COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3397-01
Bill No.: SB 840
Subject: Housing; Real and Personal Property; Contracts and Contractors; Courts; Professional Licenses; Architects
Type: Original
Date: January 21, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Transportation (MoDOT) assume the proposed legislation may increase the incidence and cost of construction-related litigation and judgments; however, the long-range fiscal impact on MoDOT is impossible to predict. Overall, MoDOT officials do not expect the proposal to have a significant fiscal impact on their agency.
Officials from the Department of Natural Resources (DNR) assume the proposed legislation would create another step that would need to be done when filing a petition with courts against a licensed professional. The DNR's enforcement actions are usually against the permitted facility and not the licensed professional. Therefore, the DNR assumes there would not be a fiscal impact from this provision. The DNR also assumes they would not be asked in many cases to provide the professional written opinion. However, if the number of requests is greater than anticipated, then the DNR may request additional resources.
Officials from the Office of the State Courts Administrator, Department of Economic Development - Division of Professional Registration, Department of Corrections, and the Department of Conservation assume the proposal would have no fiscal impact on their agencies.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
The proposal could have a fiscal impact on small businesses providing home improvements or on licensed architects, surveyors, or engineers who provide a written opinion of the care provided by another like-licensed professional.
DESCRIPTION
The proposal would revise the statute of limitations and add economic loss damages for home improvements. The 10-year statute of limitations would remain the same. Currently, the time period begins to run at completion of the improvement. However, "completion" is not currently defined in the statute. This proposal would change the starting date of the time limit to "substantial completion" and set forth a definition for substantial completion. The proposal would also add economic loss to the list of damages restricted by the 10-year time limit.
The proposal would also require plaintiffs in actions against licensed architects, surveyors, or engineers, to file affidavits with courts stating that plaintiffs obtained the written opinion of a legally qualified like licensed professional. The statement made by the licensed professional would state that the defendant licensed professional failed to use such care as a reasonably prudent and careful licensed professional would have under similar circumstances. The affidavit would be filed within ninety-five days of the filing of the petition. The case could be dismissed if the plaintiff or his attorney fail to file such affidavit. A separate affidavit would be filed for each defendant named in a petition. The proposal would not apply to actions filed in small claims court.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.
SOURCES OF INFORMATION
Office of the State Courts Administrator
Department of Transportation
Department of Natural Resources
Department of Corrections
Department of Conservation
Department of Economic Development
- Division of Professional Registration
Mickey Wilson, CPA
Acting Director
January 21, 2002