NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Office of the Attorney General

Public Regulation Commission

SUMMARY

Synopsis of Bill

Senate Bill 775 amends the Insurance Fraud Act to remove the provision that explicitly denies the insurance investigators in the Insurance Fraud Bureau (IFB) from carrying firearms. The Bureau is organized into the Public Regulation Commission (PFC).

Significant Issues

Investigators at the IFB of the Insurance Division of the PRC, since creation of the bureau, have sought the authority to carry firearms. Last year, the IFB attempted to purchase firearms but the PRC denied the request based on the existing statute.

FISCAL IMPLICATIONS

Senate Bill 775 does not carry an appropriation but would have a fiscal impact on the PRC, equal to the cost of outfitting each of the investigators with firearms and provide certification and training. Additionally, as the PRC notes, the IFB would be at an increased liability exposure due to possible firearm incidents, which could increase its contributions to the General Services Department (GSD) Risk Management Pool.

The PRC estimates the additional at $18.4 of recurring cost to the Insurance Fraud Fund. The IFB budget is adequate to address the impact.

ADMINISTRATIVE IMPLICATIONS

Enactment of the bill will not have an administrative impact on the PRC.

MFV/prr