89R17297 TYPED     By: Menéndez S.B. No. 2998       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.