AN ACT
1-1 relating to the premium tax on certain life, health, and accident
1-2 insurance policies.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (c), Section 2, Article 4.11,
1-5 Insurance Code, is amended to read as follows:
1-6 (c) "Gross premiums" are the total gross amount of all
1-7 premiums, membership fees, assessments, dues, and any other
1-8 considerations for such insurance received during the taxable year
1-9 on each and every kind of such insurance policy or contract
1-10 covering persons located in the State of Texas and arising from the
1-11 types of insurance specified in Section 1 of this article, but
1-12 deducting returned premiums, any dividends applied to purchase
1-13 paid-up additions to insurance or to shorten the endowment or
1-14 premium payment period, and excluding those premiums received from
1-15 insurance carriers for reinsurance and there shall be no deduction
1-16 for premiums paid for reinsurance. For purposes of this article, a
1-17 stop-loss or excess loss insurance policy issued to a health
1-18 maintenance organization, as defined under the Texas Health
1-19 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
1-20 Code), shall be considered reinsurance. Such gross premiums shall
1-21 not include premiums received from the Treasury of the State of
1-22 Texas or from the Treasury of the United States for insurance
1-23 contracted for by the state or federal government for the purpose
1-24 of providing welfare benefits to designated welfare recipients or
2-1 for insurance contracted for by the state or federal government in
2-2 accordance with or in furtherance of the provisions of Title 2,
2-3 Human Resources Code, or the Federal Social Security Act. The
2-4 gross premiums receipts so reported shall not include the amount of
2-5 premiums paid on group health, accident, and life policies in which
2-6 the group covered by the policy consists of a single nonprofit
2-7 trust established to provide coverage primarily for [municipal or
2-8 county] employees of:
2-9 (1) a municipality, county, or hospital district in
2-10 this state; or
2-11 (2) a county or municipal hospital, without regard to
2-12 whether the employees are employees of the county or municipality
2-13 or another entity operating the hospital on behalf of the county or
2-14 municipality.
2-15 SECTION 2. (a) This Act takes effect January 1, 2000.
2-16 (b) The change in law made by this Act applies only to a
2-17 premium tax imposed under Article 4.11, Insurance Code, as amended
2-18 by this Act, beginning January 1, 2000. A tax imposed under that
2-19 article before January 1, 2000, is governed by the law that existed
2-20 in the tax year in which that tax was imposed, and that law is
2-21 continued in effect for that purpose.
2-22 SECTION 3. The importance of this legislation and the
2-23 crowded condition of the calendars in both houses create an
2-24 emergency and an imperative public necessity that the
2-25 constitutional rule requiring bills to be read on three several
2-26 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 530 passed the Senate on
April 15, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 530 passed the House on
May 25, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor