SENATE BILL NO. 130

INTRODUCED BY HERTEL J

BY REQUEST OF THE STATE AUDITOR

A BILL FOR AN ACT ENTITLED: "AN ACT ESTABLISHING A FEE OF $1,900 FOR INSURERS APPLYING FOR OR WISHING TO RENEW A CERTIFICATE OF AUTHORITY TO CONDUCT THE BUSINESS OF INSURANCE IN MONTANA; SUBMITTING THE FEE INCREASE TO THE ELECTORATE; AMENDING SECTION 33-2-708, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 33-2-708, MCA, is amended to read:

"33-2-708. Fees and licenses. (1) (a) Except as provided in 33-17-212(2), the commissioner shall collect a fee of $1,900 from each insurer applying for or annually renewing a certificate of authority to conduct the business of insurance in Montana.

(b) The commissioner shall collect certain additional fees as follows:

(i) nonresident insurance producer's license:

(A) application for original license, including issuance of license, if issued	100.00

(B) annual renewal of license	10.00

(ii) surplus lines insurance producer license:

(A) application for original license and for issuance of license, if issued	50.00

(B) annual renewal of license	50.00

(iii) .50 for each page for copies of documents on file in the commissioner's office

(2) (a) The commissioner shall charge a fee of $75 for each course or program submitted for review as required by 33-17-1204 and 33-17-1205, but may not charge more than $1,500 to a sponsoring organization submitting courses or programs for review in any biennium.

(b) Insurers and associations composed of members of the insurance industry are exempt from the charge in subsection (2)(a).

(3) The commissioner shall promptly deposit with the state treasurer to the credit of the general fund all fines and penalties and those amounts received pursuant to 33-2-311, 33-2-705, and 33-2-706. All other fees collected by the commissioner pursuant to Title 33 and the rules adopted under Title 33 must be deposited in the state special revenue fund to the credit of the state auditor's office.

(4) All fees are considered fully earned when received. In the event of overpayment, only those amounts in excess of $10 will be refunded."

NEW SECTION. Section 2. Submission to electorate. This act shall be submitted to the qualified electors of Montana as provided in Title 13, chapter 1, MCA, at the tax election to be held in 1999, by printing on the ballot the full title of this act and the following:

SHALL THE APPLICATION AND ANNUAL RENEWAL FEE TAX FOR CERTIFICATES OF AUTHORITY TO CONDUCT THE BUSINESS OF INSURANCE IN MONTANA BE INCREASED ANNUALLY IN THE FOLLOWING MANNER?

[]	FOR increasing the fee to obtain or renew a certificate of authority to conduct the business of insurance in Montana to $1,900.

[]	AGAINST increasing the fee to obtain or renew a certificate of authority to conduct the business of insurance in Montana to $1,900.

NEW SECTION. Section 3. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.

NEW SECTION. Section 4. Effective date. If approved by the electorate, this act is effective January 1, 2001, with the application and renewal fee in 33-2-708 being due March 1, 2001, for tax year 2000.

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