COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4342-01

Bill No.:          HB 1691

Subject:           Insurance - General; Insurance Dept.; Interstate Cooperation

Type:              Original

Date:               February 19, 2008

Bill Summary:           Creates the Interstate Insurance Product Regulation Compact.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Insurance, Financial Institutions and Professional Registration assume the proposal will have no fiscal impact on their organization.

Officials from the Office of Secretary of State (SOS) state the fiscal impact for this proposal for Administrative Rules is less than $2,500. The SOS does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what the SOS can sustain within its core budget. Therefore, the SOS reserves the right to request funding for the costs of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the Governor.

Officials from the Office of Attorney General (AGO) did not respond to our request for a statement of fiscal impact.

Oversight assumes, based on the AGO’s response to identical legislation from 2007 (SB 304), the AGO will not be fiscally impacted by this legislation.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

The proposed legislation appears to have no fiscal impact.

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, Financial Institutions and Professional Registration

Office of Secretary of State

NOT RESPONDING: Office of Attorney General

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 19, 2008