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S1402.......................................by COMMERCE AND HUMAN RESOURCES
INSURERS - Amends existing law to provide that insurers may invest their
assets with banks with one or more branches in Idaho, not just banks
"domiciled" in Idaho, to obtain the discount on premium tax; and to expand
eligible investments.
02/11 Senate intro - 1st rdg - to printing
02/14 Rpt prt - to Com/HuRes
02/23 Rpt out - rec d/p - to 2nd rdg
02/24 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 33-0-2
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen,
Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Walton, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--Danielson, Davis
Floor Sponsor - Andreason
Title apvd - to House
02/28 House intro - 1st rdg - to Bus
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/29 3rd rdg - PASSED - 58-0-12
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Callister, Campbell, Chase, Cuddy, Deal, Denney, Ellsworth,
Field(13), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
Kendell, Kunz, Lake, Linford, Loertscher, Marley, McKague,
Montgomery, Mortensen, Moss, Moyle, Pearce, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Sali, Schaefer, Smith, Smylie, Stevenson,
Stoicheff, Stone, Taylor, Tilman, Wheeler, Wood, Zimmermann
NAYS -- None
Absent and excused -- Bruneel, Cheirrett, Clark, Crow, Field(20),
Mader, Meyer, Pischner, Sellman, Shepherd, Trail, Mr Speaker
Floor Sponsor - Black
Title apvd - to Senate
03/30 To enrol - rpt enrol - Pres signed
03/31 Sp signed
04/03 To Governor
04/04 Governor signed
Session Law Chapter 183
Effective: 07/01/00
S1402
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1402
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE COMPANIES; AMENDING SECTION 41-403, IDAHO CODE, TO PRO-
3 VIDE THAT TIME DEPOSITS IN IDAHO BRANCHES OF FINANCIAL INSTITUTIONS WITH
4 ONE OR MORE BRANCHES LOCATED IN IDAHO QUALIFY AS A TYPE OF INVESTMENT IN
5 WHICH AN INSURER MAY INVEST AT LEAST TWENTY-FIVE PERCENT OF ITS REQUIRED
6 RESERVE UNDER SECTION 41-706(4), IDAHO CODE, AND THEREBY QUALIFY FOR A
7 LOWER PREMIUM TAX RATE AND TO MAKE TECHNICAL CORRECTIONS.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 41-403, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 41-403. REDUCED TAX BASED ON IDAHO INVESTMENTS. Provided that it shall
12 comply with rules and standards duly promulgated by the director of insurance
13 for the purposes of assuring the establishment and maintenance in this state
14 of services and facilities consistent with the nature and extent of its opera-
15 tions, any insurer, other than a life insurance company, having at all times
16 throughout the year with respect to which the tax is payable twenty-five per
17 cent percent (25%) or more of its assets invested in the investments set forth
18 below, shall, with respect to premiums on which taxes are to be computed under
19 section 41-402, Idaho Code, compute and pay such tax at the rate of one and
20 four-tenths per cent percent (1.4%) instead of at any higher rate provided for
21 under section 41-402, Idaho Code; and provided further, any life insurance
22 company, in order to qualify for a tax rate of one and four-tenths per cent
23 percent (1.4%) instead of any higher rate provided for under section 41-402,
24 Idaho Code, shall maintain throughout the year with respect to which tax is
25 payable at least twenty-five per cent percent (25%) of the reserve required
26 under section 41-706 (4), Idaho Code, invested in the designated investments
27 set forth below:
28 (1) Bonds or warrants of this state, or of any county, city or incorpo-
29 rated town or district within this state authorized by law to be issued,; or
30 (2) Taxable real estate within this state,; or
31 (3) First mortgages upon improved, unencumbered real estate situated
32 within this state,; or
33 (4) Stocks or bonds of corporations organized under the laws of, or main-
34 taining their home office and principal administrative records in this state
35 if such stocks or bonds are lawful investments of the insurer under chapter 7
36 (investments) of this code,; or
37 (5) Bonds authorized by law to be issued against the revenues derived
38 from the operation in this state of domestic water and sewage systems or off-
39 street parking facilities,; or
40 (6) Time deposits, with or other deposits for interest income purposes,
41 in any Idaho branch of any banks, or trust companies company, or savings and
42 loan associations, or building and loan associations or on deposit for inter-
43 est income purposes with any other legally organized and approved financial
2
1 institution domiciled within with one (1) or more branches in this state and
2 insured by any instrumentality of the United States government.
STATEMENT OF PURPOSE
RS 09932
The purpose of this bill is to clarify that insurers may invest their assets
with banks with one or more branches in Idaho, and not just banks which are
"domiciled" in Idaho, and thereby obtain the discount on premium tax provided
by 41-403, Idaho Code. This bill would also slightly expand the corporations,
the stock or bonds of which are eligible for such investment by insurers.
FISCAL NOTE
This bill will have no impact on the general fund.
Contact:
Name: Patrick V. Collins
Hawley Troxell Ennis & Hawley LLP
Counsel for the Idaho Bankers Association
Phone: (208) 344-6000
STATEMENT OF PURPOSE/FISCAL IMPACT S 1402