This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0481 - Amends Supreme Court rule 5.29 to allow non-attorneys to represent themselves before certain state agencies
SB 481 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2527-01

BILL NO. SB 481

SUBJECT: Attorneys: Administrative Rules

TYPE: Original

DATE: February 27, 1998


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($50,800) ($51,935) ($53,295)
Total Estimated

Net Effect on All

State Funds

($50,800) ($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

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

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.

In response to similar legislation, officials from the Department of Natural Resources (DNR) assumed 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, Department of Elementary and Secondary Education, Department of Health, Department of Higher Education, Department of Labor and Industrial Relations, Missouri Department of Transportation, Department of Insurance, Department of Mental Health, Department of Public Safety, 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, ASSUMPTION (Continued)

Missouri Western State College, Truman State University, Southwest Missouri State University, University of Missouri, and the Office of Prosecution Services.

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 Southeast Missouri State University 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 (18,667) (12,412) (12,784)

ESTIMATED NET EFFECT ON

GENERAL REVENUE FUND ($50,800) ($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

This act expands the effect of Supreme Court Rule 5.29 to proceedings before the Administrative Hearing Commission and Worker's Compensation Commission. Current rule provides for self representation, charging of fees, and business representation by certain employees of the business only in proceedings before the state division of employment security. This act expands these provisions to apply to proceedings before the Administrative Hearing Commission, and Worker's Compensation Commission.

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

Department of Elementary and Secondary Education

Department of Health

Department of Higher Education

Department of Labor and Industrial Relations

Missouri Department of Transportation

Department of Insurance

Department of Mental Health

Department of Public Safety

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

SOURCES OF INFORMATION (Continued)

Office of the Secretary of State

Office of the State Treasurer

Central Missouri State University

Missouri Western State College

Truman State University

Southwest Missouri State University

University of Missouri

Office of Prosecution Services



NOT RESPONDING: Harris-Stowe College, Missouri Southern State College, Lincoln University, Northwest Missouri State University, and Southeast Missouri State University.





Jeanne Jarrett, CPA

Director

February 27, 1998