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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of child care facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 42, Human Resources Code, |
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is amended by adding Section 42.0216 to read as follows: |
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Sec. 42.0216. SUSTAINING CHILD CARE ACCOUNT; GRANTS. (a) |
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The sustaining child care account is a dedicated account in the |
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general revenue fund. |
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(b) The account consists of: |
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(1) general revenue transferred to the account; |
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(2) money appropriated to the account; |
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(3) gifts, grants, and donations contributed to the |
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account; |
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(4) contributions to the account for which an entity |
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receives a credit against the entity's state premium tax liability |
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under Chapter 230, Insurance Code; and |
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(5) interest earned on the investment of money in the |
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account. |
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(c) Section 403.0956, Government Code, does not apply to the |
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sustaining child care account. |
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(d) Unused funds in the sustaining child care account do not |
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revert to the general revenue fund without legislative action. |
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(e) Money in the sustaining child care account may be |
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appropriated only to the Texas Workforce Commission for the purpose |
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of making grants to day-care centers and group day-care homes |
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licensed under this chapter and to family homes registered under |
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this chapter. |
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(f) The Texas Workforce Commission may award grants to |
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day-care centers and group day-care homes licensed under this |
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chapter and to family homes registered under this chapter to: |
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(1) provide adequate funding to allow the day-care |
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providers to recover from the devastating effects of the COVID-19 |
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lockdowns and the subsequent reduced enrollment and staff |
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shortages; and |
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(2) ensure that day-care providers are able to remain |
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in business to provide essential child-care services to the people |
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of this state. |
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(g) A grant authorized by this section may not be less than |
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$1,000 for each child under 14 years of age enrolled in the day-care |
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center, group day-care home, or family home. A day-care center, |
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group day-care home, or family home may receive one grant under this |
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section each year. |
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(h) The Texas Workforce Commission shall set the amount of |
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the grants awarded under this section in an amount that ensures each |
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eligible day-care center, group day-care home, and family home is |
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able to receive a grant. |
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(i) A day-care center, group day-care home, or family home |
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may decline a grant under this section. |
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(j) The executive commissioner in collaboration with the |
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Texas Workforce Commission shall adopt rules to implement this |
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section, including rules regarding the eligibility criteria for |
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receiving a grant and the process for awarding a grant under this |
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section. |
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SECTION 2. Subtitle B, Title 3, Insurance Code, is amended |
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by adding Chapter 230 to read as follows: |
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CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO |
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SUSTAINING CHILD CARE ACCOUNT |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 230.001. DEFINITIONS. In this chapter: |
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(1) "Account" means the Sustaining Child Care Account |
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under Section 42.0216, Human Resources Code. |
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(2) "State premium tax liability" means any liability |
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incurred by an entity under Chapters 221 through 226. |
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SUBCHAPTER B. CREDIT |
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Sec. 230.051. CREDIT. An entity may apply for a credit |
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against the entity's state premium tax liability in the amount and |
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under the conditions provided by this chapter. The comptroller |
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shall award credits as provided by Section 230.054. |
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Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a) |
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Subject to Subsections (b) and (c), the amount of an entity's credit |
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is equal to the lesser of the amount contributed to the account |
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during the period covered by the tax report or 75 percent of the |
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entity's state premium tax liability for the report. |
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(b) For the 2024 state fiscal year, the total amount of |
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credits that may be awarded under this chapter may not exceed $200 |
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million. For each subsequent state fiscal year, the total amount of |
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credits that may be awarded is: |
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(1) the same total amount of credits available under |
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this subsection for the previous state fiscal year, if Subdivision |
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(2) does not apply; or |
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(2) 125 percent of the total amount of credits |
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available under this subsection for the previous state fiscal year, |
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if the total amount of credits awarded in the previous state fiscal |
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year was at least 90 percent of the total amount of credits |
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available under this subsection for that fiscal year. |
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(c) The comptroller by rule shall prescribe procedures by |
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which the comptroller may allocate credits under this chapter. The |
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procedures must provide that credits are allocated first to |
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entities that received preliminary approval for a credit under |
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Section 230.053 and that apply under Section 230.054. The |
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procedures must provide that any remaining credits are allocated to |
