By Averitt H.B. No. 1709 77R5107 DLF-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to assessments used to fund the Health Insurance Risk 1-3 Pool; authorizing a premium tax credit. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Article 3.77, Insurance Code, is amended by adding 1-6 Section 13A to read as follows: 1-7 Sec. 13A. PREMIUM TAX CREDIT. (a) One hundred percent of 1-8 any assessment paid by an insurer under Section 13 of this article 1-9 during any calendar year shall be allowed to that insurer as a 1-10 credit against its premium tax liability to this state for any 1-11 year. 1-12 (b) The tax credit shall be allowed at a rate of 10 percent 1-13 per year for 10 successive years following the date of assessment 1-14 and, at the option of the insurer, may be taken over an additional 1-15 number of years. 1-16 (c) An insurer may not be required to write off in any one 1-17 year an amount in excess of its premium tax liability to this state 1-18 accruing within that year or any succeeding year. 1-19 (d) The balance of any unused tax credit not claimed in a 1-20 particular year may be reflected in the books and records of the 1-21 insurer as an admitted asset of the insurer for all purposes, 1-22 including exhibition in annual statements filed with the 1-23 department. 1-24 (e) Available credit against premium tax allowed under this 2-1 section may be transferred or assigned among or between insurers 2-2 if: 2-3 (1) a merger, acquisition, or total assumption of 2-4 reinsurance among or between the insurers occurs; or 2-5 (2) the commissioner by order approves the transfer or 2-6 assignment. 2-7 SECTION 2. (a) The commissioner of insurance shall appoint 2-8 an advisory committee to study funding for operational losses and 2-9 other deficits of the health insurance risk pool established under 2-10 Article 3.77, Insurance Code, and to recommend appropriate 2-11 mechanisms for funding as an alternative to assessments imposed 2-12 under Section 13 of that article. 2-13 (b) The advisory committee appointed under this section must 2-14 be composed of representatives of health insurance companies, 2-15 health maintenance organizations, hospitals, physicians and other 2-16 health care providers, employers, persons insured through the 2-17 health insurance risk pool, and consumers of health benefit plan 2-18 coverage generally. 2-19 (c) Not later than December 1, 2002, the advisory committee 2-20 appointed under this section shall report its findings and 2-21 recommendations to the commissioner of insurance, the speaker of 2-22 the house of representatives, and the lieutenant governor. 2-23 SECTION 3. Section 13A, Article 3.77, Insurance Code, as 2-24 added by this Act, applies only to an assessment paid by an insurer 2-25 under Section 13, Article 3.77, Insurance Code, on or after the 2-26 effective date of this Act. An assessment paid by an insurer before 2-27 the effective date of this Act is governed by the law as it exists 3-1 immediately before the effective date of this Act, and that law is 3-2 continued in effect for that purpose. 3-3 SECTION 4. This Act takes effect September 1, 2001.