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.