02/26/2018 03:15 PM House LABOR & COMMERCE

                                                                                                                                
          HB 343-PREMIUM FINANCE COMPANIES : EXAM REQS                                                                      
                                                                                                                              
3:40:39 PM                                                                                                                    
                                                                                                                                
CHAIR KITO announced that the next order of business would be                                                                   
HOUSE BILL NO. 343, "An Act relating to examination of premium                                                                  
finance companies."                                                                                                             
                                                                                                                                
3:40:48 PM                                                                                                                    
                                                                                                                                
MIKE  NAVARRE,  Commissioner  Designee, Department  of  Commerce,                                                               
Community &  Economic Development  (DCCED), introduced HB  343 on                                                               
behalf of the  House Rules Committee by request  of the governor.                                                               
He explained that  HB 343 would exempt  premium finance companies                                                               
from the 18-month examination requirement.                                                                                      
                                                                                                                                
3:42:01 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  commented  that  he  would  cautiously  support  the                                                               
proposed  bill.   He said  he would  encourage the  department to                                                               
ensure there  would be  at least some  kind of  verification that                                                               
there are no issues going into the future.                                                                                      
                                                                                                                                
3:42:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD asked why  the proposal was to do                                                               
away with an  examination as opposed to changing it  up to a two-                                                               
year or three-year period.                                                                                                      
                                                                                                                                
COMMISSIONER  DESIGNEE  NAVARRE  said  that no  issues  had  been                                                               
identified  and  it was  thought  renewal  examinations would  be                                                               
sufficient.                                                                                                                     
                                                                                                                                
3:44:28 PM                                                                                                                    
                                                                                                                                
PATRICE   WALSH,  Chief   Examiner,  Division   of  Banking   and                                                               
Securities,   Department  of   Commerce,  Community   &  Economic                                                               
Development  (DCCED), answered  questions  in the  hearing on  HB
.   She confirmed  that there  are two  [review] opportunities                                                               
with  the  licensed   group.    She  stated   the  groups  submit                                                               
information  for review  on December  31  by way  of renewal  and                                                               
March 15 when  they submit an annual report.   She reiterated the                                                               
aim was to best use the division's resources.                                                                                   
                                                                                                                                
3:45:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  whether the  recommendation came                                                               
from the companies or from department staff.                                                                                    
                                                                                                                                
COMMISSIONER DESIGNEE  NAVARRE answered  that he thought  it came                                                               
from staff as a way to better utilize their resources.                                                                          
                                                                                                                                
MS. WALSH confirmed it came from staff.                                                                                         
                                                                                                                                
3:46:26 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on HB 343.                                                                                   
                                                                                                                                
3:46:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to report  HB 343 out of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no objection, it was so ordered.