SCS/HB 599 - This act enacts provisions relating to the regulation of certain financial entities.
CORPORATE TAXATION (SECTION 143.441)
The act adds "qualified air freight forwarders", as defined in the act, to the definition of "corporation" as a transportation corporation for the purposes of corporate income allocation.
This provision is identical to a provision in SCS/SB 46 & 50 (2019).
FINANCIAL INSTITUTIONS - FILINGS WITH DIVISION OF FINANCE
Current law requires certain banks, trust companies, credit unions, and savings and loans associations to file multiple copies of various forms and documents with the Division of Finance within the Department of Insurance, Financial Institutions, and Professional Registration. Current law also requires the Division to make, file, or retain multiple copies of the same forms and documents with various state offices. This act repeals those requirements and instead requires a single filing of each form or document currently required to be filed with the Division.
The act repeals a requirement that any savings and loan association pay a fee of $5 to the Director of Revenue for each resolution filed with the Division amending its articles of incorporation.
Current law requires the Director of the Division to prepare a report, as part of the report of the Department, detailing the state and condition of each corporation required to report to him or her. This act repeals that requirement.
These provisions are identical to SB 179 (2019).
INSURANCE HOLDING COMPANIES
This act grants the Director of the Department of Insurance, Financial Institutions, and Professional Registration the authority to act as the group-wide supervisor for internationally active insurance groups, as such terms are defined in the act. The Director may acknowledge a different group-wide supervisor if the group does not have sufficient operations within the state or the United States, or if a more appropriate group-wide supervisor is identified as provided in the act. Insurance groups that do not otherwise qualify as internationally active insurance groups may also request the Director to make a determination or acknowledgment under these provisions.
The Director shall cooperate with other state, federal, and international regulatory agencies to identify a single group-wide supervisor for an internationally active insurance group. The Director may act as the group-wide supervisor if the international group has substantial operations in the state, or may acknowledge a regulatory official from another jurisdiction to be a more appropriate supervisor. Determinations that another regulatory official is the appropriate group-wide supervisor shall take into consideration the individual insurers' domiciles, the location of their offices, and whether they are sufficiently supervised by another willing regulatory official, and shall be made in consultation with the international insurance group.
When another regulatory official is already acting as the group-wide supervisor for an international insurance group, the Director shall acknowledge that official as the group-wide supervisor. However, if there is a material change in the group resulting in group members within the state holding the largest share of the group's financial interests, or resulting in the state being the domicile of the group's top-tiered insurers, the Director shall determine the appropriate group-wide supervisor as otherwise specified in the act. In the event there is a dispute as to which official shall act as the group-wide supervisor, the Director's decision not to acknowledge another official as the group-wide supervisor shall be made only after public notice and hearing, and shall be accompanied by findings of fact and conclusions of law addressing the factors specified in the act.
The Director may collect from insurers the information necessary to determine a group-wide supervisor. Prior to a determination that the Director shall act as the group-wide supervisor, the Director shall notify the insurers and ultimate controlling person of the internationally active insurance group, and the group shall have not less than 30 days to provide additional information pertaining to the Director's pending determination. The Director shall publish on the Department of Insurance, Financial Institutions, and Professional Registration web site the identity of the internationally active insurance groups determined to be subject to group-wide supervision by the Director.
If the Director is acting as the group-wide supervisor for an internationally active insurance group, he or she may: assess financial risks; request information to assess financial risks; coordinate and communicate with other regulatory officials; enter into agreements with or obtain documents from insurers, the insurance group, and other regulatory officials to clarify the Director's role as group-wide supervisor; and other supervisory activities consistent with the authority and purposes specified in this act.
If the Director acknowledges a regulatory official from a jurisdiction not accredited by the National Association of Insurance Commissioners as the appropriate group-wide supervisor, the Director may act in cooperation with that official where doing so is in compliance with the laws of this state and the other official cooperates with the Director's group-wide supervision with regard to other internationally active insurance groups, as applicable.
The Director may enter into agreements into insurer group-members, affiliates, and other regulatory agencies to obtain documentation regarding members of the insurance group which provides the basis for or otherwise clarifies a regulatory official's role as group-wide supervisor.
Insurer group-members subject to these provisions shall pay the reasonable expenses of the Director implementing these provisions, including the engagement of attorneys, actuaries, and other professionals, and reasonable travel expenses.
This act adds the information provided to the Director under the act to provisions specifying that certain information required to be reported by insurance holding companies shall be confidential and privileged, and not subject to disclosure or subpoena.
These provisions are identical to SB 347 (2019).
The act allows a creditor with a secured interest in the property
to the list of entities or individuals who may obtain records
otherwise closed under the Sunshine Law.
This provision is identical to HB 902 (2019).