Mississippi House Bill HB940

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Insurance department; remove from the provisions of the Mississippi Budget Transparency and Simplification Act.

Impact

The implications of HB940 include a significant alteration to how insurance regulatory functions are financed in Mississippi. By enabling the Insurance Department to utilize funds from fees and assessments, the bill could foster a more sustainable financial model for the department’s operations. Such a restructuring may enhance its ability to adequately respond to the evolving insurance landscape within the state while maintaining oversight and service delivery. However, the new funding mechanism may also lead to increased scrutiny regarding the transparency of how these funds are managed and allocated.

Summary

House Bill 940 aims to amend various provisions in the Mississippi Code related to the Department of Insurance's funding structure. The bill removes the requirement for the Department of Insurance to be funded exclusively by appropriations from the state general fund. Instead, it introduces provisions that allow unexpended amounts in the Insurance Department Fund, above a specified threshold, to lapse into the general fund at the end of each fiscal year. This modification is intended to provide more flexibility in funding the Department of Insurance's operations, thereby potentially reducing reliance on state appropriations. Additionally, it reflects a shift towards self-funding mechanisms for certain expenses through collected revenues.

Contention

Despite its intended benefits, there are notable concerns surrounding the enactment of HB940. Critics argue that shifting from general fund appropriations could jeopardize the Department’s funding stability, particularly if fee collections do not meet anticipated levels. There is also apprehension that prioritizing certain fees may inadvertently disadvantage smaller insurance providers and lead to increased costs for consumers. Thus, the discussions around HB940 encapsulate a broader debate on balancing fiscal responsibility with the need for effective regulatory oversight in the insurance industry.