HBA-TBM C.S.H.B. 1495 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1495
By: Farabee
Insurance
4/1/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, in the event of a merger, acquisition or total
assumption of reinsurance among or between insurers, insurance premium tax
credits for guaranty fund assessments may not be transferred or assigned
among or between insurers.  C.S.H.B. 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

C.S.H.B. 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1495 differs from the original by setting forth provisions
regarding reporting a transfer or assignment of premium tax credit to the
comptroller.