Floor Packet Page No. 82                                                    



	Amend CSHB 3 by inserting the following 

appropriately-numbered SECTION:    

	"SECTION ___. Section 171.052, Tax Code, is amended to read 

as follows:      

	Sec. 171.052. CERTAIN CORPORATIONS. (a) Except as provided by 

Subsection (c), an [An] insurance organization, title insurance 

company, or title insurance agent authorized to engage in insurance 

business in this state now required to pay an annual tax under 

Chapter 4 or 9, Insurance Code, measured by its gross premium 

receipts is exempted from the franchise tax. A nonadmitted 

insurance organization that is required to pay a gross premium 

receipts tax during a tax year is exempted from the franchise tax 

for that same tax year.

	(b) Farm mutuals, local mutual aid associations, and burial 

associations are not subject to the franchise tax.

	(c) An entity is subject to the franchise tax for a tax year 

in any portion of which the entity has failed to pay premium refunds 

to policyholders ordered by the Texas Department of Insurance."