CHAPTER 201. COLLECTION OF REVENUE AND ADMINISTRATION OF FUNDS

INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 201. COLLECTION OF REVENUE AND ADMINISTRATION OF FUNDS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 201.001. TEXAS DEPARTMENT OF INSURANCE OPERATING ACCOUNT.

(a) The Texas Department of Insurance operating account is an

account in the general revenue fund. The account includes the

following:

(1) taxes and fees received by the commissioner or comptroller

that are required by this code to be deposited to the credit of

the account; and

(2) money or credits received by the department or commissioner

from sales, reimbursements, and fees authorized by law other than

this code, including money or credits received from:

(A) charges for providing copies of public information under

Chapter 552, Government Code;

(B) the disposition of surplus or salvage property under

Subchapters C and D, Chapter 2175, Government Code;

(C) the sale of publications and other printed material under

Section 2052.301, Government Code;

(D) miscellaneous transactions and sources under Section 403.011

or 403.012, Government Code;

(E) charges for postage spent to serve legal process under

Section 17.025, Civil Practice and Remedies Code;

(F) the comptroller involving warrants for which payment is

barred under Chapter 404, Government Code;

(G) sales or reimbursements authorized by the General

Appropriations Act; and

(H) the sale of property purchased with money from the account

or a predecessor fund or account.

(b) The commissioner shall administer money in the account and

may spend money from the account in accordance with state law,

rules adopted by the commissioner, and the General Appropriations

Act.

(c) Money deposited to the credit of the account may be used for

any purpose for which money in the account is authorized to be

used by law.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.002. ACCOUNTING PROCEDURE. The commissioner shall

maintain a procedure to account for the receipt, disbursement,

and allocation of money deposited in the Texas Department of

Insurance operating account, including recordkeeping procedures

adequate for:

(1) the commissioner or comptroller, as applicable, to adjust

the tax assessments and fee schedules as authorized by this code;

and

(2) the state auditor to determine the source of all receipts

and expenditures.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.003. REFUNDS. If the department determines that a

person, firm, or corporation through mistake of law or fact

erroneously paid or overpaid a fee or other amount of money,

including any interest or penalty, administered or collected by

the department, the department may refund the erroneous payment

or overpayment by warrant on the state treasury from any funds

appropriated for that purpose.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.004. ELECTRONIC TRANSFERS. (a) The commissioner shall

adopt rules for the electronic transfer of any fee, guarantee

fund, or other money owed to or held for the benefit of this

state that the department has the responsibility to administer

under this code or another insurance law of this state.

(b) The commissioner shall require the electronic transfer of

any amount held or owed that exceeds $500,000.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.005. TRANSFER OF SECURITIES. (a) A transfer by the

department of any security that is held in any way by the

department is not valid unless the transfer is countersigned by

the comptroller.

(b) The comptroller shall:

(1) countersign any security transfer presented by the

department;

(2) keep a record of all transfers that includes:

(A) the name of the transferee, unless the security is

transferred in blank; and

(B) a description of the security;

(3) when countersigning a security transfer, advise the company

concerned by mail of the details of the transaction; and

(4) state, in the comptroller's annual report to the

legislature, the countersigned transfers and the amount of the

transfers.

(c) To verify the correctness of records:

(1) the department is entitled to free access to the

comptroller's records kept under Subsection (b); and

(2) the comptroller is entitled to free access to the books and

other department documents relating to securities held by the

department.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

SUBCHAPTER B. ADMINISTRATION

Sec. 201.051. POWERS AND DUTIES OF COMPTROLLER. (a) Except as

otherwise provided by this code or another insurance law of this

state, the comptroller shall administer and enforce the

provisions of this code and other insurance laws of this state

that relate to the administration, collection, and reporting of

taxes and certain fees and assessments imposed under this code or

another insurance law of this state, as specifically provided by

this code.

(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

code or another insurance law of this state, and otherwise adapt

the functions transferred to the comptroller under Chapter 685,

Acts of the 73rd Legislature, Regular Session, 1993, to increase

efficiency and cost-effectiveness.

(c) A rule adopted by the comptroller that relates to the

administration, collection, reporting, or enforcement of taxes

imposed under this code prevails over a conflicting rule, policy,

or procedure established by the department, the commissioner, or

otherwise.

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

administration, collection, and enforcement by the comptroller of

taxes and certain fees and assessments under this code or another

insurance law of this state. Except as otherwise provided by this

code, 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 department or the commissioner in relation

to other fees and assessments under this code.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.052. REIMBURSEMENT. (a) The department shall

reimburse the appropriate portion of the general revenue fund for

the amount of expenses incurred by the comptroller in

administering taxes imposed under this code or another insurance

law of this state.

(b) The comptroller shall certify to the commissioner the total

amount of expenses estimated to be required to perform the

comptroller's duties under this code or another insurance law of

this state 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 Texas Department of Insurance operating account to the

appropriate portion of the general revenue fund. It is the

legislature's intent that money in the Texas Department of

Insurance operating account to be transferred under this

subsection should reflect the revenues from maintenance taxes

paid by insurers under this code or another insurance law of this

state.

(d) In setting maintenance taxes for each fiscal year, the

commissioner shall ensure that the amount of taxes imposed is

sufficient to fully reimburse the appropriate portion of the

general revenue fund for the amount of expenses incurred by the

comptroller in administering taxes imposed under this code or

another insurance law of this state.

(e) If the amount of maintenance taxes collected is not

sufficient to reimburse the appropriate portion of the general

revenue fund for the amount of expenses incurred by the

comptroller, other money in the Texas Department of Insurance

operating account shall be used to reimburse the appropriate

portion of the general revenue fund.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.053. COOPERATION BETWEEN DEPARTMENT AND COMPTROLLER.

The commissioner and the comptroller shall cooperate fully in

performing their respective duties under this code or another

insurance law of this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.054. INFORMATION SHARING; FEDERAL IDENTIFICATION

NUMBERS. (a) The department shall comply with each reasonable

request from the comptroller relating to the sharing of

information gathered or compiled in connection with functions the

comptroller performs under this code or another insurance law of

this state.

(b) The department shall maintain a record of the federal

identification number of each entity subject to regulation under

this code or another insurance law of this state and shall

include the appropriate number in any communication to or

information shared with the comptroller relating to that entity.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 201.055. FILING DATE OF REPORT OR PAYMENT DELIVERED BY

POSTAL SERVICE. Except as otherwise specifically provided, for a

report, including a tax 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.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.