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.