SB 0526 - Fiscal Note

Fiscal Note - SB 0526 - Revises law governing lodging establishments

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2542-02

BILL NO. Truly Agreed and Finally Passed HCS for SB 526

SUBJECT: Motels and Hotels: Health Department

TYPE: Original

DATE: May 6, 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 Health, Department of Economic Development - Division of Professional Registration, the Department of Public Safety - Division of Professional Registration, and Office of Attorney General assume this proposal would not fiscally impact their agency.

Officials from the Office of State Courts Administrator assume that, after a period of adjustment, the proposed legislation would not cause a significant increase in the workload of the courts.

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

This proposal could have an undetermined positive fiscal impact on small businesses (i.e., hotel operators and other lodging establishments) as it would reduce their exposure to legal liability in certain situations.

DESCRIPTION

This proposal would require the Department of Health to inspect seasonal resorts in third class counties by August 1 of each year. The proposal would also clarify the definition of a hotel and gives hotel operators the right to refuse or deny the use of a room, accommodations, facilities, or other privileges of the hotel if:

(1) An individual is unwilling or unable to pay for the room;

(2) An individual is visibly intoxicated, under the influence of alcohol or drugs, and disorderly;

(3) The operator believes the room or accommodation is being sought for unlawful purpose;

DESCRIPTION (continued)

(4) Something is being brought in which may create an unreasonable danger or risk, including unlawful use of firearms or explosives; or

(5) An individual's use of a room or accommodations would result in a violation of the maximum capacity of the hotel.

The proposal would allow hotel operators to require prospective guests to demonstrate an ability to pay for the accommodations and to require parents/guardians of prospective minor guests to supply a security deposit or be financially responsible for any damages caused by the minor guest. The proposal lists reasons why a hotel operator may remove a guest from the hotel. Hotel operators may also require that prospective guests provide a valid form of identification. A guest register may be kept and maintained.

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

Office of State Courts Administrator

Department of Economic Development

Division of Professional Registration

Department of Public Safety

Division of Professional Registration

Office of Attorney General

Jeanne Jarrett, CPA

Director

May 6, 1998