84R14162 KKR-F

By: King of Parker, Flynn, H.B. No. 2467

Thompson of Brazoria

Substitute the following for H.B. No. 2467:

By: Frullo C.S.H.B. No. 2467

A BILL TO BE ENTITLED

AN ACT

relating to excluding certain premiums, revenues, and fees from the determination of certain insurers' taxable gross premiums or revenues; affecting certain taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 222.002(c), Insurance Code, is amended to read as follows:

(c) The following are not included in determining an insurer's taxable gross premiums or a health maintenance organization's taxable gross revenues:

(1) returned premiums or revenues;

(2) dividends applied to purchase paid-up additions to insurance or to shorten the endowment or premium payment period;

(3) premiums received from an insurer for reinsurance;

(4) premiums or revenues received from the treasury of the United States for insurance or benefits contracted for by the federal government in accordance with or in furtherance of Title XVIII of the Social Security Act (42 U.S.C. Section 1395c et seq.) and its subsequent amendments;

(5) premiums or revenues paid on group health, accident, and life policies or contracts in which the group covered by the policy or contract consists of a single nonprofit trust established to provide coverage primarily for employees of:

(A) a municipality, county, or hospital district in this state; or

(B) a county or municipal hospital, without regard to whether the employees are employees of the county or municipality or of an entity operating the hospital on behalf of the county or municipality; [or]

(6) premiums or revenues excluded by another law of this state; or

(7) additional premiums, revenues, or fees related to an insurer's recoupment of the health insurance providers fee imposed under Section 9010 of the federal Patient Protection and Affordable Care Act (Pub. L. No. 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. No. 111-152), whether the premiums, revenues, or fees are stated separately or included in the rates charged for coverage.

SECTION 2. Section 257.003(b), Insurance Code, is amended to read as follows:

(b) The gross premiums on which an assessment is based under this chapter may not include:

(1) premiums received from the United States for insurance contracted for by the United States in accordance with or in furtherance of Title XVIII of the Social Security Act (42 U.S.C. Section 1395c et seq.) and its subsequent amendments; [or]

(2) premiums paid on group health, accident, and life policies in which the group covered by the policy consists of a single nonprofit trust established to provide coverage primarily for employees of:

(A) a municipality, county, or hospital district in this state; or

(B) a county or municipal hospital, without regard to whether the employees are employees of the county or municipality or of an entity operating the hospital on behalf of the county or municipality; or

(3) additional premiums, revenues, or fees related to an insurer's recoupment of the health insurance providers fee imposed under Section 9010 of the federal Patient Protection and Affordable Care Act (Pub. L. No. 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. No. 111-152), whether the premiums, revenues, or fees are stated separately or included in the rates charged for coverage.

SECTION 3. The change in law made by this Act applies only to a tax liability accruing on or after January 1, 2013.

SECTION 4. The comptroller of public accounts shall adopt rules necessary to implement the changes in law made by this Act.

SECTION 5. This Act takes effect immediately 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 for immediate effect, this Act takes effect September 1, 2015.