2003 Legislation
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SENATE BILL NO. 1148 – Govt-owned insurers/control defined

SENATE BILL NO. 1148

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Daily Data Tracking History



S1148aa....................................................by STATE AFFAIRS
GOVERNMENT-OWNED INSURERS - Amends existing law to clarify the definition
of "control" regarding regulation of government-owned insurers in this
state.
                                                                        
03/06    Senate intro - 1st rdg - to printing
03/07    Rpt prt - to Com/HuRes
03/28    Rpt out - to 14th Ord
04/07    Rpt out amen - to engros
04/08    Rpt engros - 1st rdg - to 2nd rdg as amen
04/09    2nd rdg - to 3rd rdg as amen
04/10    3rd rdg as amen - PASSED - 25-10-0
      AYES -- Bailey, Bunderson, Burkett, Burtenshaw, Calabretta, Compton,
      Darrington, Davis, Gannon, Hill, Ingram, Kennedy, Little, Lodge,
      Malepeai(Kumm), Marley, McKenzie, McWilliams, Noble, Pearce,
      Richardson, Sorensen, Stennett, Werk, Williams
      NAYS -- Andreason, Brandt, Cameron, Geddes, Goedde, Keough, Noh,
      Schroeder, Stegner, Sweet
      Absent and excused -- None
    Floor Sponsors - Noble & Compton
    Title apvd - to House
04/14    House intro - 1st rdg - to Bus
04/16    Rpt out - rec d/p - to 2nd rdg
04/17    2nd rdg - to 3rd rdg
05/03    3rd rdg - PASSED - 52-12-6
      AYES -- Andersen(Guyon), Barraclough(Schanz), Bauer, Bedke, Bieter,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow,
      Cuddy, Douglas, Eberle, Edmunson, Ellsworth, Field(18), Field(23),
      Gagner, Garrett, Henbest, Lake, Langhorst, McGeachin, Meyer, Miller,
      Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo, Roberts,
      Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smylie, Snodgrass, Tilman, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Barrett, Bell, Deal, Eskridge, Harwood, Jones, Kulczyk,
      Langford, McKague, Moyle, Smith(24), Stevenson
      Absent and excused -- Clark, Denney, Jaquet, Kellogg,
      Martinez(Echohawk), Mitchell
    Floor Sponsors - Gagner & Cannon
    Title apvd - to Senate
05/03    To enrol - Rpt enrol - Pres signed - Sp signed
05/05    To Governor
05/12    Governor signed
         Session Law Chapter 377
         Effective: 07/01/03 Secs 1 and 2;
         11/01/03 Secs 3 and 4

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1148
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE LICENSING OF GOVERNMENT-OWNED OR CONTROLLED INSURERS;  PROVID-
  3        ING  LEGISLATIVE INTENT; AND AMENDING SECTION 41-309, IDAHO CODE, TO CLAR-
  4        IFY THE DEFINITION OF CONTROL.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  LEGISLATIVE INTENT. The Legislature hereby declares its intent
  7    and understanding that the amendments of Section 41-309, Idaho Code,  in  Sec-
  8    tion  2 of this act clarify the original purpose and intent of Section 41-309,
  9    Idaho Code, and do not reflect a substantive change in the scope  or  applica-
 10    tion of that statute as it existed prior to the effective date of this act.
                                                                        
 11        SECTION  2.  That  Section  41-309, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        41-309.  CERTAIN GOVERNMENT-OWNED INSURERS NOT TO BE  AUTHORIZED.  (1)  No
 14    insurer  the voting control or ownership of which is held in whole or substan-
 15    tial part by any government or governmental agency, or which is  operated  for
 16    or  by  any  such  government  or agency, other than the Idaho state insurance
 17    fund, shall be authorized to transact insurance in this state. Membership in a
 18    mutual insurer, or subscribership in a reciprocal  insurer,  or  ownership  of
 19    stock of an insurer by the alien property custodian or similar official of the
 20    United  States,  or  supervision of an insurer by public insurance supervisory
 21    authority shall not be deemed to be an ownership, control, or operation of the
 22    insurer for the purposes of this subsection.
 23         (2)  For the purpose of this section, the existence  or  nonexistence  of
 24    control  shall be determined in accordance with the definition of "control" in
 25    section 41-3801(2), Idaho Code.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                                     Moved by    Goedde              
                                                                        
                                                     Seconded by Cameron             
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1148
                                                                        
  1                                AMENDMENT TO THE BILL
  2        On page 1 of the printed bill, following  line 25,  insert:
  3        "SECTION 3.  That Section 41-309, Idaho Code, be, and the same  is  hereby
  4    repealed.
                                                                        
  5        SECTION  4.  That  Chapter  3,  Title  41, Idaho Code, be, and the same is
  6    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  7    ignated as Section 41-309, Idaho Code, and to read as follows:
                                                                        
  8        41-309.  GOVERNMENT-OWNED  INSURERS  NOT  TO BE AUTHORIZED. No insurer the
  9    voting control or ownership of which is held in whole or substantial  part  by
 10    any government or governmental agency, or which is operated for or by any such
 11    government  or  agency,  other  than  the Idaho state insurance fund, shall be
 12    authorized to transact  insurance  in  this  state.  Membership  in  a  mutual
 13    insurer,  or  subscribership in a reciprocal insurer, or ownership of stock of
 14    an insurer by the alien property custodian or similar official of  the  United
 15    States, or supervision of an insurer by public insurance supervisory authority
 16    shall  not  be deemed to be an ownership, control, or operation of the insurer
 17    for the purposes of this section.
                                                                        
