1-1     By:  Lewis of Tarrant (Senate Sponsor - Lucio)        H.B. No. 1708

 1-2           (In the Senate - Received from the House May 9, 1997;

 1-3     May 12, 1997, read first time and referred to Committee on Economic

 1-4     Development; May 18, 1997, reported favorably by the following

 1-5     vote:  Yeas 10, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to assignment of certain premium tax credits.

 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-10           SECTION 1.  Section 21, Article 21.28-C, Insurance Code, is

1-11     amended to read as follows:

1-12           Sec. 21.  RECOGNITION OF ASSESSMENTS IN PREMIUM TAX OFFSET;

1-13     ASSIGNMENT OF CREDIT.  (a)  One hundred percent of any assessment

1-14     paid by an insurer under this Act shall be allowed to that insurer

1-15     as a credit against its premium tax under Article 4.10 of this

1-16     code.  The tax credit referred to in this section shall be allowed

1-17     at a rate of 10 percent per year for 10 successive years following

1-18     the date of assessment and, at the option of the insurer, may be

1-19     taken over an additional number of years.  The balance of any tax

1-20     credit not claimed in a particular year may be reflected in the

1-21     books and records of the insurer as an admitted asset of the

1-22     insurer for all purposes, including exhibition in annual statements

1-23     under Article 6.12 of this code.

1-24           (b)  Available credit against premium tax allowed under

1-25     Subsection (a) of this section may be transferred or assigned among

1-26     or between insurers if:

1-27                 (1)  a merger, acquisition, or total assumption of

1-28     reinsurance among or between the insurers occurs; or

1-29                 (2)  the commissioner by order approves the transfer or

1-30     assignment.

1-31           SECTION 2.  The change in law made by this Act applies to a

1-32     premium tax credit that was allowed to the insurer before, on, or

1-33     after the effective date of this Act and that is available to the

1-34     insurer on or after the effective date of this Act.

1-35           SECTION 3.  The importance of this legislation and the

1-36     crowded condition of the calendars in both houses create an

1-37     emergency and an imperative public necessity that the

1-38     constitutional rule requiring bills to be read on three several

1-39     days in each house be suspended, and this rule is hereby suspended,

1-40     and that this Act take effect and be in force from and after its

1-41     passage, and it is so enacted.

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