This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0676 - Allows county commissions to replace absentee board members
SB 676 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3151-03

BILL NO. HCS for SB 676

SUBJECT: Counties: Insurance - Medical

TYPE: Original

DATE: April 16, 1998

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 1999 FY 2000 FY 2001
Insurance Dedicated $0 to $3,800 $0 to $3,800 $0 to $3,800
Total Estimated

Net Effect on All

State Funds

 $0 to $3,800 $0 to $3,800 $0 to $3,800



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 UNKNOWN UNKNOWN UNKNOWN

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.



FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Administration and the Department of Corrections assumes this proposal would not fiscally impact their agencies.

Department of Insurance (INS) officials state there are 114 counties in Missouri. INS states that any three or more counties may form a business association and file articles of association with INS. INS states that each filing for original and renewal licenses would be accompanied with a $100 license fee. INS estimates a range of $0 to $3,800 in revenue for the Insurance Dedicated Fund. INS anticipates that current appropriations and staff would be able to absorb the work duties in this proposal. However, INS states that if additional proposals are approved during the legislative session, INS may need to request an increase in appropriations due to the combined effect of multiple proposals.

The Missouri Association of Counties did not respond to our fiscal impact request. Oversight assumes there would savings in health care costs for jailed prisoners for those counties that would become part of an association. Oversight is unable to determine a fiscal impact on those counties due to the unknown of how many counties would join.

Section 62.212

Oversight assumes this proposal only grants the authority to county Commission to replace absentee members of any board which they appoint, and would have no state or local fiscal impact.

Section 67.175

Oversight assumes the provisions of Section 67.175 which allows the governing body of a political subdivision to provide or pay for all or part of health insurance benefits for retired employees of the political subdivisions to be permissive, and would have no state or local fiscal impact. Political Subdivision whose governing body would choose to provide health benefits would have fiscal impact equal to the costs of providing health benefits for retirees of the subdivision.







FISCAL IMPACT - State Government FY 1999 FY 2000 FY 2001
(10 Mo.)
INSURANCE DEDICATED FUND
Income - Department of Insurance
License fees $0 to $3,800 $0 to $3,800 $0 to $3,800

ESTIMATED NET EFFECT ON

INSURANCE DEDICATED FUND $0 to $3,800 $0 to $3,800 $0 to $3,800
FISCAL IMPACT - Local Government FY 1999 FY 2000 FY 2001
(10 Mo.)
Savings - Local Governments
County jail health care costs UNKNOWN UNKNOWN UNKNOWN

ESTIMATED NET EFFECT ON

LOCAL GOVERNMENTS UNKNOWN UNKNOWN UNKNOWN
FISCAL IMPACT - Small Business

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

DESCRIPTION

This proposal would allow any 3 counties in this state to form a health insurance business association to provide health insurance to prisoners in county jails. The insurance would be provided through private or public insurance companies or through the establishment of a mutual insurance company. The State of Missouri may join the association to pay for the health care cost of state prisoners being held in county jails. Before counties form an association, they would pay a $100 license fee and file articles of association with the Director of Insurance. Each association would designate a registered agent and file bylaws for the association with the director. After being authorized by the director, the association would operate as a corporation. The director would have the authority to dissolve the association if the association fails to satisfy its contractual obligations. Associations would also formulate, implement, and monitor a safety and health improvement program for the jails. The program would include a written accident, injury, and illness reduction plan that promotes healthy conditions in county jails.



DESCRIPTION (continued)

Section 67.212 of this substitute would allow County Commissions of any county to replace any member of any board over which the Commission has the authority to appoint, for failing to attend meetings of the board.

Political subdivisions would be allowed to pay all or part of health insurance benefits for retired employees.

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 Insurance

Office of Administration

Department of Corrections

NOT RESPONDING: Missouri Association of Counties







Jeanne Jarrett, CPA

Director

April 16, 1998