By: Vo H.B. No. 4401

A BILL TO BE ENTITLED

AN ACT

relating to the collection of fees and refunds of under Chapter 1006 of the Transportation Code by the Comptroller.

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

SECTION 1. The title to Subchapter D, Chapter 1006, Transportation Code, is amended to read as follows:

SUBCHAPTER D. FINANCIAL PROVISIONS AND ADMINISTRATION OF FEES

SECTION 2. Chapter 1006, Subchapter D, is amended by adding new Sections 1006.156, 1006.157, 1006.158, and 1006.159 to read as follows:

Sec. 1006.156. POWERS AND DUTIES OF COMPTROLLER.

(a) Except as otherwise provided by this chapter, the comptroller shall administer and enforce the provisions of this chapter for fees collected from insurers that relate to the administration, collection, and reporting of certain fees and assessments imposed under this Chapter.

(b) The comptroller may:

(1) adopt rules to implement the administration, collection, reporting, and enforcement responsibilities assigned to the comptroller under this code or another insurance law of this state; and

(2) prescribe appropriate report forms, establish or alter tax report due dates not otherwise specifically prescribed by this Chapter or other law of this state, and otherwise adapt the functions transferred to the comptroller to increase efficiency and cost-effectiveness.

(c) A rule adopted by the comptroller that relates to the administration, collection, reporting, or enforcement of fees imposed under this chapter prevails over a conflicting rule, policy, or procedure established by the authority.

(d) Subtitles A and B, Title 2, Tax Code, apply to the administration, collection, and enforcement by the comptroller of fees and assessments under this chapter. Except as otherwise provided by this chapter, the powers granted to the comptroller under those provisions of the Tax Code do not limit and are exclusive of the powers granted to the comptroller in relation to fees and assessments under this chapter.

Sec. 1006.157. REIMBURSEMENT. (a) The authority shall reimburse the appropriate portion of the authority's funds for the amount of expenses incurred by the comptroller in administering fees imposed under this chapter.

(b) The comptroller shall certify to the authority the total amount of expenses estimated to be required to perform the comptroller's duties under this this chapter for each fiscal biennium. The comptroller shall provide copies of the certification to the budget division of the governor's office and to the Legislative Budget Board.

(c) The amount certified by the comptroller shall be transferred from the authority's operating account to the appropriate portion of the general revenue fund.

Sec. 1006.158. COOPERATION BETWEEN DEPARTMENT AND COMPTROLLER. The authority and the comptroller shall cooperate fully in performing their respective duties under this chapter.

Sec. 1006.159. FILING DATE OF REPORT OR PAYMENT DELIVERED BY POSTAL SERVICE. Except as otherwise specifically provided, for a report, including a fee report, or payment that is required to be filed or made in the offices of the comptroller and that is delivered by the United States Postal Service to the offices of the comptroller after the date on which the report or payment is required to be filed or made, the date of filing or payment is the date of:

(1) the postal service postmark stamped on the cover in which the report or payment is mailed; or

(2) any other evidence of mailing authorized by the postal service reflected on the cover in which the report or payment is mailed.

SECTION 3. Section 1006.152, Transportation Code, is amended to read as follows:

Sec. 1006.152. REFUNDS. (a) The [authority] comptroller shall [may] make determinations regarding the sufficiency of payments made by an insurer of fees collected under Section 1006.153.

(b) Pursuant to a determination made under Subsection (a), the [authority] comptroller may:

(1) notify [the comptroller] an insurer that payments made by an insurer are sufficient or have been overpaid; and

(2) [request] the comptroller may [to] draw warrants on the funds available to the authority for the purpose of refunding money to an insurer.

[(c) The authority shall make the determination under this section as follows:

(1) the two members of the authority who are representatives of insurance companies writing motor vehicle insurance in this state shall recuse themselves; and

(2) the remaining five members of the authority shall make the determination by a simple majority vote.

