HCS HB 829 & 917 -- STRUCTURED SETTLEMENTS

SPONSOR:  Smith

COMMITTEE ACTION:  Voted "do pass" by the Committee on Civil and
Administrative Law by a vote of 18 to 0.

This substitute prohibits transfers of structured settlement
payment rights, as defined in the substitute, without prior
court approval.   The transferee is required to disclose certain
financial information to the payee.  The court is required to
make express findings on a variety of issues detailed in the
substitute.  The requirements of the substitute cannot be waived.

FISCAL NOTE:  Cost to General Revenue Fund of Less than $100,000
in FY 2000, FY 2001, and FY 2002.

PROPONENTS:  Supporters say that this bill is necessary to
protect the public from unscrupulous persons who purchase
structured settlements at drastically discounted rates.

Testifying for the bill were Representative Smith; Alliance of
American Insurers; Lawrence M. Ruder; National Structured
Settlement Trade Association; and American Insurance Association.

OPPONENTS:  Those who oppose the bill say that the subjective
standard is too restrictive and should be replaced with a "best
interests" standard.  Also, there should be a financial
threshold below which this bill does not apply.

Testifying against the bill was Metropolitan Mortgage &
Securities Co., Inc.

Julie Jinkens McNitt, Legislative Analyst

HB 829 -- Structured Settlements

Sponsor:  Smith

This bill prohibits transfers of structured settlement payment
rights, as defined in the bill, without prior court approval.
The transferee is required to disclose certain financial
information to the payee.  The court is required to make express
findings on a variety of issues detailed in the bill.  The
requirements of the bill cannot be waived.