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House approves bill allowing third‑party sales of unsold insurance tax credits to shore up revenue
Summary
Lawmakers passed HB 13-46 to let the Treasury sell unsold insurance premium tax credits to third‑party brokers after sponsors warned unsold credits would otherwise leave a revenue gap; opponents said the approach risks shifting and discounting future revenue.
The House approved House Bill 13‑46 on April 20 to allow the state Department of the Treasury to sell unsold insurance premium tax credits to entities other than insurance companies, including third‑party brokers, in order to capture revenue that otherwise would remain unsold.
Sponsor Representative Titone said the specialsession credits were intended to raise money over three years and that because insurance companies are often unable to buy multi‑year credits up front, using a third‑party purchaser would bridge the gap so the state realizes expected revenue. "And that way we could sell all these tax credits that we're anticipating selling and we really need to so we have all the money to fulfill our obligations," Titone said.
Opponents warned the sale effectively borrows future revenue and risks steep discounts. Representative Brooks argued the approach "gives me pause" and compared it to "gambling with taxpayer money," urging a no vote. Representative Richardson pressed sponsors for figures; Representative Woodrow said roughly $45,000,000 remained unsold and the third‑party mechanism aims to avoid losing that revenue.
After debate, the House recorded the passage of HB 13‑46 on the floor. The bill changes how the state can monetize tax credits issued in prior sessions; sponsors framed it as a budget‑safeguarding step, while critics said it shifts costs to future years and raised transparency concerns about trading mechanisms.