(d) Determinations made under this section shall be performed in accordance with procedures set forth in rules adopted by the authority. The question of eligibility for a refund is not a contested case under Chapter 2001, Government Code.

(e) (c) [A] An insurer may make a request for a refund made under this section [must be made] not later than four years after the date the payment was made to the authority under Section 1006.153. The procedures in Subtitle A and Subtitle B, Title 2 of the Tax Code shall apply to refund requests.

[(f) The authority may recover from an insurer requesting a refund under this section any costs associated with a denied or improperly requested refund.]

SECTION 5. Section 1006.153, Transportation Code, is amended to read as follows:

Sec. 1006.153. FEE IMPOSED ON INSURER. (a) In this section, "motor vehicle years of insurance" means the total number of years or portions of years during which a motor vehicle is covered by insurance.

(b) An insurer shall pay to the [authority] comptroller a fee equal to $5 multiplied by the total number of motor vehicle years of insurance for insurance policies delivered, issued for delivery, or renewed by the insurer. The fee shall be paid not later than:

(1) March 1 of each year for a policy delivered, issued, or renewed from July 1 through December 31 of the previous calendar year; and

(2) August 1 of each year for a policy delivered, issued, or renewed from January 1 through June 30 of that year.

(b-1) A penalty shall be imposed on an insurer for the delinquent payment of the fee required by this section or the delinquent filing of any report of the fee required by rule. The penalty shall be assessed in the manner prescribed for the assessment of a penalty for a delinquent tax payment or filing of a report under Section 111.061(a), Tax Code. Interest accrues in the manner described by Section 111.060, Tax Code, on any fee paid after the due date in Subsection (b).

(b-2) The [authority] comptroller may audit or contract for the audit of fees paid by an insurer under this section.

(b-3) A determination under this section shall be made in accordance with procedures the [authority] comptroller adopts by rule. An insurer assessed a penalty or interest under Subsection (b-1) may appeal the assessment to the comptroller. The procedures in Subtitle A and Subtitle B, Title 2 of the Tax Code shall apply to appeals. [authority. The authority shall make the final decision on the appeal by a simple majority vote. The appeal of an assessment of a penalty or interest is not a contested case under Chapter 2001, Government Code.]

(c) The fee imposed by this section is in addition to any other fee or tax imposed by law on an insurer.

(d) The [authority] comptroller shall notify the Texas Department of Insurance of any insurer that fails to pay the fee required by this section, and the Texas Department of Insurance may for that reason revoke the insurer's certificate of authority.

(e) Out of each fee collected under Subsection (b), $1 shall be deposited to the credit of the general revenue fund to be used only for coordinated regulatory and law enforcement activities intended to detect and prevent catalytic converter theft in this state. The remainder of each fee collected under Subsection (b) and any amount collected under Subsection (b-1) shall be allocated as follows:

(1) 20 percent shall be appropriated to the authority for the purposes of this chapter;

(2) 20 percent shall be deposited to the credit of the general revenue fund, to be used only for criminal justice purposes; and

(3) 60 percent shall be deposited to the credit of the designated trauma facility and emergency medical services account under Section 780.003, Health and Safety Code, to be used only for the criminal justice purpose of funding designated trauma facilities, county and regional emergency medical services, and trauma care systems that provide trauma care and emergency medical services to victims of collisions resulting from traffic offenses.

SECTION 6. Section 1006.055, Transportation Code, is amended to read as follows:

Sec. 1006.155. ANNUAL FINANCIAL REPORTS [REPORT]. (a). The authority shall prepare annually a complete and detailed written report accounting for all funds the authority received and disbursed by the authority during the preceding fiscal year. The annual report must meet the reporting requirements applicable to financial reporting provided by the General Appropriations Act.

(b) The comptroller shall annually prepare a report accounting for all fees received under this chapter during the preceding fiscal year.

SECTION 7. This Act takes effect January 1, 2025.