Office of House Bill AnalysisC.S.H.B. 3079
By: Smithee
Committee Report (Substituted)


Under current law, insurance companies receive tax rebates for examination
expenses incurred out of state, paid to another state, or paid in a
different taxable year.  The comptroller of public accounts recommends
changes to certain provisions of the Insurance Code relating to taxes,
fees, and assessments of insurance carriers to simplify and clarify these
provisions and codify state policies.  C.S.H.B. 3079 amends provisions
relating to taxes, fees, and assessments paid by insurance companies.   


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. 


C.S.H.B. 3079 amends the Insurance Code to provide that the amount of
assessments to be paid  by any insurance corporation or association and all
examination and evaluation or valuation fees to be paid by an insurance
carrier or a title insurance company in each taxable year to or for the use
of the State of Texas is required to be allowed as a credit on the amount
of premium taxes  to be paid except that a credit or offset is prohibited
from being allowed on:  

 _examination expenses incurred by representatives of the department that
are directly attributable to an examination of the books, records,
accounts, or principal offices of a domestic insurance company located
outside this state;  

 _examination expenses or fees paid to a state other than this state; or 

 _examination expenses paid in a different taxable year (Art. 1.16; Art.
4.10, Sec. 13; Art. 4.11, Sec. 8; and Art. 9.59, Sec. 7).   

The bill prohibits a rate of assessment of a maintenance tax on inland
marine or home warranty insurance coverage from exceeding one and
one-fourth percent of the correctly reported gross premiums (Art. 5.49).
The bill subjects county mutual insurance companies to an assessment for
the office of public insurance counsel (Art. 17.22).   

C.S.H.B. 3079 requires the agent of an unauthorized insurer to pay to the
comptroller of public accounts a premium receipts tax of 4.85 percent of
gross premiums charged for insurance on a subject resident, located, or to
be performed in this state (Sec. 101.251).   

The bill amends the Tax Code to require the comptroller rather than the
State Board of Insurance to keep detailed records of protest payments
relating to the taxes collected by the comptroller imposed by the Insurance
Code or other insurance laws of this state (Sec. 112.058).   

 The bill repeals provisions in the Insurance Code regarding a reciprocal
or interinsurance exchange and the tax options of a reciprocal exchange
(SECTION 9).   


September 1, 2001.  


C.S.H.B. 3079 differs from the original by requiring the Texas Department
of Insurance rather than the State Board of Insurance to make assessments
(Art. 1.16).  The substitute repeals provisions relating to a reciprocal or
interinsurance exchange (SECTION 9).  The substitute changes the effective
date from January 1, 2002, to September 1, 2001 (SECTION 10).