By: Harris S.B. No. 1738
A BILL TO BE ENTITLED
AN ACT
relating to insurance premium and maintenance taxes, and payment of
excess losses of the Windstorm Insurance Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Section 221.001, Insurance Code,
is amended to read as follows:
(b) This chapter does not apply to:
(1) a fraternal benefit society, including a fraternal
benefit society operating under Chapter 885;
(2) a group hospital service corporation operating
under Chapter 842;
(3) a stipulated premium company operating under
Chapter 884;
(4) a mutual assessment association, company, or
corporation regulated under Chapter 887; [or]
(5) a purely cooperative or mutual fire insurance
company carried on by its members solely for the protection of their
own property and not for profit, except as provided by Section
221.002(b)(13); or
(6) a farm mutual insurance company operating under
Chapter 911, unless the company:
(A) insures property in more than five counties
in this state;
(B) has gross annual premium receipts greater
than $1 million; or
(C) is a member of an insurance group that
includes insurance companies that write insurance that is not among
the lines of insurance that a farm mutual insurance company is
authorized to write under Section 911.151.
SECTION 2. Section 252.005, Insurance Code, is amended to
read as follows:
Sec. 252.005. EXCEPTION. This chapter does not apply to:
(1) a farm mutual insurance company operating under
Chapter 911, unless the company:
(A) insures property in more than five counties
in this state;
(B) has gross annual premium receipts greater
than $1 million; or
(C) is a member of an insurance group that
includes insurance companies that write insurance that is not among
the lines of insurance that a farm mutual insurance company is
authorized to write under Section 911.151; or
(2) a mutual insurance company engaged in business
under Chapter 12, Title 78, Revised Statutes, before that chapter's
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
Called Session, 1929, as amended by Section 1, Chapter 60, General
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
retains the rights and privileges under the repealed law to the
extent provided by those sections.
SECTION 3. Subsection (b), Section 2210.006, Insurance
Code, is amended to read as follows:
(b) This chapter does not apply to:
(1) a farm mutual insurance company operating under
Chapter 911, unless the company:
(A) insures property in more than five counties
in this state;
(B) has gross annual premium receipts greater
than $1 million; or
(C) is a member of an insurance group that
includes insurance companies that write insurance that is not among
the lines of insurance that a farm mutual insurance company is
authorized to write under Section 911.151;
(2) a nonaffiliated county mutual fire insurance
company described by Section 912.310 that is writing exclusively
industrial fire insurance policies as described by Section
912.310(a)(2); or
(3) a mutual insurance company or a statewide mutual
assessment company engaged in business under Chapter 12 or 13,
Title 78, Revised Statutes, respectively, before those chapters'
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
Called Session, 1929, as amended by Section 1, Chapter 60, General
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
retains the rights and privileges under the repealed law to the
extent provided by those sections.
SECTION 4. (a) The changes in law made by Sections 1 and 2
of this Act do not affect tax liability accruing before the
effective date of this Act. That liability continues in effect as
if this Act had not been enacted, and the former law is continued in
effect for the collection of taxes due and for civil and criminal
enforcement of the liability for those taxes.
(b) The change in law made by Section 3 of this Act does not
affect liability for an assessment accruing under Chapter 2210,
Insurance Code, before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
assessments due and for civil and criminal enforcement of the
liability for those assessments.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.