By: Cain S.B. No. 1648 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to recoupment of certain professional liability discounts 1-2 in lieu of reimbursement under Chapter 110, Civil Practices and 1-3 Remedies Code; and declaring an emergency. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Article 5.15-1, Insurance Code, is amended by 1-6 adding Sec. 10 to read as follows: 1-7 Sec. 10. PREMIUM DISCOUNT RECOUPMENT. (a) Eligibility. 1-8 Effective January 1, 1999, each insurer that has filed and issued 1-9 premium discounts to health care professionals pursuant to Article 1-10 5.15-4 of this code shall be eligible to elect to receive a premium 1-11 tax credit in lieu of indemnification for claims filed with the 1-12 Attorney General under Chapter 110, Civil Practices and Remedies 1-13 Code. 1-14 (b) Amount of Tax Credit. An eligible company may elect to 1-15 recoup premium discounts issued to eligible health care 1-16 professionals in lieu of indemnification from the state of Texas 1-17 for claims filed under Chapter 110, Civil Practices and Remedies 1-18 Code. Such election shall be made as a credit that is part of the 1-19 annual premium tax return filed on or before March 1, 1999. An 1-20 insurer may credit the total amount of any discounts issued less 1-21 any reimbursements received prior to January 1, 1999 by the insurer 2-1 for claims filed under Chapter 110, Civil Practices and Remedies 2-2 Code, against its premium tax under Article 4.10 of this code. The 2-3 tax credit herein authorized shall be allowed at a rate not to 2-4 exceed 20 percent of the credit per year for five or more 2-5 successive years following the initial election made in March 1999. 2-6 The balance of payments due the insurer and not claimed as a tax 2-7 credit may be reflected in the books and records of the insurer as 2-8 an admitted asset for all purposes, including exhibition in annual 2-9 statements pursuant to Article 6.12 of this code. The tax credit 2-10 allowed in any one year may not exceed the premium tax due in that 2-11 year. 2-12 (c) An eligible insurer that elects to receive tax credits 2-13 shall not be eligible to file claims for indemnity under Chapter 2-14 110, Civil Practices and Remedies Code after January 1, 1999. Any 2-15 claims of an eligible insurer filed with the Attorney General prior 2-16 to January 1, 1999 that have not been reimbursed shall also be 2-17 deemed to have been waived by the insurer by making its election. 2-18 An insurer that elects not to recoup its discount through tax 2-19 credit will continue to remain eligible for indemnification of 2-20 eligible claims under Chapter 110, Civil Practices and Remedies 2-21 Code. 2-22 (d) The elections provided herein shall not affect the right 2-23 of a self-insurance trust created under Article 21.49-4 of this 2-24 code from seeking indemnification for eligible claims. 2-25 (e) The provisions of Article 21.46 of this code shall not 3-1 apply to the credits authorized herein. 3-2 SECTION 2. This Act takes effect September 1, 1997. 3-3 SECTION 3. EMERGENCY CLAUSE. The importance of this 3-4 legislation and the crowded condition of the calendars in both 3-5 houses create an emergency and an imperative public necessity that 3-6 the constitutional rule requiring bills to be read on three several 3-7 days in each house be suspended, and this rule is hereby suspended, 3-8 and that this Act take effect and be in force from and after its 3-9 passage, and it is so enacted.