Senate Study Bill 1124

                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            COMMERCE BILL BY CHAIRPERSON
                                            ANGELO)


    Passed Senate,  Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a premium tax offset for the Iowa individual
  2    health reinsurance association, and phasing=in a standing
  3    appropriation for replacement of the individual health
  4    reinsurance association assessments upon political
  5    subdivisions and school corporations.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 2071SC 80
  8 jj/cf/24

PAG LIN

  1  1    Section 1.  NEW SECTION.  509A.16  APPROPRIATION FOR
  1  2 ASSESSMENTS LEVIED ON LOCAL GOVERNMENTS.
  1  3    There is appropriated from the general fund of the state to
  1  4 the Iowa individual health benefit reinsurance association
  1  5 established pursuant to section 513C.10 the following amount
  1  6 of the assessments due and owing, pursuant to section 513C.10,
  1  7 from each political subdivision and school corporation for
  1  8 health benefit plans:
  1  9    1.  For the fiscal year beginning July 1, 2003, twenty
  1 10 percent of such assessments.
  1 11    2.  For the fiscal year beginning July 1, 2004, forty
  1 12 percent of such assessments.
  1 13    3.  For the fiscal year beginning July 1, 2005, sixty
  1 14 percent of such assessments.
  1 15    4.  For the fiscal year beginning July 1, 2006, eighty
  1 16 percent of such assessments.
  1 17    5.  For the fiscal year beginning July 1, 2007, and
  1 18 succeeding fiscal years, one hundred percent of such
  1 19 assessments.
  1 20    Sec. 2.  Section 514E.2, subsection 13, Code 2003, is
  1 21 amended to read as follows:
  1 22    13.  A member who, after July 1, 1986 2003, has paid one or
  1 23 more assessments levied under this chapter or chapter 513C may
  1 24 take a credit against the premium taxes, or similar taxes,
  1 25 upon revenues or income of the member that are imposed by the
  1 26 state on health insurance premiums pursuant to chapter 432 or
  1 27 payments subject to taxation under section 514B.31, up to the
  1 28 amount of twenty percent of those taxes due, for each of the
  1 29 five calendar years following the year for which an assessment
  1 30 was paid, or until the aggregate of those assessments has been
  1 31 offset by credits against those taxes if this occurs first.
  1 32 If a member ceases doing business, all uncredited assessments
  1 33 may be credited against its premium tax liability for the year
  1 34 it ceases doing business.
  1 35                           EXPLANATION
  2  1    This bill amends Code section 514E.2 to provide for a
  2  2 phased=in, graduated, five=year premium tax offset for the
  2  3 individual health reinsurance association assessments paid by
  2  4 health insurers and health plans.  The bill also adds new Code
  2  5 section 509A.16, which establishes a five=year, phased=in,
  2  6 graduated general fund appropriation to replace the
  2  7 elimination of the individual health reinsurance association
  2  8 assessments paid by self=funded government entities and school
  2  9 districts.
  2 10 LSB 2071SC 80
  2 11 jj/cf/24