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A BILL TO BE ENTITLED
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AN ACT
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relating to the applicability of premium and maintenance taxes to |
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the Texas Windstorm Insurance Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 221.001(b), Insurance Code, is amended |
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to read as follows: |
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(b) This chapter does not apply to: |
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(1) a fraternal benefit society, including a fraternal |
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benefit society operating under Chapter 885; |
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(2) a group hospital service corporation operating |
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under Chapter 842; |
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(3) a stipulated premium company operating under |
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Chapter 884; |
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(4) a mutual assessment association, company, or |
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corporation regulated under Chapter 887; |
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(5) a purely cooperative or mutual fire insurance |
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company carried on by its members solely for the protection of their |
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own property and not for profit, except as provided by Section |
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221.002(b)(13); [or] |
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(6) a farm mutual insurance company operating under |
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Chapter 911, unless the company is acting as a fronting insurer; or |
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(7) the Texas Windstorm Insurance Association. |
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SECTION 2. Section 252.005, Insurance Code, is amended to |
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read as follows: |
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Sec. 252.005. EXCEPTION. This chapter does not apply to: |
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(1) a farm mutual insurance company operating under |
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Chapter 911, unless the company is acting as a fronting insurer as |
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defined by Section 221.001(c); [or] |
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(2) a mutual insurance company engaged in business |
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under Chapter 12, Title 78, Revised Statutes, before that chapter's |
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repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st |
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Called Session, 1929, as amended by Section 1, Chapter 60, General |
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Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that |
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retains the rights and privileges under the repealed law to the |
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extent provided by those sections; or |
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(3) the Texas Windstorm Insurance Association. |
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SECTION 3. The changes in law made by this Act do not affect |
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tax liability accruing before the 2023 calendar year. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for enforcement of the liability for those taxes. |
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SECTION 4. This Act takes effect September 1, 2023. |