House Insurance & Commerce Committee
Video
Transcript
Bills discussed (4)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
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SB151
· 4 mentions in chapter, transcript
Matched: “SB151”
|
Pre-2017 bill | ||
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SB206
· 4 mentions in chapter, transcript
Matched: “SB206”
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Pre-2017 bill | ||
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HB1369
· 1 mention in transcript
Matched: “Representative Linderman We will not be running House Bill 1369 today for the purpose of amendment and Mr. Johnson is not r…”
|
Pre-2017 bill | ||
|
SB293
· 1 mention in transcript
Matched: “…he purpose of amendment and Mr. Johnson is not ready to run Senate Bill 293 so if I can get a motion to adjourn Proper motion Thank you…”
|
Pre-2017 bill |
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Representative Fredrick J. Love
Unverified
0:00
Thank you Mr. Chair, I got with me Derek,
Derek Smith
Unverified
0:10
I'll let him introduce the Senate. Good morning Mr. Chair, committee, my name is Derek Smith with the Mitchell Williams Law Firm and I represent Kinsell Insurance Company. Okay, if y'all would proceed. Thank you, Senate Bill 206 is a clarifying bill, two years ago General Assembly passed It's a law that allows for the formation of a domestic surplus lines insurer.
Surplus lines insurers write risks that traditional insurance companies don't write, exotic risks, like when you hear about people that are insuring body parts, basketball players and things. That's what surplus lines insurers do. In the bill, the language provided that the surplus lines insurer is subject to the state surplus lines premium tax. That tax has always been applied to the broker who places the business. The broker is responsible for collecting the tax and remitting it to the state.
This bill only clarifies that to make sure it's clear that the broker is responsible for that obligation. It's been cleared with the
Speaker 7
1:11
insurance department, and as far as we know, there are no objections to
Speaker 9
1:15
it. Are there any questions to the committee? Okay. Thank you, Representative. Are there any
Chair
Unverified
1:23
questions from the audience? Excuse me. Okay. Representative Perry, you are recognized for a
question. MR. Thank you, Mr. Chairman. What kind of on the, it looks like we're, if I'm reading this correctly, it reduces
Representative Mark Perry
Unverified
1:36
a premium tax or they don't pay a premium
Speaker 14
1:39
tax? MR. No, no. It doesn't change any of the premium tax that's
Derek Smith
Unverified
1:43
due. All it does is removes the language that says the insurance company is subject to the tax because they have historically not been and says that the broker is responsible for paying the tax consistent with the rest of the surplus lines law. So the amount of tax collected will
Speaker 15
2:01
not change. But the broker is responsible for? Yes. Yeah.
Derek Smith
Unverified
2:08
Under current law, in all instances in which surplus lines insurance is written, the broker is responsible for collecting and remitting the tax.
Speaker 17
2:15
And if the tax is not paid, any penalties that are to be levied are levied
Chair
Unverified
2:21
solely against the broker. collecting or remitting the tax, so the insurance company, because I see this
Representative Mark Perry
Unverified
2:28
all the time, and the broker, where the tax is, so I collect the tax from the client, the client, I remit it to the company, the company is responsible for sending that.
Derek Smith
Unverified
2:41
In surplus lines, the broker collects the tax, the broker is responsible for filing the quarterly statement and paying the tax. In this instance, the tax should never get to the insurance company. It should stay
Speaker 21
2:51
with the broker, and the broker should transfer it directly to the insurance
Representative Mark Perry
Unverified
2:56
department. Okay. All right. Thank you, Mr.
Chair
Unverified
2:58
Chairman. Okay. Thank you, Representative Williams. Seeing no one in the audience would like to speak before against the bill, Representative Copenhaver, you are recognized for
Representative Harold Copenhaver
Unverified
3:06
a question. Thank you, Mr. Chair. I just wanted to double-check. This is for non-admitted. Is that correct?
Yes, non-admitted. Non-admitted. Okay. And it does fall under the Frank Dodd Act as well. So this
Derek Smith
Unverified
3:17
change would not in any way conflict with Dodd-Frank. Okay. Okay. Thank you. Thank you, Mr.
Speaker 9
3:25
Chair. Thank you. Are there any other questions of
Chair
Unverified
3:29
the committee? Okay. Representative Wright, you are recognized for a motion. Okay. That is a proper motion. We have a motion to do pass on Senate Bill 206. All those in favor say aye. Aye. All those opposed say nay. Okay. The motion passes.
Representative Woodlaw, you have passed Senate Bill 206. Committee, the next item on our agenda is Senate Bill 151. Representative Vines, you are recognized to present Senate Bill 151. Thank you, Mr. Chair. It's an honor to be before you today. I have
Representative John T. Vines
Unverified
4:05
with me today Senate Bill 151. It's a bill to revise the uses fee for branches of an Arkansas bank located out of state
and to declare emergency. This is essentially a cleanup bill that's going to allow Arkansas banks to charge usage fees out-of-states in the markets that they're in. For example, when an Arkansas bank goes into an out-of-state market similar to Mississippi, Alabama, Florida, they are bound by our current Arkansas law that states they must charge only the amount of user fee on their ATM transactions, which this is what this bill deals with, that's allowed under the laws of the state of Arkansas. All we're doing with this bill is allowing them to use the rates in those states that they are in markets
for competitive purposes so they can be competitive in those markets. The Bankers Association and the Arkansas Bankers Association, which Mr. Monson is here with, are okay with this, and this affects no Arkansas consumer. It just allows Arkansas businesses, Arkansas banks, to compete in those out-of-state markets. I'd be happy to take any questions. Representative Love, you're recognized for a question. Motion at the proper time Okay, are there any other questions of the committee?
Chair
Unverified
5:19
Is there anyone in the audience that would
Representative Fredrick J. Love
Unverified
5:23
like to speak for or against this bill? Representative Love, are you close for your bill?
Speaker 9
5:29
Absolutely Okay, Representative Love, you are recognized for a motion Recommend do pass Okay, we do have a
Chair
Unverified
5:35
motion of do pass on Senate Bill 151 All those in favor say aye Those opposed Motion passes Representative Vines you have passed your bill Thank you so much, appreciate the opportunity Thank you Committee, I have spoke with
Representative Linderman We will not be running House Bill 1369 today for the purpose of amendment and Mr. Johnson is not ready to run Senate Bill 293 so if I can get a motion to adjourn Proper motion Thank you Thank you.
Agenda
SB206
SB151
Documents
No documents posted.
Speakers
Representative Fredrick J. Love
Unverified
Derek Smith
Unverified
Speaker 7
Speaker 9
Chair
Unverified
Representative Mark Perry
Unverified
Speaker 14
Speaker 15
Speaker 17
Speaker 21
Representative Harold Copenhaver
Unverified
Representative John T. Vines
Unverified