89R17297 TYPED
By: Menéndez S.B. No. 2998
A BILL TO BE ENTITLED
AN ACT
relating to the collection of fees and refunds of under Chapter 1006
of the Transportation Code by the Comptroller.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The title to Subchapter D, Chapter 1006,
Transportation Code, is amended to read as follows:
SUBCHAPTER D. FINANCIAL PROVISIONS AND ADMINISTRATION OF FEES
SECTION 2. Chapter 1006, Subchapter D, is amended by adding
new Sections 1006.156, 1006.157, 1006.158, and 1006.159 to read as
follows:
Sec. 1006.156. POWERS AND DUTIES OF COMPTROLLER.
(a) Except as otherwise provided by this chapter, the
comptroller shall administer and enforce the provisions of this
chapter for fees collected from insurers that relate to the
administration, collection, and reporting of certain fees and
assessments imposed under this Chapter.
(b) The comptroller may:
(1) adopt rules to implement the administration,
collection, reporting, and enforcement responsibilities assigned
to the comptroller under this code or another insurance law of this
state; and
(2) prescribe appropriate report forms, establish or
alter tax report due dates not otherwise specifically prescribed by
this Chapter or other law of this state, and otherwise adapt the
functions transferred to the comptroller to increase efficiency and
cost-effectiveness.
(c) A rule adopted by the comptroller that relates to the
administration, collection, reporting, or enforcement of fees
imposed under this chapter prevails over a conflicting rule,
policy, or procedure established by the authority.
(d) Subtitles A and B, Title 2, Tax Code, apply to the
administration, collection, and enforcement by the comptroller of
fees and assessments under this chapter. Except as otherwise
provided by this chapter, the powers granted to the comptroller
under those provisions of the Tax Code do not limit and are
exclusive of the powers granted to the comptroller in relation to
fees and assessments under this chapter.
Sec. 1006.157. REIMBURSEMENT. (a) The authority shall
reimburse the appropriate portion of the authority's funds for the
amount of expenses incurred by the comptroller in administering
fees imposed under this chapter.
(b) The comptroller shall certify to the authority the total
amount of expenses estimated to be required to perform the
comptroller's duties under this this chapter for each fiscal
biennium. The comptroller shall provide copies of the
certification to the budget division of the governor's office and
to the Legislative Budget Board.
(c) The amount certified by the comptroller shall be
transferred from the authority's operating account to the
appropriate portion of the general revenue fund.
Sec. 1006.158. COOPERATION BETWEEN DEPARTMENT AND
COMPTROLLER. The authority and the comptroller shall cooperate
fully in performing their respective duties under this chapter.
Sec. 1006.159. FILING DATE OF REPORT OR PAYMENT DELIVERED
BY POSTAL SERVICE. Except as otherwise specifically provided, for
a report, including a fee report, or payment that is required to be
filed or made in the offices of the comptroller and that is
delivered by the United States Postal Service to the offices of the
comptroller after the date on which the report or payment is
required to be filed or made, the date of filing or payment is the
date of:
(1) the postal service postmark stamped on the cover
in which the report or payment is mailed; or
(2) any other evidence of mailing authorized by the
postal service reflected on the cover in which the report or payment
is mailed.
SECTION 3. Section 1006.152, Transportation Code, is
amended to read as follows:
Sec. 1006.152. REFUNDS. (a) The [authority] comptroller
shall [may] make determinations regarding the sufficiency of
payments made by an insurer of fees collected under Section
1006.153.
(b) Pursuant to a determination made under Subsection (a),
the [authority] comptroller may:
(1) notify [the comptroller] an insurer that payments
made by an insurer are sufficient or have been overpaid; and
(2) [request] the comptroller may [to] draw warrants
on the funds available to the authority for the purpose of refunding
money to an insurer.
[(c) The authority shall make the determination under this
section as follows:
(1) the two members of the authority who are
representatives of insurance companies writing motor vehicle
insurance in this state shall recuse themselves; and
(2) the remaining five members of the authority shall
make the determination by a simple majority vote.
