COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2125-01
Bill No.: HB 866
Subject: Insurance - General; Insurance Dept.
Type: Original
Date: April 4, 2005
FISCAL SUMMARY
| FUND AFFECTED | FY 2006 | FY 2007 | FY 2008 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2006 | FY 2007 | FY 2008 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2006 | FY 2007 | FY 2008 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2006 | FY 2007 | FY 2008 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Office of Attorney General, Office of State Courts Administrator, Department of Insurance and Office of State Public Defender assume the proposal will have no fiscal impact on their organizations.
Officials from the Office of Prosecution Services assume the proposal will not have a significant direct fiscal impact on county prosecutors.
Officials from the Department of Corrections (DOC) state the DOC cannot predict the number of new commitments which may result from the creation of the offenses(s) outlined in this proposal. An increase in commitment depends on the utilization by prosecutors and the actual sentences imposed by the court.
If additional persons are sentenced to the custody of the DOC due to the provisions of this legislation, the DOC will incur a corresponding increase in operational cost through either incarceration (FY 04 average of $38.37 per inmate per day or an annual cost of $14,005 per inmate) or through supervision provided by the Board of Probation and Parole (FY 03 average of $3.15 per offender, per day or an annual cost of $1,150 per offender per year).
ASSUMPTION (continued)
The DOC assumes the narrow scope of the crime will not encompass a large number of offenders. The low felony status of the crime enhances the possibility of plea-bargaining or the imposition of a probation sentence. The probability also exists that offenders would be charged with a similar but more serious offence of that sentences may run concurrent to one another.
Supervision by the DOC through probation or incarceration would result in some additional costs, but it is assumed the impact would be $0 or a minimal amount that could be absorbed within existing resources.
| FISCAL IMPACT - State Government | FY 2006
(10 Mo.) |
FY 2007 | FY 2008 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2006
(10 Mo.) |
FY 2007 | FY 2008 |
| $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 proposal modifies various provisions relating to insurance fraud and the penalties imposed from the fraud. Any person, in connection with the offer, solicitation, sale or negotiation of insurance deceiving or making any misrepresentation of false statement of material fact will be in violation of the provisions of the proposal.
Any person willfully violating the provisions of the proposal may not be fined more than one hundred thousand dollars and imprisoned more than ten years, or both. In addition to any fine or imprisonment, the court shall order restitution to the victim in an amount equal to the losses due to the offense. If the offender holds a license under sections 375.012 to 375.141, the court shall order the Department of Insurance to revoke the license.
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
Office of Attorney General
Office of State Courts Administrator
Department of Corrections
Department of Insurance
Office of Prosecution Services
Office of State Public Defender
Mickey Wilson, CPA
Director
April 4, 2005