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entities that apply under Section 230.054 on a first-come, |
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first-served basis, based on the date the contribution was |
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initially made. |
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(d) The comptroller may require an entity to notify the |
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comptroller of the amount the entity intends or expects to apply for |
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under this chapter before the beginning of a state fiscal year or at |
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any other time required by the comptroller. |
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Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before |
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making a contribution to the account, an entity may apply to the |
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comptroller for preliminary approval of a credit under this chapter |
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for the contribution. |
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(b) An entity must apply for preliminary approval on a form |
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provided by the comptroller that includes the amount the entity |
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expects to contribute and any other information the comptroller |
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requires. |
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(c) The comptroller shall grant preliminary approval for |
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credits under this chapter on a first-come, first-served basis, |
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based on the date the comptroller receives the application for |
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preliminary approval. |
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(d) The comptroller shall grant preliminary approval for a |
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credit under this chapter for a state fiscal year if the sum of the |
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amount of the credit and the total amount of all other credits |
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preliminarily approved under this chapter does not exceed the |
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amount provided by Section 230.052(b). |
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(e) Final award of a credit preliminarily approved under |
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this section remains subject to the limitations under Section |
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230.052(a) and all other requirements of this chapter. |
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Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must |
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apply for a credit under this chapter on or with the tax report |
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covering the period in which the contribution was made. |
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(b) The comptroller shall adopt a form for the application |
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for the credit. An entity must use this form in applying for the |
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credit. |
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(c) Subject to Section 230.052(c), the comptroller may |
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award a credit to an entity that applies for the credit under |
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Subsection (a) if the entity is eligible for the credit and the |
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credit is available under Section 230.052(b). The comptroller has |
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broad discretion in determining whether to grant or deny an |
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application for a credit. |
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(d) The comptroller shall notify an entity in writing of the |
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comptroller's decision to grant or deny the application under |
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Subsection (a). If the comptroller denies an entity's application, |
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the comptroller shall include in the notice of denial the reasons |
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for the comptroller's decision. |
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(e) If the comptroller denies an entity's application under |
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Subsection (a), the entity may request in writing a reconsideration |
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of the application not later than the 10th day after the date the |
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notice under Subsection (d) is received. If the entity does not |
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request a reconsideration of the application on or before that |
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date, the comptroller's decision is final. |
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(f) An entity that requests a reconsideration under |
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Subsection (e) may submit to the comptroller, not later than the |
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30th day after the date the request for reconsideration is |
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submitted, additional information and documents to support the |
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entity's request for reconsideration. |
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(g) The comptroller's reconsideration of an application |
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under this section is not a contested case under Chapter 2001, |
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Government Code. The comptroller's decision on a request for |
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reconsideration of an application is final and is not appealable. |
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(h) This section does not create a cause of action to |
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contest a decision of the comptroller to deny an application for a |
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credit under this chapter. |
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Sec. 230.055. RULES; PROCEDURES. The comptroller shall |
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adopt rules and procedures to implement, administer, and enforce |
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this chapter. |
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Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity |
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may not convey, assign, or transfer the credit allowed under this |
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chapter to another entity unless all of the assets of the entity are |
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conveyed, assigned, or transferred in the same transaction. |
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Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The |
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comptroller shall provide notice of the availability of the credit |
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under this chapter on the comptroller's Internet website, in the |
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instructions for insurance premium tax report forms, and in any |
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notice sent to an entity concerning the requirement to file an |
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insurance premium tax report. |
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SECTION 3. An entity may apply for a credit under Chapter |
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230, Insurance Code, as added by this Act, only for a contribution |
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made on or after the effective date of this Act. |
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SECTION 4. Not later than November 15, 2023, the |
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comptroller of public accounts shall adopt rules as provided by |
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Section 230.055, Insurance Code, as added by this Act. |
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SECTION 5. Chapter 230, Insurance Code, as added by this |
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Act, applies only to a tax report originally due on or after the |
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effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2023. |