By Sibley                                              S.B. No. 899
         76R6861 DLF-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain investments by insurance companies and related
 1-3     organizations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 4, Insurance Code, is amended by adding
 1-6     Subchapter B to read as follows:
 1-7             SUBCHAPTER B. PREMIUM TAX CREDIT FOR INVESTMENT IN
 1-8                          CERTIFIED CAPITAL COMPANY
 1-9           Art. 4.51.  DEFINITIONS.  In this subchapter:
1-10                 (1)  "Affiliate of a certified capital company or
1-11     certified investor" means:
1-12                       (A)  a person who is an affiliate for purposes of
1-13     Section 2, Article 21.49-1 of this code;
1-14                       (B)  a partnership in which the company or
1-15     investor is a general partner; or
1-16                       (C)  an officer, director, employee, or agent of
1-17     the company or investor, or an immediate family member of the
1-18     officer, director, employee, or agent.
1-19                 (2)  "Certification date" means the date on which a
1-20     certified capital company is certified by the department.
1-21                 (3)  "Certified capital" means an investment of cash in
1-22     a certified capital company that fully funds the purchase price of
1-23     either or both its equity interest in the company or a qualified
1-24     debt instrument issued by the company.
 2-1                 (4)  "Certified capital company" means a partnership,
 2-2     corporation, or trust or limited liability company, whether
 2-3     organized on a profit or not-for-profit basis, that has as its
 2-4     primary business activity the investment of cash in qualified
 2-5     businesses and that is certified by the department as meeting the
 2-6     criteria of this subchapter.
 2-7                 (5)  "Certified investor" means an insurance company or
 2-8     other person that has state premium tax liability that either:
 2-9                       (A)  contributes certified capital pursuant to an
2-10     allocation of premium tax credits under Article 4.65 of this code;
2-11     or
2-12                       (B)  becomes irrevocably committed to contribute
2-13     certified capital by preparing and executing a premium tax credit
2-14     allocation claim.
2-15                 (6)  "Person" means a natural person or entity,
2-16     including a corporation, general or limited partnership, or trust
2-17     or limited liability company.
2-18                 (7)  "Premium tax credit allocation claim" means a
2-19     claim for allocation of premium tax credits.
2-20                 (8)  "Qualified business" means a business that, at the
2-21     time of a certified capital company's first investment in the
2-22     business:
2-23                       (A)  is headquartered in this state;
2-24                       (B)  has its principal business operations
2-25     located in this state;
2-26                       (C)  is a small business concern as defined by
2-27     regulations of the United States Small Business Administration in
 3-1     13 C.F.R. Section 121.201; and
 3-2                       (D)  is not a business predominantly engaged in
 3-3     professional services provided by accountants, attorneys, or
 3-4     physicians.
 3-5                 (9)  "Qualified debt instrument" means a debt
 3-6     instrument that is issued by a certified capital company, at par
 3-7     value or a premium, and that has:
 3-8                       (A)  an original maturity date of at least five
 3-9     years after the date of issuance;
3-10                       (B)  a repayment schedule that is not faster than
3-11     a level principal amortization over five years; and
3-12                       (C)  interest, distribution, or payment features
3-13     that are not related to the profitability of the company or the
3-14     performance of the company's investment portfolio.
3-15                 (10)  "Qualified distribution" means any distribution
3-16     or payment to equity holders of a certified capital company in
3-17     connection with:
3-18                       (A)  the costs and expenses of forming,
3-19     syndicating, managing, and operating the company, including:
3-20                             (i)  reasonable and necessary fees paid for
3-21     professional services, including legal and accounting services,
3-22     related to the formation and operation of the company; and
3-23                             (ii)  an annual management fee in an amount
3-24     that does not exceed two and one-half percent of the value of the
3-25     assets of the company; and
3-26                       (B)  any projected increase in federal or state
3-27     taxes, including penalties and interest related to state and
 4-1     federal income taxes, of the equity owners of the company resulting
 4-2     from the earnings or other tax liability of the company to the
 4-3     extent that the increase is related to the ownership, management,
 4-4     or operation of a company.
