COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4652H.01I Bill No.: HB 2206 Subject: Civil Procedure; Courts; Contracts and Contractors Type: Original Date: February 25, 2022Bill Summary:This proposal modifies the statute of limitations for personal injury claims
from five years to two years.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue
(appropriation
reduction to LEF for
cost avoidance)$0 to Unknown$0 to Unknown$0 to Unknown
Total Estimated Net
Effect on General
Revenue$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Other State Funds$0 to Unknown$0 to Unknown$0 to UnknownLegal Expense Fund*$0$0$0Tort Victims’
Compensation Fund$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Total Estimated Net
Effect on Other State
Funds$0 to Unknown$0 to Unknown$0 to Unknown
Numbers within parentheses: () indicate costs or losses.
The potential fiscal impact above represents the potential reduction in exposure to liability
claims. Oversight assumes the cost avoidance could possibly reach $250,000 in a given year.
*Indicates numbers that net to zero. L.R. No. 4652H.01I
Bill No. HB 2206
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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 to Unknown$0 to Unknown$0 to Unknown L.R. No. 4652H.01I
Bill No. HB 2206
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration state §516.140 changes the statute of limitation for
personal injury claims from five years to two years. This provision has the potential to avoid
costs to the state Legal Expense Fund (LEF) for actions alleging personal injury, due to the much
shorter proposed limitations period applicable to such actions.
The state self-assumes its own liability under the state LEF, Section 105.711, RSMo. It is a self-
funding mechanism whereby funds are made available for the payment of any claim or judgment
rendered against the state in regard to the waivers of sovereign immunity or against employees
and specified and individuals. Investigation, defense, negotiation or settlement of such claims is
provided by the Office of the Attorney General. Payment is made by the Commissioner of
Administration with the approval of the Attorney General.
Officials from the Office of the State Courts Administrator, the Attorney General’s Office,
the Department of Commerce and Insurance and the Department of Revenue
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.
Oversight notes information from www.alllaw.com lists the Statute of Limitations on Personal
Injury Lawsuits by State. That information is as follows: L.R. No. 4652H.01I
Bill No. HB 2206
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The Department of Labor and Industrial Relations’ website says “The Tort Victims’
Compensation Fund exists to help compensate those who have been injured due to the
negligence or recklessness of another (such as in a motor vehicle collision or a hunting accident),
and who have been unable to obtain full compensation because the party at fault (the tortfeasor)
had no insurance, or inadequate insurance, or has filed for bankruptcy, or for other reasons
specified by the law.”
Tort Victims Compensation Fund (TVCF) - $0 to (unknown)
Oversight notes that under §537.675.3, 50% of the punitive damage state judgments, after
deducting attorney's fees and expenses, shall go into the Tort Victims' Compensation Fund
1
year
2
year
3
year
4
year
5
year
6
year
K
entucky
A
labama
A
rkansas
F
lorida
M
issouri
M
aine
L
ouisiana
A
laska
D
C
N
ebraska
N
orth Dakota
T
ennessee
A
rizona
M
aryland
U
tah
C
alifornia
M
assachusetts
W
yoming
C
olorado*
M
ichigan
C
onnecticut
M
ississippi
D
elaware
M
ontana
G
eorgia
N
ew Hampshire
H
awaii
N
ew Mexico
I
daho
N
ew York
I
llinois
N
orth Carolina
I
ndiana
R
hode Island
I
owa
S
outh Carolina
K
ansas
S
outh Dakota
M
innesota
V
ermont
N
evada
W
ashington
N
ew Jersey
W
isconsin
O
hio
O
klahoma
O
regon
P
ennsylvania
T
exas
V
irginia
W
est Virginia
S
ource: www.alllaw.com
*
Colorado is 3 years for car accidents
S
TATUTE OF LIMITATIONS ON PERSONAL INJURY LAWSUITS BY STATE L.R. No. 4652H.01I
Bill No. HB 2206
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(0622). Because this proposal tends to reduce punitive damages awards by reducing the time
frame to file suit, Oversight assumes a negative direct fiscal impact to the Tort Victims
Compensation Fund.
Oversight notes that information provided by the Attorney General shows that between July,
2016, and January, 2022, the Tort Victims Compensation Fund received $505,205,571, with the
yearly average being around $91,855,558. That time frame includes a payment from Johnson &
Johnson of $482,374,994 in FY 21 which was the largest ever received and substantially impacts
the yearly average.
