COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 3946-01

BILL NO.: SB 861

SUBJECT: Insurance - General; Banks and Financial Institutions

TYPE: Original

DATE: February 14, 2000



FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None
Total Estimated

Net Effect on All

State Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None
Total Estimated

Net Effect on All

Federal Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Economic Development - Division of Finance assumes this proposal would not fiscally impact their agency.



Department of Insurance (INS) officials state that the department may need to develop an annual statement supplementary interrogatory to monitor compliance with this proposal. INS assumes that the one-time development costs, the annual mailing costs, and the annual monitoring of responses could be covered with existing appropriation. INS states that if additional proposals as passed it may be necessary to request additional appropriation due to the combined affect of multiple proposals.





FISCAL IMPACT - State Government FY 2001

(10 Mo.)

 FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

 FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Small Business



Some small financials institutions could be fiscally impacted due to the requirements of this proposal.



DESCRIPTION



This proposal would require assets not exclusively controlled by an insurance company to be held by banks or other approved financial institutions.



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

Department of Economic Development

Division of Finance

















Jeanne Jarrett, CPA

Director

February 14, 2000