Texas 2011 - 82nd Regular

Texas Senate Bill SB891 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Carona S.B. No. 891
2	2	(In the Senate - Filed February 23, 2011; March 23, 2011,
3	3	read first time and referred to Committee on Economic Development;
4	4	May 10, 2011, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 4, Nays 1; May 10, 2011,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 891 By: Jackson
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to certain investments in certain Texas businesses by
13	13	insurance companies and related organizations.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 228.001, Insurance Code, is amended by
16	16	adding Subdivisions (5-b), (5-c), (7-c), and (7-d) and amending
17	17	Subdivisions (7-a) and (7-b) to read as follows:
18	18	(5-b) "Match" means cash invested or lent to a
19	19	qualified business by another party that is not a certified capital
20	20	company contemporaneously with, or subsequent to, a qualified
21	21	investment in the qualified business. The term includes cash
22	22	invested or lent to a qualified business by the certified capital
23	23	company or its affiliates that would otherwise be a qualified
24	24	investment but that is made with funds that are not certified
25	25	capital.
26	26	(5-c) "Net profit realized on qualified investments"
27	27	means the sum of all funds returned to a certified capital company
28	28	in repayment, sale, or exchange of the company's qualified
29	29	investments in excess of the sum of the cost basis of such qualified
30	30	investments. To compute the net profit realized on qualified
31	31	investments, all of the certified capital company's qualified
32	32	investments are aggregated such that gains on qualified investments
33	33	are netted against losses on qualified investments.
34	34	(7-a) "Profit share percentage" means a payment in an
35	35	amount equal to 20 percent of the net profit realized on qualified
36	36	investments.
37	37	(7-b) "Program One" means the program for allocation
38	38	and investment of certified capital under this chapter before
39	39	January 1, 2007.
40	40	(7-c) [(7-b)] "Program Two" means the program for
41	41	allocation and investment of certified capital under this chapter
42	42	on or after January 1, 2007.
43	43	(7-d) "Program Three" means the program for allocation
44	44	and investment of certified capital under this chapter on or after
45	45	September 1, 2011.
46	46	SECTION 2. Subchapter B, Chapter 228, Insurance Code, is
47	47	amended by adding Section 228.0525 to read as follows:
48	48	Sec. 228.0525. ACCEPTANCE OF PREMIUM TAX ALLOCATION CLAIMS.
49	49	The rules adopted under Section 228.052 must provide that the
50	50	comptroller shall accept premium tax credit allocation claims on
51	51	behalf of certified investors with respect to Program Three not
52	52	later than January 1, 2012.
53	53	SECTION 3. Section 228.101, Insurance Code, is amended by
54	54	adding Subsection (c) to read as follows:
55	55	(c) With respect to Program Three, an application must
56	56	include a sworn statement by the managers of the applicant that:
57	57	(1) the applicant, if certified as a certified capital
58	58	company, will, prior to decertification, secure match commitments
59	59	in an amount equal to at least 150 percent of the company's Program
60	60	Three allocation; and
61	61	(2) Section 228.3021(d) applies to a certified capital
62	62	company under Program Three.
63	63	SECTION 4. Subsection (a), Section 228.107, Insurance Code,
64	64	is amended to read as follows:
65	65	(a) Not later than January 31 of each year, each certified
66	66	capital company shall pay a nonrefundable renewal fee in an amount
67	67	set by the comptroller that is sufficient to reimburse the
68	68	comptroller for annual administrative costs of the program, not to
69	69	exceed $15,000 per certified capital company. The comptroller
70	70	shall notify each certified capital company of the amount of the fee
71	71	not later than January 31 of the year preceding the year in which
72	72	the fee is due [of $5,000 to the comptroller].
73	73	SECTION 5. Subsection (b), Section 228.157, Insurance Code,
74	74	is amended to read as follows:
75	75	(b) A certified capital company may make a qualified
76	76	distribution at any time. To make a distribution or payment other
77	77	than a qualified distribution, a company must have:
78	78	(1) made qualified investments in an amount
79	79	cumulatively equal to 100 percent of the company's certified
80	80	capital; and
81	81	(2) with respect to Program Three, paid the state any
82	82	applicable profit share percentage and:
83	83	(A) secured match investments in an amount equal
84	84	to at least 150 percent of the company's Program Three allocation
85	85	under Section 228.101; or
86	86	(B) been decertified under Section 228.3021.
87	87	SECTION 6. Section 228.251, Insurance Code, is amended by
88	88	adding Subsection (d) to read as follows:
89	89	(d) With respect to credits earned as a result of
90	90	investments made under Program Three, beginning with the tax report
91	91	due March 1, 2017, for the 2016 tax year, a certified investor may
92	92	take up to 25 percent of the vested premium tax credit in any
93	93	taxable year of the certified investor. The credit may not be
94	94	applied to estimated payments due in 2016.
