By Lindsay S.B. No. 530
76R6330 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the premium tax on certain life, health, and accident
1-3 insurance policies.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(c), Article 4.11, Insurance Code, is
1-6 amended to read as follows:
1-7 (c) "Gross premiums" are the total gross amount of all
1-8 premiums, membership fees, assessments, dues, and any other
1-9 considerations for such insurance received during the taxable year
1-10 on each and every kind of such insurance policy or contract
1-11 covering persons located in the State of Texas and arising from the
1-12 types of insurance specified in Section 1 of this article, but
1-13 deducting returned premiums, any dividends applied to purchase
1-14 paid-up additions to insurance or to shorten the endowment or
1-15 premium payment period, and excluding those premiums received from
1-16 insurance carriers for reinsurance and there shall be no deduction
1-17 for premiums paid for reinsurance. For purposes of this article, a
1-18 stop-loss or excess loss insurance policy issued to a health
1-19 maintenance organization, as defined under the Texas Health
1-20 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
1-21 Code), shall be considered reinsurance. Such gross premiums shall
1-22 not include premiums received from the Treasury of the State of
1-23 Texas or from the Treasury of the United States for insurance
1-24 contracted for by the state or federal government for the purpose
2-1 of providing welfare benefits to designated welfare recipients or
2-2 for insurance contracted for by the state or federal government in
2-3 accordance with or in furtherance of the provisions of Title 2,
2-4 Human Resources Code, or the Federal Social Security Act. The
2-5 gross premiums receipts so reported shall not include the amount of
2-6 premiums paid on group health, accident, and life policies in which
2-7 the group covered by the policy consists of a single nonprofit
2-8 trust established to provide coverage primarily for [municipal or
2-9 county] employees of:
2-10 (1) a municipality, county, or hospital district in
2-11 this state; or
2-12 (2) a county or municipal hospital, without regard to
2-13 whether the employees are employees of the county or municipality
2-14 or another entity operating the hospital on behalf of the county or
2-15 municipality.
2-16 SECTION 2. (a) This Act takes effect January 1, 2000.
2-17 (b) The change in law made by this Act applies only to a
2-18 premium tax imposed under Article 4.11, Insurance Code, as amended
2-19 by this Act, beginning January 1, 2000. A tax imposed under that
2-20 article before January 1, 2000, is governed by the law that existed
2-21 in the tax year in which that tax was imposed, and that law is
2-22 continued in effect for that purpose.
2-23 SECTION 3. The importance of this legislation and the
2-24 crowded condition of the calendars in both houses create an
2-25 emergency and an imperative public necessity that the
2-26 constitutional rule requiring bills to be read on three several
2-27 days in each house be suspended, and this rule is hereby suspended.