1-1     relating to the premium tax on certain life, health, and accident
 1-2     insurance policies.
 1-4           SECTION 1.  Subsection (c), Section 2, Article 4.11,
 1-5     Insurance Code, is amended to read as follows:
 1-6           (c)  "Gross premiums" are the total gross amount of all
 1-7     premiums, membership fees, assessments, dues, and any other
 1-8     considerations for such insurance received during the taxable year
 1-9     on each and every kind of such insurance policy or contract
1-10     covering persons located in the State of Texas and arising from the
1-11     types of insurance specified in Section 1 of this article, but
1-12     deducting returned premiums, any dividends applied to purchase
1-13     paid-up additions to insurance or to shorten the endowment or
1-14     premium payment period, and excluding those premiums received from
1-15     insurance carriers for reinsurance and there shall be no deduction
1-16     for premiums paid for reinsurance.  For purposes of this article, a
1-17     stop-loss or excess loss insurance policy issued to a health
1-18     maintenance organization, as defined under the Texas Health
1-19     Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
1-20     Code), shall be considered reinsurance.  Such gross premiums shall
1-21     not include premiums received from the Treasury of the State of
1-22     Texas or from the Treasury of the United States for insurance
1-23     contracted for by the state or federal government for the purpose
1-24     of providing welfare benefits to designated welfare recipients or
 2-1     for insurance contracted for by the state or federal government in
 2-2     accordance with or in furtherance of the provisions of Title 2,
 2-3     Human Resources Code, or the Federal Social Security Act.  The
 2-4     gross premiums receipts so reported shall not include the amount of
 2-5     premiums paid on group health, accident, and life policies in which
 2-6     the group covered by the policy consists of a single nonprofit
 2-7     trust established to provide coverage primarily for [municipal or
 2-8     county] employees of:
 2-9                 (1)  a municipality, county, or hospital district in
2-10     this state; or
2-11                 (2)  a county or municipal hospital, without regard to
2-12     whether the employees are employees of the county or municipality
2-13     or another entity operating the hospital on behalf of the county or
2-14     municipality.
2-15           SECTION 2.  (a)  This Act takes effect January 1, 2000.
2-16           (b)  The change in law made by this Act applies only to a
2-17     premium tax imposed under Article 4.11, Insurance Code, as amended
2-18     by this Act, beginning January 1, 2000.  A tax imposed under that
2-19     article before January 1, 2000, is governed by the law that existed
2-20     in the tax year in which that tax was imposed, and that law is
2-21     continued in effect for that purpose.
2-22           SECTION 3.  The importance of this legislation and the
2-23     crowded condition of the calendars in both houses create an
2-24     emergency and an imperative public necessity that the
2-25     constitutional rule requiring bills to be read on three several
2-26     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 530 passed the Senate on
         April 15, 1999, by the following vote:  Yeas 30, Nays 0.
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 530 passed the House on
         May 25, 1999, by a non-record vote.
                                                 Chief Clerk of the House