By:  Lucio                                   S.B. No. 1524

         97S0751/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the assignment of property and casualty insurance

 1-2     guaranty fund assessment 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     One hundred percent of any assessment paid by an insurer under this

 1-8     Act shall be allowed to that insurer as a credit against its

 1-9     premium tax under Article 4.10 of this code.  The tax credit

1-10     referred to in this section shall be allowed at a rate of 10

1-11     percent per year for 10 successive years following the date of

1-12     assessment and, at the option of the insurer, may be taken over an

1-13     additional number of years.  The balance of any tax credit not

1-14     claimed in a particular year may be reflected in the books and

1-15     records of the insurer as an admitted asset of the insurer for all

1-16     purposes, including exhibition in annual statements under Article

1-17     6.12 of this code.  In the event of a merger, acquisition, total

1-18     assumption reinsurance, or an order of the commissioner approving

1-19     such assignment or transfer, any available credit against premium

1-20     tax may be transferred and assigned among or between the affected

1-21     insurers.

1-22           SECTION 2.  This Act takes effect September 1, 1997.

1-23           SECTION 3.  The importance of this legislation and the

 2-1     crowded condition of the calendars in both houses create an

 2-2     emergency and an imperative public necessity that the

 2-3     constitutional rule requiring bills to be read on three several

 2-4     days in each house be suspended, and this rule is hereby suspended.