82R16990 TJS-D
 
  By: Murphy H.B. No. 2580
 
  Substitute the following for H.B. No. 2580:
 
  By:  Murphy C.S.H.B. No. 2580
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain investments by insurance companies and related
  organizations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 228.001, Insurance Code, is amended by
  amending Subdivision (7-b) and adding Subdivision (7-c) to read as
  follows:
               (7-b)  "Program Two" means the program for allocation
  and investment of certified capital under this chapter on or after
  January 1, 2007, and before January 1, 2011.
               (7-c)  "Program Three" means the program for allocation
  and investment of certified capital under this chapter on or after
  January 1, 2011.
         SECTION 2.  Section 228.251, Insurance Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  With respect to credits earned as a result of
  investments made under Program Three, beginning with the tax report
  due March 1, 2017, for the 2016 tax year, a certified investor may
  take up to 25 percent of the vested premium tax credit in any
  taxable year of the certified investor. The credit may not be
  applied to estimated payments due in 2016.
         SECTION 3.  Section 228.253(b), Insurance Code, is amended
  to read as follows:
         (b)  The certified capital company must have filed the claim
  with the comptroller on the date on which the comptroller accepted
  premium tax credit allocation claims on behalf of certified
  investors with respect to Program One, [or] Program Two, or Program
  Three, as applicable, under the comptroller's rules.
         SECTION 4.  Section 228.254, Insurance Code, is amended to
  read as follows:
         Sec. 228.254.  TOTAL LIMIT ON PREMIUM TAX CREDITS. (a) The
  total amount of certified capital for which premium tax credits may
  be allowed under this chapter for all years in which premium tax
  credits are allowed is:
               (1)  $200 million for Program One; [and]
               (2)  $200 million for Program Two; and
               (3)  $200 million for Program Three.
         (b)  The total amount of certified capital for which premium
  tax credits may be allowed for all certified investors under this
  chapter may not exceed the amount that would entitle all certified
  investors in certified capital companies to take total credits of
  $50 million in a year with respect to Program One, [and] $50 million
  in a year with respect to Program Two, and $50 million in a year with
  respect to Program Three.
         (c)  A certified capital company and the company's
  affiliates may not file premium tax credit allocation claims with
  respect to Program One, [or] Program Two, or Program Three, as
  applicable, in excess of the maximum amount of certified capital
  for which premium tax credits may be allowed for that program as
  provided by this section.
         SECTION 5.  Section 228.255, Insurance Code, is amended to
  read as follows:
         Sec. 228.255.  ALLOCATION OF PREMIUM TAX CREDIT. (a) If the
  total premium tax credits claimed by all certified investors with
  respect to Program One, [or] Program Two, or Program Three, as
  applicable, exceeds the total limits on premium tax credits
  established for that program by Section 228.254(a), the comptroller
  shall allocate the total amount of premium tax credits allowed
  under this chapter to certified investors in certified capital
  companies on a pro rata basis in accordance with this section.
         (b)  The pro rata allocation for each certified investor
  shall be the product of:
               (1)  a fraction, the numerator of which is the amount of
  the premium tax credit allocation claim filed on behalf of the
  investor with respect to Program One, [or] Program Two, or Program
  Three, as applicable, and the denominator of which is the total
  amount of all premium tax credit allocation claims filed on behalf
  of all certified investors with respect to that program; and
               (2)  the total amount of certified capital for which
  premium tax credits may be allowed with respect to that program
  under this chapter.
         (c)  The maximum amount of certified capital for which
  premium tax credit allocation may be allowed on behalf of a single
  certified investor and the investor's affiliates with respect to
  Program One, [or] Program Two, or Program Three, as applicable,
  whether by one or more certified capital companies, may not exceed
  the greater of:
               (1)  $10 million; or
               (2)  15 percent of the maximum aggregate amount
  available with respect to that program under Section 228.254(a).
         SECTION 6.  This Act takes effect September 1, 2011.