 4-5                 (11)  "Qualified investment" means the investment of
 4-6     cash by a certified capital company in a qualified business for the
 4-7     purchase of any debt, equity, or hybrid security, including a debt
 4-8     instrument or security that has the characteristics of debt but
 4-9     that provides for conversion into equity or equity participation
4-10     instruments such as options or warrants.
4-11                 (12)  "State premium tax liability" means any liability
4-12     incurred by any person under Subchapter A of this chapter.
4-13           Art. 4.52. AUTHORITY OF DEPARTMENT; RULES. The department
4-14     shall administer this subchapter and the commissioner may adopt
4-15     rules as necessary to implement this subchapter.
4-16           Art. 4.53.  CERTIFICATION.  (a)  The department by rule shall
4-17     establish the application procedures for  certified capital
4-18     companies.
4-19           (b)  An applicant must file an application in the form
4-20     prescribed by the department accompanied by a nonrefundable
4-21     application fee of $7,500. The application must include an audited
4-22     balance sheet of the applicant as of a date not more than 35 days
4-23     before the date of the application.
4-24           (c)  To qualify as a certified capital company:
4-25                 (1)  the applicant must have, at the time of
4-26     application for certification, an equity  capitalization of at
4-27     least $500,000 in the form of unencumbered cash or cash
 5-1     equivalents; and
 5-2                 (2)  at least two principals or persons employed to
 5-3     manage the funds of the applicant must have at least two years of
 5-4     experience in the venture capital industry.
 5-5           (d)  The department shall review the application,
 5-6     organizational documents, and business history of each applicant
 5-7     and shall ensure that the applicant satisfies the requirements of
 5-8     this subchapter.
 5-9           (e)  Not later than the 30th day after the date an
5-10     application is filed, the department shall:
5-11                 (1)  issue the certification; or
5-12                 (2)  refuse to issue the certification and  communicate
5-13     in detail to the applicant the grounds for the refusal, including
5-14     suggestions for the removal of those grounds.
5-15           (f)  The department shall review and approve or reject
5-16     applications in the order that the applications are submitted to
5-17     the department. If more than one application is received by the
5-18     department on a date, the department shall review and approve or
5-19     reject all applications received on that date simultaneously,
5-20     except in the case of incomplete applications or applications for
5-21     which additional information is requested by the department and is
5-22     not supplied by the applicant within the time established by the
5-23     department.
5-24           Art. 4.54. MANAGEMENT BY CERTAIN ENTITIES PROHIBITED.  (a)
5-25     An insurance company or other person who may have state premium tax
5-26     liability and the affiliate of the insurance company or other
5-27     person may not, directly or indirectly:
 6-1                 (1)  manage a certified capital company;
 6-2                 (2)  own more than 10 percent of the outstanding voting
 6-3     securities of a certified capital company; or
 6-4                 (3)  control the direction of investments for a
 6-5     certified capital company.
 6-6           (b)  Subsection (a) of this article applies without regard to
 6-7     whether the insurance company or other person or the affiliate of
 6-8     the insurance company or other person is licensed by or transacts
 6-9     business in this state.
6-10           (c)  This article does not preclude a certified investor,
6-11     insurance company, or any other party from exercising its legal
6-12     rights and remedies, including interim management of a certified
6-13     capital company, if authorized by law, with respect to a certified
6-14     capital company that is in default of its statutory or contractual
6-15     obligations to the certified investor, insurance company, or other
6-16     party.
