HBA-ATS S.B. 530 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 530 By: Lindsay Insurance 5/8/1999 Engrossed 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. S.B. 530 redefines the statutory definition of "gross premiums" to include employees of a hospital district and a county or municipal hospital 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 hospital district and a county or municipal hospital 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.