(d) Determinations made under this section shall be
performed in accordance with procedures set forth in rules adopted
by the authority. The question of eligibility for a refund is not a
contested case under Chapter 2001, Government Code.
(e) (c) [A] An insurer may make a request for a refund made
under this section [must be made] not later than four years after
the date the payment was made to the authority under Section
1006.153. The procedures in Subtitle A and Subtitle B, Title 2 of
the Tax Code shall apply to refund requests.
[(f) The authority may recover from an insurer requesting a
refund under this section any costs associated with a denied or
improperly requested refund.]
SECTION 5. Section 1006.153, Transportation Code, is
amended to read as follows:
Sec. 1006.153. FEE IMPOSED ON INSURER. (a) In this
section, "motor vehicle years of insurance" means the total number
of years or portions of years during which a motor vehicle is
covered by insurance.
(b) An insurer shall pay to the [authority] comptroller a
fee equal to $5 multiplied by the total number of motor vehicle
years of insurance for insurance policies delivered, issued for
delivery, or renewed by the insurer. The fee shall be paid not
later than:
(1) March 1 of each year for a policy delivered,
issued, or renewed from July 1 through December 31 of the previous
calendar year; and
(2) August 1 of each year for a policy delivered,
issued, or renewed from January 1 through June 30 of that year.
(b-1) A penalty shall be imposed on an insurer for the
delinquent payment of the fee required by this section or the
delinquent filing of any report of the fee required by rule. The
penalty shall be assessed in the manner prescribed for the
assessment of a penalty for a delinquent tax payment or filing of a
report under Section 111.061(a), Tax Code. Interest accrues in the
manner described by Section 111.060, Tax Code, on any fee paid after
the due date in Subsection (b).
(b-2) The [authority] comptroller may audit or contract for
the audit of fees paid by an insurer under this section.
(b-3) A determination under this section shall be made in
accordance with procedures the [authority] comptroller adopts by
rule. An insurer assessed a penalty or interest under Subsection
(b-1) may appeal the assessment to the comptroller. The procedures
in Subtitle A and Subtitle B, Title 2 of the Tax Code shall apply to
appeals. [authority. The authority shall make the final decision
on the appeal by a simple majority vote. The appeal of an
assessment of a penalty or interest is not a contested case under
Chapter 2001, Government Code.]
(c) The fee imposed by this section is in addition to any
other fee or tax imposed by law on an insurer.
(d) The [authority] comptroller shall notify the Texas
Department of Insurance of any insurer that fails to pay the fee
required by this section, and the Texas Department of Insurance may
for that reason revoke the insurer's certificate of authority.
(e) Out of each fee collected under Subsection (b), $1 shall
be deposited to the credit of the general revenue fund to be used
only for coordinated regulatory and law enforcement activities
intended to detect and prevent catalytic converter theft in this
state. The remainder of each fee collected under Subsection (b) and
any amount collected under Subsection (b-1) shall be allocated as
follows:
(1) 20 percent shall be appropriated to the authority
for the purposes of this chapter;
(2) 20 percent shall be deposited to the credit of the
general revenue fund, to be used only for criminal justice
purposes; and
(3) 60 percent shall be deposited to the credit of the
designated trauma facility and emergency medical services account
under Section 780.003, Health and Safety Code, to be used only for
the criminal justice purpose of funding designated trauma
facilities, county and regional emergency medical services, and
trauma care systems that provide trauma care and emergency medical
services to victims of collisions resulting from traffic offenses.
SECTION 6. Section 1006.055, Transportation Code, is
amended to read as follows:
Sec. 1006.155. ANNUAL FINANCIAL REPORTS [REPORT]. (a).
The authority shall prepare annually a complete and detailed
written report accounting for all funds the authority received and
disbursed by the authority during the preceding fiscal year. The
annual report must meet the reporting requirements applicable to
financial reporting provided by the General Appropriations Act.
(b) The comptroller shall annually prepare a report
accounting for all fees received under this chapter during the
preceding fiscal year.
SECTION 7. This Act takes effect January 1, 2025.