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1 H.R. 5059, State Insurance Regulation Preservation Act 1 (September 18, 2018)

handle is hein.congrec/cbosirpa0001 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE U COST ESTIMATE September 18, 2018 H.R. 5059 State Insurance Regulation Preservation Act As passed by the House of Representatives on September 12, 2018 H.R. 5059 would exempt certain large insurance companies from supervisory assessment fees. The legislation also makes a number of changes regarding coordination and alignment of regulatory and supervisory practices between the Federal Reserve and state regulators. Under current law, the Federal Reserve charges bank holding companies and savings and loan holding companies with total consolidated assets of more than $100 billion for the cost of supervising and regulating those firms. The Federal Reserve transfers the fees it collects to the Treasury, and they are recorded in the federal budget as revenues. H.R. 5059 would require the Federal Reserve to request information about insurance savings and loan holding companies from state regulators before requesting them from the company, align recordkeeping requirements with state regulation, and coordinate with state regulators and minimize duplication of examinations. The Fed would also review supervisory guidance and issue a report to Congress. The Federal Reserve would continue to share regulatory responsibilities over insurance savings and loan holding companies with state regulators. However, under the legislation, the Federal Reserve would no longer charge certain insurance savings and loan holding companies for the costs it incurs. Based on information from the Federal Reserve, CBO estimates that enacting the legislation's provisions regarding supervision and regulation would not result in significant changes to administrative costs, in part because they mostly codify existing practices. The exemption for certain supervisory assessment fees, however, would result in a reduction in federal revenues. CBO estimates that in 2016 about 5 percent ($25 million) of such fees were paid by firms that would be exempt under H.R. 5059. Because the fees reduce the firms' base for income and payroll taxes, CBO estimates that the decline in fees would be partially offset by higher income and payroll taxes and that the net reduction in revenues under the legislation would total $261 million over the 2019-2028 period.

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