Fiscal Note - SB 0349 - Allows Insurers to Invest Funds In Investment Pools
L.R. NO. 1377-01
BILL NO. SB 349
SUBJECT: Insurance: Investment Pools
TYPE: Original
DATE: February 17, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Insurance
Dedicated Fund ($40,550) ($39,925) ($40,935)
Total Estimated
Net Effect on All
State Funds ($40,550) ($39,925) ($40,935)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Economic Development - Division of Finance
assume that this proposal would have no fiscal impact on their agency.
Officials of the Department of Insurance (INS) indicate that the proposal
would result in the required review and monitoring of investment pool
activity for approximately 300 domestic insurers. The investment pool
activity would include domestic insurers and their insurance and noninsurance
participants. INS officials indicate one additional financial analyst
position would be required to review and monitor the activities involving
mutual funds, money markets, securities and investment laws, debentures,
repurchase transactions, securities lending transactions and advanced
investment management. INS would request one Financial Analyst II position,
plus related fringe benefits, equipment and expense at a total cost of
$40,550 in FY 1998, $39,925 in FY 1999 and $40,935 in FY 2000. INS officials
assume costs would be charged to the Insurance Dedicated Fund since there are
no provisions for charging the costs back to the insurers.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
INSURANCE DEDICATED FUND
Costs-Department of Insurance
Personal service (1 FTE) ($23,576) ($29,010) ($29,735)
Fringe benefits (6,726) (8,277) (8,483)
Equipment and expense (10,248) (2,638) (2,717)
NET EFFECT ON INSURANCE
DEDICATED FUND ($40,550) ($39,925) ($40,935)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposal would allow insurance companies to invest in investment pools
meeting specified qualifications.
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 Economic Development - Division of Finance
Department of Insurance
This Fiscal Note is not an official copy and should not be quoted or cited.