 18        SECTION 5.  Sections 1 and 2 of this act shall be in full force and effect
 19    on and after July 1, 2003.  Sections 3 and 4 of this  act  shall  be  in  full
 20    force and effect on and after November 1, 2003.".
                                                                        
 21                                 CORRECTION TO TITLE
 22        On  page  1,  in  line 4, following "CONTROL" insert: "; REPEALING SECTION
 23    41-309, IDAHO CODE; AMENDING CHAPTER 3, TITLE 41, IDAHO CODE, BY THE  ADDITION
 24    OF A NEW SECTION 41-309, IDAHO CODE, TO PROVIDE THAT GOVERNMENT-OWNED INSURERS
 25    ARE  NOT TO BE AUTHORIZED TO TRANSACT INSURANCE IN THIS STATE WITH EXCEPTIONS;
 26    AND PROVIDING EFFECTIVE DATES".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1148, As Amended
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE LICENSING OF GOVERNMENT-OWNED OR CONTROLLED INSURERS;  PROVID-
  3        ING  LEGISLATIVE INTENT; AND AMENDING SECTION 41-309, IDAHO CODE, TO CLAR-
  4        IFY THE DEFINITION OF CONTROL;   REPEALING  SECTION  41-309,  IDAHO  CODE;
  5        AMENDING CHAPTER 3, TITLE 41, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
  6        41-309,  IDAHO  CODE, TO PROVIDE THAT GOVERNMENT-OWNED INSURERS ARE NOT TO
  7        BE AUTHORIZED TO TRANSACT INSURANCE IN THIS  STATE  WITH  EXCEPTIONS;  AND
  8        PROVIDING EFFECTIVE DATES.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  LEGISLATIVE INTENT. The Legislature hereby declares its intent
 11    and  understanding  that the amendments of Section 41-309, Idaho Code, in Sec-
 12    tion 2 of this act clarify the original purpose and intent of Section  41-309,
 13    Idaho  Code,  and do not reflect a substantive change in the scope or applica-
 14    tion of that statute as it existed prior to the effective date of this act.
                                                                        
 15        SECTION 2.  That Section 41-309, Idaho Code, be, and the  same  is  hereby
 16    amended to read as follows:
                                                                        
 17        41-309.  CERTAIN  GOVERNMENT-OWNED  INSURERS  NOT TO BE AUTHORIZED. (1) No
 18    insurer the voting control or ownership of which is held in whole or  substan-
 19    tial  part  by any government or governmental agency, or which is operated for
 20    or by any such government or agency, other  than  the  Idaho  state  insurance
 21    fund, shall be authorized to transact insurance in this state. Membership in a
 22    mutual  insurer,  or  subscribership  in a reciprocal insurer, or ownership of
 23    stock of an insurer by the alien property custodian or similar official of the
 24    United States, or supervision of an insurer by  public  insurance  supervisory
 25    authority shall not be deemed to be an ownership, control, or operation of the
 26    insurer for the purposes of this subsection.
 27          (2)  For  the  purpose of this section, the existence or nonexistence of
 28    control shall be determined in accordance with the definition of "control"  in
 29    section 41-3801(2), Idaho Code.
                                                                        
 30        SECTION  3.  That  Section  41-309, Idaho Code, be, and the same is hereby
 31    repealed.
                                                                        
 32        SECTION 4.  That Chapter 3, Title 41, Idaho Code,  be,  and  the  same  is
 33    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 34    ignated as Section 41-309, Idaho Code, and to read as follows:
                                                                        
 35        41-309.  GOVERNMENT-OWNED INSURERS NOT TO BE AUTHORIZED.  No  insurer  the
 36    voting  control  or ownership of which is held in whole or substantial part by
 37    any government or governmental agency, or which is operated for or by any such
 38    government or agency, other than the Idaho  state  insurance  fund,  shall  be
 39    authorized  to  transact  insurance  in  this  state.  Membership  in a mutual
                                                                        
                                           2
                                                                        
  1    insurer, or subscribership in a reciprocal insurer, or ownership of  stock  of
  2    an  insurer  by the alien property custodian or similar official of the United
  3    States, or supervision of an insurer by public insurance supervisory authority
  4    shall not be deemed to be an ownership, control, or operation of  the  insurer
  5    for the purposes of this section.
                                                                        
  6        SECTION 5.  Sections 1 and 2 of this act shall be in full force and effect
  7    on  and  after  July  1,  2003.  Sections 3 and 4 of this act shall be in full
  8    force and effect on and after November 1, 2003.

Statement of Purpose / Fiscal Impact


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                       STATEMENT OF PURPOSE
                                 
                           RS 12974 El
                                 
This legislation will temporarily change the definition of "control" for
the purposes of determining whether an insurance company is under
government ownership or control. For the time period from July 1, 2003
to November 1, 2003, the definition of control for the purposes of Idaho
Code section 41-309 would be amended, thus allowing government owned or
controlled companies to continue to operate in Idaho. After November 1,
the existing prohibition against government owned or controlled
insurers, other than the Idaho State Insurance Fund, operating in Idaho
would again become the law.




                          FISCAL IMPACT
                                 
                                 
                                 
There is no fiscal impact to the state or to local units of government.


Contact
            Name:     Ed Galtney
                  Phone:    342-6100
            
            
      STATEMENT OF PURPOSE/FISCAL NOTE                        Sl148a