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Panel concurs with amendment requiring premium tax payment and an ombudsman for nonprofit agricultural membership organization

INSURANCE & COMMERCE - SENATE · April 6, 2023
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Summary

The committee adopted a House amendment to SB324 requiring the entity described to pay a premium tax and naming an employee of the nonprofit agricultural membership organization to serve as an ombudsman for disputes; sponsors said the change is intended as a fairness measure and not a new tax.

Senator Hickey presented SB324 for Senator Desmaine and explained the House amendment requires the entity created by the bill to pay a premium tax and requires that "an employee" of the nonprofit agricultural membership organization act as an ombudsman for disputes. Senator Hickey cited the bill language (line 26) that defines the referenced organization and said the amendment was intended to create parity among entities.

When asked by Senator Boyd whether the change creates a new tax, Senator Hickey answered that it does not create a new tax and that it is intended as a fairness issue so entities are treated equally. Boyd asked whether health care providers are required to participate in such plans; Senator Hickey said that requirement was in another bill and was not changed by this amendment.

A motion to concur (moved by Senator Johnson, seconded by Senator Boyd) carried by voice vote and the committee recorded that it had concurred.