COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4517-05
Bill No.: SCS for HB 1665
Subject: Banks and Financial Institutions: Secretary of State; Securities
Type: Original
Date: May 7, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Insurance (INS) stated their department investigated 3 cases last year and the Secretary of State investigated 11 of these cases last year. INS assumes that at this workload investigations can be done with existing staff. If these investigations and enforcement of investor protections increase or if insurance agent investigations increase to the level that these additional cases can no longer be accomplished with existing investigators then additional investigative staff will be requested through the appropriations process to handle increase in workload.
Officials from the Office of Secretary of State did not response to a request for fiscal note; however, Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
The Department of Insurance shall adopt by rule and regulation and enforce investor protection standards for investor suitability and agent supervision consistent with the conduct rules of the National Association of Securities Dealers for variable annuities.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Insurance
NOT RESPONDING
Office of Secretary of State
Administrative Rules Division
Securities Division
Mickey Wilson, CPA
Director
May 7, 2004