Relating to the collection of fees and refunds of under Chapter 1006 of the Transportation Code by the Comptroller.

89(R) HB 4401 - House Committee Report version - Bill Text

By: Vo

H.B. No. 4401

A BILL TO BE ENTITLED

AN ACT

relating to the collection of fees and refunds of under Chapter 1006

of the Transportation Code by the Comptroller.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The title to Subchapter D, Chapter 1006,

Transportation Code, is amended to read as follows:

SUBCHAPTER D. FINANCIAL PROVISIONS
AND ADMINISTRATION OF FEES

SECTION 2. Chapter 1006, Subchapter D, is amended by adding

new Sections 1006.156, 1006.157, 1006.158, and 1006.159 to read as

follows:

Sec. 1006.156. POWERS AND DUTIES OF COMPTROLLER.

(a)

Except as otherwise provided by this chapter, the

comptroller shall administer and enforce the provisions of this

chapter for fees collected from insurers that relate to the

administration, collection, and reporting of certain fees and

assessments imposed under this Chapter.

(b) The comptroller may:

(
1)

adopt rules to implement the administration,

collection, reporting, and enforcement responsibilities assigned

to the comptroller under this code or another insurance law of this

state; and

(2)

prescribe appropriate report forms, establish or

alter tax report due dates not otherwise specifically prescribed by

this Chapter or other law of this state, and otherwise adapt the

functions transferred to the comptroller to increase efficiency and

cost-effectiveness.

(c)

A rule adopted by the comptroller that relates to the

administration, collection, reporting, or enforcement of fees

imposed under this chapter prevails over a conflicting rule,

policy, or procedure established by the authority.

(d)

Subtitles A and B, Title 2, Tax Code, apply to the

administration, collection, and enforcement by the comptroller of

fees and assessments under this chapter. Except as otherwise

provided by this chapter, the powers granted to the comptroller

under those provisions of the Tax Code do not limit and are

exclusive of the powers granted to the comptroller in relation to

fees and assessments under this chapter.

Sec.

1006.157.

REIMBURSEMENT. (a) The authority shall

reimburse the appropriate portion of the authority's funds for the

amount of expenses incurred by the comptroller in administering

fees imposed under this chapter.

(b)

The comptroller shall certify to the authority the total

amount of expenses estimated to be required to perform the

comptroller's duties under this this chapter for each fiscal

biennium. The comptroller shall provide copies of the

certification to the budget division of the governor's office and

to the Legislative Budget Board.

(c)

The amount certified by the comptroller shall be

transferred from the authority's operating account to the

appropriate portion of the general revenue fund
.

Sec.

1006.158.

COOPERATION BETWEEN DEPARTMENT AND

COMPTROLLER. The authority and the comptroller shall cooperate

fully in performing their respective duties under this chapter.

Sec.

1006.159.

FILING DATE OF REPORT OR PAYMENT DELIVERED

BY POSTAL SERVICE. Except as otherwise specifically provided, for

a report, including a fee report, or payment that is required to be

filed or made in the offices of the comptroller and that is

delivered by the United States Postal Service to the offices of the

comptroller after the date on which the report or payment is

required to be filed or made, the date of filing or payment is the

date of:

(1)

the postal service postmark stamped on the cover

in which the report or payment is mailed; or

(2)

any other evidence of mailing authorized by the

postal service reflected on the cover in which the report or payment

is mailed.

SECTION 3. Section 1006.152, Transportation Code, is

amended to read as follows:

Sec. 1006.152. REFUNDS. (a) The [
authority
]
comptroller

shall
[
may
] make determinations regarding the sufficiency of

payments made by an insurer of fees collected under Section

1006.153.

(b) Pursuant to a determination made under Subsection (a),

the [
authority
]
comptroller
may:

(1) notify [
the comptroller
]
an insurer
that payments

made by an insurer are sufficient
or have been overpaid
; and

(2) [
request
] the comptroller
may [
to
] draw warrants

on the funds available to the authority for the purpose of refunding

money to an insurer.

[
(c)

The authority shall make the determination under this

section as follows:

(1)

the two members of the authority who are

representatives of insurance companies writing motor vehicle

insurance in this state shall recuse themselves; and

(2)

the remaining five members of the authority shall

make the determination by a simple majority vote.

