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A BILL TO BE ENTITLED
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AN ACT
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relating to removing the single nonprofit trust requirement for |
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certain insurance premium tax exemptions; affecting certain taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 222.002(c), Insurance Code, is amended |
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to read as follows: |
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(c) The following are not included in determining an |
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insurer's taxable gross premiums or a health maintenance |
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organization's taxable gross revenues: |
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(1) returned premiums or revenues; |
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(2) dividends applied to purchase paid-up additions to |
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insurance or to shorten the endowment or premium payment period; |
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(3) premiums received from an insurer for reinsurance; |
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(4) premiums or revenues received from the treasury of |
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the United States for insurance or benefits contracted for by the |
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federal government in accordance with or in furtherance of Title |
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XVIII of the Social Security Act (42 U.S.C. Section 1395c et seq.) |
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and its subsequent amendments; |
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(5) premiums or revenues paid on group health, |
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accident, and life policies or contracts [in which the group
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covered by the policy or contract consists of a single nonprofit
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trust] established to provide coverage primarily for employees of: |
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(A) a municipality, county, or hospital district |
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in this state; or |
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(B) a county or municipal hospital, without |
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regard to whether the employees are employees of the county or |
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municipality or of an entity operating the hospital on behalf of the |
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county or municipality; or |
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(6) premiums or revenues excluded by another law of |
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this state. |
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SECTION 2. Section 257.003(b), Insurance Code, is amended |
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to read as follows: |
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(b) The gross premiums on which an assessment is based under |
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this chapter may not include: |
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(1) premiums received from the United States for |
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insurance contracted for by the United States in accordance with |
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or in furtherance of Title XVIII of the Social Security Act (42 |
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U.S.C. Section 1395c et seq.) and its subsequent amendments; or |
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(2) premiums paid on group health, accident, and life |
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policies [in which the group covered by the policy consists of a
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single nonprofit trust] established to provide coverage primarily |
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for employees of: |
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(A) a municipality, county, or hospital district |
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in this state; or |
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(B) a county or municipal hospital, without |
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regard to whether the employees are employees of the county or |
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municipality or of an entity operating the hospital on behalf of the |
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county or municipality. |
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SECTION 3. Section 258.004(b), Insurance Code, is amended |
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to read as follows: |
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(b) The amount of maintenance tax assessed may not be |
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computed based on: |
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(1) enrollees who as individual certificate holders or |
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their dependents are covered by a master group policy paid for by |
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revenues received from the United States for insurance contracted |
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for by the United States in accordance with or in furtherance of |
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Title XVIII of the Social Security Act (42 U.S.C. Section 1395c et |
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seq.) and its subsequent amendments; or |
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(2) revenues paid on group health, accident, and life |
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certificates or contracts [in which the group covered by the
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certificate or contract consists of a single nonprofit trust] |
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established to provide coverage primarily for employees of: |
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(A) a municipality, county, or hospital district |
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in this state; or |
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(B) a county or municipal hospital, without |
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regard to whether the employees are employees of the county or |
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municipality or of an entity operating the hospital on behalf of the |
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county or municipality. |
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SECTION 4. Section 157.102(a), Local Government Code, is |
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amended to read as follows: |
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(a) The commissioners court of a county that adopts rules |
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under Section 157.101 may require persons participating in the |
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group health and related benefits plan to contribute toward the |
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payment of the plan. The commissioners court may establish a fund |
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to pay for the group health and related benefits. [The fund may
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take the form of a single nonprofit trust as described by Section
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222.002(c)(5)(A), Insurance Code.] |
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SECTION 5. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 6. This Act takes effect September 1, 2013. |