COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4173H.01I Bill No.:HB 2190 Subject:Insurance - General; Education, Elementary and Secondary Type:Original Date:February 11, 2022Bill Summary:This proposal creates provisions relating to liability claims in educational
settings.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 4173H.01I
Bill No. HB 2190
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 4173H.01I
Bill No. HB 2190
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Attorney General’s Office, Department of Commerce and Insurance,
Department of Elementary and Secondary Education and the Department of Labor and
Industrial Relations each assume the proposal will have no fiscal impact on their respective
organizations. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect a zero impact in the fiscal note for these agencies.
Officials from the Blue Springs School District state they have coverage for these possible
liabilities through MOPERM. They have never had this type of liability claim and don’t see any
fiscal impact from this proposal on their district. However, if a student uses their own vehicle
and has an accident, it would not likely be a district liability (currently). This language would
turn it into one.
Oversight notes MOPERM is the Missouri Public Entity Risk Management Fund. MOPERM is
a statewide public entity risk management fund which was created by the Missouri General
Assembly in 1986. (§§537-700 - 537.756, RSMo.) MOPERM offers government entities in the
state established pursuant to state law (including municipalities, counties, school districts and the
various special districts) the option of participating in and making annual contributions to a self-
insurance pool providing liability and property protection up to the statutory maximum of
$2,000,000. In 2018, MOPERM had approximately 950 members. The participating entities pay
a premium and receive MOPERM’s claims service, legal defense, and risk management services
as needed.
Oversight requested additional input from the Department of Labor and Industrial Relations and
MOPERM; however, Oversight had not received the responses at the time the fiscal note was
prepared.
Oversight is ultimately uncertain how this proposal may impact school districts’ exposure to
liability, but assumes this proposal includes work-based learning programs in the definition of
school-sponsored activity including travel to and from the work-based learning program. For
purposes of this fiscal note, Oversight will show a range of impact from $0 (no additional
liability) to an unknown cost to school districts for increased liability or liability insurance.
Oversight received a limited number of responses from school districts related to the fiscal
impact of this proposal. Oversight has presented this fiscal note on the best current information
available. Upon the receipt of additional responses, Oversight will review to determine if an
updated fiscal note should be prepared and seek the necessary approval to publish a new fiscal
note. L.R. No. 4173H.01I
Bill No. HB 2190
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Oversight only reflects the responses received from state agencies and political subdivisions;
however, other school districts were requested to respond to this proposed legislation but did not.
A general listing of political subdivisions included in Oversight’s database is available upon
request.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025SCHOOL DISTRICTSCosts - for increased exposure to
liability or insurance costs - §162.012
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Small Business
Oversight assumes this proposal could have a positive effect on small businesses if it reduces
their liability exposure.
FISCAL DESCRIPTION
The bill allows school boards of any school district to purchase insurance contracts to insure
against loss, damages, or expenses for a claim arising out of the sickness, bodily injury, or death
by accident of any student injured on school premises or during school-sponsored activities; as
well as insurance for the benefit of students to insure against losses resulting from loss of, theft
of, or damage to personal property of students.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 4173H.01I
Bill No. HB 2190
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SOURCES OF INFORMATION
Attorney General’s Office
Department of Commerce and Insurance
Department of Elementary and Secondary Education
Department of Labor and Industrial Relations
Blue Springs School District
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 11, 2022February 11, 2022