Bill Text: TX SB1779 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to premium and maintenance tax credits related to certain fees paid under the Patient Protection and Affordable Care Act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-20 - Left pending in committee [SB1779 Detail]
Download: Texas-2017-SB1779-Introduced.html
85R6541 PMO-F | ||
By: Creighton | S.B. No. 1779 |
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relating to premium and maintenance tax credits related to certain | ||
fees paid under the Patient Protection and Affordable Care Act. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 222, Insurance Code, is amended by | ||
adding Section 222.0071 to read as follows: | ||
Sec. 222.0071. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) | ||
In this section: | ||
(1) "Affordable Care Act" means the Patient Protection | ||
and Affordable Care Act (Pub. L. No. 111-148), as amended by the | ||
Health Care and Education Reconciliation Act of 2010 (Pub. L. | ||
No. 111-152). | ||
(2) "Recoupment amount" means the amount of health | ||
insurer provider fees under Section 9010, Affordable Care Act, that | ||
the insurer or health maintenance organization recoups, including | ||
amounts recouped through adjustments to the insurer's premium rate | ||
or the health maintenance organization's formula or method for | ||
computing its schedule of charges, as applicable. | ||
(b) An insurer or health maintenance organization is | ||
entitled to a credit on the amount of tax due under this chapter in a | ||
taxable year equal to the amount of the premium tax imposed in that | ||
year on the insurer's or organization's recoupment amount for that | ||
year. | ||
(c) The commissioner by rule shall establish formulas to | ||
calculate the amount of the credit authorized by Subsection (b), | ||
including a formula to calculate: | ||
(1) an insurer's or health maintenance organization's | ||
recoupment amount; and | ||
(2) the recoupment amount attributable to an insurer | ||
or health maintenance organization if the fees are imposed on a | ||
controlled group, as defined by Section 9010(c)(3), Affordable Care | ||
Act. | ||
SECTION 2. Chapter 257, Insurance Code, is amended by | ||
adding Section 257.005 to read as follows: | ||
Sec. 257.005. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) In | ||
this section: | ||
(1) "Affordable Care Act" means the Patient Protection | ||
and Affordable Care Act (Pub. L. No. 111-148), as amended by the | ||
Health Care and Education Reconciliation Act of 2010 (Pub. L. | ||
No. 111-152). | ||
(2) "Recoupment amount" means the amount of health | ||
insurer provider fees under Section 9010, Affordable Care Act, that | ||
the insurer recoups, including amounts recouped through | ||
adjustments to the insurer's premium rate. | ||
(b) An insurer is entitled to a credit on the amount of tax | ||
due under this chapter in a taxable year equal to the amount of the | ||
premium tax imposed in that year on the insurer's recoupment amount | ||
for that year. | ||
(c) The commissioner by rule shall establish formulas to | ||
calculate the amount of the credit authorized by Subsection (b), | ||
including a formula to calculate: | ||
(1) an insurer's recoupment amount; and | ||
(2) the recoupment amount attributable to an insurer | ||
if the fees are imposed on a controlled group, as defined by Section | ||
9010(c)(3), Affordable Care Act. | ||
SECTION 3. The changes in law made by this Act apply only to | ||
a tax liability accruing on or after January 1, 2014. | ||
SECTION 4. The comptroller of public accounts and | ||
commissioner of insurance shall adopt rules necessary to implement | ||
the changes in law made by this Act. | ||
SECTION 5. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2017. |