77R9631 DLF-F
By Smithee H.B. No. 3079
Substitute the following for H.B. No. 3079:
By Smithee C.S.H.B. No. 3079
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain taxes and fees administered by the comptroller
1-3 under the Insurance Code and other insurance laws of this state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1.16, Insurance Code, is amended by
1-6 amending Subsection (b) and adding Subsection (c) to read as
1-7 follows:
1-8 (b) Assessments for the expenses of such domestic
1-9 examination which shall be sufficient to meet all the expenses and
1-10 disbursements necessary to comply with the provisions of the laws
1-11 of Texas relating to the examination of insurance companies and to
1-12 comply with the provisions of this Article and Articles 1.17 and
1-13 1.18 of this Code, shall be made by the department [State Board of
1-14 Insurance] upon the corporations or associations to be examined
1-15 taking into consideration annual premium receipts, and/or admitted
1-16 assets that are not attributable to 90 percent of pension plan
1-17 contracts as defined in Section 818(a) of the Internal Revenue Code
1-18 of 1986 (26 U.S.C. Section 818(a)), and/or insurance in force;
1-19 provided such assessments shall be made and collected as follows:
1-20 (1) expenses attributable directly to a specific examination
1-21 including employees' salaries and expenses and expenses provided by
1-22 Article 1.28 of this Code shall be collected at the time of
1-23 examination; (2) assessments calculated annually for each
1-24 corporation or association which take into consideration annual
2-1 premium receipts, and/or admitted assets that are not attributable
2-2 to 90 percent of pension plan contracts as defined in Section
2-3 818(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section
2-4 818(a)), and/or insurance in force shall be assessed annually for
2-5 each such corporation or association. In computing the
2-6 assessments, the board may not consider insurance premiums for
2-7 insurance contracted for by a state or federal governmental entity
2-8 to provide welfare benefits to designated welfare recipients or
2-9 contracted for in accordance with or in furtherance of Title 2,
2-10 Human Resources Code, or the federal Social Security Act (42 U.S.C.
2-11 Section 301 et seq.).
2-12 (c) The amount of the assessments paid in each taxable year
2-13 to or for the use of the State of Texas by any insurance
2-14 corporation or association hereby affected shall be allowed as a
2-15 credit on the amount of premium taxes to be paid by any such
2-16 insurance corporation or association for such taxable year except
2-17 that a credit or offset may not be allowed on:
2-18 (1) examination expenses incurred by representatives
2-19 of the department that are directly attributable to an examination
2-20 of the books, records, accounts, or principal offices of a domestic
2-21 insurance company located outside this state;
2-22 (2) examination expenses or fees paid to a state other
2-23 than this state; or
2-24 (3) examination expenses paid in a different taxable
2-25 year [as provided by Article 1.28 of this Code].
2-26 SECTION 2. Sections 1 and 13, Article 4.10, Insurance Code,
2-27 are amended to read as follows:
3-1 Sec. 1. PAYMENT OF TAX. Every insurance carrier, including
3-2 Lloyd's and reciprocal and interinsurance exchanges and any other
3-3 organization or concern receiving gross premiums from the business
3-4 of fire, marine, marine inland, accident, credit, livestock,
3-5 fidelity, guaranty, surety, casualty, workers' compensation,
3-6 employers' liability, or any other kind or character of insurance,
3-7 except title insurance and except as provided in Sections 2, 3, and
3-8 4 of this article, shall pay to the comptroller a tax upon such
3-9 gross premium receipts as provided in this article. Any such
3-10 insurance carrier doing other kinds of insurance business shall pay
3-11 the tax levied upon its gross premiums received from such other
3-12 kinds of business as provided in Articles 4.03 and 4.11 of this
3-13 code.
3-14 Sec. 13. EXAMINATION AND EVALUATION FEE CREDITS. (a) The
3-15 amount of all examination and evaluation fees paid in each taxable
3-16 year to or for the use of the State of Texas by an insurance
3-17 carrier shall be allowed as a credit on the amount of premium taxes
3-18 due under this article except that a credit or offset may not be
3-19 allowed on:
3-20 (1) examination expenses incurred by representatives
3-21 of the department that are directly attributable to an examination
3-22 of the books, records, accounts, or principal offices of a domestic
3-23 insurance company located outside this state;
3-24 (2) examination expenses or fees paid to a state other
3-25 than this state; or
3-26 (3) examination expenses paid in a different taxable
3-27 year [as provided by Article 1.28 of this code].
4-1 (b) Any credit allowed by the provisions of this section is
4-2 in addition to any other credits allowable by statute.
4-3 SECTION 3. Section 8, Article 4.11, Insurance Code, is
4-4 amended to read as follows:
4-5 Sec. 8. EXAMINATION AND VALUATION FEES ALLOWED AS CREDITS.
4-6 (a) The amount of all examination and valuation fees paid during
4-7 each tax year to or for the use of the State of Texas by an
4-8 insurance carrier shall be allowed as a credit on the amount of
4-9 premium taxes due under this article except that a credit or offset
4-10 may not be allowed on:
4-11 (1) examination expenses incurred by representatives
4-12 of the department that are directly attributable to an examination
4-13 of the books, records, accounts, or principal offices of a domestic
4-14 insurance company located outside this state;
4-15 (2) examination expenses or fees paid to a state other
4-16 than this state; or
4-17 (3) examination expenses paid in a different taxable
4-18 year [as provided by Article 1.28 of this code].
4-19 (b) Any credit allowed by the provisions of this section is
4-20 in addition to any other credits allowable by statute.
