House of Representatives
State of Utah
UTAH STATE CAPITOL COMPLEX . 350 STATE CAPITOL
Graphic file number 0 named letter~1.jpg with height 78 p and width 81 p Left aligned
P.O. BOX 145030 . SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029 February 5, 2010
Mr. Speaker:
The Health and Human Services Committee reports a favorable recommendation on H.B. 294,
HEALTH SYSTEM REFORM AMENDMENTS, by Representative D. Clark, with the following
amendments:
a captive insurance company, and no other occupation tax or other tax or fee may be
levied or collected from a captive insurance company by the state or a county, city, or
municipality within this state.
Respectfully,
Paul Ray
1. Page
1, Line 25
:
25
health benefit plans;
2. Page
4, Line 102
:
102
31A-2-201, as last amended by Laws of Utah 2008, Chapter 382
3. Page
14, Line 425
:
425
Access and Management Act.
31A-3-304 (Effective 07/01/10)
.
Annual fees -- Other taxes or fees prohibited.
(1) (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 Sections
31A-3-103
and
63J-1-504
; 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.
(3) (a) Except as provided in Subsection (3)(b) and notwithstanding Title 59,
Chapter 9, Taxation of Admitted Insurers, the fee provided for in this section constitutes
the sole tax or fee under the laws of this state that may be otherwise levied or assessed on
(b) Notwithstanding Subsection (3)(a), a captive insurance company is subject to
real and personal property taxes.
(4) A captive insurance company shall pay the fee imposed by this section to the
department by March 31 of each year.
(5) (a) The funds received pursuant to Subsection (2) shall be deposited into the
General Fund as a dedicated credit to be used by the department to:
(i) administer and enforce Chapter 37, Captive Insurance Companies Act; and
(ii) promote the captive insurance industry in Utah.
(b) At the end of each fiscal year, funds received by the department in excess of
$750,000
}
$600,000
shall be treated as free revenue in the General Fund.
4. Page
49, Lines 1509 through 1510
:
1509
(c) one health benefit plan that
is
}
has the highest deductible that
qualifies as
a federally qualified high deductible health plan
{
that
1510
has a deductible of $5,000
}
of $15,000.
}
equal to three times the amount of
the annual deductible.
5. Page
50, Line 1536
:
1536
and
}
6. Page
50, Line 1539
:
1539
(ii) carrier enrollment data
(c) submit rates to the exchange that are net of commissions
7. Page
51, Line 1566
:
1566
arrangement market
(i)
, and
}
;
(ii) when required by changes in other law; and
(iii)
8. Page
54, Line 1647
:
1647
(7) [Six]
One-half
}
A majority
of the board members
{
are
}
is
a quorum for the transaction of business.
9. Page
56, Lines 1715 through 1716
:
1715
arrangement market and small employer carriers offering health benefit plans under
1716
Defined Contribution Risk Adjuster Act
}
Individual, Small Employer and
Group Health Insurance Act
; and
10. Page
56, Lines 1720 through 1721
:
1720
(B) from carriers offering health benefit plans under
Defined Contribution Risk
1721
Adjuster Act
}
11. Page
59, Line 1810
:
1810
2011
}
2013
, including a plan offered to a small employer group not
participating in a defined
12. Page
60, Line 1831
:
1831
offered to a small employer group on or after January 1,
2011
}
2013
, including
a plan offered to a
13. Page
61, Line 1865
:
1865
groups on or after January 1,
2011
}
2013
, including amendments affecting the
calculation of rates,
14. Page
61, Lines 1879 through 1880
:
1879
(B) plans offered to a small employer group on or after January 1,
2001
}
2013
; and
1880
(c) beginning in
2010
}
2013
and ending in
{
2012
}
2014
, report
to the Health Reform Task Force and
15. Page
62, Lines 1904 through 1905
:
1904
January 1,
2010
}
2013
, addressing each of the elements specified in Section
31A-42a-202
;
1905
(b) the board fails to submit to the commissioner by September 1,
2010
}
2012
, proposed
16. Page
67, Line 2062
:
2062
(ii) Beginning January 1,
2011
}
2013
, an insurer who offers a health
benefit plan to a small
17. Page
70, Line 2160 through Page 71, Line 2173
:
2160
Section 46. Effective date.
2161
(1) Except as provided in
Subsection (2)
}
Subsections (2) and (3)
, if
approved by two-thirds of all the members
2162
elected to each house, this bill takes effect upon approval by the governor, or the day
following
2163
the constitutional time limit of Utah Constitution Article VII, Section 8, without the
governor's
2164
signature, or in the case of a veto, the date of veto override, except that the amendments
to
2165
Sections
31A-30-103
and
31A-30-106
take effect on January 1, 201l.
2166
(2)
}
(3)
The following sections take effect on January 1, 2013:
2167
(a) Section
31A-42a-101
;
2168
(b) Section
31A-42a-102
;
2169
(c) Section
31A-42a-103
;
2170
(d) Section
31A-42a-201
;
2171
(e) Section
31A-42a-202
;
2172
(f) Section
31A-42a-203
; and
2173
(g) Section
31A-42a-204
.
Committee Chair
Voting: 6-0-1
3 HB0294.HC1.wpd 2/5/10 4:13 pm markandrews/MDA CJD/MDA
Bill Number
*HB0294*
HB0294