6-17           Art. 4.55. OFFERING MATERIAL USED BY CERTIFIED CAPITAL
6-18     COMPANY.  Any offering material involving the sale of securities of
6-19     the certified capital company must include the following statement:
6-20           By authorizing the formation of a certified capital
6-21           company, the State of Texas does not necessarily
6-22           endorse the quality of management or the potential for
6-23           earnings of the company and is not liable for damages
6-24           or losses to a certified investor in the company.  Use
6-25           of the word "certified" in an offering does not
6-26           constitute a recommendation or endorsement of the
6-27           investment by the Texas Department of Insurance.  If
 7-1           applicable provisions of law are violated, the State of
 7-2           Texas may require forfeiture of unused premium tax
 7-3           credits and repayments of used premium tax credits.
 7-4           Art. 4.56.  REQUIREMENTS FOR CONTINUANCE OF CERTIFICATION.
 7-5     (a)  To continue to be certified, a certified  capital company
 7-6     shall make qualified investments according to the following
 7-7     schedule:
 7-8                 (1)  before the third anniversary of its certification
 7-9     date, a company must have made qualified investments cumulatively
7-10     equal to 30 percent of its certified capital; and
7-11                 (2)  before the fifth anniversary of its certification
7-12     date, a company must have made qualified investments cumulatively
7-13     equal to 50 percent of its certified capital.
7-14           (b)  The aggregate cumulative amount of all qualified
7-15     investments made by the certified capital company after its
7-16     certification date shall be considered in the computation of the
7-17     percentage requirements under this article.  Any proceeds received
7-18     from a qualified investment may be invested in another qualified
7-19     investment and count toward any requirement in this subchapter with
7-20     respect to investments of certified capital.
7-21           (c)  A business that is classified as a qualified business at
7-22     the time of the first investment in the business by a certified
7-23     capital company remains classified as a qualified business and may
7-24     receive follow-on investments from any certified capital company or
7-25     any of its affiliates. A follow-on investment made under this
7-26     subsection is a qualified investment even though the business may
7-27     not meet the definition of a qualified business at the time of the
 8-1     follow-on investment.
 8-2           (d)  A qualified investment may not be made at a cost to a
 8-3     certified capital company greater than 15 percent of the total
 8-4     certified capital of the company at the time of investment.
 8-5           (e)  A certified capital company shall invest any certified
 8-6     capital not invested in qualified investments in:
 8-7                 (1)  cash deposited with a federally-insured financial
 8-8     institution;
 8-9                 (2)  certificates of deposit in a federally-insured
8-10     financial institution;
8-11                 (3)  investment securities that are obligations of the
8-12     United States or its agencies or instrumentalities or obligations
8-13     that are guaranteed fully as to principal and interest by the
8-14     United States;
8-15                 (4)  investment-grade instruments rated in the top four
8-16     rating categories by a nationally recognized rating organization;
8-17                 (5)  obligations of this state or any municipality or
8-18     political subdivision of this state; or
8-19                 (6)  any other investments approved in advance and in
8-20     writing by the department.
8-21           Art. 4.57. DEPARTMENT EVALUATION OF BUSINESS.  (a)  A
8-22     certified capital company may, before making an investment in a
8-23     business, request from the department a written opinion as to
8-24     whether the business in which it proposes to invest is a qualified
8-25     business.
8-26           (b)  The department shall, not later than the 10th business
8-27     day after the date of the receipt of a request under Subsection (a)
 9-1     of this article, determine whether the business meets the
 9-2     definition of a qualified business and  notify the certified
 9-3     capital company of the determination and an explanation of its
 9-4     determination.
 9-5           (c)  If the department fails to notify the certified capital
 9-6     company with respect to the proposed investment within the period
 9-7     specified by Subsection (b) of this article, the business in which
 9-8     the company proposes to invest is considered to be a qualified
 9-9     business.
9-10           (d)  If the department determines that the business in which
9-11     the certified capital company proposes to invest is not a qualified
9-12     business, the department may nevertheless consider the business a
9-13     qualified business and approve the investment if the department
9-14     determines that the proposed investment will further state economic
9-15     development.
