DAR File No. 37379

Insurance, Administration

Section R590-102-17

Dedicated Fees

Notice of Proposed Rule

(Amendment)

DAR File No.: 37379
Filed: 02/28/2013 04:49:36 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The rule is being updated to implement a change in the fee made during the 2011 Legislative Session, S.B. 2.

Summary of the rule or change:

The rule is being changed to show the increase in the Bureau of Criminal Investigation (BCI) fee from $15 to $20. This change took place in the 2011 Legislative Session, S.B. 2. Making this change in the rule has been overlooked until now.

State statutory or constitutional authorization for this rule:

• Subsection 31A-3-103(3)

Anticipated cost or savings to:

the state budget:

The change in the above captioned rule will have no effect on the department's or state's budgets. The money collected for background checks goes to the Bureau of Criminal Investigation.

local governments:

Local government will not be affected since they have no input in the department's licensing procedures.

small businesses:

Small businesses who pay for the licensing fee of their employees will be affected by the $5 increase of the BCI fee. As of 05/01/2011, when the bill went into effect, 2,143 individuals were licensed and fingerprinted. In 2012, the FBI fingerprinting charge decreased by $2.25, offsetting the overall impact of BCI's increase. This affected 2,877 individuals who were licensed that year.

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

Individuals were charged an additional $5 to be fingerprinted. In 2011 when the bill went into effect, 2,143 individuals were licensed and fingerprinted. In 2012, the FBI fingerprinting charge decreased by $2.25, offsetting the overall impart of BCI's increase. This affected 2,877 individuals who were licensed that year.

Compliance costs for affected persons:

Each Utah resident that applies for an insurance license is fingerprinted and a background check is done by both the BCI and the FBI. Between BCI's $5 increase and the FBI's $2.25 decrease the fingerprinting fee has increased $2.75 overall. The applicant pays for the services of both the FBI and the BCI and that money goes directly to them. These fees do not go to the department or the general fund.

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

The fee change for fingerprinting of in-state producers will have no fiscal impact on the department or the state. All moneys for this process go directly to the BCI and FBI for the background checks they provide. The individual, or agency that pays for the individual's licensure, is now impacted by the overall increase of $2.75.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division 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:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]

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:

04/15/2013

This rule may become effective on:

04/22/2013

Authorized by:

Todd Kiser, Commissioner

R590. Insurance, Administration.

R590-102. Insurance Department Fee Payment Rule.

R590-102-17. 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) relative value study book fee - due when book purchased or by invoice due date: $10;

(5) 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): $[15]20.00; and

(b) Federal Bureau of Investigation (FBI): $16.50;

(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: [January 18, ]2013

Notice of Continuation: December 29, 2011

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