COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0064S.01I Bill No.:SB 47 Subject:Civil Procedure; Courts; Liability Type:Original Date:January 17, 2025Bill Summary:This proposal modifies supreme court rule 52.08 relating to class actions. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue$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) * Oversight assumes the unknown impact will be less than $250,000 annually. ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 0064S.01I Bill No. SB 47 Page 2 of January 17, 2025 HWC:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0064S.01I Bill No. SB 47 Page 3 of January 17, 2025 HWC:LR:OD FISCAL ANALYSIS ASSUMPTION Section A – Modifies supreme court rule 52.08 relating to class actions Officials from the Office of the State Courts Administrator (OSCA) assume the proposal may have some impact on their organization but there is no way to quantify the amount at this time. Any significant changes will be reflected in future budget requests. Upon further inquiry, OSCA stated since the proposal affects actions of the courts in unanticipated ways, and there is not enough information to forecast if a potential cost could be absorbed, the fiscal impact is unknown. Oversight notes OSCA assumes this proposal may have some impact on their organization although it can’t be quantified at this time. As OSCA is unable to provide additional information regarding the potential impact, Oversight assumes the proposed legislation will have a $0 to (Unknown) cost to the General Revenue Fund. For fiscal note purposes, Oversight also assumes the impact will be under $250,000 annually. If this assumption is incorrect, this would alter the fiscal impact as presented in this fiscal note. If additional information is received, Oversight will review it to determine if an updated fiscal note should be prepared and seek approval to publish a new fiscal note. Officials from the Attorney General’s Office (AGO) assume any potential litigation costs arising from this proposal can be absorbed with existing resources. The AGO may seek additional appropriations if the proposal results in a significant increase in litigation or investigation costs. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for this agency. FISCAL IMPACT – State GovernmentFY 2026 (10 Mo.) FY 2027FY 2028GENERAL REVENUE FUNDCosts – OSCA – costs related to changes to supreme court rule 52.08 on class actions lawsuits (Section A) $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) ESTIMATED NET EFFECT ON THE GENERAL REVENUE FUND $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) L.R. No. 0064S.01I Bill No. SB 47 Page 4 of January 17, 2025 HWC:LR:OD FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0 FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This act amends Supreme Court Rule 52.08 relating to class actions. This act makes changes to mirror the Federal Rules of Civil Procedure. Further, the act provides that an order certifying a class action shall define the class and the class claims, issues, or defenses and shall appoint class counsel. An order that grants or denies class certification may be altered or amended before final judgment. Additionally, the order shall contain specific findings and conclusions to support the decision. Notices to class members for certain class actions may be by United States mail, electronic means, or other appropriate means. Additionally, this act states that the notice shall clearly and concisely state in plain, easily understood language. Currently, the rule provides that a class action shall not be dismissed or compromised without the approval of the court and notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs. This act repeals this provision and provides that the claims, issues, or defenses of a certified class, or a proposed class, may be settled, voluntarily dismissed, or compromised only with the court's approval. Additionally, this act requires the parties seeking approval to file a statement identifying any agreement made in connection with the proposal. Currently, an appellate court may permit an appeal from an order of a circuit court granting or denying class action certification if the petition is timely filed. This act requires an appellate court to permit an appeal from an order of a circuit court granting or denying certain class action certification. (§52.08) 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. 0064S.01I Bill No. SB 47 Page 5 of January 17, 2025 HWC:LR:OD SOURCES OF INFORMATION Attorney General’s Office Office of the State Courts Administrator Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 17, 2025January 17, 2025