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H0512aa.............................................by REVENUE AND TAXATION
INSURER - PREMIUM TAX - Amends existing law to provide that a member
insurer of the Idaho Insurance Guaranty Association may offset against its
premium tax liability the assessment imposed for obligations of the Idaho
Insurance Guaranty Association; to provide for insurers that are exempt
from the premium tax imposed under Section 41-402, Idaho Code; and to
provide for deposit of certain refunds to the state's General Fund.
01/21 House intro - 1st rdg - to printing
01/22 Rpt prt - to Rev/Tax
02/06 Rpt out - to Gen Ord
02/17 Rpt out amen - to engros
02/18 Rpt engros - 1st rdg - to 2nd rdg as amen
02/19 2nd rdg - to 3rd rdg as amen
02/24 3rd rdg as amen - PASSED - 67-0-3
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Moyle, Naccarato, Nielsen,
Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr.
Speaker
NAYS -- None
Absent and excused -- Edmunson, Mitchell, Smith(24)
Floor Sponsor - Collins
Title apvd - to Senate
02/25 Senate intro - 1st rdg - to Com/HuRes
03/10 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/18 3rd rdg - PASSED - 25-8-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Cameron,
Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Keough,
Little, Lodge, McKenzie, McWilliams, Noble, Pearce, Richardson,
Schroeder, Sorensen, Sweet, Williams
NAYS -- Burkett, Davis, Kennedy, Malepeai, Marley, Stegner, Stennett,
Werk
Absent and excused -- Calabretta, Noh
Floor Sponsor - Goedde
Title apvd - to House
03/19 To enrol - Rpt enrol - Sp signed - Pres signed
03/22 To Governor
03/23 Governor signed
Session Law Chapter 241
Effective: 01/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 512
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO INSURANCE GUARANTY ASSOCIATION; AMENDING SECTION
3 41-3616, IDAHO CODE, TO PROVIDE THAT A MEMBER INSURER MAY OFFSET AGAINST
4 ITS PREMIUM TAX LIABILITY THE ASSESSMENT IMPOSED FOR OBLIGATIONS OF THE
5 INSURANCE GUARANTY ASSOCIATION AND TO PROVIDE FOR DEPOSIT OF CERTAIN
6 REFUNDS TO THE STATE GENERAL FUND; DECLARING AN EMERGENCY AND PROVIDING A
7 RETROACTIVE EFFECTIVE DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 41-3616, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 41-3616. INSURANCE PREMIUMS TO INCLUDE CONTRIBUTIONS TO ASSOCIATION CRE-
12 DITS FOR ASSESSMENTS PAID. The rates and premiums charged for insurance poli-
13 cies to which this act applies shall include amounts sufficient to recoup a
14 sum equal to the amounts paid to the association by the member insurer less
15 any amounts returned to the member insurer by the association and such rates
16 shall not be deemed excessive because they contain an amount reasonably calcu-
17 lated to recoup assessments paid by the (1) A member insurer may offset
18 against its premium tax liability to this state an assessment described in
19 subsection (1)(d) of section 41-3608, Idaho Code. An offset is allowable to
20 the extent of twenty percent (20%) of the amount of such assessment for each
21 of the five (5) calendar years following the year in which such assessment was
22 paid. An allowable offset, or portion thereof, not used in any calendar year
23 cannot be carried over or back to any other year.
24 (2) Any sums acquired by refund, pursuant to subsection (2)(f) of section
25 41-3608, Idaho Code, from the association which have heretofore been written
26 off by contributing insurers and offset against premium taxes as provided in
27 subsection (1) of this section, and are not then needed for the purposes of
28 this act, shall be paid by the association to the director and by him depos-
29 ited with the state treasurer for credit to the state general fund.
30 SECTION 2. An emergency existing therefor, which emergency is hereby
31 declared to exist, this act shall be in full force and effect on and after its
32 passage and approval, and retroactively to January 1, 2004.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by Ridinger
Seconded by Collins
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 512
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, in line 18, following "state" insert:
3 "under section 41-402, Idaho Code,".
