HBA-ATS H.B. 1344 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1344 By: Farrar Insurance 3/22/1999 Introduced BACKGROUND AND PURPOSE Under Article 4.11, Insurance Code, the statutory definition of "gross premiums" does not include the gross premiums receipts paid on group health, accident, and life policies in which the group covered by the policy consists of a single nonprofit trust established to provide coverage primarily for municipal or county employees of this state. Because the statute refers solely to municipal or county employees, an ambiguity may exist about whether the exception applies to employees of other local governmental entities, such as a hospital authority. H.B. 1344 redefines the statutory definition of "gross premiums" to include employees of a political subdivision among the municipal and county employees whose premiums paid for insurance coverage provided by a nonprofit trust are prohibited from being included as gross premiums. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2(c), Article 4.11, Insurance Code, to redefine "gross premiums" by including employees of a political subdivision among the municipal and county employees whose premiums paid for insurance coverage provided by a nonprofit trust are prohibited from being included as gross premiums. SECTION 2. Effective date: January 1, 2000. Makes application of this Act prospective. SECTION 3. Emergency clause.