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H0469aa......................................................by MR. SPEAKER
Requested by: Department of Insurance
INSURANCE REFUND ACCOUNT - Amends existing law to provide for deposits to
the Insurance Refund Account of that portion of taxes, fines and penalties
necessary to meet current refund obligations and to eliminate the
requirement that the statement to the State Treasurer of fees, licenses,
taxes, fines and penalties collected by the Department of Insurance be
certified.
01/12 House intro - 1st rdg - to printing
01/12 Rpt prt - to Bus
02/05 Rpt out - to Gen Ord
02/11 Rpt out amen - to engros
02/12 Rpt engros - 1st rdg - to 2nd rdg as amen
02/13 2nd rdg - to 3rd rdg as amen
02/17 3rd rdg as amen - FAILED - 22-43-5
AYES -- Alltus, Barrett, Black(15), Callister, Chase, Crane, Deal,
Denney, Gagner, Hornbeck, Jones(20), Kellogg, Kendell, Kjellander,
Kunz, Loertscher, Mader, Meyer, Taylor, Tilman, Watson, Zimmermann
NAYS -- Barraclough, Bell, Bieter, Boe, Bruneel, Campbell, Clark,
Crow, Cuddy, Ellsworth, Field(13), Field(20), Geddes, Gould, Hadley,
Hansen, Henbest, Jaquet, Jones(9), Jones(22), Judd, Kempton, Lake,
Linford, Marley, McKague, Miller, Mortensen, Newcomb, Pischner,
Pomeroy, Reynolds, Richman, Ridinger, Robison, Sali, Schaefer,
Stevenson, Stoicheff, Tippets, Trail, Wheeler, Wood
Absent and excused -- Bivens, Black(23), Stone, Stubbs, Mr Speaker
Floor Sponsor - Taylor
Filed with Chief Clerk
H0469|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 469, As Amended BY MR. SPEAKER Requested by: Department of Insurance 1 AN ACT 2 RELATING TO INSURANCE; AMENDING SECTION 41-406, IDAHO CODE, TO PROVIDE FOR 3 DEPOSITS TO THE INSURANCE REFUND ACCOUNT OF THAT PORTION OF TAXES, FINES 4 AND PENALTIES NECESSARY TO MEET CURRENT REFUND OBLIGATIONS AND TO ELIMI- 5 NATE THE REQUIREMENT THAT THE STATEMENT TO THE STATE TREASURER OF FEES, 6 LICENSES, TAXES, FINES AND PENALTIES COLLECTED BY THE DEPARTMENT BE CERTI- 7 FIED; AND PROVIDING AN EFFECTIVE DATE. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Section 41-406, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 41-406. DEPOSIT AND REPORT OF FEES, LICENSES AND TAXES. (1) The director 12 shall transmit all taxes, fines and penalties collected by him to the state 13 treasurer as provided under section 59-1014, Idaho Code. The director shall 14 file with the state controller a statement of each deposit thus made. All such 15 funds received shall be deposited into the department of insurance suspense 16 account. 17 Such funds shall be distributed as follows: 18 (a)Ten percent (10%)That portion necessary for the 19 purpose of repaying overpayments of any premium taxes, fines and penalties 20 or other erroneous receipts shall be deposited in the insurance 21 refund account .which is hereby created for the purpose22of repaying overpayments of any taxes, fines, and penalties or other erro-23neous receipts.There is hereby appropriated out of the insurance 24 refund account so much thereof as shall be necessary for the payment of 25 refunds. Any unencumbered balance remaining in the insurance refund 26 account on June 30 of each and every year in excess of forty thousand dol- 27 lars ($40,000) shall be transferred to the general account and the state 28 controller is hereby authorized and directed on such dates to make such 29 transfers unless the board of examiners, which is hereby authorized to do 30 so, changes the date of transfer or sum to be transferred. 31 (b) That portion of the premium tax, payable to the public employee 32 retirement account as provided in section 59-1394, Idaho Code, shall be 33 distributed to that account. 34 (c) That portion of the premium tax necessary to cover administrative 35 costs incurred by the department in placing insurance companies or any 36 other insurance entities into receivership or under administrative super- 37 vision, and such costs cannot be satisfied from the assets of these compa- 38 nies or entities, shall be distributed to the insurance insolvency admin- 39 istrative account which is hereby created. There is hereby appropriated 40 out of the insurance insolvency administrative account so much thereof as 41 shall be necessary, but not to exceed two hundred thousand dollars 42 ($200,000) in any one (1) fiscal year, for the payment of the department's 2 1 administrative expenses incurred in carrying out such receiverships or 2 supervisions. A balance of one hundred thousand dollars ($100,000) shall 3 be maintained in this account on June 30 of each year. 4 (d) The balance of the premium tax, fines and penalties shall be distrib- 5 uted to the general account of the state of Idaho. 6 (e) All moneys received for fees, licenses and miscellaneous charges col- 7 lected shall be distributed to the insurance administrative account. 8 (2) The director shall make and file with the state controller an item- 9 ized statement of the fees, licenses, taxes, fines and penalties collected by 10 him during the preceding month, and shall deliver a certified copy of11the statement to the state treasurer. 12 SECTION 2. This act shall be in full force and effect on and after July 13 1, 2000.
STATEMENT OF PURPOSE
RS07440
Idaho Code, Section 41406(1)(a) presently requires ten percent (10%) of the taxes, fines and
penalties the Department of Insurance collects to be deposited in the Insurance Refund Account
for the purposes of repaying overpayments. This limitation causes cash flow problems in that a
refund due an insurance company may have to be postponed until the next collection period as
set forth in Section 41402. This legislation would authorize the transfer of such amounts as are
necessary to meet current refund obligations.
Idaho Code, Section 41406(2) requires that the Director of the Department of Insurance make
and file with the state controller an itemized statement of the fees, licenses, taxes, fines and
penalties collected by him during the preceding month, and shall deliver a certified copy of the
statement to the state treasurer. The proposed change would eliminate the requirement of a
certified copy being delivered to the state treasurer.
FISCAL IMPACT
This legislation would reduce the General Fund by an estimated $4.4 million in FY 1999. In FY
2000 the General Fund would be reduced by only $0.1 million. In FY 2001 and beyond the
General Fund would receive more revenue than it would otherwise under current law.
CONTACT
Name: James Alcorn
Agency: Department of Insurance
Phone: 3344250
Statement of Purpose/Fiscal Impact
H 469