It is estimated that the impact of this legislation would be to raise Risk Management liability premiums by $450,000 which would be paid by State institutions and agencies and local school districts insured by Risk Management. The impact to the State would be $347,000. School districts that are covered by the Division of Risk Management will share an impact of approximately $100,000 in new premium charges. Local governments expect their rates will rise by $500,000. Political subdivisions will also be impacted by a change in 78-12-28 that applies a statute of limitations to claims against political subdivisions. The effect should be to reduce exposure (and liability premium costs) of the subdivisions. As the bill does not take effect until July 1, 2001, the impacts would not occur until FY 2002.

Office of the Legislative Fiscal Analyst

2/28/00 10:19:11 AM

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