Texas 2017 - 85th Regular

Texas House Bill HB4031 Compare Versions

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1	1	85R2062 BEF-F
2	2	By: Bohac H.B. No. 4031
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to insurance premium tax and alcoholic beverage tax
8	8	credits for contributions made to certain educational assistance
9	9	organizations.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 3, Insurance Code, is amended
12	12	by adding Chapter 230 to read as follows:
13	13	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
14	14	CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATIONS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 230.001. DEFINITIONS. In this chapter:
17	17	(1) "Designated contribution" means a contribution
18	18	for which an entity provides notice under Section 230.152(c) or a
19	19	taxpayer provides notice under Section 207.003(c), Alcoholic
20	20	Beverage Code.
21	21	(2) "Educational assistance organization" means an
22	22	organization that:
23	23	(A) has the ability according to the
24	24	organization's charter to award scholarships to or pay educational
25	25	expenses for eligible students in:
26	26	(i) public elementary or secondary schools
27	27	located in this state; or
28	28	(ii) nonpublic elementary or secondary
29	29	schools located in this state:
30	30	(a) that meet the requirements of
31	31	Section 230.101;
32	32	(b) at which a student may fulfill
33	33	this state's compulsory attendance requirements; and
34	34	(c) that are not in violation of the
35	35	federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
36	36	and
37	37	(B) uses part of its annual revenue for the
38	38	purpose provided by Paragraph (A).
39	39	(3) "Eligible nonpublic school" means a school that
40	40	meets the requirements of Section 230.101.
41	41	(4) "Net savings" means any positive difference in a
42	42	state fiscal year between:
43	43	(A) the amount by which state spending on public
44	44	education for that year is reduced as a result of students receiving
45	45	scholarships and educational expense assistance from the certified
46	46	educational assistance organization under this chapter; and
47	47	(B) the amount by which state revenue derived
48	48	from Chapters 221 through 226 and from Title 5, Alcoholic Beverage
49	49	Code, is reduced as a result of tax credits under this chapter and
50	50	Chapter 207, Alcoholic Beverage Code.
51	51	(5) "State premium tax liability" means any liability
52	52	incurred by an entity under Chapters 221 through 226.
53	53	Sec. 230.002. TREATMENT OF CERTAIN CONTRIBUTIONS AS PROGRAM
54	54	FUNDS. (a) In this chapter, "program funds" means money
55	55	contributed to the certified educational assistance organization
56	56	in a state fiscal year for which entities are awarded tax credits
57	57	under Subchapter D or taxpayers are awarded tax credits under
58	58	Chapter 207, Alcoholic Beverage Code.
59	59	(b) Except as provided by Subsection (d), the certified
60	60	educational assistance organization shall treat a designated
61	61	contribution as program funds until the date the comptroller
62	62	notifies the certified educational assistance organization that
63	63	the entity or taxpayer that made the designated contribution:
64	64	(1) failed to apply for a credit:
65	65	(A) under Section 230.155 on or with the tax
66	66	report covering the period in which the designated contribution was
67	67	made; or
68	68	(B) under Section 207.006, Alcoholic Beverage
69	69	Code, in the time required by that section; or
70	70	(2) was denied a credit under Subchapter D or under
71	71	Chapter 207, Alcoholic Beverage Code, for the designated
72	72	contribution.
73	73	(c) The comptroller shall promptly notify the certified
74	74	educational assistance organization of a condition described by
75	75	Subsection (b).
76	76	(d) If the comptroller expects that, for a state fiscal
77	77	year, the amount of designated contributions will exceed the amount
78	78	of credits available under this chapter and Chapter 207, Alcoholic
79	79	Beverage Code, the comptroller may establish a reserve amount for
80	80	the state fiscal year equal to the estimated amount of designated
81	81	contributions that will qualify as program funds. If the
82	82	comptroller establishes a reserve amount for a state fiscal year,
83	83	the certified educational assistance organization is only required
84	84	to treat as program funds an amount of designated contributions
85	85	received in the state fiscal year equal to the reserve amount for
86	86	that year.
