COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 0597-01

BILL NO.: SB 122

SUBJECT: Attorney General; State Departments

TYPE: Original

DATE: January 25, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Office of the Attorney General, Department of Elementary and Secondary Education, Department of Transportation, Department of Labor and Industrial Relations, Department of Health, Department of Agriculture, Coordinating Board of Higher Education, Office of Administration, Department of Insurance, Department of Public Safety, Department of Revenue and Department of Social Services assume the proposed legislation would have no fiscal impact on their agencies.



Officials from the Department of Economic Development assume that any costs to their department for additional reporting/processing cannot be estimated.



Officials from the Department of Mental Health (DMH) stated that the department has not typically retained outside counsel. Expenditures less than $25,000.00 would still be handled through the local purchase authority. Expenditures greater than $25,000.00 would be bid through OA-Division of Purchasing and Materials Management. Given the past history, there would be no fiscal impact to DMH. However, future events which may require outside legal counsel cannot be predicted.



Officials from the Department of Conservation assume the proposed legislation could increase litigation costs for the department. Officials stated that the amount of fiscal impact is negligible.



Officials from the Department of Natural Resources (DNR) indicated they currently retain lawyers throughout the state to serve as hearing officers on commission actions for permit appeals. In the aggregate, the DNR may spend more than $100,000 for these services. The amount spent on this activity is dependent on the number of permit appeals the commissions hear. The DNR is unable to determine how many hearings and the associated costs that may arise, but officials assume this proposal could result in a procedural change.



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



The proposed legislation could have a fiscal impact on small businesses involved in the legal profession.



DESCRIPTION



The proposed legislation requires state agencies to use competitive bidding when contracting for legal services. State agencies shall not enter into a contract that exceeds or can be reasonably

expected to exceed $100,000 without a specific appropriation for that purpose.



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 Agriculture

Office of the Attorney General

Coordinating Board of Higher Education

Office of Administration

Department of Elementary and Secondary Education

Department of Labor and Industrial Relations

Department of Economic Development

Department of Transportation

Department of Natural Resources

Department of Insurance

Department of Mental Health

Department of Health

Department of Revenue

Department of Social Services

Department of Conservation

Department of Public Safety



NOT RESPONDING: Department of Corrections



Jeanne Jarrett, CPA

Director

January 25, 2001