LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 701 HLS 24RS 658
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 16, 2024 11:18 AM Author: CARVER
Dept./Agy.: Insurance
Subject: Creates the Insurance Regulatory Sandbox Act Analyst: Patrice Thomas
INSURANCE DEPARTMENT EN SEE FISC NOTE SG EX See Note Page 1 of 1
Creates the Insurance Regulatory Sandbox Act
Proposed law creates the Insurance Regulatory Sandbox Act, which provides for regulatory sandbox and innovation waivers.
Proposed law provides that the commissioner of insurance may do the following: (1) grant innovation waivers, an initial
period of up to 3 years and grant a one-time extension for up to 3 years; (2) deny any initial innovation waivers and/or
extension of waivers; (3) place any terms, conditions, and limitations on waivers granted; (4) provide public notice on draft
waivers at least 30-days prior to granting an innovation waiver on the department’s website and an opportunity for public
comment; (5) provide public notice of innovation waivers grant on the department’s website; (6) revoke waivers or impose
penalties/fines (up to $1,000) for failure to comply with terms, conditions, or limitations; (7) adopt rules and regulations
including application fee as well as ongoing monitoring, examination, supervision, and reporting of waivers grant; (8) annual
report to House and Senate Insurance Committees by January 1st; and (9) enter into reciprocity agreements with other
states. Proposed law terminates on 6/30/32, the commissioner cannot grant new waivers or extend waivers after 6/30/29.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law may have an indeterminable but minimal impact on expenditures in the LA Department of Insurance (LDI).
The proposed law creates the Insurance Regulatory Sandbox Act that allows the Commissioner of Insurance to grant 3-year
innovation waivers to provide insurance products or services within the insurance market in the state without obtaining a
license or other authorization through the regular regulatory process. The proposed law requires the department to develop
rules and procedures for the application submission, granting, extending, denying, monitoring, and revocation of innovation
waivers under this measure. Although LDI believes the number of applications for innovation waivers will be minimal, the
Legislative Fiscal Office cannot determine the number of sandbox applications the department may receive or the number of
approvals the commissioner may grant under this measure. LDI reports any workload associated with the newly proposed
Sandbox Act, as well as the IT cost to develop a new set of website pages, will be handled with existing staff and resources.
To the extent a significant number of sandbox applications are received, LDI may require additional resources presumed to
be SGR from application filing fees, as well as personnel to accommodate the increased workload.
REVENUE EXPLANATION
Proposed law has an indeterminable impact on SGR in the Department of Insurance. The proposed law authorizes the
Commissioner of Insurance to impose a filing fee on applications for innovation waiver under the Insurance Regulatory
Sandbox Act. Fees mitigate the expenses of the department. The Legislative Fiscal Office cannot determine the number of
applications that would be submitted under this measure or anticipate the amount of revenue collected by the Department of
Insurance from application filing fees from the effective date in FY 25 until sunset in FY 32 (6/30/32).
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer