Bill Text: TX HB2036 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to premium tax credits related to certain fees paid under the Patient Protection and Affordable Care Act.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2017-05-03 - Committee report sent to Calendars [HB2036 Detail]
Download: Texas-2017-HB2036-Comm_Sub.html
| 85R23275 PMO-F | |||
| By: King of Parker, Flynn, Parker | H.B. No. 2036 | ||
| Substitute the following for H.B. No. 2036: | |||
| By: Phillips | C.S.H.B. No. 2036 | ||
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| relating to premium 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, other than the | ||
| business of life insurance, identified by the commissioner under | ||
| Subsection (c) on which tax is imposed under this chapter. | ||
| (3) "Provider fee amount" means the amount of health | ||
| insurer provider fees, which may be recouped through adjustments to | ||
| the insurer's premium rate or the health maintenance organization's | ||
| formula or method for computing its schedule of charges, paid by an | ||
| insurer or health maintenance organization under Section 9010, | ||
| Affordable Care Act. | ||
| (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 the 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 the lines of business, other than the | ||
| business of life insurance, included in the calculation of the | ||
| nationwide health premium or revenue amount. | ||
| SECTION 2. The changes in law made by this Act apply only to | ||
| a tax liability accruing on or after January 1, 2020. | ||
| SECTION 3. The comptroller of public accounts and | ||
| commissioner of insurance shall adopt rules necessary to implement | ||
| the changes in law made by this Act. | ||
| SECTION 4. This Act takes effect September 1, 2017. | ||
