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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption for policies issued to school districts |
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and open-enrollment charter schools from insurance premium and |
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maintenance taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 203, Insurance Code, is amended by |
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adding Section 203.003 to read as follows: |
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Sec. 203.003. EXEMPTION FROM PREMIUM AND MAINTENANCE TAXES |
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FOR PUBLIC SCHOOL POLICIES. (a) Notwithstanding any other law, an |
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insurer is not liable for premium or maintenance taxes on a policy |
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issued to a school district or open-enrollment charter school. |
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(b) To qualify for an exemption under this section, the |
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insurer must keep on file a form, signed and dated by an authorized |
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representative of the school district or open-enrollment charter |
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school, affirming that the policy is for a school district or |
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open-enrollment charter school that is eligible to receive funding |
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from the Foundation School Program under Chapter 48, Education |
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Code. |
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(c) The comptroller and the commissioner may adopt rules |
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necessary to implement this section. |
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SECTION 2. Section 281.006, Insurance Code, is amended by |
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adding Subsection (a) to read as follows: |
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(a) In determining an insurer's taxes or other charges under |
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this subchapter, the comptroller shall consider the insurer to be |
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liable for taxes for which an exemption is provided under Section |
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203.003 as if that section did not exist. |
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SECTION 3. The changes in law made by this Act apply only to |
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a tax report originally due on or after the effective date of this |
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Act. |
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SECTION 4. This Act takes effect on the 91st day after the |
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last day of the legislative session. |