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.