Representative Charlie Collins
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and so they won't grow the same way a traditional insurance company would. I'd appreciate a good
I think the way these companies have currently established themselves around the country, There are about, I'd say, 1,000 of them. They're concentrated in a handful of states, and almost all of them are in states which have a limit in terms of how much insurance anyone is going to amount to. The one thing that does limit how big these companies can get representative is the fact that by being captive, the limit of their market is pretty restrictive because they're normally going to insure activities of their parent and their customer,
doing virtually no business, So there's really no good comparisons in our
and the size of that particular company could vary dramatically. Currently, we only have one that's
set forth? Well, the company that forms a captive insurance company could be a humongous company, let's say billions and billions of dollar company. For example, a company as big as a Walmart or a J.B. Hunt or whoever. The insurance company that they form underneath them and the amount of premiums that insurance company receives obviously will be based on the amount of insurance they do,
It puts in a cap of $100,000 for any one captive insurance company. And our hope is that we'll grow these businesses in Arkansas. Don't know that we'll be as successful as Vermont that has 900 of the companies, but hopefully we'll go up
So far, we've had one captive insurance company in our state. That company actually does no business, so there's zero tax revenue today. Another jurisdiction that set up a captive insurance law about the same time we did is Washington, D.C. Washington, D.C., on the other hand, has over 100 captive insurance companies. What's their secret? They have a cap on the maximum amount of taxes any one captive insurance company can be charged. And so that's what this bill does.
A captive insurance company is formed by a parent company to insure some of its own activities or perhaps activities of some of its customers. About a dozen years ago, Arkansas passed a law to allow captive insurance companies, And one of the good things about these companies for the state is the state can make tax revenue off of the premiums. So the question is, how do we set those tax rates in such a way that companies will form in Arkansas?
bill. Thank you, Mr. Speaker. This is a bill that's designed to make it more attractive for captive insurance companies to set up shop in Arkansas.
Collins, you recognize. Thank you, Mr. Speaker. The Revenue and Taxation Committee will not meet tomorrow. No meeting tomorrow. Next
any questions. Representative Collins, for what purpose? Question. Representative Hammer, is this program going to require that people do a training program, or is it just going to allow them
And with that, Mr. Chair, I'm happy to take any
And this is a one-word change, and what it does is on page two, line seven, it changes a health carrier that denies. It changes it to a health carrier that excludes or denies coverage. So just make sure that nobody could use differential language to try and avoid having the bill that we passed before apply to them by changing the word denies to a phrase excludes or denies.
much, Mr. Chair. This is the bill, if the committee remembers, where the young lady from Johnson & Johnson was here to talk about this implant for surgery.
Revenue and Tax Committee will meet tomorrow at 10 a.m. in
And those are my comments. So does anybody else have anything they'd like to share with the committee? If not, can I get a motion to adjourn? Without objection, we're adjourned.
that we're going to be able to have a tax reduction plan that is on the robust side. So I'm excited about that. And I also know a lot of you individually are working on different bills in that regard. A lot of people are talking to me and talking to others. That's exactly the right way to do it. So I think we've got some great ideas out there. A lot of them are on this agenda that we passed over today and on the deferred list and other places. So I'm just really excited about where we're headed and feel very good about it.
and in the executive branch and elsewhere, the Medicaid shortfall is declining substantially, which speaks well for our budget situation. The other encouraging thing we've seen in the past several months, who knows if it will continue, are revenues trending ahead of a year ago and even trending ahead of forecast a little bit. Don't know if that will continue. Obviously, we're going to keep our eye on it. But as we look at those developments and others, I'm getting more and more bullish
time so I think we're through the bills on our agenda I just wanted to share with everybody a couple points in terms of you know how how things seem to be going with regard to you know the revenue side and and the tax side I think I I think, frankly, we've had a lot of good news in the past several weeks. One side of the ledger is what's happening on the spending front. And as many of us have heard, the Medicaid shortfall, due to some great work by people in those agencies
looking through the agenda I don't see a representative for 1041 we're skipping over 1003 1039 we're going to do the special order on 1191 1206 is working on an impact statement we're going to pass over 1218 1234 and 1240 is a shell bill at this
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