COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1801-03
Bill No.: Perfected SS for SCS for SBs 433 & 248
Subject: Alcohol; Liability
Type: Original
Date: April 10, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| 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.
ASSUMPTION
In response to legislation regarding dram shop liability from earlier this session, officials of the Office of Prosecution Services, Department of Public Safety - Division of Liquor Control, Missouri Highway Patrol, Office of the State Courts Administrator and the Office of the State Public Defender each assumed the proposal would not fiscally impact their respective agencies.
Officials from the Department of Insurance (INS) state that this legislation requires review and approval of premium rates for dram shop liability coverage required to be in a separate rider and charged a separate premium. There are approximately 110 companies who currently write liquor liability coverage. These companies would be required to provide this coverage in a separate rider with separate premiums charged. Legislation does not provide criteria by which the rates are approved. Without a standard specified, INS assumes that we would review the riders and premiums for reasonableness. Additional Actuarial and Research Analyst staff time will be required to conduct these reviews. INS anticipates that this could be absorbed with existing staff given the number of companies and only a general review for reasonableness. If more companies chose to provide this coverage, or if the review and approval of rates involves more than the standard review for reasonableness additional staff may need to be requested by INS.
| 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
Small businesses that sell intoxicating beverages by the drink might benefit from different insurance premiums.
DESCRIPTION
This proposal addresses "dram shop" liability. The proposal deletes current language in the revised statutes regarding dram shop liability provisions and replaces it with stipulations regarding insurance coverage of establishments licensed to sell liquor by the drink.
The proposal states that any insurance company who sells liability insurance which provides coverage for dram shop liability shall provide such coverage in a separate rider and charge a separate premium for such coverage. The rates for such insurance coverage shall be reviewed and approved by the director of the department of insurance.
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 the State Courts Administrator
Office of Prosecution Services
Office of the State Public Defender
Department of Public Safety
Liquor Control
Missouri Highway Patrol
Jeanne Jarrett, CPA
Director April 10, 2001