95	95	SECTION 7. Subsection (b), Section 228.253, Insurance Code,
96	96	is amended to read as follows:
97	97	(b) The certified capital company must have filed the claim
98	98	with the comptroller on the date on which the comptroller accepted
99	99	premium tax credit allocation claims on behalf of certified
100	100	investors with respect to Program One, [or] Program Two, or Program
101	101	Three, as applicable, under the comptroller's rules.
102	102	SECTION 8. Section 228.254, Insurance Code, is amended to
103	103	read as follows:
104	104	Sec. 228.254. TOTAL LIMIT ON PREMIUM TAX CREDITS. (a) The
105	105	total amount of certified capital for which premium tax credits may
106	106	be allowed under this chapter for all years in which premium tax
107	107	credits are allowed is:
108	108	(1) $200 million for Program One; [and]
109	109	(2) $200 million for Program Two; and
110	110	(3) $200 million for Program Three.
111	111	(b) The total amount of certified capital for which premium
112	112	tax credits may be allowed for all certified investors under this
113	113	chapter may not exceed the amount that would entitle all certified
114	114	investors in certified capital companies to take total credits of
115	115	$50 million in a year with respect to Program One, [and] $50 million
116	116	in a year with respect to Program Two, and $50 million in a year with
117	117	respect to Program Three.
118	118	(c) A certified capital company and the company's
119	119	affiliates may not file premium tax credit allocation claims with
120	120	respect to Program One, [or] Program Two, or Program Three, as
121	121	applicable, in excess of the maximum amount of certified capital
122	122	for which premium tax credits may be allowed for that program as
123	123	provided by this section.
124	124	SECTION 9. Section 228.255, Insurance Code, is amended to
125	125	read as follows:
126	126	Sec. 228.255. ALLOCATION OF PREMIUM TAX CREDIT. (a) If
127	127	the total premium tax credits claimed by all certified investors
128	128	with respect to Program One, [or] Program Two, or Program Three, as
129	129	applicable, exceeds the total limits on premium tax credits
130	130	established for that program by Section 228.254(a), the comptroller
131	131	shall allocate the total amount of premium tax credits allowed
132	132	under this chapter to certified investors in certified capital
133	133	companies on a pro rata basis in accordance with this section.
134	134	(b) The pro rata allocation for each certified investor
135	135	shall be the product of:
136	136	(1) a fraction, the numerator of which is the amount of
137	137	the premium tax credit allocation claim filed on behalf of the
138	138	investor with respect to Program One, [or] Program Two, or Program
139	139	Three, as applicable, and the denominator of which is the total
140	140	amount of all premium tax credit allocation claims filed on behalf
141	141	of all certified investors with respect to that program; and
142	142	(2) the total amount of certified capital for which
143	143	premium tax credits may be allowed with respect to that program
144	144	under this chapter.
145	145	(c) The maximum amount of certified capital for which
146	146	premium tax credit allocation may be allowed on behalf of a single
147	147	certified investor and the investor's affiliates with respect to
148	148	Program One, [or] Program Two, or Program Three, as applicable,
149	149	whether by one or more certified capital companies, may not exceed
150	150	the greater of:
151	151	(1) $10 million; or
152	152	(2) 15 percent of the maximum aggregate amount
153	153	available with respect to that program under Section 228.254(a).
154	154	SECTION 10. Subchapter G, Chapter 228, Insurance Code, is
155	155	amended by adding Section 228.3021 to read as follows:
156	156	Sec. 228.3021. VOLUNTARY DECERTIFICATION OF CERTIFIED
157	157	CAPITAL COMPANY. (a) The comptroller may decertify a certified
158	158	capital company on the written request of the company if the
159	159	comptroller finds that the company has made qualified investments
160	160	in an amount equal to 100 percent of the company's certified
161	161	capital.
162	162	(b) The comptroller shall notify any appropriate state
163	163	agency of a decertification of a certified capital company.
164	164	(c) On being decertified by the comptroller, a certified
165	165	capital company is not required to pay the annual renewal fee
166	166	required by Section 228.107.
167	167	(d) With respect to Program Three, a certified capital
168	168	company may not be decertified under this section before match
169	169	investments have been made in an amount equal to at least 150
170	170	percent of the company's Program Three allocation under Section
171	171	228.101.
172	172	SECTION 11. Section 228.351, Insurance Code, is amended by
173	173	adding Subsection (f) to read as follows:
174	174	(f) This subchapter does not authorize the recapture and
175	175	forfeiture of premium tax credits following voluntary
176	176	decertification of a certified capital company under Section
177	177	228.3021.
178	178	SECTION 12. This Act takes effect September 1, 2011.
179	179	* * * * *