9-16           Art. 4.58. REPORTS TO DEPARTMENT; AUDITED FINANCIAL
9-17     STATEMENT.  (a)  Each certified capital company shall report to the
9-18     department as soon as practicable after the receipt of certified
9-19     capital:
9-20                 (1)  the name of each certified investor from whom the
9-21     certified capital was received, including the certified investor's
9-22     insurance premium tax identification number;
9-23                 (2)  the amount of each certified investor's investment
9-24     of certified capital and premium tax credits; and
9-25                 (3)  the date on which the certified capital was
9-26     received.
9-27           (b)  Not later than January 31 of each year, each certified
 10-1    capital company shall report to the department:
 10-2                (1)  the amount of the company's certified capital at
 10-3    the end of the preceding year;
 10-4                (2)  whether or not the company has invested more than
 10-5    15 percent of its total certified capital in any one business; and
 10-6                (3)  each qualified investment that the company made
 10-7    during the preceding year.
 10-8          (c)  Not later than the 90th day after the date of the end of
 10-9    a certified capital company's fiscal year, the company shall
10-10    provide to the department an annual audited financial statement
10-11    that includes the opinion of an independent certified public
10-12    accountant.  The audit shall address the methods of operation and
10-13    conduct of the business of the company to determine if the company
10-14    is complying with this subchapter and the rules adopted under this
10-15    subchapter and that the funds received by the company have been
10-16    invested as required within the time provided by Article 4.56(a) of
10-17    this code.
10-18          Art. 4.59. RENEWAL.  (a)  Not later than January 31 of each
10-19    year, each certified capital company shall pay a nonrefundable
10-20    renewal fee of $5,000 to the department.
10-21          (b)  Notwithstanding Subsection (a), a renewal fee is not
10-22    required within six months of the initial certification date of a
10-23    certified capital company.
10-24          Art. 4.60. DISTRIBUTIONS; REPAYMENT OF DEBT.  A certified
10-25    capital company may make a qualified distribution at any time.  To
10-26    make a distribution to its equity holders, other than a qualified
10-27    distribution, a company must have made qualified investments in an
 11-1    amount cumulatively equal to 100 percent of its certified capital.
 11-2    A company may make repayments of principal and interest on its
 11-3    indebtedness without any restriction, including repayments of
 11-4    indebtedness of the company on which certified investors earned
 11-5    premium tax credits.
 11-6          Art. 4.61.  ANNUAL REVIEW; DECERTIFICATION.  (a)  The
 11-7    department shall conduct an annual review of each certified capital
 11-8    company to:
 11-9                (1)  ensure that the company continues to satisfy the
11-10    requirements of this subchapter and that the company has not made
11-11    any investment in violation of this subchapter; and
11-12                (2)  advise the company as to the eligibility status of
11-13    its qualified investments.
11-14          (b)  The cost of the annual review shall be paid by each
11-15    certified capital company according to a reasonable fee schedule
11-16    adopted by the department.
11-17          (c)  A material violation of Article 4.56, 4.58, or 4.59 of
11-18    this code is grounds for decertification of the certified capital
11-19    company.  If the department determines that a company is not in
11-20    compliance with Article 4.56, 4.58, or 4.59 of this code, the
11-21    department shall notify the officers of the company in  writing
11-22    that the company may be subject to decertification after the 120th
11-23    day after the date of mailing of the notice, unless the
11-24    deficiencies are corrected and the company returns to compliance
11-25    with those articles.
11-26          (d)  The department may decertify a certified capital
11-27    company, after opportunity for hearing, if the department finds
 12-1    that the company is not in compliance with Article 4.56, 4.58, or
 12-2    4.59 of this code at the end of the period established by
 12-3    Subsection (c) of this article. Decertification under this
 12-4    subsection is effective on receipt of notice of decertification by
 12-5    the company.  The department shall notify any appropriate state
 12-6    agency of the decertification.
