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General Assembly Substitute Bill No. 1217
January Session, 2023
AN ACT CONCERNING PAYMENTS BY INSURANCE COMPANIES
FOR DEPOSIT INTO THE INSURANCE FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 38a-47 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2023): 2
(a) All domestic insurance companies and other domestic entities 3
subject to taxation under chapter 207 shall, in accordance with section 4
38a-48, as amended by this act, annually pay to the Insurance 5
Commissioner, for deposit in the Insurance Fund established under 6
section 38a-52a, an amount equal to: 7
(1) The actual expenditures made by the Insurance Department 8
during each fiscal year; [, and the actual expenditures made by the 9
Office of the Healthcare Advocate, including the cost of fringe benefits 10
for department and office personnel as estimated by the Comptroller;] 11
(2) For only domestic insurance companies, including domestic 12
health care centers, that have written policies of health insurance, as 13
defined in section 38a-469, in this state during the preceding calendar 14
year, the actual expenditures made by the Office of the Healthcare 15
Advocate, including the cost of fringe benefits for department and 16
office personnel as estimated by the Comptroller; 17
[(2) The] (3) For only domestic insurance companies, including 18 Substitute Bill No. 1217
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domestic health care centers, that have written policies of health 19
insurance, as defined in section 38a-469, in this state during the 20
preceding calendar year, the amount appropriated to the Office of 21
Health Strategy from the Insurance Fund for the fiscal year, including 22
the cost of fringe benefits for office personnel as estimated by the 23
Comptroller, which shall be reduced by the amount of federal 24
reimbursement received for allowable Medicaid administrative 25
expenses; 26
[(3)] (4) The expenditures made on behalf of the department and 27
said offices from the Capital Equipment Purchase Fund pursuant to 28
section 4a-9 for such year, but excluding such estimated expenditures 29
made on behalf of the Health Systems Planning Unit of the Office of 30
Health Strategy; and 31
[(4)] (5) The amount appropriated to the Department of Aging and 32
Disability Services for the fall prevention program established in 33
section 17a-859 from the Insurance Fund for the fiscal year. 34
(b) The expenditures and amounts specified in subdivisions (1) to 35
[(4)] (5), inclusive, of subsection (a) of this section shall exclude 36
expenditures paid for by fraternal benefit societies, foreign and alien 37
insurance companies and other foreign and alien entities under 38
sections 38a-49 and 38a-50. 39
(c) Payments shall be made by assessment of all such domestic 40
insurance companies and other domestic entities calculated and 41
collected in accordance with the provisions of section 38a-48, as 42
amended by this act. Any such domestic insurance company or other 43
domestic entity aggrieved because of any assessment levied under this 44
section may appeal therefrom in accordance with the provisions of 45
section 38a-52. 46
Sec. 2. Subsections (a) to (c), inclusive, of section 38a-48 of the 47
general statutes are repealed and the following is substituted in lieu 48
thereof (Effective July 1, 2023): 49 Substitute Bill No. 1217
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(a) (1) On or before June thirtieth, annually, the Commissioner of 50
Revenue Services shall render to the Insurance Commissioner a 51
statement certifying the amount of taxes or charges imposed on each 52
domestic insurance company or other domestic entity under chapter 53
207 on business done in this state during the preceding calendar year. 54
The statement for local domestic insurance companies shall set forth 55
the amount of taxes and charges before any tax credits allowed as 56
provided in subsection (a) of section 12-202. 57
(2) Upon receipt of the statement described in subdivision (1) of this 58
subsection, the Insurance Commissioner shall prepare a statement of 59
the amount of taxes or charges imposed on each domestic insurance 60
company or other domestic entity under chapter 207 that wrote 61
policies of health insurance, as defined in section 38a-469, in this state. 62
Such amount shall be that as certified by the Commissioner of Revenue 63
Services in accordance with subdivision (1) of this subsection. 64
(b) On or before July thirty-first, annually, the Insurance 65
Commissioner and the Office of the Healthcare Advocate shall render 66
to each domestic insurance company or other domestic entity liable for 67
payment under section 38a-47, as amended by this act: 68
(1) A statement that includes, as separate line items, for the fiscal 69
year beginning July first of the year such statement is rendered: (A) 70
[the] The amount appropriated to the Insurance Department [,] from 71
the Insurance Fund established under section 38a-52a, (B) the amount 72
appropriated to the Office of the Healthcare Advocate [and] from the 73
Insurance Fund, (C) the amount appropriated to the Office of Health 74
Strategy from the Insurance Fund, [established under section 38a-52a 75
for the fiscal year beginning July first of the same year, (B)] (D) the cost 76
of fringe benefits for department and office personnel, [for such year,] 77
as estimated by the Comptroller, [(C)] (E) the estimated expenditures 78
on behalf of the department and the offices from the Capital 79
Equipment Purchase Fund pursuant to section 4a-9, [for such year,] 80
not including such estimated expenditures made on behalf of the 81
