Bill Text: NY A03885 | 2023-2024 | General Assembly | Introduced

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Bill Title: Imposes a tax on out-of-state transfers, dividends, payments, and loans by certain accident and health insurance companies and health maintenance organizations to be deposited in the New York state agency trust fund, distressed provider assistance account.

Spectrum: Partisan Bill (Democrat 30-0)

Status: (Introduced) 2024-01-03 - referred to insurance [A03885 Detail]

Download: New_York-2023-A03885-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3885

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2023
                                       ___________

        Introduced by M. of A. DILAN, FALL, LUCAS, DINOWITZ, WALKER -- read once
          and referred to the Committee on Insurance

        AN  ACT  to  amend  the  insurance law, in relation to imposing a tax on
          out-of-state transfers, dividends,  payments,  and  loans  by  certain
          accident  and health insurance companies and health maintenance organ-
          izations

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The insurance law is amended by adding a new section 9112
     2  to read as follows:
     3    § 9112.  Tax on out-of-state transfers, dividends, payments, and loans
     4  by accident  and  health  insurance  companies  licensed  under  article
     5  forty-two  of  this chapter and health maintenance organizations. (a) As
     6  used in this section the following terms shall have the following  mean-
     7  ings:
     8    (1) "Domestic insurer" means an insurer that is an accident and health
     9  insurance company licensed under article forty-two of this chapter or an
    10  organization  complying with the provisions of article forty-four of the
    11  public health law.
    12    (2) "Commercial program" means any program of health  insurance  other
    13  than  (i) programs for individuals covered by article five of the social
    14  services law, article twenty-five  of  the  public  health  law,  titles
    15  XVIII, XIX, and XXI of the federal social security act, or chapter 89 of
    16  title  5  of the United States code or (ii) programs of insurance avail-
    17  able on the health benefit exchange established by section  two  hundred
    18  sixty-eight of the public health law.
    19    (b)  Effective  on  and  after April first, two thousand twenty-three,
    20  there shall be paid by every domestic insurer to the superintendent,  on
    21  or  before  the  first day of March, a tax equal to nine and sixty-three
    22  one hundredths percent of any  dividends,  ordinary,  extraordinary,  or
    23  otherwise, or other funds deriving from subscriber prepayments or premi-
    24  ums  received  for  the  domestic insurer's commercial programs that are
    25  paid, transferred, distributed, or loaned to an entity in such  domestic
    26  insurer's  holding  company system that is domiciled in any other state;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03266-01-3
        A. 3885                             2

     1  provided, however,  that  payments  for  services  performed,  including
     2  pursuant  to  reinsurance  treaties or agreements, or agreements for the
     3  rendering of services on a regular or systematic  basis,  shall  not  be
     4  subject  to such tax. Such tax shall be in addition to any tax due under
     5  article thirty-three of the tax law and shall apply only to  a  payment,
     6  transfer, distribution, or loan made to an entity domiciled out-of-state
     7  within  the  domestic  insurer's holding company system, and not also to
     8  subsequent dividends or distributions to shareholders or  other  persons
     9  or  entities  made after the initial payment, transfer, distribution, or
    10  loan that is taxed in accordance with this section.
    11    (c) Each  domestic  insurer  shall  report  all  payments,  transfers,
    12  distributions  and  loans subject to subsection (b) of this section, and
    13  taxes paid thereon,  to  the  superintendent  in  the  manner  and  form
    14  prescribed by the superintendent.
    15    (d) All taxes collected or received under this section shall be depos-
    16  ited  into  the  New  York  state agency trust fund, distressed provider
    17  assistance account.
    18    § 2. Subsection (a) of section 1109 of the insurance law,  as  amended
    19  by  section 1 of part A of chapter 78 of the laws of 2014, is amended to
    20  read as follows:
    21    (a) An organization complying with the provisions  of  article  forty-
    22  four  of  the public health law may operate without being licensed under
    23  this chapter and without being subject to any provisions of  this  chap-
    24  ter,  except:  (1) to the extent that such organization must comply with
    25  the provisions of this chapter by virtue of such article,  and  (2)  the
    26  provisions  of  sections three hundred eight, one thousand three hundred
    27  one, one thousand three hundred two, one thousand three  hundred  seven,
    28  one thousand three hundred twenty-two, nine thousand one hundred six and
    29  nine  thousand  one  hundred  twelve,  with regard to health maintenance
    30  organizations that are domiciled in this state and certified or  operat-
    31  ing  in  at  least  one other state, two thousand one hundred three, two
    32  thousand one hundred twelve, two  thousand  one  hundred  fourteen,  two
    33  thousand  one  hundred  fifteen, two thousand one hundred seventeen, two
    34  thousand one hundred twenty-three, two thousand six hundred eight-a, two
    35  thousand six hundred twelve, three thousand two  hundred  twenty-four-a,
    36  four  thousand  three  hundred eight, four thousand three hundred seven-
    37  teen, four thousand three hundred eighteen, four thousand three  hundred
    38  twenty,  four  thousand  three  hundred  twenty-one, four thousand three
    39  hundred twenty-two and four thousand three hundred twenty-three of  this
    40  chapter.
    41    § 3. Subsection (d) of section 9106 of the insurance law is amended to
    42  read as follows:
    43    (d)  any corporation otherwise subject to the provisions of this arti-
    44  cle which as a health maintenance organization  offers  a  comprehensive
    45  health services plan pursuant to the provisions of article forty-four of
    46  the public health law to subscribers. Such exemption shall be limited to
    47  that  income derived from subscriber prepayments to such plan.  Notwith-
    48  standing the foregoing, section nine thousand one hundred twelve of this
    49  article shall apply to all domestic insurers within the meaning of  that
    50  section.
    51    §  4.  This act shall take effect immediately, except that if this act
    52  shall have become a law on or after April 1, 2023 this  act  shall  take
    53  effect  immediately  and  shall be deemed to have been in full force and
    54  effect on and after April 1, 2023.