SRC-SEW S.B. 1690 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1690
2001S0809/1By: Ellis, Rodney
Finance
4/18/2001
As Filed


DIGEST AND PURPOSE 

The comptroller of public accounts has encountered legal challenges
involving the construction of tax statutes in several areas, including
insurance tax and its effect on other taxes.  As proposed, S.B. 1690
clarifies the existing laws in this area and attempts to eliminate
perceived vulnerabilities in the statutes. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 4.01, Insurance Code, to delete text prohibiting
domestic insurance companies from being required to pay any occupation or
gross receipts tax. 

SECTION 2.  Amends Article 4.06, Insurance Code, to provide that this
chapter applies to certain insurance organizations.  Prohibits an insurance
organization subject to a tax levied by this chapter from being required to
pay any additional tax in proportion to its gross premium receipts levied
by this state or any county or municipality, except as otherwise provided
by this code or the Labor Code.  Prohibits this exemption from being
construed to limit the applicability of other taxes, fees, and assessments
that are imposed by other chapters of this code.  Prohibits this exemption
from being construed to prohibit the levy and collection of certain state,
county, and municipal taxes except under certain conditions. Deletes text
regarding occupational taxes. 

SECTION 3.  Amends Section 8, Article 9.59, Insurance Code, to make
conforming changes regarding title insurance companies and title insurance
agents.  Deletes text regarding occupational taxes.  Deletes text providing
that the taxes in this article constitute all taxes collectible under the
laws of the state against title insurance companies or agents.  Deletes
text prohibiting other taxes from being levied or collected from any title
insurance company or agent and text prohibiting this law from being
construed for certain purposes. 

SECTION 4.  Repeals the following portions of the Insurance Code:

Section 14 (No Other Taxes to be Levied or Collected; Exceptions), Article
4.10; and  

Section 9 (Limitation of Taxes Collectible), Article 4.11.

SECTION 5.  Effective date: September 1, 2001.  
  Makes application of this Act prospective.