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