LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 1924

STATE OF NEW JERSEY

218th LEGISLATURE

 

DATED: DECEMBER 19, 2019

 

 

SUMMARY

 

Synopsis:

Exempts honorably discharged United States military veterans from initial insurance producer licensing fee.

Type of Impact:

Biennial State Revenue Loss

Agencies Affected:

Department of Banking and Insurance

 

Office of Legislative Services Estimate

Fiscal Impact                                                

           Biennial 

 

State Revenue Loss

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that the bill may result in an indeterminate biennial decrease in State revenue due to the bill’s waiver of the initial insurance producer licensing fee for any applicant who is a resident of New Jersey and who is an honorably discharged veteran of any state.  The OLS does not know the number of honorably discharged veterans who may apply for this particular license in a given year and so cannot provide an estimate of the State revenue loss.

 

 

BILL DESCRIPTION

 

      This bill exempts applicants who have been honorably discharged from the United States military from the initial insurance producer licensing fee.

      The bill requires the Commissioner of the Department of Banking and Insurance to waive the initial insurance producer licensing fee for any applicant who is a resident of New Jersey and who is a veteran who has received an honorable discharge from a branch of the active or reserve component of the Armed Forces of the United States or the National Guard of any state, if the applicant has passed the licensing examination and fulfilled any other requirements for licensure.  Following the waiver of the initial licensing fee, the licensee must comply with any other licensing fees imposed by law or regulation.

      Under current law, the commissioner may provide for the waiving of fees for disabled war veterans of the United States military service.  The bill requires waiver of the initial licensing fee for all qualified applicants who have been honorably discharged from United States military service, but allows the commissioner to provide for the waiving of other fees for disabled veterans.

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that the bill may result in an indeterminate biennial decrease in State revenue, due to the bill’s waiver of the initial insurance producer licensing fee for any applicant who is a resident of New Jersey and who is an honorably discharged veteran of any state. The OLS does not know the number of honorably discharged veterans who may apply for this particular license in a given year.  However, the OLS notes that an initial insurance producer licensing fee is $190 total, which includes a license fee of $150 and a $40 processing fee.  The fees are collected on a biennial basis.

 

 

Section:

Commerce, Labor and Industry

Analyst:

Juan C. Rodriguez

Senior Fiscal Analyst

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).