CO SB002

Directs the Secretary of State to submit a ballot question to Colorado voters at the November 8, 2016 statewide election seeking approval for a tax to support Colorado Health Benefit Exchange operations.

The ballot proposition would authorize a 3.5% exchange administrative tax on all health benefit plans sold by carriers through the exchange, projected to raise $30,321,000 annually in the first full fiscal year.

The tax would be assessed as part of premiums on all health benefit plans sold by participating carriers, regardless of whether plans are sold through the exchange or outside it.

If voters reject the ballot question in November 2016, the Colorado Health Benefit Exchange is prohibited from imposing any administrative or user fee or tax on carriers offering plans through the exchange, effective February 1, 2017.

The legislative declaration finds that the current "administrative fee" charged by the exchange since 2015 functions as a tax requiring voter approval under Colorado Constitution Article X, Section 20.