 12-7          (e)  Decertification of a certified capital company may cause
 12-8    the recapture of premium tax credits previously claimed and the
 12-9    forfeiture of future premium tax credits to be claimed by certified
12-10    investors with respect to the company, as follows:
12-11                (1)  decertification of a company on or before the
12-12    third anniversary of its certification date causes the recapture of
12-13    any premium tax credit previously claimed and the forfeiture of any
12-14    future premium tax credit to be claimed by a certified investor
12-15    with respect to the company;
12-16                (2)  for a company that meets the requirements for
12-17    continued certification under Article 4.56(a)(1) of this code and
12-18    subsequently fails to meet the requirements for continued
12-19    certification under Article 4.56(a)(2) of this code, any premium
12-20    tax credit that has been or will be taken by a certified investor
12-21    on or before the third anniversary of the certification date is not
12-22    subject to recapture or forfeiture, but any premium tax credit that
12-23    has been or will be taken by a certified investor after the third
12-24    anniversary of the certification date of the company is subject to
12-25    recapture or forfeiture;
12-26                (3)  for a company that has met the requirements for
12-27    continued certification under Articles 4.56(a)(1) and (2) of this
 13-1    code and is subsequently decertified, any premium tax credit that
 13-2    has been or will be taken by a certified investor on or before the
 13-3    fifth anniversary of the certification date is not subject to
 13-4    recapture or forfeiture, but any premium tax credit to be taken
 13-5    after the fifth anniversary of the certification date is subject to
 13-6    forfeiture only if the company is decertified on or before the
 13-7    fifth anniversary of its certification date; and
 13-8                (4)  for a company that has invested an amount
 13-9    cumulatively equal to 100 percent of its certified capital in
13-10    qualified investments, any premium tax credit claimed or to be
13-11    claimed by a certified investor is not subject to recapture or
13-12    forfeiture.
13-13          (f)  The department shall send written notice to the address
13-14    of each certified investor whose premium tax credit is subject to
13-15    recapture or forfeiture, using the address shown on the last
13-16    premium tax filing.
13-17          (g)  The department may waive any recapture or forfeiture of
13-18    credits if, after considering all facts and circumstances, it
13-19    determines that the waiver will have the effect of furthering state
13-20    economic development.
13-21          Art. 4.62. TERMINATION OF REGULATORY AUTHORITY OF DEPARTMENT.
13-22    After a certified capital company has invested an amount
13-23    cumulatively equal to 100 percent of its certified capital in
13-24    qualified investments, the company is no longer subject to the
13-25    renewal requirements of this subchapter or to decertification by
13-26    the department and is not otherwise subject to regulation by the
13-27    department. This section does not affect premium tax credits earned
 14-1    by certified investors through the certified capital company.
 14-2          Art. 4.63.  PREMIUM TAX CREDIT.  (a)  A certified investor
 14-3    who makes an investment of certified capital under an allocation of
 14-4    premium tax credits under Article 4.65 of this code shall in the
 14-5    year of investment earn a vested credit against state premium tax
 14-6    liability equal to 100 percent of the certified investor's
 14-7    investment of certified capital.  A certified investor may take up
 14-8    to 10 percent of the vested premium tax credit in any taxable year
 14-9    of the certified investor.
14-10          (b)  The credit to be applied against state premium tax
14-11    liability in any one year may not exceed the state premium tax
14-12    liability of the certified investor for the taxable year.  Any
14-13    unused credit against state premium tax liability may be carried
14-14    forward indefinitely until the premium tax credits are used.
14-15          (c)  A certified investor claiming a credit against state
14-16    premium tax liability earned through an investment in a company is
14-17    not required to pay any additional retaliatory tax levied under
14-18    Article 21.46 of this code as a result of claiming that credit. An
14-19    investment made under this subchapter is a "Texas investment" for
14-20    purposes of Subchapter A of this chapter.
