The House Economic Development, Banking, Insurance, and Commerce Committee voted to release House Bill 18, which would raise new and renewal insurance licensing fees by $25 and allow the Delaware Department of Insurance (DOI) to keep 15 percent of the increased revenue for regulatory purposes, while 85 percent would continue to flow to the general fund.

The bill’s sponsor told the committee the DOI has faced declining revenue and rising mandated expenses, and that the department — now fully self-funded after general-fund support ended in the early 2000s — projects revenue shortfalls without the change. The proposal also permits the DOI to retain up to $5,000,000 in its regulatory revolving fund at the end of each fiscal year to cover start-up costs tied to the two-year licensing renewal cycle, with any funds above that amount reverting to the general fund.

DOI representative Chris Haas said the department has reviewed the proposal with carriers and stakeholders; an industry representative from Highmark Blue Cross Blue Shield Delaware, Pam Price, spoke in support, saying carriers and DOI work closely on rate reviews and consumer protection. Haas earlier summarized DOI’s fiscal projection that, if unaddressed, the department would see negative balances in upcoming fiscal years without new revenue.

Committee members moved and seconded a motion to release the bill. During a roll call the chair recorded affirmative votes by Chair Bush, Vice Chair Carson, Representative Gray, Representative Lambert, Representative Wilson Anton and Representative York; the committee chair stated the motion received the required number of votes and the bill was released from committee.

The bill’s proponents told the committee they expect the fee increase to cover licensing-cycle funding needs and did not present an alternate revenue source. The sponsor said the measure had been reviewed by the Commissioner’s Agent Advisory Board and included stakeholder input.

Votes at a glance: House Bill 18 — motion to release from committee (mover: not specified; second: not specified); roll-call yes votes recorded: Chair Bush, Vice Chair Carson, Representative Gray, Representative Lambert, Representative Wilson Anton, Representative York; outcome: released from committee.

The bill now proceeds to be offered for signatures for absent members and, if it receives enough signatures, will be reported to the legislative website and announced on the House floor.