HB 167/LM (BR 374) - R. Damron, B. Yonts
AN ACT relating to the Surplus Lines Insurance Multi-State Compliance Compact.
Create a new section of KRS 304.10-010 to 304.10-210 to adopt the provisions of the Surplus Lines Insurance Multi-State Compliance Compact, including a preamble to explain the necessity of the legislation; Article I to state the purposes of the compact, including establishment of a clearinghouse for receipt and dissemination of premium tax and clearinghouse transaction data related to nonadmitted insurance of multi-state risks; Article II to define terms; Article III to establish the Surplus Lines Insurance Multi-State Compliance Compact Commission and its venue; Article IV to grant authority for the commission to establish mandatory rules; Article V to establish the powers of the commission; Article VI to establish the organization of the commission; Article VII to establish meetings and authorized acts of the commission; Article VIII to authorize rules and operation procedures and rulemaking functions of the ommission; Article IX to establish commission records requirements and enforce authority; Article X to establish a method of dispute resolution; Article XI to authorize review of commission decisions; Article XII to establish commission finance requirements; Article XIII to establish that any state is eligible to be a compacting state, the effective date of the compact, and the authority of the commission to propose future amendments to the compact; Article XIV to establish requirements for withdrawal from the compact, default of a compacting state, termination of a compacting state, and the method for dissolution of the compact; Article XV to establish severability of the terms of the compact and require liberal construction of the compact terms to effectuate the purpose of the compact; and Article XVI to recognize the priority of the enforcement of compacting state laws, except any law regarding non-admitted insurance of multi-state risks which are regulated and preempted by the compact; amend KRS 91A.080 and 304.10-180 to conform by prohibiting assessment of a local government premium tax on multi-state surplus lines in conformity with the Dodd-Frank Wall Street Reform and Consumer Protection Act; effective upon contingency.
HB 167 - AMENDMENTS
HCS/LM - Retain original provisions; add and amend KRS 91A.080, 136.392, 304.10-180 to reference the Non-Admitted and Reinsurance Reform Act of 2010 of the Dodd-Frank Wall Street Reform and Consumer Protection Act which limits insurance premium taxes on multistate non-admitted insurance to one tax per state; amend KRS 304.10-180 to provide that brokers shall pay the state tax of three percent on single state risks located solely in Kentucky and retain the local government premium tax; provide that for multistate risks each broker shall pay a tax at the rate of 12% to be paid to the Kentucky Department of Insurance for distribution to the state and local governments.
SCS/LM - Retain original provisions, except change the tax rate each broker shall pay on multistate risks from 12% to 11.8%.
Jan 4-introduced in House
Jan 5-to Banking & Insurance (H)
Feb 3-posted in committee
Feb 9-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
Feb 10-2nd reading, to Rules; posted for passage in the Consent Orders of the Day for Friday, February 11, 2011
Feb 11-3rd reading, passed 95-0 with Committee Substitute
Feb 14-received in Senate
Feb 16-to State & Local Government (S)
Feb 25-taken from State & Local Government (S); 1st reading; returned to State & Local Government (S)
Feb 28-taken from State & Local Government (S); 2nd reading; returned to State & Local Government (S)
Mar 2-reported favorably, to Rules with Committee Substitute as a Consent Bill
Mar 3-posted for passage in the Consent Orders of the Day for Friday, March 4, 2011
Mar 4-3rd reading, passed 37-0 with Committee Substitute ; received in House; posted for passage for concurrence in Senate Committee Substitute ; House concurred in Senate Committee Substitute ; passed 85-0; enrolled, signed by each presiding officer; delivered to Governor
Mar 16-signed by Governor