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F I S C A L I M P A C T R E P O R T
SPONSOR King
ORIGINAL DATE
LAST UPDATED
2/13/07
HB 652
SHORT TITLE PRC Approval of Certain Appointments
SB
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB 589.
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
House Bill 652 would amend the insurance code to provide the PRC additional authority over
Insurance Division matters.
Section 1 would require approval of all appointments made by the superintendent of
Insurance to boards, commissions or groups, etc.
Section 2 would provide for PRC review of all orders of the superintendent of insurance
as part of the appeal process and states that refusal of PRC final orders may be heard by
the Supreme Court;
Section 3 removes the district court and replaces it with the Supreme Court as the
appellate review body.
Section 4 would provide for commission review of all managed health care
determinations made by the external grievance appeals panel pursuant to the Patient’s
Protection Act, as amended by Section 5 of the bill, providing right to appeal.
FISCAL IMPLICATIONS
The bill would bring additional administrative costs in providing a level of review by the PRC.
PRC notes, however, that such costs and time allocations cannot be determined at this time.
pg_0002
House Bill 652 – Page
2
Historically few cases have been appealed and it appears that any such cost can be absorbed in
the general operation of the commission.
ADMINISTRATIVE IMPLICATIONS
PRC will need to adopt procedural regulations governing the process of seeking their review of
insurance decisions and appointments.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 652 relates to House Bill 589, which is similar in purpose but does not provide for
appeal to the Supreme Court.
BE/csd