4-21 SECTION 4. Article 5.49(a), Insurance Code, is amended to
4-22 read as follows:
4-23 (a) The State of Texas by and through the commissioner shall
4-24 annually determine the rate of assessment of a maintenance tax to
4-25 be paid on an annual or semiannual basis, as determined by the
4-26 comptroller. The rate of assessment may not exceed one and
4-27 one-fourth percent of the correctly reported gross premiums of
5-1 fire, lightning, tornado, windstorm, hail, smoke or smudge,
5-2 cyclone, earthquake, volcanic eruption, rain, frost and freeze,
5-3 weather or climatic conditions, excess or deficiency of moisture,
5-4 flood, the rising of the waters of the ocean or its tributaries,
5-5 inland marine, home warranty, bombardment, invasion, insurrection,
5-6 riot, civil war or commotion, military or usurped power, any order
5-7 of a civil authority made to prevent the spread of a conflagration,
5-8 epidemic, or catastrophe, vandalism or malicious mischief, strike
5-9 or lockout, explosion as defined in Article 5.52 of this code,
5-10 water or other fluid or substance resulting from the breakage or
5-11 leakage of sprinklers, pumps, or other apparatus erected for
5-12 extinguishing fires, water pipes, or other conduits or containers
5-13 insurance coverage collected by all authorized insurers writing
5-14 those types of insurance in this state. The comptroller shall
5-15 collect the maintenance tax.
5-16 SECTION 5. Section 7, Article 9.59, Insurance Code, is
5-17 amended to read as follows:
5-18 Sec. 7. EXAMINATION AND EVALUATION FEE CREDITS. (a) The
5-19 amount of all examination and evaluation fees paid in each taxable
5-20 year to or for the use of the State of Texas by a title insurance
5-21 company shall be allowed as a credit on the amount of premium taxes
5-22 due under this article except that a credit or offset may not be
5-23 allowed on:
5-24 (1) examination expenses incurred by representatives
5-25 of the department that are directly attributable to an examination
5-26 of the books, records, accounts, or principal offices of a domestic
5-27 insurance company located outside this state;
6-1 (2) examination expenses or fees paid to a state other
6-2 than this state; or
6-3 (3) examination expenses paid in a different taxable
6-4 year [as provided by Article 1.28 of this code].
6-5 (b) Any credit allowed by this section is in addition to any
6-6 other credits allowed by law.
6-7 SECTION 6. Article 17.22(a), Insurance Code, is amended to
6-8 read as follows:
6-9 (a) County mutual insurance companies shall be exempt from
6-10 the operation of all insurance laws of this state, except such laws
6-11 as are made applicable by their specific terms or as in this
6-12 Chapter specifically provided. In addition to such other Articles
6-13 as may be made to apply by other Articles of this Code, county
6-14 mutual insurance companies shall be subject to:
6-15 (1) Subdivision 7 of Article 1.10 of this Code; and
6-16 (2) Articles 1.15, 1.15A, 1.16, 1.24, 1.35B, 2.04,
6-17 2.05, 2.08, 2.10, 4.10, 5.12, 5.37, 5.38, 5.39, 5.40, 5.49, 21.21,
6-18 and 21.49 of this Code.
6-19 SECTION 7. Section 101.251(b), Insurance Code, is amended to
6-20 read as follows:
6-21 (b) Except as provided by Subsection (j), an unauthorized
6-22 insurer or the agent of the unauthorized insurer shall pay to the
6-23 comptroller, on a form prescribed by the comptroller, a premium
6-24 receipts tax of 4.85 percent of gross premiums charged for
6-25 insurance on a subject resident, located, or to be performed in
6-26 this state.
6-27 SECTION 8. Section 112.058(b), Tax Code, is amended to read
7-1 as follows:
7-2 (b) A protest payment relating to each tax imposed under the
7-3 Insurance Code or another insurance law of this state [by Articles
7-4 1.14-1, 1.14-2, 4.10, 4.11, 14.42, 21.46, and 23.08, Insurance
7-5 Code, or by Section 28, Article 8306, Revised Statutes, or by
7-6 Section 33, Texas Health Maintenance Organization Act (Article
7-7 20A-33, Vernon's Texas Insurance Code),] shall be handled as
7-8 follows:
7-9 (1) all [All protest payments made pursuant to
7-10 requirements for the quarterly prepayment of premium tax or
7-11 pursuant to the requirements for annual premium tax that become due
7-12 after August 15, 1985, but before November 15, 1989, shall not be
7-13 placed in the suspense account, but shall immediately be deposited
7-14 in the General Revenue Fund.]
7-15 [(2) All] protest payments made pursuant to
7-16 requirements for the quarterly prepayment of premium tax or
7-17 pursuant to the requirement for annual premium tax that become due
7-18 on or after November 15, 1989, are governed by Subchapter J,
7-19 Chapter 403, Government Code; and
7-20 (2) the comptroller[. (3) The State Board of
7-21 Insurance] shall keep detailed records of protest payments relating
7-22 to the taxes collected by the comptroller under the Insurance Code
7-23 or another insurance law of this state [covered by Subdivision (1)
7-24 relating to the tax imposed by Articles 1.14-1, 1.14-2, 4.10,
7-25 4.11, 14.42, 21.46, and 23.08, Insurance Code, or by Section 28,
7-26 Article 8306, Revised Statutes, or by Section 33, Texas Health
7-27 Maintenance Organization Act (Article 20A-33, Vernon's Texas
8-1 Insurance Code)].
8-2 SECTION 9. The following statutes are repealed:
8-3 (1) Articles 4.11B and 4.11C, Insurance Code; and
8-4 (2) Section 112.058(c), Tax Code.
8-5 SECTION 10. This Act takes effect September 1, 2001.