83R5132 SCL-F
By: J. Davis of Harris H.B. No. 865
A BILL TO BE ENTITLED
AN ACT
relating to removing the single nonprofit trust requirement for
certain insurance premium tax exemptions; 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.
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.
SECTION 3. Section 258.004(b), Insurance Code, is amended
to read as follows:
(b) The amount of maintenance tax assessed may not be
computed based on:
(1) enrollees who as individual certificate holders or
their dependents are covered by a master group policy paid for by
revenues 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) revenues paid on group health, accident, and life
certificates or contracts [in which the group covered by the
certificate 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.
SECTION 4. Section 157.102(a), Local Government Code, is
amended to read as follows:
(a) The commissioners court of a county that adopts rules
under Section 157.101 may require persons participating in the
group health and related benefits plan to contribute toward the
payment of the plan. The commissioners court may establish a fund
to pay for the group health and related benefits. [The fund may
take the form of a single nonprofit trust as described by Section
222.002(c)(5)(A), Insurance Code.]
SECTION 5. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 6. This Act takes effect September 1, 2013.