COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3270H.07C Bill No.:HCS for SS for SCS for SB 834 Subject:Insurance - General; Business and Commerce; Department of Commerce and
Insurance
Type:Original Date:April 26, 2024Bill Summary:This proposal modifies standards in regards 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. 3270H.07C
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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. 3270H.07C
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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 costs be more than
anticipated, the department would request an increase to their 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 for DCI.
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 changed this provision and
will not eliminate premium tax collection as mentioned in previous fiscal notes.
In response to a previous version, officials from the Office of Administration - Budget and
Planning deferred 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 L.R. No. 3270H.07C
Bill No. HCS for SS for SCS for SB 834
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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.
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 26, 2024April 26, 2024