Health Systems Planning Unit of the Office of Health Strategy, and 82 Substitute Bill No. 1217
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[(D)] (F) the amount appropriated to the Department of Aging and 83
Disability Services for the fall prevention program established in 84
section 17a-859 from the Insurance Fund; [for the fiscal year;] 85
(2) [a] A statement of (A) (i) the total taxes imposed on all domestic 86
insurance companies and domestic insurance entities under chapter 87
207 on business done in this state during the preceding calendar year, 88
and (ii) each such company's or entity's proportionate share of such 89
total, and (B) (i) the total taxes imposed under chapter 207 on only 90
those domestic insurance companies and entities that provided health 91
insurance, as defined in section 38a-469, in this state during the 92
preceding calendar year, and (ii) each such company's or entity's 93
proportionate share of such total; and 94
(3) [the] The proposed assessment against that company or entity, 95
calculated in accordance with the provisions of subsection (c) of this 96
section, provided for the purposes of this calculation the amount 97
appropriated to the Insurance Department, the Office of the Healthcare 98
Advocate and the Office of Health Strategy from the Insurance Fund 99
plus the cost of fringe benefits for department and office personnel and 100
the estimated expenditures on behalf of the department and the office 101
from the Capital Equipment Purchase Fund pursuant to section 4a-9, 102
not including such expenditures made on behalf of the Health Systems 103
Planning Unit of the Office of Health Strategy shall be deemed to be 104
the actual expenditures of the department and the office, and the 105
amount appropriated to the Department of Aging and Disability 106
Services from the Insurance Fund for the fiscal year for the fall 107
prevention program established in section 17a-859 shall be deemed to 108
be the actual expenditures for the program. 109
(c) (1) The proposed assessments for each domestic insurance 110
company or other domestic entity shall be calculated by (A) allocating 111
twenty per cent of the amount to be paid under section 38a-47, as 112
amended by this act, among the domestic entities organized under 113
sections 38a-199 to 38a-209, inclusive, and 38a-214 to 38a-225, inclusive, 114
in proportion to their respective shares of the total taxes and charges 115 Substitute Bill No. 1217
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imposed under chapter 207 on such entities on business done in this 116
state during the preceding calendar year, and (B) allocating eighty per 117
cent of (i) the amount to be paid under subdivisions (1), (4) and (5) of 118
subsection (a) of section 38a-47, as amended by this act, among all 119
domestic insurance companies and domestic entities, and (ii) the 120
amount to be paid under subdivisions (2) and (3) of subsection (a) of 121
section 38a-47, as amended by this act, among only those domestic 122
insurance companies and entities that provided health insurance in 123
this state during the preceding calendar year, in each case other than 124
those organized under sections 38a-199 to 38a-209, inclusive, and 38a-125
214 to 38a-225, inclusive, in proportion to their respective shares of the 126
total taxes and charges imposed under chapter 207 on such domestic 127
insurance companies and domestic entities on business done in this 128
state during the preceding calendar year, provided if there are no 129
domestic entities organized under sections 38a-199 to 38a-209, 130
inclusive, and 38a-214 to 38a-225, inclusive, at the time of assessment, 131
one hundred per cent of the amount to be paid under section 38a-47, as 132
amended by this act, shall be allocated among such domestic insurance 133
companies and domestic entities. 134
(2) When the amount any such company or entity is assessed 135
pursuant to this section exceeds twenty-five per cent of the actual 136
expenditures of the Insurance Department, the Office of the Healthcare 137
Advocate and the Office of Health Strategy from the Insurance Fund, 138
such excess amount shall not be paid by such company or entity but 139
rather shall be assessed against and paid by all other such companies 140
and entities in proportion to their respective shares of the total taxes 141
and charges imposed under chapter 207 on business done in this state 142
during the preceding calendar year, except that for purposes of any 143
assessment made to fund payments to the Department of Public 144
Health to purchase vaccines, such company or entity shall be 145
responsible for its share of the costs, notwithstanding whether its 146
assessment exceeds twenty-five per cent of the actual expenditures of 147
the Insurance Department, the Office of the Healthcare Advocate and 148
the Office of Health Strategy from the Insurance Fund. The provisions 149 Substitute Bill No. 1217
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of this subdivision shall not be applicable to any corporation which has 150
converted to a domestic mutual insurance company pursuant to 151
section 38a-155 upon the effective date of any public act which amends 152
said section to modify or remove any restriction on the business such a 153
company may engage in, for purposes of any assessment due from 154
such company on and after such effective date. 155
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 38a-47
Sec. 2 July 1, 2023 38a-48(a) to (c)
Statement of Legislative Commissioners:
In Section 1(a), ", except as provided in subdivisions (2) and (3) of this
subsection," was deleted for accuracy and clarity.
APP Joint Favorable Subst. -LCO