NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Administrative Office of the Courts (AOC)

General Services Department, Risk Management Division (RMD)

LFC Files

SUMMARY

Synopsis of Bill

House Bill 674 repeals liability coverage in the Risk Management Division for the General Services Department. The liability coverage is for claims against a non-profit corporation when the claim is based upon a contract between the corporation and the Department of Health under which the corporation provides developmental disability services to clients of the department. Also, a claim made against a non-profit corporation when the corporation operates a facility for the mentally retarded was covered.

Significant Issues

According to RMD, when the law requiring RMD to provide liability coverage was implemented, coverage was harder to obtain than it is now. Many involved agencies preferred to get coverage on their own and would not pay for coverage. The Department of Health ended up paying all of the premium.

FISCAL IMPLICATIONS

There is no appropriation contained within this bill. According the RMD, this bill will save the Department of Health $290.0 each year.

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