director
February 15, 2000