COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5286S.03P Bill No.:Perfected SS for SB 1359 Subject:Department of Commerce and Insurance; Insurance - Life; Insurance - Health;
Banks And Financial Institutions; Insurance - General
Type:#Updated Date:April 2, 2024
#Updated with a revised response from the Department of Commerce and Insurance.
Bill Summary:This proposal enacts provisions relating to reinsurance and examinations of
insurance companies.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on General
Revenue $0 $0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027#Total Estimated
Net Effect on Other
State Funds #$0 #$0#$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 5286S.03P
Bill No. Perfected SS for SB 1359
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 5286S.03P
Bill No. Perfected SS for SB 1359
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FISCAL ANALYSIS
ASSUMPTION
Section 374.192
#Officials from the Department of Commerce and Insurance (DCI) assume the costs of this
bill can be absorbed within their current appropriations. However, should the cost be more than
anticipated, the department would request an increase to our FTE and/or appropriations as
appropriate through the budget process.
#Oversight does not have any information to the contrary. Therefore, Oversight will reflect a
zero impact in the fiscal note.
Section 380.621
Officials from the Department of Revenue (DOR) assume this proposal exempts Missouri
mutual insurance companies from rules and regulations other than those in Section 380.621.
Currently insurance companies are required to pay premium tax under Chapter 148. This
proposal appears to exempt these companies from the premium tax. Each year DCI calculates
the amount of premium tax owed by the companies. DOR defers to DCI for the estimate of the
loss to state revenue.
Oversight assumes the Senate Substitute version of section 380.621 changes this provision and
will not eliminate premium tax collection as mentioned in previous fiscal notes.
Officials from the Office of Administration - Budget and Planning defer to the Department of
Commerce and Insurance for the potential fiscal impact of this proposal.
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor. L.R. No. 5286S.03P
Bill No. Perfected SS for SB 1359
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027#$0#$0#$0FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0
FISCAL IMPACT – Small Business
A direct fiscal impact to mutual insurance companies could be expected as a result of this
proposal.
FISCAL DESCRIPTION
This proposal establishes standards in regards to insurance company reinsurance coverage and
company examination standards.
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
Office of Administration - Budget and Planning
Department of Revenue
Department of Commerce and Insurance
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorApril 2, 2024April 2, 2024