Chapter 125

2007 -- S 0448 SUBSTITUTE B

Enacted 06/27/07

A N A C T

RELATING TO INSURANCE -- ESTABLISHING A HEALTH INSURANCE TAX INCENTIVE

Introduced By: Senators Perry, Miller, C Levesque, Sosnowski, and Gibbs

Date Introduced: February 13, 2007

It is enacted by the General Assembly as follows:

     SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended

by adding thereto the following chapter:

CHAPTER 70

HEALTH INSURANCE TAX INCENTIVE

27-70-1. Short title. -- This chapter shall be known and may be cited as "The Health

Insurance Tax Incentive".

27-70-2. Definitions. -- As used in this chapter:

(1) "Employee" has the meaning set forth in subsection 28-42-3(14).

(2) "Employer" has the meaning set forth in subsection 28-42-3(15).

27-70-3. Cafeteria plans. -- On or before July 1, 2009, each employer with annual

average employment of more than twenty-five (25) employees for six (6) consecutive months of

the year in the state of Rhode Island shall adopt and maintain for its employees a cafeteria plan

that satisfies the Internal Revenue Code 26 U.S.C. 125 and the rules and regulations promulgated

by the office of the health insurance commissioner and through which the employees and their

dependents may purchase health insurance. Nothing in this section shall be construed to require

an employer covered by this section to pay for, or otherwise contribute to, the cost of any health

insurance purchased through the cafeteria plan.

27-70-4. Regulatory Oversight. -- The director of the department of labor and training

shall have the authority to promulgate rules and regulations for the implementation and

administration of this chapter.

     SECTION 2. This act shall take effect upon passage.

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LC01545/SUB B

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