SB 0637 - Fiscal Note

Fiscal Note - SB 0637 - Motor Vehicle Liability Policies

L.R. NO.  2595-01
BILL NO.  SB 637
SUBJECT:  Auto Insurance
TYPE:     Original
DATE:     March 4, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Insurance
Dedicated Fund              $12,500              $0              $0

Total Estimated
Net Effect on All
State Funds                 $12,500              $0              $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1996         FY 1997         FY 1998

Local Government                 $0              $0              $0


                              FISCAL ANALYSIS

ASSUMPTION

The following agencies would not expect any impact on their budgets as a
result of this proposal:  Department of Revenue, Office of Administration,
Department of Highways and Transportation, and the Department of
Conservation.

Officials from the Department of Insurance (INS), Property and Casualty
Section, estimates 250 policy form filings would be received by INS.  Review
of these filings to comply with the change in the law would be minimal and
conducted by existing staff.  Staff working overtime to conduct these reviews
would be compensated at the rate of time and a half.  Each policy form filing
would generate $50 in revenue to the Insurance Dedicated Fund.

Oversight assumes the duty of reviewing the policies could be absorbed with
existing resources and therefore would not result in additional expense to
the Department of Insurance.


FISCAL IMPACT - State Government     FY 1997    FY 1998    FY 1999
                                    (10 Mo.)

Insurance Dedicated Fund
Income - Department of Insurance
  Filing Fees                        $12,500         $0         $0

Estimated Net Effect on
Insurance Dedicated Fund             $12,500         $0         $0


FISCAL IMPACT  - Local Government    FY 1997    FY 1998    FY 1999
                                    (10 Mo.)

                                          $0         $0         $0


DESCRIPTION

The proposed legislation would increase the minimum bodily injury and
property damage amounts set by statute.

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 Revenue
Office of Administration
Department of Highway and Transportation
Department of Conservation