|Date Requested:January 09, 2014
Time Requested:02:30 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
|Senate Bill 255 has no fiscal impact on the revenues or expenses of the Offices of the Insurance Commissioner.|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
| The revenue generated by the §33-3-33 surcharge on fire and casualty insurance policies is not retained by the OIC, but is passed through to the State Treasury for distribution to other governmental entities.
If enacted, SB255 would increase the surcharge from .55% to 1%. During fiscal year 2013, the OIC collected $12.5 million from the .55% surcharge. The proposed surcharge would result in collections of an estimated additional $10.3 million, for total estimated surcharge revenues of $22.8 million.
The proposed legislation would also change how the revenues are currently being distributed by the State Treasurer's office (STO). For information about the impact of SB 255, the STO should be contacted.