SRC-DBM S.B. 530 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 530
76R6330  DLF-DBy: Lindsay
Economic Development
3/29/1999
As Filed


DIGEST 

Currently, the definition of "gross premiums" in Section 2(c), Article
4.11, Insurance Code, excludes the amount of insurance premiums paid on
group health, accident, and life policies in which the group covered by the
policy consists of a single nonprofit trust established to provide coverage
primarily for "municipal or county employees" of this state.  This could
have the effect of prohibiting policies covering hospital district
employees from claiming this tax benefit because of the status of the
employees of the hospital district.  S.B. 530 would prohibit the reported
gross premiums receipts from including the amount of premiums paid on group
health, accident, and life policies in which the group covered by the
policy consists of a single nonprofit trust established to provide coverage
primarily for employees of a municipality, county, hospital district, or a
county or municipal hospital in this state. 

PURPOSE

As proposed, S.B. 530 redefines "gross premiums" to include  information
concerning the premium tax on certain life, health, and accident policies. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2(c), Article 4.11, Insurance Code, to redefine
"gross premiums" by prohibiting  the reported gross premiums receipts from
including the amount of premiums paid on group health, accident, and life
policies in which the group covered by the policy consists of a single
nonprofit trust established to provide coverage primarily for employees of:
a municipality, county, or hospital district in this state; or a county or
municipal hospital, without regard to whether the employees are employees
of the county or municipality or another entity operating the hospital on
behalf of  the county or municipality. 

SECTION 2.Effective date: January 1, 2000.
  Makes application of this Act prospective.

SECTION 3.Emergency clause.