HBA-TBM H.B. 1495 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1495 By: Farabee Insurance 7/3/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, state law provided that in the event of a merger, acquisition or total assumption of reinsurance among or between insurers, insurance premium tax credits for guaranty fund assessments could not be transferred or assigned among or between insurers. House Bill 1495 allows members of the Life, Accident, Health and Hospital Service Industry Guaranty Association to take a premium tax credit for assessments paid to the association. 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 House Bill 1495 amends the Insurance Code to set forth provisions relating to available credit that may be used to offset premium tax. A member insurer may transfer or assign credit if a merger, acquisition or total assumption of reinsurance among or between the insurers occurs or the commissioner of insurance by order approves the transfer or assignment. Not later than November 1 or the 60th day after the date of an assignment or transfer, whichever is later, each member insurer is required to report on a form prescribed by the comptroller the assignment or transfer to the comptroller. The bill requires a member insurer to provide with the report any documents from the commissioner that show approval of the assignment or transfer. EFFECTIVE DATE September 1, 2001.