HCS SB 243 -- STATE PROPERTY PRESERVATION FUND

SPONSOR:  Yeckel (Bearden)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 24 to 0.

This substitute creates the State Property Preservation Fund,
which is to consist of moneys appropriated by the General
Assembly.

Moneys in the fund are available for the payment of any property
loss for insured state-owned or leased buildings if a notice of
coverage is issued for the property and the state is obligated to
provide evidence of insurance.

The aggregate of payments from the fund are not to exceed the
lesser of the amounts necessary to repair or restore the covered
property to its condition before the covered loss or its fair
market value at the time of the loss.

The fund is to be deemed as satisfying all provisions contained
in any agreement requiring the state to purchase or maintain
property insurance on state-owned or leased buildings and their
contents.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Savings to General Revenue Fund of
$937,759 in FY 2004, $1,189,665 in FY 2005, and $1,308,632 in FY
2006.  Does not include unknown transfer to State Property
Preservation Fund.  Estimated Net Savings to Other Funds of
$249,277 in FY 2004, $316,241 in FY 2005, and $347,864 in FY
2006.  Estimated Net Effect on State Property Preservation Fund
of a cost of Unknown and an income of Unknown in FY 2004, FY
2005, and FY 2006.

PROPONENTS:  Supporters say that the bill as it passed the Senate
provides the legal ability for the state to fulfill bonded
indebtedness requirements pursuant to self insurance of public
buildings.  Currently, 90% of state buildings are insured by the
state.  There have been two losses in the past 15 years.

Testifying for the bill was Senator Yeckel.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am