Bill > HB1491

This bill establishes and regulates political subdivision risk management programs, which are formal arrangements where two or more local government entities (political subdivisions) jointly cover risks. It outlines the purpose of these programs, emphasizing their essential governmental function in providing public sector loss prevention and managing costs based on actual experience, and clarifies that they are not considered traditional insurance companies for taxation or regulation purposes, though they are subject to certain oversight and reporting requirements. The bill defines key terms like "authorized control level event" and "Risk-Based Capital (RBC) instructions," which are financial solvency standards used to monitor the financial health of these programs. It details the process for forming these programs, requiring commissioner approval and submission of a comprehensive plan covering risks, funding, operations, and financial projections, and sets forth specific eligibility and operational requirements, including prohibitions against conflicts of interest for directors. The bill also establishes financial, investment, and solvency standards, including requirements for reporting financial information, maintaining adequate capital reserves, and adhering to specific investment guidelines for assets, while also affirming tax exemptions and confidentiality provisions for certain program information, with annual financial statements being publicly available. Finally, it defines the commissioner's enforcement authority, including the power to suspend or revoke approval and assess fines for non-compliance, and outlines procedures for appeals and rulemaking.