HBA-LJP S.B. 1690 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1690
By: Ellis, Rodney
Ways & Means
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

The comptroller of public accounts has encountered legal challenges
concerning the construction of certain insurance tax statutes.  Modifying
these statutes might prevent such legal challenges.  Senate Bill 1690
exempts certain insurance organizations, title insurance companies, and
title insurance agents from certain taxes. 

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. 

ANALYSIS

Senate Bill 1690 amends the Insurance Code to exempt an insurance
organization, other than a surplus lines insurer, that is authorized to do
insurance business in this state from paying a tax levied in proportion to
the gross premium receipts levied by this state or any county or
municipality.  The bill exempts title insurance companies and title
insurance agents from paying any additional premium tax in proportion to
their gross premium receipts levied by this state or any county or
municipality.  The bill prohibits this exemption from being construed to
limit the applicability of other taxes, fees, and assessments or to
prohibit the levy and collection of certain taxes. 

The bill deletes certain provisions relating to the levy of an occupational
tax on insurance organizations, title insurance companies, title insurance
agents, and insurance carriers or related companies.  The bill deletes the
prohibition on requiring domestic insurance companies from paying any
occupation or gross receipts taxes. 

EFFECTIVE DATE

September 1, 2001.