Texas Senate Bill SB891

Texas 2011 - 82nd Regular

• Out of Senate Committee: 5/10/11
• Introduced: 2/23/11
• Refer: 3/23/11
• Report Pass: 5/10/11

Caption

Relating to certain investments in certain Texas businesses by insurance companies and related organizations.

Impact

The passage of SB891 is expected to yield significant impacts on state laws regarding the investment landscape for insurance firms in Texas. Specifically, it establishes clear guidelines for the acceptance of premium tax credit claims, providing structure to the investment process in qualified businesses. Moreover, it sets various thresholds and responsibilities for certified capital companies, including requirements for securing match commitments prior to decertification, indicating a shift in how insurance firms may participate in and support local economies.

Summary

SB891 is designed to facilitate investments by insurance companies and related organizations in qualified Texas businesses. The bill introduces amendments to the Insurance Code, particularly focusing on the rules for certified capital companies and their investment activities. By modifying the definitions and conditions surrounding qualified investments, the legislation aims to incentivize insurance companies to invest in local enterprises, thereby fostering economic growth within the state.

Contention

Debates surrounding SB891 likely focused on the balance between incentivizing investments and ensuring sufficient regulatory oversight. Critics may have raised concerns about the potential for leveraging public funds through tax credits without adequate scrutiny on the use of such investments by insurance companies. Supporters argue that facilitating these investments can enhance the growth of local businesses and boost job creation, a vital aspect of economic development in Texas. The requirement for companies to secure substantial match investments may also be a point of contention, reflecting differing perspectives on the risks and responsibilities tied to such investments.