86R4735 PMO-F
	By: Creighton	S.B. No. 742

	A BILL TO BE ENTITLED
	AN ACT
	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)  "Nationwide health premium or revenue amount"
	means the amount of gross premium and revenue aggregated on a
	nationwide basis attributable to lines of business identified by
	the commissioner under this section and taxed under this chapter.
	(3)  "Provider fee amount" means the amount of health
	insurer provider fees that an insurer or health maintenance
	organization pays under Section 9010, Affordable Care Act, and may
	recoup 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 in an amount equal to the product of the insurer's or
	health maintenance organization's provider fee amount multiplied
	by the percentage of the insurer's or health maintenance
	organization's nationwide health premium or revenue amount that the
	insurer or health maintenance organization allocates to this state
	multiplied by the rate of tax imposed under this chapter.
	(c)  The commissioner by rule shall:
	(1)  establish formulas to calculate the amount of the
	credit authorized by Subsection (b), including a formula to
	calculate:
	(A)  an insurer's or health maintenance
	organization's provider fee amount; and
	(B)  the provider fee 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; and
	(2)  identify lines of business included in the
	calculation of the nationwide health premium or revenue amount.
	(d)  The lines of business identified by the commissioner
	under Subsection (c) may not include the business of life
	insurance.
	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)  "Nationwide health premium amount" means the
	amount of gross premium aggregated on a nationwide basis
	attributable to lines of business identified by the commissioner
	under this section and taxed under this chapter.
	(3)  "Provider fee amount" means the amount of health
	insurer provider fees that an insurer pays under Section 9010,
	Affordable Care Act, and may recoup 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 in an amount equal to the
	product of the insurer's provider fee amount multiplied by the
	percentage of the insurer's nationwide health premium amount that
	the insurer allocates to this state multiplied by the rate of tax
	imposed under this chapter.
	(c)  The commissioner by rule shall:
	(1)  establish formulas to calculate the amount of the
	credit authorized by Subsection (b), including a formula to
	calculate:
	(A)  an insurer's provider fee amount; and
	(B)  the provider fee amount attributable to an
	insurer if the fees are imposed on a controlled group, as defined by
	Section 9010(c)(3), Affordable Care Act; and
	(2)  identify lines of business included in the
	calculation of the nationwide health premium amount.
	(d)  The lines of business identified by the commissioner
	under Subsection (c) may not include the business of life
	insurance.
	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 September 1, 2019.