122nd MAINE LEGISLATURE
		LD 1561		LR 2168(01)
	An Act To Create an Insurance Fraud Unit within the Bureau of Insurance
	Fiscal Note for Original Bill
	Sponsor: Rep. Perry of Calais
	Committee: Insurance and Financial Services
	Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2005-06	2006-07	2007-08	2008-09
Appropriations/Allocations
	Other Special Revenue Funds		$750,954	$939,551	$988,168	$1,049,332
Revenue
	Other Special Revenue Funds		$0	$510,000	$510,000	$510,000
Transfers
	Other Special Revenue Funds		$0	$0	$0	$0
Fiscal Detail and Notes
	Assumes the Bureau of Insurance within the Department of Professional and Financial Regulation will require an increase in Other Special Revenue Funds allocations for 8 new positions and related costs to start-up and operate the new insurance fraud unit.  The bill provides additional resources for this purpose including the transfer of existing Bureau of Insurance fund balances (estimated at $6,500,000) to the new Insurance Fraud Fund, a $0.25 assessment on most Maine insurance policies (assumes $500,000 generated per year based on annual assessment on approximately 2 million Maine policies) and fines adjudged under the bill (estimated to be approximately $10,000 annually).  After the spend-out of the initial balance transfer, the bill's ongoing revenue source does not appear to be sufficient to cover estimated expenses under the bill.
	This bill will also require an Other Special Revenue Funds allocation to the Department of the Attorney General in the amount of $89,371 in fiscal year 2005-06 and $90,642 in fiscal year 2006-07.  This allocation will provide funds for an Assistant Attorney General position and general operating expenses required to assist in the prosecution and prevention of insurance fraud.