By Smithee H.B. No. 3027 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to recoupment of certain professional liability discounts 1-3 in lieu of reimbursement under Chapter 110, Civil Practice and 1-4 Remedies Code; and declaring an emergency. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Article 5.15-1, Insurance Code, is amended by 1-7 adding Section 10 to read as follows: 1-8 Sec. 10. PREMIUM DISCOUNT RECOUPMENT. (a) Eligibility. 1-9 Effective January 1, 1999, each insurer that has filed and issued 1-10 premium discounts to health care professionals pursuant to Article 1-11 5.15-4 of this code shall be eligible to elect to receive a premium 1-12 tax credit in lieu of indemnification for claims filed with the 1-13 Attorney General under Chapter 110, Civil Practice and Remedies 1-14 Code. 1-15 (b) Amount of Tax Credit. An eligible company may elect to 1-16 recoup premium discounts issued to eligible health care 1-17 professionals in lieu of indemnification from the State of Texas 1-18 for claims filed under Chapter 110, Civil Practice and Remedies 1-19 Code. Such election shall be made as a credit that is part of the 1-20 annual premium tax return filed on or before March 1, 1999. An 1-21 insurer may credit the total amount of any discounts issued less 1-22 any reimbursements received prior to January 1, 1999, by the 1-23 insurer for claims filed under Chapter 110, Civil Practice and 1-24 Remedies Code, against its premium tax under Article 4.10 of this 2-1 code. The tax credit herein authorized shall be allowed at a rate 2-2 not to exceed 20 percent of the credit per year for five or more 2-3 successive years following the initial election made in March 1999. 2-4 The balance of payments due the insurer and not claimed as a tax 2-5 credit may be reflected in the books and records of the insurer as 2-6 an admitted asset for all purposes, including exhibition in annual 2-7 statements pursuant to Article 6.12 of this code. The tax credit 2-8 allowed in any one year may not exceed the premium tax due in that 2-9 year. 2-10 (c) An eligible insurer that elects to receive tax credits 2-11 shall not be eligible to file claims for indemnity under Chapter 2-12 110, Civil Practice and Remedies Code after January 1, 1999. Any 2-13 claims of an eligible insurer filed with the Attorney General prior 2-14 to January 1, 1999, that have not been reimbursed shall also be 2-15 deemed to have been waived by the insurer by making its election. 2-16 An insurer that elects not to recoup its discount through tax 2-17 credit will continue to remain eligible for indemnification of 2-18 eligible claims under Chapter 110, Civil Practice and Remedies 2-19 Code. 2-20 (d) The elections provided herein shall not affect the right 2-21 of a self-insurance trust created under Article 21.49-4 of this 2-22 code from seeking indemnification for eligible claims. 2-23 (e) The provisions of Article 21.46 of this code shall not 2-24 apply to the credits authorized herein. 2-25 SECTION 2. This Act takes effect September 1, 1997. 2-26 SECTION 3. The importance of this legislation and the 2-27 crowded condition of the calendars in both houses create an 3-1 emergency and an imperative public necessity that the 3-2 constitutional rule requiring bills to be read on three several 3-3 days in each house be suspended, and this rule is hereby suspended, 3-4 and that this Act take effect and be in force from and after its 3-5 passage, and it is so enacted.