31A-3-304. Annual fees — Other taxes or fees prohibited — Captive Insurance Restricted Account.
(1)
Terms Used In Utah Code 31A-3-304
Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
Captive insurance company: means :
(a)
an insurer:
(i)
owned by a parent organization; and
(ii)
whose purpose is to insure risks of the parent organization and other risks as authorized under:
City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Insurance: includes :
(i)
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
insurance company: means a person doing an insurance business as a principal including:
(i)
a fraternal benefit society;
(ii)
an issuer of a gift annuity other than an annuity specified in Subsections 31A-22-1305(2) and (3);
(iii)
a motor club;
(iv)
an employee welfare plan;
(v)
a person purporting or intending to do an insurance business as a principal on that person's own account; and
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Town: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
(a)
A captive insurance company shall pay an annual fee imposed under this section to obtain or renew a certificate of authority.
(b)
The commissioner shall:
(i)
determine the annual fee pursuant to Section 31A-3-103; and
(ii)
consider whether the annual fee is competitive with fees imposed by other states on captive insurance companies.
(2)
A captive insurance company that fails to pay the fee required by this section is subject to the relevant sanctions of this title.
The state or a county, city, or town within the state may not levy or collect an occupation tax or other fee or charge not described in Subsections (3)(a)(i) through (iii) against a captive insurance company.
(c)
The state may not levy, assess, or collect a withdrawal fee under Section 31A-4-115 against a captive insurance company.
(4)
A captive insurance company shall pay the fee imposed by this section to the commissioner by June 1 of each year.
(5)
(a)
Money received pursuant to a fee described in Subsection (3)(a) shall be deposited into the Captive Insurance Restricted Account.
(b)
There is created in the General Fund a restricted account known as the “Captive Insurance Restricted Account.”
(c)
The Captive Insurance Restricted Account shall consist of the fees described in Subsection (3)(a).
(d)
The commissioner shall administer the Captive Insurance Restricted Account. Subject to appropriations by the Legislature, the commissioner shall use the money deposited into the Captive Insurance Restricted Account to:
An appropriation from the Captive Insurance Restricted Account is nonlapsing, except that at the end of each fiscal year, money received by the commissioner in excess of the following shall be treated as free revenue in the General Fund:
(i)
for fiscal year 2018-2019 and subsequent fiscal years, in excess of $1,600,000;
(ii)
for fiscal year 2019-2020 and subsequent fiscal years, in excess of $1,450,000; and
(iii)
for fiscal year 2023-2024 and subsequent fiscal years, in excess of $1,650,000.
