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H0334........................................................by WAYS AND MEANS
GOVERNMENT-OWNED INSURER - Amends existing law to provide that no insurer or
affiliate of an insurer, the voting control or ownership of which is held in
whole or substantial part by any government or governmental agency or which is
operated for or by any such government or agency other than the Idaho State
Insurance Fund, shall be authorized to transact insurance in Idaho; to provide
that an insurer that is exempt from taxation under Section 501(c)(27)(B) of
the Internal Revenue Code, and any affiliate of such insurer, shall be
conclusively presumed to be a governmental agency or to be operated by a
governmental agency; and to provide a definition of "affiliate."
03/06 House intro - 1st rdg - to printing
03/07 Rpt prt - to Bus
03/14 Rpt out - rec d/p - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/20 3rd rdg - FAILED - 31-39-0
AYES -- Andersen, Barraclough, Black, Block, Boe, Campbell, Collins,
Cuddy, Deal, Denney, Edmunson, Field(18), Field(23), Garrett, Jaquet,
Jones, Kellogg, Martinez, Meyer, Miller, Ridinger, Ring, Sayler,
Schaefer, Shepherd, Shirley, Smith(30), Smith(24), Snodgrass, Trail, Mr.
Speaker
NAYS -- Barrett, Bauer, Bedke, Bell, Bieter, Bolz, Bradford, Cannon,
Clark, Crow, Douglas, Eberle, Ellsworth, Eskridge, Gagner, Harwood,
Henbest, Kulczyk, Lake, Langford, Langhorst, McGeachin, McKague,
Mitchell, Moyle, Naccarato, Nielsen, Raybould, Ringo, Roberts, Robison,
Rydalch, Sali, Skippen, Smylie, Stevenson, Tilman, Wills, Wood
Absent and excused -- None
Floor Sponsor - Deal
Filed w/Office of the Chief Clerk
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 334
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO GOVERNMENT-OWNED INSURERS NOT TO BE AUTHORIZED TO TRANSACT BUSI-
3 NESS IN IDAHO; AMENDING SECTION 41-309, IDAHO CODE, TO PROVIDE THAT NO
4 INSURER OR AFFILIATE OF AN INSURER THE VOTING CONTROL OR OWNERSHIP OF
5 WHICH IS HELD IN WHOLE OR SUBSTANTIAL PART BY ANY GOVERNMENT OR GOVERNMEN-
6 TAL AGENCY OR WHICH IS OPERATED FOR OR BY ANY SUCH GOVERNMENT OR AGENCY
7 OTHER THAN THE IDAHO STATE INSURANCE FUND SHALL BE AUTHORIZED TO TRANSACT
8 INSURANCE IN IDAHO, TO PROVIDE THAT AN INSURER THAT IS EXEMPT FROM TAXA-
9 TION UNDER SECTION 501(c)(27)(B) OF THE INTERNAL REVENUE CODE, AND ANY
10 AFFILIATE OF SUCH AN INSURER, SHALL BE CONCLUSIVELY PRESUMED TO BE A GOV-
11 ERNMENTAL AGENCY OR TO BE OPERATED BY A GOVERNMENTAL AGENCY AND TO PRO-
12 VIDE A DEFINITION OF AFFILIATE.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 41-309, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 41-309. GOVERNMENT-OWNED INSURERS NOT TO BE AUTHORIZED. No insurer or
17 affiliate of an insurer the voting control or ownership of which is held in
18 whole or substantial part by any government or governmental agency, or which
19 is operated for or by any such government or agency, other than the Idaho
20 state insurance fund, shall be authorized to transact insurance in this state.
21 Membership in a mutual insurer, or subscribership in a reciprocal insurer, or
22 ownership of stock of an insurer by the alien property custodian or similar
23 official of the United States, or supervision of an insurer by public insur-
24 ance supervisory authority shall not be deemed to be an ownership, control, or
25 operation of the insurer for the purposes of this subsection. For the purposes
26 of this section, an insurer that is exempt from taxation under section
27 501(c)(27)(B) of the Internal Revenue Code, and any affiliate of such an
28 insurer, shall be conclusively presumed to be a governmental agency or to be
29 operated by a governmental agency. For the purposes of this section,
30 "affiliate" shall mean an affiliate as defined in section 41-3801(1), Idaho
31 Code.
STATEMENT OF PURPOSE
RS 13103
This legislation is designed to preserve competition in the
market for workers compensation insurance. Over the past few
years, some state insurance funds in other states have either
become privatized or have created "for profit" subsidiaries in
order to compete in the insurance markets outside of their home
state. State insurance funds have an inherent competitive
advantage because of their tax-exempt status under the federal
tax code. This legislation clarifies the existing law so that
state funds that have truly privatized can compete in the Idaho
market. The law would continue to prohibit the operation of
those state insurance funds from other states, and their
affiliates, that maintain the competitive advantage of federal
tax-exempt status.
FISCAL IMPACT
There is no fiscal impact to the state or to local units of
government.
Contact
Name: Mike Brassey, Alliance of American Insurers
Phone: (208) 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE H 334