No. 43485 (Amendment): Section R590-102-21. Dedicated Fees

(Amendment)

DAR File No.: 43485
Filed: 01/18/2019 01:17:13 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being changed to incorporate a decrease in the fingerprinting fee charged to new individual resident licensees.

Summary of the rule or change:

The fee charged by the Bureau of Criminal Investigation (BCI) has decreased to $15 from $20 and the fee charged by the Federal Bureau of Investigation (FBI) has increased to $13.25 from $12. This represents a net $3.75 decrease in the Department of Insurance's (Department) fingerprinting fee for new individual resident licensees.

Statutory or constitutional authorization for this rule:

• Section 31A-3-103

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. The funds collected through the BCI and FBI fees are pass-through monies that are collected by the Department and forwarded on to the respective bureaus.

local governments:

There is no anticipated cost or savings for local governments. The fee is part of the licensing procedure for new individual resident licensees and does not involve local governments.

small businesses:

If an individual is considered to be a small business when they are are classified as a sole proprietorship, then there is a one-time cost to those small businesses. All new individual resident licensees are required to pay both the BCI and FBI fees as part of the process for obtaining an insurance license. The total one-time fee after this rule change will be reduced from the current fee of $32 to $28.25.

persons other than small businesses, businesses, or local governmental entities:

All new individual resident licensees are required to pay both the BCI and FBI fees as part of the process for obtaining an insurance license. The total one-time fee after this rule change will be reduced from the current fee of $32 to $28.25.

Compliance costs for affected persons:

Affected persons will still be required to pay both the BCI and FBI fees as part of the insurance licensing process. However, after these rule changes are made effective, the cost of that fee will be decreased from the current fee of $32 to $28.25.

Comments by the department head on the fiscal impact the rule may have on businesses:

I. WHETHER A FISCAL IMPACT TO BUSINESS IS EXPECTED AS A RESULT OF THE PROPOSED RULE AND, IF SO, A DESCRIPTION OF WHY: If an individual is considered to be a small business when they are are classified as a sole proprietorship, then there is a one-time cost to those small businesses. All new individual resident licensees are required to pay the fingerprint fee and be fingerprinted as part of the process for obtaining an insurance license. The total one-time fee after these rule changes will be $28.25. II. AN ESTIMATE OF THE TOTAL NUMBER OF BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: This number varies from year to year because it depends on the number of resident individuals (sole proprietors) that choose to become licensed in Utah. Based on current growth trends, the Department expects a 4% year over year growth rate, which will result in an estimated 4,229 affected businesses in fiscal year 2019. III. AN ESTIMATE OF THE SMALL BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: Impacted small businesses in Utah are individuals and sole proprietors. IV. A DESCRIPTION OF THE SOURCES OF COST OR SAVINGS AS WELL AS THE EXPECTED NET SAVINGS OR COST TO BUSINESS ESTABLISHMENTS AND SMALL BUSINESS ESTABLISHMENTS AS A RESULT OF THE PROPOSED RULE OVER A ONE-YEAR PERIOD, IDENTIFYING ONE-TIME AND ONGOING COSTS: The fingerprint fee charged by BCI and the FBI is decreasing by $3.75 per new individual resident licensee. The fingerprint fee is a one-time cost that is only collected when individual residents first become licensed. In fiscal year 2019, the projected savings are estimated to be $15,858.75 for the estimated 4,229 Utahns that will become licensed. V. DEPARTMENT HEAD'S COMMENTS ON THE ANALYSIS: The above analysis represents the Department's best estimate of the fiscal impact these rule amendments will have on businesses.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/18/2019

This rule may become effective on:

03/25/2019

Authorized by:

Steve Gooch, Information Specialist

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$15,858.75

$16,496.25

$17,156.25

Total Fiscal Benefits:

$15,858.75

$16,496.25

$17,156.25

Net Fiscal Benefits:

$15,858.75

$16,496.25

$17,156.25

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

These rule changes are not expected to have any fiscal impact on non-small businesses revenues or expenditures, because they deal with the fingerprinting fee charged to individuals when they first obtain their resident license to sell insurance.

 

The head of the Insurance Department, Commissioner Todd E. Kiser, has reviewed and approved this fiscal analysis.

 

 

R590. Insurance, Administration.

R590-102. Insurance Department Fee Payment Rule.

R590-102-21. Dedicated Fees.

The following are fees dedicated to specific uses:

(1)(a) annual fraud assessment fee as calculated under Section 31A-31-108 and stated in the invoice - due by the due date on the invoice;

(b) late fee - due for any fraud assessment fee paid after the due date on the invoice: $50;

(2) annual title insurance regulation assessment fee as calculated under Section 31A-23a-415 and Rule R592-10 and stated in the invoice - due by the due date on the invoice;

(3) annual title assessment for the Title Recovery, Education, and Research Fund fee:

(a) individual title licensee applicant for initial license or renewal license - due with the initial application or the renewal application: $15;

(b) agency title licensee applicant - due with the initial application: $1,000;

(c) annual agency title licensee assessment based on annual written title insurance premium - due by the due date on the invoice:

(i) Band A: $0 to $1 million: $125;

(ii) Band B: more than $1 million to $10 million: $250;

(iii) Band C: more than $10 million to $20 million: $375;

(iv) Band D: more than $20 million: $500;

(4)(a) relative value study book fee - due when book purchased or by invoice due date: $10;

(b) annual health insurance actuarial review assessment fee as calculated under Section 31A-30-115 and stated in the invoice - due by the due date on the invoice;

(5)(a) code book - due when book purchased or by invoice due date: $57;

(b) mailing fee for books - due if book is to be mailed to purchaser: $3;

(6) fingerprint fee - due with application for individual license:

(a) Bureau of Criminal Investigation (BCI): $[20]15; and

(b) Federal Bureau of Investigation (FBI): $[12]13.25;

(7) annual health insurance actuarial review assessment fee as calculated under Section 31A-30-115 and stated in the invoice - due by the due date on the invoice.

 

KEY: insurance fees

Date of Enactment or Last Substantive Amendment: [February 8, 2018]2019

Notice of Continuation: December 12, 2016

Authorizing, and Implemented or Interpreted Law: 31A-3-103

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