4 CORRECTION TO TITLE
5 On page 1, in line 4, following "LIABILITY" insert: "UNDER SECTION 41-402,
6 IDAHO CODE,".
Moved by Ridinger
Seconded by Collins
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 512
7 AMENDMENT TO SECTION 1
8 On page 1 of the printed bill, in line 19, following "Code." insert: "An
9 insurer that is exempt from the premium tax imposed by section 41-402, Idaho
10 Code, may offset its premium tax liability to the industrial administration
11 fund.".
12 CORRECTION TO TITLE
13 On page 1, in line 5, following "ASSOCIATION" insert: ", TO PROVIDE FOR
14 INSURERS THAT ARE EXEMPT FROM THE PREMIUM TAX IMPOSED UNDER SECTION 41-402,
15 IDAHO CODE,".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 512, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO INSURANCE GUARANTY ASSOCIATION; AMENDING SECTION
3 41-3616, IDAHO CODE, TO PROVIDE THAT A MEMBER INSURER MAY OFFSET AGAINST
4 ITS PREMIUM TAX LIABILITY UNDER SECTION 41-402, IDAHO CODE, THE ASSESSMENT
5 IMPOSED FOR OBLIGATIONS OF THE INSURANCE GUARANTY ASSOCIATION, TO PROVIDE
6 FOR INSURERS THAT ARE EXEMPT FROM THE PREMIUM TAX IMPOSED UNDER SECTION
7 41-402, IDAHO CODE, AND TO PROVIDE FOR DEPOSIT OF CERTAIN REFUNDS TO THE
8 STATE GENERAL FUND; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE
9 EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 41-3616, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 41-3616. INSURANCE PREMIUMS TO INCLUDE CONTRIBUTIONS TO ASSOCIATION CRE-
14 DITS FOR ASSESSMENTS PAID. The rates and premiums charged for insurance poli-
15 cies to which this act applies shall include amounts sufficient to recoup a
16 sum equal to the amounts paid to the association by the member insurer less
17 any amounts returned to the member insurer by the association and such rates
18 shall not be deemed excessive because they contain an amount reasonably calcu-
19 lated to recoup assessments paid by the (1) A member insurer may offset
20 against its premium tax liability to this state under section 41-402, Idaho
21 Code, an assessment described in subsection (1)(d) of section 41-3608, Idaho
22 Code. An insurer that is exempt from the premium tax imposed by section
23 41-402, Idaho Code, may offset its premium tax liability to the industrial
24 administration fund. An offset is allowable to the extent of twenty percent
25 (20%) of the amount of such assessment for each of the five (5) calendar years
26 following the year in which such assessment was paid. An allowable offset, or
27 portion thereof, not used in any calendar year cannot be carried over or back
28 to any other year.
29 (2) Any sums acquired by refund, pursuant to subsection (2)(f) of section
30 41-3608, Idaho Code, from the association which have heretofore been written
31 off by contributing insurers and offset against premium taxes as provided in
32 subsection (1) of this section, and are not then needed for the purposes of
33 this act, shall be paid by the association to the director and by him depos-
34 ited with the state treasurer for credit to the state general fund.
35 SECTION 2. An emergency existing therefor, which emergency is hereby
36 declared to exist, this act shall be in full force and effect on and after its
37 passage and approval, and retroactively to January 1, 2004.
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STATEMENT OF PURPOSE
RS 13574E1
This bill would allow Property & Casualty and Workers
Compensation insurance companies to deduct assessments paid to
their Guaranty Association from premium taxes paid to the State,
in the same manner and extent as the Life and Health insurance
companies are currently permitted to do with respect to
assessments paid to their Guaranty Association.
FISCAL IMPACT
The fiscal impact of this bill will vary depending on future
insurance company insolvencies and assessments. Since 1980,
there have been fourteen years with no assessments and ten years
with assessments. The total net assessment for the twenty-four
year period was $14,887,933. This represents an average of
$629,339 per year. Loss to general fund, Department of Insurance
Fund or the Industrial Commission funds for FY2005 is not
anticipated.
Contact
Name: John Mackey
United Heritage
Phone:322-2685
STATEMENT OF PURPOSE/FISCAL NOTE H 512AA