COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4652H.02C Bill No.: HCS for HB 2206 Subject: Civil Procedure; Courts; Contracts and Contractors Type: Original Date: March 10, 2022Bill Summary:This proposal modifies the statute of limitations for personal injury claims
from five years to two years and modifies provisions relating to actions for
damages due to exposure to asbestos.
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.02C
Bill No. HCS for 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.02C
Bill No. HCS for HB 2206
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FISCAL ANALYSIS
ASSUMPTION
§§516.120 & 516.140 – Statute of Limitations for Personal Injury Claims
Officials from the Office of Administration’s Facilities Management, Design and
Construction (FMDC) state this proposal could potentially result in fewer claims for personal
injury against the state. 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. Claims for dangerous conditions of property are paid out of the
Legal Expense Fund, so FMDC assumes this would not have any direct fiscal impact on OA-
FMDC's budget. Any fiscal impact would be an unknown cost savings.
The state self-assumes its own liability under the state Legal Expense Fund, 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 Attorney General’s Office assume the proposal will have no fiscal impact on
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for this agency.
In response to a previous version, officials from the Office of the State Courts Administrator
assumed the proposal will have no fiscal impact on their organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note
for this agency.
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.02C
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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.02C
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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 Net Impact
“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.02C
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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 to the funds contributing to the LEF. The net impact on
the LEF would be to zero as the LEF would be making less payments.
§537.892 – Actions for Damages due to Exposure to Asbestos
In response to similar legislation from this year, HB 1717, officials from the Attorney General’s
Office (AGO) assumed that if this legislation becomes law, it could be more difficult for
claimants to receive punitive damages, thus the total amount of punitive damages awarded in
Missouri could decrease. Since the Tort Victims’ Compensation Fund is funded by liens on
punitive damages, the AGO assumes that a decrease in punitive damages awarded would
decrease the amount of funds generated through these liens for the Tort Victims’ Compensation
Fund.
It is not possible to know the extent to which punitive damages awarded to claimants will
decrease under this proposal, therefore, the AGO assumes it will have an unknown negative
fiscal impact on the Tort Victims’ Compensation Fund.
Oversight notes the number of asbestos cases over the last 6 years in the chart below:
Because Oversight was unable to get more specific information about the amounts awarded
from claims filed for asbestos, Oversight will show a $0 to (unknown) to the TVCF.
In response to a previous version, officials from the Office of the State Courts Administrator
and the each assumed 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.
Bill as a Whole
T
ort
T
ort
T
ort
T
ort
T
ort
T
ort
A
VERAGE
C
ases
C
ases
C
ases
C
ases
C
ases
C
ases
T
ORT CASES
2
020
2
019
2
018
2
017
2
016
2
015
O
VER 6 YEARS
A
sbestos
2
79
2
67
1
61
3
53
3
03
2
68
2
72
S
ource: Tables 27 & 33 of OSCA's Statistical Annual Report Supplement L.R. No. 4652H.02C
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Officials from the Department of Commerce and Insurance, the Department of Revenue, the
Department of Mental Health and the Department of Health and Senior Services 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. L.R. No. 4652H.02C
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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 (§§516.120,
516.140)
$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
(§§516.120, 516.140)
$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) L.R. No. 4652H.02C
Bill No. HCS for HB 2206
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Cost Avoidance –
potential reduction on
payouts of injury
damages from LEF
(§§516.120, 516.140)
$0 to Unknown$0 to Unknown$0 to Unknown
Transfer In –
Reduction in
appropriation from
GR (§§516.120,
516.140)
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Transfer In –
Reduction in transfers
from other state funds
(§§516.120, 516.140)
$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
(§§516.120, 516.140)
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Loss – AGO –
potential reduction in
punitive damages
awarded reducing
amounts transferred
to the TVCF
(§537.892)
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 4652H.02C
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ESTIMATED NET
EFFECT ON TORT
VICTIMS’
COMPENSATION
FUND
$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
FISCAL IMPACT –
Local Government
FY 2023
(10 Mo.)
FY 2024FY 2025LOCAL
POLITICAL
SUBDIVISIONS
Cost Savings –
Potential reduction in
injury damages paid
(§§516.120, 516.140)
$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) impacted as a
result of this proposal. Small businesses involved in civil actions involving asbestos could be
impacted by this proposal.
FISCAL DESCRIPTION
§§516.120 & 516.140 – Statute of Limitations for Personal Injury Claims
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. L.R. No. 4652H.02C
Bill No. HCS for HB 2206
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§537.892 – Actions for Damages due to Exposure to Asbestos
This bill applies to asbestos tort actions filed on or after August 28, 2022, and to asbestos actions
filed before August 28, 2022, unless the trial date in the asbestos action was set before January 1,
2022, and the trial will begin on or before December 1, 2022.
The bill:
(1) Requires a claimant to provide all parties in an action a sworn statement and information
form indicating that all asbestos trust claims that the claimant can file have been completed and
filed. In addition, the claimant must provide all parties with all trust materials relating to the
asbestos exposure and related claims;
(2) Allows any defendant in an asbestos tort action to file a motion for an order to require the
claimant to file the additional asbestos trust claims the defendant believes the claimant is eligible
to file;
(3) Requires trust claims materials and trust governance documents to be admissible in evidence.
Claims of privilege do not apply to trust claims materials or trust governance documents;
(4) Allows a rebuttable presumption that if a claimant proceeds to trial in an asbestos action
before an asbestos trust claim is resolved, the claimant is entitled to, and will receive, the
compensation specified in the trust governance documents applicable to his or her claim at the
time of trial.
(5) Allows the court to, upon motion by the defendant, dismiss an action without prejudice for
the claimant's failure to comply with these disclosure requirements. A defendant may, within
three years after judgment, move to reopen a judgment in an asbestos action if a claimant files
certain additional asbestos trust claims. The bill shall not apply to any paid, volunteer, or retired
firefighter, paramedic, or emergency medical technician.
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
Attorney General’s Office
Department of Commerce and Insurance
Office of the State Courts Administrator
Office of Administration
Facilities Management, Design and Construction L.R. No. 4652H.02C
Bill No. HCS for HB 2206
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Department of Revenue
Department of Health and Senior Services
Department of Mental Health
Department of Labor and Industrial Relations
Julie MorffRoss StropeDirectorAssistant DirectorMarch 10, 2022March 10, 2022