| 1 | 1 | | 85R23275 PMO-F |
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| 2 | 2 | | By: King of Parker, Flynn, Parker H.B. No. 2036 |
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| 3 | 3 | | Substitute the following for H.B. No. 2036: |
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| 4 | 4 | | By: Phillips C.S.H.B. No. 2036 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to premium tax credits related to certain fees paid under |
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| 10 | 10 | | the Patient Protection and Affordable Care Act. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Chapter 222, Insurance Code, is amended by |
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| 13 | 13 | | adding Section 222.0071 to read as follows: |
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| 14 | 14 | | Sec. 222.0071. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) |
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| 15 | 15 | | In this section: |
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| 16 | 16 | | (1) "Affordable Care Act" means the Patient Protection |
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| 17 | 17 | | and Affordable Care Act (Pub. L. No. 111-148), as amended by the |
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| 18 | 18 | | Health Care and Education Reconciliation Act of 2010 (Pub. L. |
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| 19 | 19 | | No. 111-152). |
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| 20 | 20 | | (2) "Nationwide health premium or revenue amount" |
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| 21 | 21 | | means the amount of gross premium and revenue aggregated on a |
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| 22 | 22 | | nationwide basis attributable to lines of business, other than the |
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| 23 | 23 | | business of life insurance, identified by the commissioner under |
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| 24 | 24 | | Subsection (c) on which tax is imposed under this chapter. |
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| 25 | 25 | | (3) "Provider fee amount" means the amount of health |
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| 26 | 26 | | insurer provider fees, which may be recouped through adjustments to |
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| 27 | 27 | | the insurer's premium rate or the health maintenance organization's |
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| 28 | 28 | | formula or method for computing its schedule of charges, paid by an |
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| 29 | 29 | | insurer or health maintenance organization under Section 9010, |
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| 30 | 30 | | Affordable Care Act. |
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| 31 | 31 | | (b) An insurer or health maintenance organization is |
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| 32 | 32 | | entitled to a credit on the amount of tax due under this chapter in a |
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| 33 | 33 | | taxable year in an amount equal to the product of the insurer's or |
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| 34 | 34 | | health maintenance organization's provider fee amount multiplied |
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| 35 | 35 | | by the percentage of the insurer's or health maintenance |
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| 36 | 36 | | organization's nationwide health premium or revenue amount that the |
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| 37 | 37 | | insurer or health maintenance organization allocates to this state |
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| 38 | 38 | | multiplied by the rate of the tax imposed under this chapter. |
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| 39 | 39 | | (c) The commissioner by rule shall: |
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| 40 | 40 | | (1) establish formulas to calculate the amount of the |
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| 41 | 41 | | credit authorized by Subsection (b), including a formula to |
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| 42 | 42 | | calculate: |
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| 43 | 43 | | (A) an insurer's or health maintenance |
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| 44 | 44 | | organization's provider fee amount; and |
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| 45 | 45 | | (B) the provider fee amount attributable to an |
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| 46 | 46 | | insurer or health maintenance organization if the fees are imposed |
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| 47 | 47 | | on a controlled group, as defined by Section 9010(c)(3), Affordable |
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| 48 | 48 | | Care Act; and |
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| 49 | 49 | | (2) identify the lines of business, other than the |
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| 50 | 50 | | business of life insurance, included in the calculation of the |
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| 51 | 51 | | nationwide health premium or revenue amount. |
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| 52 | 52 | | SECTION 2. The changes in law made by this Act apply only to |
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| 53 | 53 | | a tax liability accruing on or after January 1, 2020. |
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| 54 | 54 | | SECTION 3. The comptroller of public accounts and |
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| 55 | 55 | | commissioner of insurance shall adopt rules necessary to implement |
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| 56 | 56 | | the changes in law made by this Act. |
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| 57 | 57 | | SECTION 4. This Act takes effect September 1, 2017. |
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