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IBL committee adopts amendment and votes due‑pass on insurance fees bill, sending it toward appropriations
Summary
The Industry, Business and Labor Committee considered an agency bill to modernize fee schedules for the Insurance Department (House Bill 1123), adopted an amendment negotiated with the department, raised a statutory reserve ceiling to $2.5 million, and voted to give the bill a due‑pass as amended to appropriations.
Representative Koppelman presented an amendment to House Bill 1123, an agency bill from the Insurance Department to modernize fee schedules and address a cash‑flow shortfall. The amendment updated multiple licensing and appointment fees, sought to limit increases in many categories, and raised the Insurance Department’s statutory operating reserve ceiling to $2.5 million to address intra‑year negative cash flow.
Deputy Insurance Commissioner John Arnold told the committee the amendment reflected compromise language worked out with Representative Koppelman and the Insurance Department. Arnold said the department wanted to remain a comparatively low‑fee state but needed relief from cash‑flow pressure after absorbing the Fire Marshal’s Office and its budgetary timing changes. "We do think that this compromise here meets our intent for introducing an Agency Bill in the first place," Arnold said, adding that the proposal modernizes fees while reducing the likelihood of operating with negative cash flow.
Representative Rupee and other members asked about specific fee increases; Representative Koppelman said the amendment sought generally not to increase fees by more than roughly double their prior level, while acknowledging a few small fee lines changed by slightly more than that to better reflect administrative costs. Representative Ausley asked whether any industry testimony opposed the fee changes; Arnold said no opposition appeared at the podium or in submitted testimony.
Representative Koppelman moved adoption of the amendment; Representative Rupee seconded. The committee adopted the amendment and then moved a due‑pass as amended motion. The committee chair called the roll and the motion carried; committee leadership indicated the bill will be re‑referred to Appropriations because the change will exceed $100,000 in fiscal effect.
Why it matters: the amendment revises licensing and appointment fees the Insurance Department charges and raises the department’s reserve ceiling to reduce intra‑year operating shortfalls. The committee’s due‑pass will send the bill to Appropriations for fiscal review.
