S-2860 _______________________________________________
SUBSTITUTE SENATE BILL NO. 3657
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State of Washington 49th Legislature 1985 Regular Session
By Senate Committee on Ways and Means (originally sponsored by Senator McDermott)
Read first time 4/9/85.
AN ACT Relating to the budget; adding a new section to chapter 48.02 RCW; repealing RCW 48.14.015; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 48.02 RCW to read as follows:
(1) As used in this section:
(a) "Insurers" means every insurer, as defined in RCW 48.01.050, having a certificate of authority to do business in this state.
(b) "Net direct premiums" means direct gross premiums, as defined in RCW 48.18.170, paid for insurance written or renewed upon risks or property resident, situated, or to be performed in this state, less return premiums and premiums on policies not taken, dividends paid or credited to policyholders on direct business, and premiums received from policies or contracts issued in connection with qualified plans as defined in RCW 48.14.021.
(2) The annual cost of operating the insurance and fire marshal functions of the office of insurance commissioner or any successor agency, office, or board shall be determined by legislative appropriation. A pro rata share of the cost of each function's operations shall be assessed upon all insurers.
(3) The amount assessed each insurer shall be that portion of the cost of operating the insurance and fire marshal functions of the insurance commissioner's office or any successor agency, office, or board for the ensuing fiscal year represented by the insurer's portion of the net direct premiums collected or received by all insurers from this state during the previous calendar year: PROVIDED, That the minimum assessment upon each insurer shall be one thousand dollars and the maximum assessment shall not exceed one-sixth of one percent of net direct premiums. Each insurer's assessment shall be calculated to at least five decimal places.
(4) The commissioner shall annually, on or before June 1st, calculate and bill each insurer for the amount of its assessment. Assessments shall be due and payable no later than June 15th of each year: PROVIDED, That if the necessary financial records are not available or if the amount of the legislative appropriation is not determined in time to carry out such calculations and assessments within the time specified, the commissioner may use the assessment factor for the prior year as the basis for the assessments and, if necessary, the commissioner may impose supplemental assessments to fully and properly assess the insurers. The penalties for failure to pay assessments when due shall be the same as the penalties for failure to pay taxes pursuant to RCW 48.14.060. Such assessments shall be divided between the insurance functions and the fire marshal functions of the insurance commissioner's office and shall be so designated in the assessment notices. No portion of an assessment designated for a function shall be used for purposes unrelated to that function.
(5) All moneys collected shall be deposited by the state treasurer in the insurance commissioner's insurance and fire marshal regulatory accounts in the state treasury which are hereby created.
(6) Unexpended funds in the insurance and fire marshal regulatory accounts at the close of a fiscal year shall be carried forward in the accounts to the succeeding fiscal year and shall be used to reduce future assessments.
NEW SECTION. Sec. 2. Section 35, chapter 9, Laws of 1982 1st ex. sess. and RCW 48.14.015 are each repealed.
NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.