1-1                                   AN ACT

 1-2     relating to assignment of certain premium tax credits.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 21, Article 21.28-C, Insurance Code, is

 1-5     amended to read as follows:

 1-6           Sec. 21.  RECOGNITION OF ASSESSMENTS IN PREMIUM TAX OFFSET;

 1-7     ASSIGNMENT OF CREDIT.  (a)  One hundred percent of any assessment

 1-8     paid by an insurer under this Act shall be allowed to that insurer

 1-9     as a credit against its premium tax under Article 4.10 of this

1-10     code.  The tax credit referred to in this section shall be allowed

1-11     at a rate of 10 percent per year for 10 successive years following

1-12     the date of assessment and, at the option of the insurer, may be

1-13     taken over an additional number of years.  The balance of any tax

1-14     credit not claimed in a particular year may be reflected in the

1-15     books and records of the insurer as an admitted asset of the

1-16     insurer for all purposes, including exhibition in annual statements

1-17     under Article 6.12 of this code.

1-18           (b)  Available credit against premium tax allowed under

1-19     Subsection (a) of this section may be transferred or assigned among

1-20     or between insurers if:

1-21                 (1)  a merger, acquisition, or total assumption of

1-22     reinsurance among or between the insurers occurs; or

1-23                 (2)  the commissioner by order approves the transfer or

1-24     assignment.

 2-1           SECTION 2.  The change in law made by this Act applies to a

 2-2     premium tax credit that was allowed to the insurer before, on, or

 2-3     after the effective date of this Act and that is available to the

 2-4     insurer on or after the effective date of this Act.

 2-5           SECTION 3.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended,

2-10     and that this Act take effect and be in force from and after its

2-11     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1708 was passed by the House on May

         8, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1708 was passed by the Senate on May

         22, 1997, by the following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor