Committee gently tables proposal to raise insurance premium fee for fire programs

The subcommittee heard House Bill 394, a measure described by the presenter as increasing the fee assessed on gross premium income from certain hazard insurance policies to provide additional revenue for the Fire Programs Fund.

Mister Reynolds summarized the bill and its phased increase, saying it would move the fee from 1% to 1.5% in 2027 and to 2% in 2028. "The current fee is 1%. This bill proposes to increase that from 1.5% in 2027 and 2 percent in 2028," he said.

A committee member moved to "gently, very gently, and kindly table" the bill, citing an estimated fiscal impact referenced in the hearing of approximately $116,000,000 over time. The motion was seconded. The chair opened the roll and later announced the legislation is tabled by a vote of 7 to 0.

Committee members acknowledged the sponsor's intent but said the magnitude of the projected revenue change requires further budgetary review before advancing the proposal.