80R9813 DLF-F
 
  By: Paxton H.B. No. 2718
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to treatment of premiums for group life insurance issued
through voluntary employee beneficiary associations.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 1131.503, Insurance Code, is amended by
adding Subsection (c) to read as follows:
       (c)  This subsection applies only to a voluntary employee
beneficiary association described by Section 501(c)(9), Internal
Revenue Code of 1986, that collects member contributions, including
money that is contributed specifically for insurance and that is
remitted as premium under this section following a retrospective
determination to an insurer that issues a group life insurance
policy.  For purposes of Section 222.002, gross premiums do not
include any amount collected from association members as membership
contributions, fees, assessments, dues, revenues, or otherwise, to
the extent the amount exceeds the final premium amount remitted to
the insurer.
       SECTION 2.  The change in law made by this Act applies only
to a premium tax report originally due on or after January 1, 2008.
       SECTION 3.  This Act takes effect September 1, 2007.