By Counts                                             H.B. No. 3098
         77R9389 T                           
                                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 employees of:
 2-9                 (1)  a municipality, county, school district, or
2-10     hospital district in this state; or
2-11                 (2)  a county or municipal hospital, without regard to
2-12     whether the employees are employees of the county or municipality
2-13     or another entity operating the hospital on behalf of the county or
2-14     municipality.
2-15           SECTION 2.  EFFECTIVE DATE. (a)  This Act takes effect
2-16     September 1, 2001.
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 September 1, 2001.  A tax imposed under that
2-20     article before September 1, 2001, is governed by the law that
2-21     existed in the tax year in which that tax was imposed, and that law
2-22     is continued in effect for that purpose.