House Committee of Reference Report

Committee on Appropriations

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August 21, 2025

After consideration on the merits, the Committee recommends the following:

HB25B-1003be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:

Page 1, Line 1Amend printed bill, page 2, strike lines 9 through 15 and substitute:

Page 1, Line 2"(a)  The insurance premium tax rate tax expenditure has not met

Page 1, Line 3its intended purpose since, as evidenced by the office of the state auditor's

Page 1, Line 42020 and 2025 evaluations of the tax expenditure, the hiring and

Page 1, Line 5investment levels of the vast majority of all insurance companies claiming

Page 1, Line 6the tax expenditure have not been substantially affected by the presence

Page 1, Line 7of the tax expenditure; and

Page 1, Line 8(b)  In its 2025 evaluation of the insurance premium tax rate tax

Page 1, Line 9expenditure, the office of the state auditor found that, from 2022 through

Page 1, Line 102024, fifteen of the eighteen insurers that claimed the tax expenditure

Page 1, Line 11actually reduced their Colorado workforces by about four thousand three

Page 1, Line 12hundred employees, while the tax benefit that those insurers received

Page 1, Line 13from the tax expenditure increased by approximately seventeen million

Page 1, Line 14five hundred thousand dollars. Moreover, the reduction in the Colorado

Page 1, Line 15workforce of those Colorado insurers that claimed the tax expenditure

Page 1, Line 16occurred during a period when the number of insurance jobs increased

Page 1, Line 17nationally.".

Page 1, Line 18Page 2, line 17, strike "purpose" and substitute "purposes".

Page 1, Line 19Page 2, line 19, strike "is" and substitute "are".

Page 1, Line 20Page 2, line 21, strike "owed;" and substitute "owed, and to streamline

Page 1, Line 21insurance premium tax statutes by eliminating a tax expenditure that is

Page 1, Line 22not meeting its intended purpose; and".

Page 1, Line 23Page 2, strike line 24 and substitute "and the streamlining of the insurance

Page 2, Line 1premium tax statutes is:".

Page 2, Line 2Page 3, line 18, after "percent." insert "On and after January 1, 2026,

Page 2, Line 3the tax rate is two percent.".