SB 0476 - Fiscal Note

Fiscal Note - SB 0476 - Requires open meetings on bids before the Consolidated Health Care Board

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 1976-01

BILL NO. SB 476

SUBJECT: Boards, Commissions, Committees, Councils; Employees - Employers; Health Care; Insurance - General; Insurance - Life; Insurance - Medical; Public Records, Public Meetings; State Employees

TYPE: Original

DATE: January 16, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health, the Department of Insurance, the Office of Administration, the Missouri Senate, the Missouri House of Representatives, the Office of Governor, and the Office of Attorney General assume this proposal would not fiscally impact their agencies.

Missouri Consolidated Health Care Plan (HCP) officials assume that the part of the proposal eliminating the Director of the Department of Insurance as an ex-officio member of HCP's board would have no apparent fiscal impact. HCP states that the proposal's requirement that all contract bidding processes be in open session of the HCP board would severely limit HCP's negotiating ability and would result in the addition of millions of dollars annually to the state's cost and the cost to other public entities.

Oversight assumes there would be minimal fiscal impact due to the provisions of the bill. Oversight contacted the Office of Administration - Division of Purchasing (Purchasing) concerning their bidding process. Purchasing stated that if a request had specific specifications that all potential bidders had knowledge of then typically all bids when opened are available for public inspection. This allows bidders to compare their own bids against all other bidders.

The discussion of such bids in open meetings may or may not result in a different outcome.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would require any discussion or consideration by the Missouri Consolidated Health Care Plan Board, relating to the bid or contract process, to be open to the public. This proposal would also remove the Director of the Department of Insurance from the Board of Trustees for Missouri Consolidated Health Care Plan and would add one non-plan member appointed by the Governor to the Board.

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 Health

Department of Insurance

Office of Administration

Missouri Senate

Missouri House of Representatives

Office of Governor

Office of Attorney General

Missouri Consolidated Health Care Plan

Jeanne Jarrett, CPA

Director

January 16, 1998