Texas 2019 - 86th Regular

Texas House Bill HB1783 Compare Versions

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

Old	New	Differences
1	1	86R4735 PMO-F
2	2	By: King of Parker H.B. No. 1783
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) "Nationwide health premium or revenue amount"
19	19	means the amount of gross premium and revenue aggregated on a
20	20	nationwide basis attributable to lines of business identified by
21	21	the commissioner under this section and taxed under this chapter.
22	22	(3) "Provider fee amount" means the amount of health
23	23	insurer provider fees that an insurer or health maintenance
24	24	organization pays under Section 9010, Affordable Care Act, and may
25	25	recoup through adjustments to the insurer's premium rate or the
26	26	health maintenance organization's formula or method for computing
27	27	its schedule of charges, as applicable.
28	28	(b) An insurer or health maintenance organization is
29	29	entitled to a credit on the amount of tax due under this chapter in a
30	30	taxable year in an amount equal to the product of the insurer's or
31	31	health maintenance organization's provider fee amount multiplied
32	32	by the percentage of the insurer's or health maintenance
33	33	organization's nationwide health premium or revenue amount that the
34	34	insurer or health maintenance organization allocates to this state
35	35	multiplied by the rate of tax imposed under this chapter.
36	36	(c) The commissioner by rule shall:
37	37	(1) establish formulas to calculate the amount of the
38	38	credit authorized by Subsection (b), including a formula to
39	39	calculate:
40	40	(A) an insurer's or health maintenance
41	41	organization's provider fee amount; and
42	42	(B) the provider fee amount attributable to an
43	43	insurer or health maintenance organization if the fees are imposed
44	44	on a controlled group, as defined by Section 9010(c)(3), Affordable
45	45	Care Act; and
46	46	(2) identify lines of business included in the
47	47	calculation of the nationwide health premium or revenue amount.
48	48	(d) The lines of business identified by the commissioner
49	49	under Subsection (c) may not include the business of life
50	50	insurance.
51	51	SECTION 2. Chapter 257, Insurance Code, is amended by
52	52	adding Section 257.005 to read as follows:
53	53	Sec. 257.005. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) In
54	54	this section:
55	55	(1) "Affordable Care Act" means the Patient Protection
56	56	and Affordable Care Act (Pub. L. No. 111-148), as amended by the
57	57	Health Care and Education Reconciliation Act of 2010 (Pub. L.
58	58	No. 111-152).
59	59	(2) "Nationwide health premium amount" means the
60	60	amount of gross premium aggregated on a nationwide basis
61	61	attributable to lines of business identified by the commissioner
62	62	under this section and taxed under this chapter.
63	63	(3) "Provider fee amount" means the amount of health
64	64	insurer provider fees that an insurer pays under Section 9010,
65	65	Affordable Care Act, and may recoup through adjustments to the
66	66	insurer's premium rate.
67	67	(b) An insurer is entitled to a credit on the amount of tax
68	68	due under this chapter in a taxable year in an amount equal to the
69	69	product of the insurer's provider fee amount multiplied by the
70	70	percentage of the insurer's nationwide health premium amount that
71	71	the insurer allocates to this state multiplied by the rate of tax
72	72	imposed under this chapter.
73	73	(c) The commissioner by rule shall:
74	74	(1) establish formulas to calculate the amount of the
75	75	credit authorized by Subsection (b), including a formula to
76	76	calculate:
77	77	(A) an insurer's provider fee amount; and
78	78	(B) the provider fee amount attributable to an
79	79	insurer if the fees are imposed on a controlled group, as defined by
80	80	Section 9010(c)(3), Affordable Care Act; and
81	81	(2) identify lines of business included in the
82	82	calculation of the nationwide health premium amount.
83	83	(d) The lines of business identified by the commissioner
84	84	under Subsection (c) may not include the business of life
85	85	insurance.
86	86	SECTION 3. The changes in law made by this Act apply only to
87	87	a tax liability accruing on or after January 1, 2014.
88	88	SECTION 4. The comptroller of public accounts and
89	89	commissioner of insurance shall adopt rules necessary to implement
90	90	the changes in law made by this Act.
91	91	SECTION 5. This Act takes effect September 1, 2019.