BILL ANALYSIS
BACKGROUND AND PURPOSE
Currently, Texans who cannot obtain insurance through a private health insurance provider can obtain insurance through the Texas Health Insurance Risk Pool (pool). Although the pool is given, by statute, the authority to exercise any of the authority that a health insurance carrier can exercise under Texas law, the pool is not an insurance carrier.
As proposed, H.B. 1977 clarifies that the pool is not subject to state taxes, fees or surcharges, including a premium or maintenance tax or fee, that would be applied to an insurance carrier.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1977 relates to liability of the Texas Health Insurance Risk Pool for a state tax, regulatory fee, or surcharge.
H.B. 1977, in SECTION 1, seeks to amend Subchapter A, Chapter 1506 of the Texas Insurance Code by adding Section 1506.008. Section 1506.008 discusses exemption from state taxes and fees and states that the pool is not subject to any state tax, regulatory fee, or surcharge, including a premium or maintenance tax or fee.
Next, H.B.1977 in SECTION 2 states that Section 1506.008 of the Texas Insurance Code, as added by this Act, applies only to a state tax, regulatory fee, or surcharge that becomes due on or after the effective date of this Act. Finally, SECTION 3 of H.B. 1977 states that this Act takes effect September 1, 2007.
EFFECTIVE DATE
September 1, 2007.