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A BILL TO BE ENTITLED
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AN ACT
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relating to a premium tax credit for assessments paid for the Texas |
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Health Insurance Risk Pool. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 1506, Insurance Code, is |
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amended by adding Section 1506.259 to read as follows: |
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Sec. 1506.259. TAX CREDIT. (a) A health benefit plan issuer |
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is entitled to a credit against the issuer's premium tax under |
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Chapter 222 for the total amount of an assessment paid by the issuer |
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under Section 1506.253. |
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(b) The tax credit applies to the premium tax due in the |
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calendar year following the calendar year in which the assessment |
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is paid. An unused credit may be carried over to apply to the |
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premium tax due in the five consecutive calendar years that follow |
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the calendar year in which the credit may first be applied. |
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(c) The balance of a tax credit not claimed in a particular |
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calendar year may be reflected in the books and records of the |
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issuer as an admitted asset of the issuer. |
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(d) Available credit against premium tax allowed under this |
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section may be transferred or assigned among health benefit plan |
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issuers if: |
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(1) a merger, acquisition, or total assumption of |
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reinsurance among the issuers occurs; or |
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(2) the commissioner by order approves the transfer or |
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assignment. |
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SECTION 2. A health benefit plan issuer may apply a tax |
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credit under Section 1506.259, Insurance Code, as added by this |
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Act, beginning with the first premium tax payment that is due on or |
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after January 1, 2008. |
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SECTION 3. This Act takes effect January 1, 2008. |