Fiscal Note - SB 0014 - Corporations Do Not Have To Be Represented By Attorneys In Proceedings Before the AHC
L.R. NO. 0258-01
BILL NO. SB 14
SUBJECT: Attorneys: Administrative Rules
TYPE: Original
DATE: January 15, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($48,876) ($51,935) ($53,295)
Total Estimated
Net Effect on All
State Funds ($48,876) ($51,935) ($53,295)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of the Attorney General (AGO) assume they would
need one additional FTE Assistant Attorney General I ($30,000 per year),
equipment and operating expenses to carry out the provisions of this proposal
with an estimated cost of approximately $53,000 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.
Officials from the Department of Natural Resources (DNR) assume the proposed
legislation may allow corporations to request multiple hearings if they do
not believe the designated person adequately represents the corporation or
for various other reasons. If DNR experiences a significant increase in
staff time and resources to implement this proposal, there could be a
corresponding budget request.
Officials from the Department of Social Services - Division of Legal Services
assume the proposed legislation may allow corporations to prolong the length
of hearings where non-attorneys are 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: Office of Administration, Department of
Agriculture, Department of Conservation, Department of Corrections,
Department of Economic Development (Administrative Services, Division of
Labor Standards, Division of Employment Security, Division of Highway
Safety), Department of Elementary and Secondary Education, Department of
Health, Department of Higher Education, Department of Labor and Industrial
Relations (Division of Labor Standards, Division of Workers' Compensation,
Division of Employment Security, State Board of Mediation, Commission on
Human Rights), Missouri Department of Transportation, Department of
Insurance, Department of Mental Health, Department of Public Safety (State
Water Patrol, State Highway Patrol, Division of Liquor Control, Division of
Fire Safety, Capitol Police), Missouri Veterans Commission, Department of
Revenue, Office of State Courts Administrator, State Lottery Commission,
State Tax Commission, Missouri Gaming Commission, Office of the Senate,
Missouri House of Representatives, Office of the State Auditor, Office of the
Governor, Office of the Lieutenant Governor, Office of the Secretary of
State, Office of the State Treasurer, Central Missouri State University,
Missouri Western State College, Truman State University, Southeast Missouri
State University, Southwest Missouri State University, and the University of
Missouri.
In response to a similar proposal, Missouri Southern State College assumed
there would be no fiscal impact on their budget.
Officials from Harris-Stowe College, Lincoln University, Northwest Missouri
State University, and State Fair Community College did not respond to our
fiscal impact request.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Costs - Office of the Attorney General (AGO)
Personal Service (1 FTE) ($25,000) ($30,750) ($31,519)
Fringe Benefits (7,133) (8,773) (8,992)
Equipment and Expense (16,743) (12,412) (12,784)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($48,876) ($51,935) ($53,295)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(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 pertain to the Administrative Hearing Commission (AHC) and
would allow corporate CEO's, presidents and designated employees to represent
the corporation in all proceedings before the AHC. Representation by the
corporate CEO, president or designated employee before the AHC would not be
considered the "practice of law" as defined in Section 484.010, RSMo. If
passed, this proposal would overturn 1 CSR 15-2.250 which mandates that
attorneys represent corporations in all proceedings before the AHC.
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 Natural Resources
Department of Social Services -- Division of Legal Services
Office of Administration
Department of Agriculture
Department of Conservation
Department of Corrections
Department of Economic Development -- Administrative Services, Division of
Labor Standards, Division of Employment Security, Division of Highway
Safety
Department of Elementary and Secondary Education
Department of Health
Department of Higher Education
Department of Labor and Industrial Relations -- Division of Labor Standards,
Division of Workers' Compensation, Division of Employment Security,
State Board of Mediation, Commission on Human Rights
Missouri Department of Transportation
Department of Insurance
Department of Mental Health
Department of Public Safety -- State Water Patrol, State Highway Patrol,
Division of Liquor Control, Division of Fire Safety, Capitol Police
Missouri Veterans Commission
Department of Revenue
Office of State Courts Administrator
State Lottery Commission
State Tax Commission
Missouri Gaming Commission
Office of the Senate
Missouri House of Representatives
Office of the State Auditor
Office of the Governor
Office of the Lieutenant Governor
Office of the Secretary of State
Office of the State Treasurer
Central Missouri State University
Missouri Western State College
Truman State University
Southeast Missouri State University
Southwest Missouri State University
University of Missouri
NOT RESPONDING: Missouri Southern State College, Harris-Stowe College,
Lincoln University, Northwest Missouri State University, and State Fair
Community College.
This Fiscal Note is not an official copy and should not be quoted or cited.