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F I S C A L I M P A C T R E P O R T
SPONSOR Komadina
ORIGINAL DATE
LAST UPDATED
1/22/07
HB
SHORT TITLE Hot Air Balloon Liability Act
SB 224
ANALYST Wilson
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY07
FY08
FY09 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
Minimal
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
Senate Bill 224 exempts an owner, lessee, renter or lawful possessor of a hot air balloon park, a
hot air balloon activity organizer or a hot air balloon operator from liability for injury, loss or
damages resulting from the risks inherent in a hot air balloon activity.
Tort liability is not
exempted when hot air balloon equipment is provided and the provider:
•
knows or should know that the equipment is faulty and an injury proximately results from
the faulty condition of the equipment;
•
fails to make a reasonable effort to determine the ability of the hot air balloon operator to
engage safely in a hot air balloon activity;
•
commits an act or omission that constitutes a reckless disregard for the safety of a hot air
balloon operator, passenger or observer.
•
intentionally injures a hot air balloon operator, passenger or observer.
A hot air balloon park owner is required to post a clearly visible sign in at least one prominent
location in the hot air balloon park. The sign shall include a warning regarding the inherent risks
of hot air balloon activities and the limitations on liability of the owner, lessee, renter or lawful
pg_0002
Senate Bill 224 – Page
2
possessor of the hot air balloon park, the hot air balloon activity organizer and the hot air balloon
operator.
FISCAL IMPLICATIONS
This bill will have minimal impact on the courts. SB 224 limits liability so case loads should go
down, but, litigation covering what is or is not exempt may increase.
There will be a minimal administrative cost for statewide update, distribution and documentation
of statutory changes. New laws, amendments to existing laws and new hearings have the
potential to increase caseloads in the courts, thus requiring additional resources to handle the
increase.
SIGNIFICANT ISSUES
The legislature recognizes that a person who participates in a hot air balloon activity may incur
injury as a result of the risks inherent in the activity.
The legislature also finds that the state and its citizens derive numerous personal and economic
benefits from hot air balloon activities.
It is the purpose of the legislature to encourage hot air balloon activities by providing that a
person participating in a hot air balloon activity shall not recover for an injury that proximately
results from the risks inherent in the activity.
DW/mt