02/23/2018 03:15 PM House LABOR & COMMERCE

          HB 343-PREMIUM FINANCE COMPANIES : EXAM REQS                                                                      
                                                                                                                                
3:53:44 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."                                                                                                             
                                                                                                                                
3:53:56 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 the proposed  bill would exempt premium finance                                                               
companies from  a required 18-month examination  cycle because no                                                               
problems  had been  found with  the  companies.   He added  there                                                               
would be ongoing examinations, just not every 18 months.                                                                        
                                                                                                                                
3:55:12 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  asked if  the examinations would  only take  place if                                                               
there were a complaint.                                                                                                         
                                                                                                                                
3:55:33 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 answered in the  affirmative.  She added that the exams                                                               
currently are only carried out every  18 months and there had not                                                               
been any significant findings.                                                                                                  
                                                                                                                                
CHAIR KITO said that he has  a concern that if someone is looking                                                               
over his  shoulder every 18  months, he's going to  behave better                                                               
than  if he  knows there  will  only be  controls if  there is  a                                                               
complaint.                                                                                                                      
                                                                                                                                
MS. WALSH  said that licensees do  have an annual renewal  with a                                                               
mini-exam.                                                                                                                      
                                                                                                                                
CHAIR KITO asked  if the department would be  doing "desk audits"                                                               
to check for anomalies.                                                                                                         
                                                                                                                                
MS. WALSH answered in the affirmative.                                                                                          
                                                                                                                                
3:57:53                                                                                                                       
                                                                                                                                
CHAIR KITO opened public testimony on HB 343.                                                                                   
                                                                                                                                
CHAIR KITO held over HB 343.