You asked for a brief summary of the bills the Insurance and Real Estate Committee favorably reported to the Finance, Revenue and Bonding Committee.

SB 1211, An Act Allowing the Transfer of Tax Credits to Insurance Company Affiliates.

This bill allows insurers and HMOs to transfer any credit allowed against premium tax owed to an affiliate, which may take the credit only against its premium tax owed. The bill prohibits the Department of Revenue Services (DRS) from allowing the affiliate to take a credit unless the insurer or HMO and affiliate have filed with DRS any information it requires regarding the transfer by the date on which the insurer or HMO would have taken the credit if it had not transferred it.

EFFECTIVE DATE: October 1, 2007, and applicable to income years beginning on and after January 1, 2007.

HB 5054, An Act Concerning the Real Estate Conveyance Tax.

This bill reduces the state conveyance tax from 0. 5% to 0. 36% and makes permanent the 0. 25% municipal conveyance tax. Current law reduces the municipal conveyance tax from 0. 25% to 0. 11% on July 1, 2007.

EFFECTIVE DATE: July 1, 2007

HB 6281, An Act Ensuring Funds for Health Insurance for All Connecticut Residents.

This bill creates a Healthcare Trust Account within the General Fund. Effective upon the bill's passage and for FY 07, it requires the transfer to the account (1) $ 250 million from the General Fund and (2) $ 250 million from the Budget Reserve Fund. Effective July 1, 2007, it requires $ 100 million to be transferred from the Tobacco Settlement Fund to the account each fiscal year, beginning with FY 08. The bill requires the state treasurer to invest the account funds, the balance of which carries over each fiscal year. It also permits the treasurer to accept and receive on behalf of the account any available federal, state, or private funds.

The bill requires the account proceeds to be allocated to (1) fund health insurance plans for uninsured state residents, (2) quality health care for all state residents, (3) long-term care programs, (4) prevention and wellness programs, (5) increase payments to providers and hospitals, or (6) provide premium subsidies.

EFFECTIVE DATE: Upon passage, except for the tobacco fund transfer provision, which is effective July 1, 2007.

HB 6657, An Act Allowing a Deduction on the Personal Income Tax for Premiums Paid for Long-Term Care Insurance.

This bill requires a personal income tax deduction for a taxpayer insured under a long-term care insurance policy in the amount of the policy premiums the taxpayer paid during the taxable year.

EFFECTIVE DATE: July 1, 2007, and applicable to income years beginning on and after January 1, 2007.

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