SB 0495 - Fiscal Note

Fiscal Note - SB 0495 - Revises statute of limitations of tort caused by improvements to real estate

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2434-01

BILL NO. SB 495

SUBJECT: Civil Procedure; Liability; Property, Real and Personal

TYPE: Original

DATE: February 20, 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	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Transportation (MoDOT) assume the proposed legislation may increase the incidence and cost of construction-related litigation and judgements; however, the long-range fiscal impact on their agency is impossible to predict. MoDOT further assumes the fiscal impact will be insignificant.

Officials of the Office of Administration assume this proposal would not fiscally impact their agency.

In response to a similar proposal last session, the following agencies assumed there would be no fiscal impact on their agencies: the Office of the Attorney General, the Office of the State Courts Administrator, and the Department of Economic Development.

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

The proposal may have a fiscal impact on small businesses as it adds economic losses to the type of damages that are available in a tort claim and shortens the period of time in which a suit may be filed for defective construction.

DESCRIPTION

The proposed legislation makes changes in the statute of limitations of tort actions against architects, engineers, and builders arising from improvements to real estate. This act revises the starting date of the statute of limitations to begin after "substantial completion". Current law

sets the starting date as "completion". The act also adds economic loss to the list of damages restricted by the 10 year time limit.

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 State Courts Administrator

Office of the Attorney General

Office of Administration

Department of Transportation

Department of Economic Development

Jeanne Jarrett, CPA

Director

February 20, 1998