Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1816
       
       
       
       
       
       
                                Barcode 846588                          
       
                              LEGISLATIVE ACTION                        
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       The Committee on Budget Subcommittee on Finance and Tax
       (Bogdanoff) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 98 - 138
    4  and insert:
    5         Section 4. Section 626.9362, Florida Statutes, is created
    6  to read:
    7         626.9362 Multistate reciprocal agreement or compact fiscal
    8  analysis.—For the purpose of carrying out the Nonadmitted and
    9  Reinsurance Reform Act of 2010, 15 U.S.C. 8201 et seq., the
   10  insurance commissioner, in conjunction with the Florida Surplus
   11  Lines Service Office, shall conduct a fiscal analysis of the
   12  impact of this state entering into the Nonadmitted Insurance
   13  Multi-State Agreement and the Surplus Lines Insurance Multi
   14  State Compliance Compact for determining eligibility for
   15  placement of nonadmitted insurance, for payment, reporting, and
   16  collection of the premium tax on nonadmitted insurance. The
   17  fiscal analysis report must also include:
   18         (1) The date that the Nonadmitted Insurance Multi-State
   19  Agreement took effect and a copy of all rules, regulations, and
   20  procedures, adopted pursuant to the agreement.
   21         (2) The date that the Surplus Lines Insurance Multi-State
   22  Compliance Compact took effect and a copy of all rules,
   23  regulations, and procedures, adopted pursuant to the compact.
   24         (3) The names of the states that have joined or agreed to
   25  join the Nonadmitted Insurance Multi-State Agreement and the
   26  Surplus Lines Insurance Multi-State Agreement as of the date of
   27  the estimates required under subsections (5)-(8).
   28         (4) The total amount of nonadmitted insurance premium and
   29  the premium tax payable on such premium by each state named in
   30  (3).
   31         (5) An estimate of the total premium on nonadmitted
   32  insurance covering properties, risks, or exposures located
   33  solely in this state and an estimate of the amount of premium
   34  tax payable on those properties, risks, or exposures. The
   35  estimate also must include the number of policies, the number
   36  and location of risks covered, the source of the information,
   37  and the methods used to make the estimate.
   38         (6) An estimate of the total amount of premium on
   39  nonadmitted insurance covering properties, risks, or exposures
   40  located in multiple states for which this state is the home
   41  state, as defined in the Nonadmitted and Reinsurance Reform Act
   42  of 2010, and the total amount of premium tax payable to this
   43  state on those properties, risks, or exposures if this state is
   44  not a member of the Nonadmitted Insurance Multi-State Agreement
   45  or the Surplus Lines Insurance Multi-State Compliance Compact.
   46  The estimate also must include the number of policies, the
   47  number and location of risks covered, the source of the
   48  information, and the methods used to make the estimate.
   49         (7) An estimate of the total amount of premium on
   50  nonadmitted insurance covering properties, risks, or exposures
   51  located in multiple states where Florida is the home state, as
   52  defined in the Nonadmitted and Reinsurance Reform Act, and the
   53  total amount of premium tax payable to this state on those
   54  properties, risks, or exposures payable to this state if this
   55  state is a member of the Nonadmitted Insurance Multi-State
   56  Agreement and if this state is a member of the Surplus Lines
   57  Insurance Multi-State Compliance Compact. The estimate also must
   58  include the number of policies, the number and location of risks
   59  covered, the source of the information, and the methods used to
   60  make the estimate.
   61         (8) An estimate of the total amount of premium on
   62  nonadmitted insurance covering properties, risks, or exposures
   63  located in multiple states where a state other than this state
   64  is the home state, as defined in the Nonadmitted Reinsurance
   65  Reform Act, and the total amount of premium tax payable to this
   66  state on those properties, risks, or exposures payable to this
   67  state if this state is a member of the Nonadmitted Insurance
   68  Multi-State Agreement and if this state is a member of the
   69  Surplus Lines Insurance Multi-State Compliance Compact. The
   70  estimate also must include the number of policies, the number
   71  and location of risks covered, the source of the information,
   72  and the methods used to make the estimate.
   73  
   74  The insurance commissioner shall submit the fiscal analysis
   75  report to the Governor, the President of the Senate, and the
   76  Speaker of the House of Representatives by December 31, 2011.
   77  The fiscal analysis must include the information used to
   78  complete the analysis and a recommendation of whether fiscal
   79  advantages to this state exist to enter into a multistate
   80  reciprocal compact or agreement.
   81  
   82  ================= T I T L E  A M E N D M E N T ================
   83         And the title is amended as follows:
   84         Delete lines 14 - 54
   85  and insert:
   86         certain circumstances; creating s. 626.9362, F.S.;
   87         requiring the insurance commissioner, in conjunction
   88         with the Florida Surplus Lines Service Office, to
   89         conduct a fiscal analysis of the benefits this state
   90         would receive by participating in the Nonadmitted
   91         Insurance Multi-State Agreement or the Surplus Lines
   92         Insurance Multi-State Compliance Compact; requiring
   93         the findings and recommendations of the analysis to be
   94         reported to the Governor and the Legislature;
   95         providing for application; amending s. 626.938, F.S.;
   96         requiring certain insureds or self insurers engaging
   97         in specified insurance transactions with a foreign or
   98         alien insurer to compute the premium tax and service
   99         fees based on the gross premium under certain
  100         circumstances; requiring such insureds or self
  101         insurers to pay the applicable premium tax to the
  102         department and the service fee to the Florida Surplus
  103         Lines Service Office on or before a specified time;
  104         providing an effective date.
  105  
  106         WHEREAS, the 111th Congress passed the Nonadmitted and
  107  Reinsurance Reform Act of 2010 (NRRA), and
  108         WHEREAS, the NRRA provides that no state other than the
  109  home state of an insured may require any premium tax payment for
  110  nonadmitted insurance and defines “home state” as the state in
  111  which an insured maintains its principal place of business [15
  112  U.S.C. s. 8206], and
  113         WHEREAS, as a result of the NRRA, premium tax payments that
  114  would otherwise be paid to Florida will be paid to other states,
  115  and
  116         WHEREAS, the NRRA allows states to enter into a compact or
  117  otherwise establish procedures to allocate among the states the
  118  premium taxes paid to an insured’s home state, and
  119         WHEREAS, the National Association of Insurance
  120  Commissioners and the National Conference of Insurance
  121  Legislators have adopted agreements or compacts for states to
  122  use for that purpose, and
  123         WHEREAS, a state must enter into an agreement or otherwise
  124  establish procedures to allocate among the states the premium
  125  taxes on nonadmitted insurance paid to an insured’s home state
  126  before the expiration of a 330-day period that began on July 21,
  127  2010, to apply to the payment of taxes to other states on the
  128  effective date of this act, pursuant to the NRRA [15 U.S.C. s.
  129  8201], NOW, THEREFORE,