85R6541 PMO-F
By: King of Parker H.B. No. 2036
A BILL TO BE ENTITLED
AN ACT
relating to premium and maintenance tax credits related to certain
fees paid under the Patient Protection and Affordable Care Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 222, Insurance Code, is amended by
adding Section 222.0071 to read as follows:
Sec. 222.0071. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a)
In this section:
(1) "Affordable Care Act" means the 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).
(2) "Recoupment amount" means the amount of health
insurer provider fees under Section 9010, Affordable Care Act, that
the insurer or health maintenance organization recoups, including
amounts recouped through adjustments to the insurer's premium rate
or the health maintenance organization's formula or method for
computing its schedule of charges, as applicable.
(b) An insurer or health maintenance organization is
entitled to a credit on the amount of tax due under this chapter in a
taxable year equal to the amount of the premium tax imposed in that
year on the insurer's or organization's recoupment amount for that
year.
(c) The commissioner by rule shall establish formulas to
calculate the amount of the credit authorized by Subsection (b),
including a formula to calculate:
(1) an insurer's or health maintenance organization's
recoupment amount; and
(2) the recoupment amount attributable to an insurer
or health maintenance organization if the fees are imposed on a
controlled group, as defined by Section 9010(c)(3), Affordable Care
Act.
SECTION 2. Chapter 257, Insurance Code, is amended by
adding Section 257.005 to read as follows:
Sec. 257.005. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) In
this section:
(1) "Affordable Care Act" means the 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).
(2) "Recoupment amount" means the amount of health
insurer provider fees under Section 9010, Affordable Care Act, that
the insurer recoups, including amounts recouped through
adjustments to the insurer's premium rate.
(b) An insurer is entitled to a credit on the amount of tax
due under this chapter in a taxable year equal to the amount of the
premium tax imposed in that year on the insurer's recoupment amount
for that year.
(c) The commissioner by rule shall establish formulas to
calculate the amount of the credit authorized by Subsection (b),
including a formula to calculate:
(1) an insurer's recoupment amount; and
(2) the recoupment amount attributable to an insurer
if the fees are imposed on a controlled group, as defined by Section
9010(c)(3), Affordable Care Act.
SECTION 3. The changes in law made by this Act apply only to
a tax liability accruing on or after January 1, 2014.
SECTION 4. The comptroller of public accounts and
commissioner of insurance 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, 2017.