14-21          Art. 4.64. PREMIUM TAX CREDIT ALLOCATION CLAIM FORM.  A
14-22    premium tax credit allocation claim must be prepared and executed
14-23    by a certified investor on a form provided by the department and
14-24    filed by a certified capital company with the department.  The
14-25    premium tax credit allocation claim form must include an affidavit
14-26    of the certified investor under which the certified investor
14-27    becomes legally bound and irrevocably committed to make an
 15-1    investment of certified capital in a certified capital company in
 15-2    the amount allocated even if the amount is less than the amount of
 15-3    the claim, subject only to the receipt of an allocation under
 15-4    Article 4.65 of this code.
 15-5          Art. 4.65.  AGGREGATE LIMIT ON CREDITS.  (a)  The aggregate
 15-6    amount of certified capital for which premium tax credits may be
 15-7    allowed for all certified investors under this subchapter may not
 15-8    exceed the amount that would entitle all certified investors in
 15-9    certified capital companies to take aggregate credits of $20
15-10    million in a year.  A certified capital company and its affiliates
15-11    may not file premium tax credit allocation claims in excess of the
15-12    maximum amount of certified capital for which premium tax credits
15-13    may be allowed as provided in this subsection.
15-14          (b)  Certified capital for which premium tax credits are
15-15    allowed shall be allocated to certified investors in certified
15-16    capital companies in the order that premium tax credit allocation
15-17    claims are filed with the department by companies on behalf of
15-18    their investors.  Filings made on the same day shall be treated as
15-19    having been made contemporaneously.
15-20          (c)  If two or more certified capital companies file premium
15-21    tax credit allocation claims with the department on behalf of their
15-22    respective certified investors on the same day, and the amount of
15-23    the premium tax credit allocation claims exceeds in the aggregate
15-24    the remaining amount for which premium tax credits may be allowed
15-25    under this article, capital for which premium tax credits are
15-26    allowed shall be allocated among the certified investors of the
15-27    submitting certified capital companies on a pro rata basis with
 16-1    respect to the amounts claimed.  The pro rata allocation for each
 16-2    certified investor shall be the product of:
 16-3                (1)  a fraction, the numerator of which is the amount
 16-4    of the premium tax credit allocation claim filed on behalf of the
 16-5    investor and the denominator of which is the total of all premium
 16-6    tax credit allocation claims filed on behalf of all certified
 16-7    investors on the same day; and
 16-8                (2)  the remaining amount of capital for which premium
 16-9    tax credits may be allowed under this article after giving effect
16-10    to all previously filed premium tax credit allocation claims.
16-11          (d)  If an allocation under Subsection (c) of this article
16-12    occurs with respect to premium tax credit allocation claims filed
16-13    with the department on a date before which no premium tax credit
16-14    allocation claims had been filed with the department:
16-15                (1)  the department shall first determine the
16-16    allocation for each certified investor on whose behalf a premium
16-17    tax credit allocation claim was filed pursuant to the procedure set
16-18    forth in Subsection (c) of this article; and
16-19                (2)  if, as a result of the determination made under
16-20    Subdivision (1) of this subsection, certified investors in one or
16-21    more certified capital companies that submitted premium tax credit
16-22    allocation claims on that day would not be allocated at least $15
16-23    million in capital, the department:
16-24                      (A)  may not make any allocation to the certified
16-25    investors of the company that would receive, in the aggregate, the
16-26    lowest amount of allocated capital pursuant to the determination
16-27    made under Subdivision (1) of this subsection;
 17-1                      (B)  shall make an additional determination in
 17-2    accordance with Subdivision (1) of this subsection without
 17-3    considering the premium tax credit allocation claims filed on
 17-4    behalf of the certified investors in the company that was denied an
 17-5    allocation under Paragraph (A) of this subdivision; and
 17-6                      (C)  shall continue application of the allocation
 17-7    formula as set forth in this subdivision until the allocation
 17-8    process results in the allocation of at least $15 million in
 17-9    capital to the certified investors of each company receiving an
17-10    allocation under this article.
