2404-SAMSJACOS5805.1SHB 2404S AMD TO HEA COMM AMD (S5589.1)331By Senator Jacobsen On page 6, after line 33 of the amendment, insert the following:Sec. RCW 48.02.190 and 2004 c 260 s 22 are each amended toread as follows: (1) As used in this section: (a) "Organization" means every insurer, as defined in RCW48.01.050, having a certificate of authority to do business in thisstate and every health care service contractor or (([selffunded]))selffunded multiple employer welfare arrangement registered to dobusiness in this state, and every retainer health care practiceoperating in this state. "Class one" organizations shall consist ofall insurers as defined in RCW 48.01.050. "Class two" organizationsshall consist of all organizations registered under provisions ofchapter 48.44 RCW. "Class three" organizations shall consist of selffunded multiple employer welfare arrangements as defined in RCW48.125.010 and retainer health care practices as defined in section 2of this act. (b)(i) "Receipts" means (A) net direct premiums consisting ofdirect gross premiums, as defined in RCW 48.18.170, paid for insurancewritten or renewed upon risks or property resident, situated, or to beperformed in this state, less return premiums and premiums on policiesnot taken, dividends paid or credited to policyholders on directbusiness, and premiums received from policies or contracts issued inconnection with qualified plans as defined in RCW 48.14.021, and (B)prepayments to health care service contractors as set forth in RCW48.44.010(3) ((or)), participant contributions to selffunded multipleemployer welfare arrangements as defined in RCW 48.125.010, or retainerfees as defined in section 2 of this act less experience ratingcredits, dividends, prepayments returned to subscribers, and paymentsfor contracts not taken. Official Print - 1 (ii) Participant contributions, under chapter 48.125 RCW, andretainer fees, under section 2 of this act, used to determine thereceipts in this state under this section shall be determined in thesame manner as premiums taxable in this state are determined under RCW48.14.090. (2) The annual cost of operating the office of insurancecommissioner shall be determined by legislative appropriation. A prorata share of the cost shall be charged to all organizations. Eachclass of organization shall contribute sufficient in fees to theinsurance commissioner's regulatory account to pay the reasonablecosts, including overhead, of regulating that class of organization. (3) Fees charged shall be calculated separately for each class oforganization. The fee charged each organization shall be that portionof the cost of operating the insurance commissioner's office, for thatclass of organization, for the ensuing fiscal year that is representedby the organization's portion of the receipts collected or received byall organizations within that class on business in this state duringthe previous calendar year: PROVIDED, That the fee shall not exceedoneeighth of one percent of receipts: PROVIDED FURTHER, That theminimum fee shall be one thousand dollars. (4) The commissioner shall annually, on or before June 1, calculateand bill each organization for the amount of its fee. Fees shall bedue and payable no later than June 15 of each year: PROVIDED, That ifthe necessary financial records are not available or if the amount ofthe legislative appropriation is not determined in time to carry outsuch calculations and bill such fees within the time specified, thecommissioner may use the fee factors for the prior year as the basisfor the fees and, if necessary, the commissioner may imposesupplemental fees to fully and properly charge the organizations. Thepenalties for failure to pay fees when due shall be the same as thepenalties for failure to pay taxes pursuant to RCW 48.14.060. The feesrequired by this section are in addition to all other taxes and feesnow imposed or that may be subsequently imposed. (5) All moneys collected shall be deposited in the insurancecommissioner's regulatory account in the state treasury which is herebycreated. (6) Unexpended funds in the insurance commissioner's regulatoryaccount at the close of a fiscal year shall be carried forward in the Official Print - 2 insurance commissioner's regulatory account to the succeeding fiscalyear and shall be used to reduce future fees. During the 20032005fiscal biennium, the legislature may transfer from the insurancecommissioner's regulatory account to the state general fund suchamounts as reflect excess fund balance in the account. Renumber the remaining sections consecutively and correct anyinternal references accordingly.SHB 2404S AMD TO HEA COMM AMD (S5589.1)By Senator On page 8, line 2 of the title amendment, after 48.44.010 insertand 48.02.190Retainer health care practice contribute to OIC regulatoryaccount fund.--- END --- Official Print - 3