MO Opinion No. 140-2019 2019-07-26

Did the Missouri AG approve the fiscal note for Winston Apple's 2019 statutory initiative creating a state-run health insurance cooperative (file 20-096)?

Short answer: Yes, as to legal content and form. AG Schmitt approved the fiscal note prepared by State Auditor Galloway for Apple's petition 20-096. The fiscal note projected no state-government costs and possible savings of an unknown amount if state employees switch coverage, plus possible savings of an unknown amount for local governments. AG review under § 116.175.4 RSMo is procedural; it does not assess fairness or accuracy of the projection.

Disclaimer: This is an official Missouri Attorney General opinion. AG opinions are persuasive authority but not binding precedent. This summary is for informational purposes only and is not legal advice. Consult a licensed Missouri attorney for advice on your specific situation.

Plain-English summary

Petition 2020-096 was Winston Apple's statutory initiative to create a state-run health insurance cooperative through the Department of Health and Senior Services. The full mechanics are described in the companion summary-statement opinion 161-2019.

Under § 116.175 RSMo, the State Auditor prepares a fiscal note explaining the petition's expected revenue and cost effects. The AG then reviews the fiscal note's "legal content and form" under § 116.175.4 RSMo. The AG approves form, not accuracy, of the auditor's numbers.

The fiscal note approved here projects no state-government costs from creating the cooperative, with possible savings of an unknown amount if state employees switch their coverage from the existing state-employee health plan to the new cooperative. Local governments expect no costs and possible savings. AG Schmitt's letter approves the legal form of that fiscal note.

Currency note

This opinion was issued in 2019. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

The exact fiscal-note summary the AG approved

State governmental entities expect no costs from this proposal and may have savings of an unknown amount if some state employees switch health care coverage to this new health insurance plan. Local governmental entities expect no costs from this proposal and expect savings of an unknown amount.

Common questions

Q: Why no costs to state government?
A: The petition's cooperative model relies on member premiums (called "membership dues") to fund itself. The auditor concluded the new cooperative would not need state appropriations to start up or operate, at least at the level of detail the auditor could analyze. That conclusion would likely have been litigated.

Q: Why "possible savings" if state employees switch?
A: Missouri's existing state-employee health plan costs the state money on the employer side. If state employees opt into the new cooperative instead, the state could spend less on employee health benefits. The amount depends on how many employees switch and what the cooperative charges.

Q: Why does the AG say the review does not examine "fairness or sufficiency"?
A: § 116.175.4 RSMo limits AG review to legal content and form. Whether the auditor's number is the right number is a separate question, litigable under § 116.190 RSMo.

Q: Did the petition reach the ballot?
A: The opinion does not say. Apple's 2019 petitions do not appear to have advanced to the 2020 ballot.

Background and statutory framework

Chapter 116 RSMo lays out the initiative-petition pipeline. This opinion sits at step 3:

Proponent files the petition with the Secretary of State.
AG reviews sufficiency as to form under § 116.332 RSMo.
State Auditor prepares a fiscal note; AG reviews under § 116.175.4 RSMo (this opinion).
Secretary of State drafts a summary statement; AG reviews under § 116.334 RSMo.
Petition certified for circulation.

Citations and references

Statutes: § 116.175 RSMo (the operative provision); § 116.190 RSMo (judicial challenges); § 116.332 RSMo; § 116.334 RSMo; Chapter 192 RSMo (Department of Health and Senior Services).

Companion opinion on the same petition (2020-096): 161-2019 (summary statement review).

Source

Landing page: https://ago.mo.gov/other-resources/ag-opinions/
Original PDF: https://ago.mo.gov/wp-content/uploads/attachments/140-2019.pdf?sfvrsn=2

Original opinion text

ATTORNEY GENERAL OF MISSOURI
ERIC SCHMITT

July 26, 2019
OPINION LETTER NO. 140·2019
The Honorable Nicole Galloway
Missouri State Auditor
State Capitol, Room 121
Jefferson City, MO 65101
Dear Auditor Galloway:
This office received your letter of July 17, 2019, submitting a fiscal note and
fiscal note summary prepared under § 116.175, RSMo, for an initiative
petition submitted by Winston Apple (20·096). The fiscal note summary that you
submitted is as follows:
State governmental entities expect no costs from this
proposal and may have savings of an unknown amount if
some state employees switch health care coverage to this
new health insurance plan. Local governmental entities
expect no costs from this proposal and expect savings of an
unknown amount.
Under § 116.175.4, RSMo, we approve the legal content and form of
the fiscal note summary. Because our review of the fiscal note summary is mandated
by statute, no action that we take with respect to such review should
be construed as an endorsement of the initiative petition or as the expression
of any view regarding the objectives of its proponents.
Very truly yours,

ERIC S. SCHMITT
Attorney General

Supreme Court Building
207 W. High Street
P.O. Box 899
Jefferson City, MO 65102
Phone: (573) 751-3321
Fax: (573) 751-0774
www.ago.mo.gov

OP-2019·0165