88S30832 CJD-D
 
  By: Thompson of Brazoria H.B. No. 202
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption for policies issued to school districts
  and open-enrollment charter schools from certain insurance premium
  taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 203, Insurance Code, is amended by
  adding Section 203.003 to read as follows:
         Sec. 203.003.  EXEMPTION FROM CERTAIN PREMIUM TAXES FOR
  PUBLIC SCHOOL POLICIES. (a) Notwithstanding any other law, an
  insurer is not liable for premium taxes imposed under Chapters 221,
  222, 224, 225, and 226 on a policy issued to a school district or
  open-enrollment charter school.
         (b)  To qualify for an exemption under this section, the
  insurer must keep on file a form, signed and dated by an authorized
  representative of the school district or open-enrollment charter
  school, affirming that the policy is for a school district or
  open-enrollment charter school that is eligible to receive funding
  from the Foundation School Program under Chapter 48, Education
  Code.
         (c)  The comptroller and the commissioner may adopt rules
  necessary to implement this section.
         SECTION 2.  Section 281.005, Insurance Code, is amended to
  read as follows:
         Sec. 281.005.  EXCLUSION OF CERTAIN TAXES OR CHARGES.  (a) 
  In determining an insurer's taxes or other charges under this
  subchapter, the comptroller may not consider:
               (1)  an ad valorem tax on property;
               (2)  a personal income tax;
               (3)  a sales tax;
               (4)  a surcharge that an insurer may recover directly
  from policyholders; or
               (5)  an assessment for a special purpose, such as an
  assessment for a guaranty association, high risk health pool, joint
  underwriting association, or windstorm association, under the law
  of this or another state.
         (b)  Notwithstanding Section 203.003, in determining an
  insurer's taxes or other charges under this subchapter, the
  comptroller shall consider the insurer to be liable for premium
  taxes for which an exemption is provided under that section as if
  that section did not exist.
         SECTION 3.  The changes in law made by this Act apply only to
  tax liability for a tax year that begins on or after the effective
  date of this Act.
         SECTION 4.  This Act takes effect on the 91st day after the
  last day of the legislative session.