(d)

Determinations made under this section shall be

performed in accordance with procedures set forth in rules adopted

by the authority. The question of eligibility for a refund is not a

contested case under Chapter 2001, Government Code.

(e)

(c)
[
A
]
An insurer may make a
request for a refund made

under this section [
must be made
] not later than four years after

the date the payment was made to the authority under Section

1006.153.
The procedures in Subtitle A and Subtitle B, Title 2 of

the Tax Code shall apply to refund requests.

[
(f)

The authority may recover from an insurer requesting a

refund under this section any costs associated with a denied or

improperly requested refund.
]

SECTION 5. Section 1006.153, Transportation Code, is

amended to read as follows:

Sec. 1006.153. FEE IMPOSED ON INSURER. (a) In this

section, "motor vehicle years of insurance" means the total number

of years or portions of years during which a motor vehicle is

covered by insurance.

(b) An insurer shall pay to the [
authority
]
comptroller
a

fee equal to $5 multiplied by the total number of motor vehicle

years of insurance for insurance policies delivered, issued for

delivery, or renewed by the insurer. The fee shall be paid not

later than:

(1) March 1 of each year for a policy delivered,

issued, or renewed from July 1 through December 31 of the previous

calendar year; and

(2) August 1 of each year for a policy delivered,

issued, or renewed from January 1 through June 30 of that year.

(b-1) A penalty shall be imposed on an insurer for the

delinquent payment of the fee required by this section or the

delinquent filing of any report of the fee required by rule. The

penalty shall be assessed in the manner prescribed for the

assessment of a penalty for a delinquent tax payment or filing of a

report under Section 111.061(a), Tax Code. Interest accrues in the

manner described by Section 111.060, Tax Code, on any fee paid after

the due date in Subsection (b).

(b-2) The [
authority
]
comptroller
may audit or contract for

the audit of fees paid by an insurer under this section.

(b-3) A determination under this section shall be made in

accordance with procedures the [
authority
]
comptroller
adopts by

rule. An insurer assessed a penalty or interest under Subsection

(b-1) may appeal the assessment to the
comptroller. The procedures

in Subtitle A and Subtitle B, Title 2 of the Tax Code shall apply to

appeals.
[
authority. The authority shall make the final decision

on the appeal by a simple majority vote. The appeal of an

assessment of a penalty or interest is not a contested case under

Chapter 2001, Government Code
.]

(c) The fee imposed by this section is in addition to any

other fee or tax imposed by law on an insurer.

(d) The [
authority
]
comptroller
shall notify the Texas

Department of Insurance of any insurer that fails to pay the fee

required by this section, and the Texas Department of Insurance may

for that reason revoke the insurer's certificate of authority.

(e) Out of each fee collected under Subsection (b), $1 shall

be deposited to the credit of the general revenue fund to be used

only for coordinated regulatory and law enforcement activities

intended to detect and prevent catalytic converter theft in this

state. The remainder of each fee collected under Subsection (b) and

any amount collected under Subsection (b-1) shall be allocated as

follows:

(1) 20 percent shall be appropriated to the authority

for the purposes of this chapter;

(2) 20 percent shall be deposited to the credit of the

general revenue fund, to be used only for criminal justice

purposes; and

(3) 60 percent shall be deposited to the credit of the

designated trauma facility and emergency medical services account

under Section 780.003, Health and Safety Code, to be used only for

the criminal justice purpose of funding designated trauma

facilities, county and regional emergency medical services, and

trauma care systems that provide trauma care and emergency medical

services to victims of collisions resulting from traffic offenses.

SECTION 6. Section 1006.055, Transportation Code, is

amended to read as follows:

Sec. 1006.155. ANNUAL FINANCIAL
REPORTS
[
REPORT
].
(a).

The authority shall prepare annually a complete and detailed

written report accounting for all funds
the authority
received and

disbursed by the authority during the preceding fiscal year. The

annual report must meet the reporting requirements applicable to

financial reporting provided by the General Appropriations Act.

(b)

The comptroller shall annually prepare a report

accounting for all fees received under this chapter during the

preceding fiscal year.

SECTION 7. This Act takes effect January 1, 2025.