Texas 2017 - 85th Regular

Texas Senate Bill SB1779 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R6541 PMO-F
2	2	By: Creighton S.B. No. 1779
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to premium and maintenance tax credits related to certain
8	8	fees paid under the Patient Protection and Affordable Care Act.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 222, Insurance Code, is amended by
11	11	adding Section 222.0071 to read as follows:
12	12	Sec. 222.0071. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a)
13	13	In this section:
14	14	(1) "Affordable Care Act" means the Patient Protection
15	15	and Affordable Care Act (Pub. L. No. 111-148), as amended by the
16	16	Health Care and Education Reconciliation Act of 2010 (Pub. L.
17	17	No. 111-152).
18	18	(2) "Recoupment amount" means the amount of health
19	19	insurer provider fees under Section 9010, Affordable Care Act, that
20	20	the insurer or health maintenance organization recoups, including
21	21	amounts recouped through adjustments to the insurer's premium rate
22	22	or the health maintenance organization's formula or method for
23	23	computing its schedule of charges, as applicable.
24	24	(b) An insurer or health maintenance organization is
25	25	entitled to a credit on the amount of tax due under this chapter in a
26	26	taxable year equal to the amount of the premium tax imposed in that
27	27	year on the insurer's or organization's recoupment amount for that
28	28	year.
29	29	(c) The commissioner by rule shall establish formulas to
30	30	calculate the amount of the credit authorized by Subsection (b),
31	31	including a formula to calculate:
32	32	(1) an insurer's or health maintenance organization's
33	33	recoupment amount; and
34	34	(2) the recoupment amount attributable to an insurer
35	35	or health maintenance organization if the fees are imposed on a
36	36	controlled group, as defined by Section 9010(c)(3), Affordable Care
37	37	Act.
38	38	SECTION 2. Chapter 257, Insurance Code, is amended by
39	39	adding Section 257.005 to read as follows:
40	40	Sec. 257.005. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) In
41	41	this section:
42	42	(1) "Affordable Care Act" means the Patient Protection
43	43	and Affordable Care Act (Pub. L. No. 111-148), as amended by the
44	44	Health Care and Education Reconciliation Act of 2010 (Pub. L.
45	45	No. 111-152).
46	46	(2) "Recoupment amount" means the amount of health
47	47	insurer provider fees under Section 9010, Affordable Care Act, that
48	48	the insurer recoups, including amounts recouped through
49	49	adjustments to the insurer's premium rate.
50	50	(b) An insurer is entitled to a credit on the amount of tax
51	51	due under this chapter in a taxable year equal to the amount of the
52	52	premium tax imposed in that year on the insurer's recoupment amount
53	53	for that year.
54	54	(c) The commissioner by rule shall establish formulas to
55	55	calculate the amount of the credit authorized by Subsection (b),
56	56	including a formula to calculate:
57	57	(1) an insurer's recoupment amount; and
58	58	(2) the recoupment amount attributable to an insurer
59	59	if the fees are imposed on a controlled group, as defined by Section
60	60	9010(c)(3), Affordable Care Act.
61	61	SECTION 3. The changes in law made by this Act apply only to
62	62	a tax liability accruing on or after January 1, 2014.
63	63	SECTION 4. The comptroller of public accounts and
64	64	commissioner of insurance shall adopt rules necessary to implement
65	65	the changes in law made by this Act.
66	66	SECTION 5. This Act takes effect immediately if it receives
67	67	a vote of two-thirds of all the members elected to each house, as
68	68	provided by Section 39, Article III, Texas Constitution. If this
69	69	Act does not receive the vote necessary for immediate effect, this
70	70	Act takes effect September 1, 2017.