17-11          (e)  Not later than the fifth business day after the date the
17-12    department receives a premium tax credit allocation claim filed by
17-13    a certified capital company on behalf of one or more of its
17-14    certified investors, the department shall notify the company of the
17-15    amount of tax credits allocated to each certified investor.
17-16          (f)  If a certified capital company does not receive an
17-17    investment of certified capital equaling the amount of premium tax
17-18    credits allocated to a certified investor for which it filed a
17-19    premium tax credit allocation claim before the end of the fifth
17-20    business day after the date of receipt of notice of allocation, the
17-21    company shall notify the department by overnight common carrier
17-22    delivery service and that portion of capital allocated to the
17-23    certified investor shall be forfeited.  If the forfeited capital
17-24    had been allocated by the department as a result of a pro rata
17-25    allocation pursuant to Subsection (c) or (d) of this article, the
17-26    department shall reallocate the forfeited capital among the
17-27    certified investors in the other certified capital companies that
 18-1    originally received an allocation on a pro rata basis so that the
 18-2    result after reallocation is the same as if the initial allocation
 18-3    under Subsection (c) or (d) of this article had been performed
 18-4    without considering the premium tax credit allocation claims that
 18-5    were subsequently forfeited.  If the forfeited capital had not been
 18-6    allocated on a pro rata basis, the capital becomes available to
 18-7    subsequent premium tax credit allocation claims as if premium tax
 18-8    credit allocation claims for the capital had never been filed with
 18-9    the department.
18-10          (g)  The maximum amount of certified capital for which
18-11    premium tax credit allocation claims may be filed in a year on
18-12    behalf of any one certified investor and its affiliates, whether by
18-13    one or more certified capital companies, may not exceed $2 million.
18-14          Art. 4.66.  TRANSFERABILITY OF CREDITS.  (a)  A premium tax
18-15    credit established under this subchapter may be transferred or
18-16    sold.
18-17          (b)  The commissioner shall adopt rules to facilitate the
18-18    transfer or sale of premium tax credits.
18-19          (c)  The transfer or sale of a premium tax credit does not
18-20    affect the schedule for taking the premium tax credit under this
18-21    subchapter.
18-22          (d)  Premium tax credits recaptured under Article 4.61 of
18-23    this code are the liability of the taxpayer who actually claimed
18-24    the premium tax credits.
18-25          SECTION 2.  Articles 4.01-4.11, 4.11A, 4.11B, 4.11C, 4.12,
18-26    and 4.17-4.19, Insurance Code, are redesignated as Subchapter A,
18-27    Chapter 4, Insurance Code, and a subchapter heading is added to
 19-1    read as follows:
 19-2         SUBCHAPTER A. IMPOSITION AND COLLECTION OF TAXES AND FEES
 19-3          SECTION 3.  (a)  Not later than the 60th day after the
 19-4    effective date of this Act, the commissioner of insurance shall
 19-5    adopt rules necessary to implement Subchapter B, Chapter 4,
 19-6    Insurance Code, as added by this Act.  The department shall begin
 19-7    accepting applications for certification as a certified capital
 19-8    company under that subchapter on the 75th day after the effective
 19-9    date of this Act.
19-10          (b)  A certified investor may not make an investment with a
19-11    certified capital company under Subchapter B, Chapter 4, Insurance
19-12    Code, as added by this Act, before January 1, 2000.
19-13          SECTION 4.  The importance of this legislation and the
19-14    crowded condition of the calendars in both houses create an
19-15    emergency and an imperative public necessity that the
19-16    constitutional rule requiring bills to be read on three several
19-17    days in each house be suspended, and this rule is hereby suspended,
19-18    and that this Act take effect and be in force from and after its
19-19    passage, and it is so enacted.