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Amend HB 1977 as follows:
(1) On page 1, between lines 9 and 10, insert the following:
SECTION 2. Section 1506.251, Insurance Code, is amended by
adding Subsection (c) to read as follows:
(c) The regular assessment is the amount determined by the
board under Section 1506.252 and recovered from health benefit plan
issuers under Section 1506.253.
SECTION 3. Subchapter F, Chapter 1506, Insurance Code, is
amended by adding Section 1506.2523 to read as follows:
Sec. 1506.2523. ANNUAL REPORT TO BOARD: GROSS PREMIUMS.
(a) Each health benefit plan issuer shall report to the board the
gross premiums collected for the preceding calendar year for health
benefit plans.
(b) For purposes of this section, gross health benefit plan
premiums do not include premiums collected for:
(1) coverage under a Medicare supplement benefit plan
subject to Chapter 1652;
(2) coverage under a small employer health benefit
plan subject to Subchapters A-H, Chapter 1501; or
(3) coverage or insurance listed in Section
1506.002(b).
SECTION 4. Section 1506.253(b), Insurance Code, is amended
to read as follows:
(b) The board shall use the total number of enrolled
individuals reported by all health benefit plan issuers under
Section 1506.2522 as of the preceding December 31 to [To] compute
the amount of a health benefit plan issuer's assessment, if any, in
accordance with this subsection. The [the] board shall allocate [:
[(1) divide] the total amount to be assessed based on
[by] the total number of enrolled individuals covered by excess
loss, stop-loss, or reinsurance policies and on the total number of
other enrolled individuals as determined [reported by all health
benefit plan issuers] under Section 1506.2522. To compute the
amount of a health benefit plan issuer's assessment:
(1) for the issuer's enrolled individuals covered by
an excess loss, stop-loss, or reinsurance policy, the board shall:
(A) divide the allocated amount to be assessed by
the total number of enrolled individuals covered by excess loss,
stop-loss, or reinsurance policies, as determined under Section
1506.2522, [as of the preceding December 31] to determine the per
capita amount; and
(B) multiply the number of a health benefit plan
issuer's enrolled individuals covered by an excess loss, stop-loss,
or reinsurance policy, as determined under Section 1506.2522, by
the per capita amount to determine the amount assessed to that
health benefit plan issuer; and
(2) for the issuer's enrolled individuals not covered
by excess loss, stop-loss, or reinsurance policies, the board,
using the gross health benefit plan premiums reported for the
preceding calendar year by health benefit plan issuers under
Section 1506.2523, shall:
(A) divide the gross premium collected by a
health benefit plan issuer by the gross premium collected by all
health benefit plan issuers; and
(B) multiply the allocated amount to be assessed
by the fraction computed under Paragraph (A) [number of enrolled
individuals reported by the health benefit plan issuer under
Section 1506.2522 as of the preceding December 31 by the per capita
amount] to determine the amount assessed to that health benefit
plan issuer.
SECTION 5. Subchapter F, Chapter 1506, Insurance Code, is
amended by adding Section 1506.259 to read as follows:
Sec. 1506.259. TAX CREDIT. (a) A health benefit plan
issuer is entitled to a credit against its premium tax under Chapter
222 for the portion of the issuer's regular assessment, determined
by the board during the preceding calendar year under Section
1506.253, for non-federally eligible individuals who qualify for
pool coverage under Section 1506.152(a)(3), as determined by the
pool as of December 31 of the preceding calendar year.
(b) The premium tax credit under this section applies to the
premium tax due in the calendar year following the calendar year in
which the regular assessment is determined by the pool.
(c) The premium tax credit under this section is limited to
the premium tax liability due for the calendar year before the
application of any available premium tax prepayments and guaranty
association assessment credits. Any credit that exceeds the premium
tax liability for a calendar year may not be carried forward to
future years or applied to prior years.
(d) Available credit against premium tax allowed under this
section may be transferred or assigned among health benefit plan
issuers if:
(1) a merger, acquisition, or total assumption of
reinsurance among the issuers occurs; or
(2) the commissioner by order approves the transfer or
assignment.
(2) On page 1, line 10, strike "SECTION 2" and substitute
"SECTION 6".
(3) On page 1, strike line 13 and substitute the following:
SECTION 7. The change in law made by this Act to Section
1506.253, Insurance Code, applies to an assessment under Subchapter
F, Chapter 1506, Insurance Code, for a calendar year or portion of a
calendar year beginning on the effective date of this Act. An
assessment for any portion of a calendar year before the effective
date of this Act is governed by the law in effect during the period
for which the assessment is made, and the former law is continued in
effect for that purpose.
SECTION 8. A health benefit plan issuer may apply a tax
credit under Section 1506.259, Insurance Code, as added by this
Act, beginning with the first premium tax payment that is due on or
after January 1, 2008.
SECTION 9. This Act takes effect June 30, 2007, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary to take effect on
that date, this Act takes effect September 30, 2007.