1-1 By: Lindsay S.B. No. 530
1-2 (In the Senate - Filed February 16, 1999; February 17, 1999,
1-3 read first time and referred to Committee on Economic Development;
1-4 April 6, 1999, reported favorably by the following vote: Yeas 4,
1-5 Nays 0; April 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the premium tax on certain life, health, and accident
1-9 insurance policies.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (c), Section 2, Article 4.11,
1-12 Insurance Code, is amended to read as follows:
1-13 (c) "Gross premiums" are the total gross amount of all
1-14 premiums, membership fees, assessments, dues, and any other
1-15 considerations for such insurance received during the taxable year
1-16 on each and every kind of such insurance policy or contract
1-17 covering persons located in the State of Texas and arising from the
1-18 types of insurance specified in Section 1 of this article, but
1-19 deducting returned premiums, any dividends applied to purchase
1-20 paid-up additions to insurance or to shorten the endowment or
1-21 premium payment period, and excluding those premiums received from
1-22 insurance carriers for reinsurance and there shall be no deduction
1-23 for premiums paid for reinsurance. For purposes of this article, a
1-24 stop-loss or excess loss insurance policy issued to a health
1-25 maintenance organization, as defined under the Texas Health
1-26 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
1-27 Code), shall be considered reinsurance. Such gross premiums shall
1-28 not include premiums received from the Treasury of the State of
1-29 Texas or from the Treasury of the United States for insurance
1-30 contracted for by the state or federal government for the purpose
1-31 of providing welfare benefits to designated welfare recipients or
1-32 for insurance contracted for by the state or federal government in
1-33 accordance with or in furtherance of the provisions of Title 2,
1-34 Human Resources Code, or the Federal Social Security Act. The
1-35 gross premiums receipts so reported shall not include the amount of
1-36 premiums paid on group health, accident, and life policies in which
1-37 the group covered by the policy consists of a single nonprofit
1-38 trust established to provide coverage primarily for [municipal or
1-39 county] employees of:
1-40 (1) a municipality, county, or hospital district in
1-41 this state; or
1-42 (2) a county or municipal hospital, without regard to
1-43 whether the employees are employees of the county or municipality
1-44 or another entity operating the hospital on behalf of the county or
1-45 municipality.
1-46 SECTION 2. (a) This Act takes effect January 1, 2000.
1-47 (b) The change in law made by this Act applies only to a
1-48 premium tax imposed under Article 4.11, Insurance Code, as amended
1-49 by this Act, beginning January 1, 2000. A tax imposed under that
1-50 article before January 1, 2000, is governed by the law that existed
1-51 in the tax year in which that tax was imposed, and that law is
1-52 continued in effect for that purpose.
1-53 SECTION 3. The importance of this legislation and the
1-54 crowded condition of the calendars in both houses create an
1-55 emergency and an imperative public necessity that the
1-56 constitutional rule requiring bills to be read on three several
1-57 days in each house be suspended, and this rule is hereby suspended.
1-58 * * * * *