Oversight also notes that according to the Department of Labor and Industrial Relations’
website, the chart below shows the payout amounts for years 2015 through 2019 with an average
payout amount of $2,451,600 annually from the Tort Victims Compensation Fund (TVCF).
History of Payments from the Tort Victims Compensation Fund
Tort Victims Compensation Fund Payout from 2015-2019
Year20152016201720182019$ Amount$1.889M$1.792M$881K$2.999M$4.697M
Oversight does not know how many cases affected by this proposal would not be brought
because of the change in the statute of limitations.
The AGO does not track the types of claims paying into the TVCF, so this number is likely an
overestimate, as it includes claims not affected by this proposal. Because Oversight was unable
to get more specific information about the number of claims filed between two and five years
after the claim arose, Oversight will show a $0 to (unknown) to the TVCF.
Legal Expense Fund (LEF) - $0 to unknown
“The State Legal Expense Fund (LEF) is used for payments in resolution of judgments or claims
for damages from injured parties arising out of the actions of state employees, agencies,
contracted physicians, and the condition of state property.” Audit Report No. 2017-098
Officials from the Office of Administration did not respond to Oversight’s request for fiscal
impact for this proposal. However, information from the Office of Administration (OARM) from
SB 633 from 2020 shows that the LEF spent $14,900,000 on personal injury and wrongful death
claims in FY 2015-2018. The annual average of those claims is $3,725,000. L.R. No. 4652H.01I
Bill No. HB 2206
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According to information from OARM, 20% of the LEF’s funds comes from other state funds,
implying $0 up to $3,725,000 annually reduced LEF expenditures, with $2,980,000 through
General Revenue appropriations, and $745,000 from other funds.
Oversight notes that these numbers are likely an overestimate, as it includes claims that could be
brought within two years. Because Oversight was unable to get more specific information about
the number of claims filed between two and five years after the claim arose, Oversight will show
a $0 to unknown net direct fiscal impact. L.R. No. 4652H.01I
Bill No. HB 2206
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FISCAL IMPACT –
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025GENERAL
REVENUE
Cost Savings –
potential reduction on
pay outs of personal
injury damages from
LEF
$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET
EFFECT ON
GENERAL
REVENUE
$0 to Unknown$0 to Unknown$0 to Unknown
OTHER STATE
FUNDS
Cost Savings –
Potential reduction in
payments to Legal
Expense Fund
$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET
EFFECT TO
OTHER STATE
FUNDS
$0 to Unknown$0 to Unknown$0 to Unknown
FISCAL IMPACT –
State Government
FY 2023
(10 Mo.)
FY 2024FY 2025LEGAL EXPENSE
FUND (0692)
Cost Avoidance –
potential reduction on
$0 to Unknown$0 to Unknown$0 to Unknown L.R. No. 4652H.01I
Bill No. HB 2206
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February 25, 2022
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payouts of injury
damages from LEF
Transfer In –
Reduction in
appropriation from
GR
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Transfer In –
Reduction in transfers
from other state funds
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
ESTIMATED NET
EFFECT ON
LEGAL EXPENSE
FUND
$0$0$0
TORT VICTIMS
COMPENSATION
FUND
Loss – Various State
Agencies - potential
reduction from
payouts of punitive
damages to TVCF
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
ESTIMATED NET
EFFECT ON TORT
VICTIMS’
COMPENSATION
FUND
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 4652H.01I
Bill No. HB 2206
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FISCAL IMPACT –
Local Government
FY 2023
(10 Mo.)
FY 2024FY 2025LOCAL
POLITICAL
SUBDIVISIONS
Cost Savings –
Potential reduction in
injury damages paid
$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET
EFFECT TO
LOCAL
POLITICAL
SUBDIVISIONS$0 to Unknown$0 to Unknown$0 to Unknown
FISCAL IMPACT – Small Business
Small businesses could be either positively (defendant) or negatively (plaintiff) as a result of this
proposal.
FISCAL DESCRIPTION
Currently, actions for personal injury or relating to uninsured motorist coverage or underinsured
motorist coverage must be brought within five years from the date the injury occurred. This bill
reduces the time frame to two years from when the injury occurred.
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 L.R. No. 4652H.01I
Bill No. HB 2206
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Attorney General’s Office
Department of Commerce and Insurance
Office of the State Courts Administrator
Office of Administration
Department of Revenue
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 25, 2022February 25, 2022