87	87	(e) The certified educational assistance organization shall
88	88	use designated contributions treated as program funds under this
89	89	section for any purpose authorized by Subchapter C for the
90	90	expenditure of program funds.
91	91	Sec. 230.003. RULES; PROCEDURES. (a) The comptroller
92	92	shall adopt rules and procedures to implement, administer, and
93	93	enforce this chapter and Chapter 207, Alcoholic Beverage Code.
94	94	(b) A rule adopted under Subsection (a) is binding on an
95	95	organization that bids for a contract to serve as the certified
96	96	educational assistance organization, an entity or taxpayer that
97	97	applies for a credit, and a state or local governmental entity,
98	98	including a political subdivision, as necessary to implement,
99	99	administer, and enforce this chapter and Chapter 207, Alcoholic
100	100	Beverage Code.
101	101	SUBCHAPTER B. CERTIFIED EDUCATIONAL ASSISTANCE ORGANIZATION
102	102	Sec. 230.051. CERTIFIED EDUCATIONAL ASSISTANCE
103	103	ORGANIZATION; AWARD OF CONTRACT. (a) An organization may submit a
104	104	bid to the comptroller for a contract to serve as the certified
105	105	educational assistance organization during a bidding period
106	106	provided by the comptroller.
107	107	(b) To be eligible for a contract awarded under this
108	108	section, an organization:
109	109	(1) must:
110	110	(A) be exempt from federal tax under Section
111	111	501(a) of the Internal Revenue Code of 1986 by being listed as an
112	112	exempt organization in Section 501(c)(3) of that code;
113	113	(B) be in good standing with the state;
114	114	(C) be located in the state;
115	115	(D) agree to allocate at least 90 percent of
116	116	program funds in the manner provided by Section 230.106;
117	117	(E) agree to award scholarships and assistance
118	118	for qualifying educational expenses to eligible students who
119	119	demonstrate the greatest financial and academic need;
120	120	(F) agree to give each donor a receipt for money
121	121	contributed to the organization that includes the name of the
122	122	donor, the amount of the contribution, the information required by
123	123	Section 230.152(c) or by Section 207.003(c), Alcoholic Beverage
124	124	Code, and any other information required by the comptroller;
125	125	(G) demonstrate experience and technical
126	126	expertise in:
127	127	(i) accepting, processing, and tracking
128	128	applications for scholarships or educational expense assistance;
129	129	and
130	130	(ii) awarding scholarships to students in
131	131	primary or secondary schools;
132	132	(H) agree to be independently audited on an
133	133	annual basis and file the audit with the comptroller; and
134	134	(I) agree to disburse program funds within two
135	135	academic years of receipt; and
136	136	(2) may not:
137	137	(A) establish eligibility requirements, other
138	138	than the requirements under Section 230.102, for scholarships or
139	139	educational expense assistance paid from program funds;
140	140	(B) provide to a student a scholarship in an
141	141	annual amount that exceeds the amount provided under Section
142	142	230.104(a) or (b) unless the money used to provide the portion of
143	143	the scholarship in excess of that amount is not program funds; or
144	144	(C) provide to a student educational expense
145	145	assistance in excess of the amount provided under Section
146	146	230.104(c), unless the money used to provide the portion of the
147	147	assistance in excess of that amount is not program funds.
148	148	(c) The comptroller may contract with only one certified
149	149	educational assistance organization at any time. The comptroller
150	150	shall select a successful bidder from among the organizations that
151	151	submit a bid under Subsection (a) and meet the requirements of
152	152	Subsection (b) and award to that bidder a contract to serve as the
153	153	certified educational assistance organization. The comptroller
154	154	has broad discretion in awarding the certified educational
155	155	assistance organization contract.
156	156	(d) The comptroller shall notify all organizations that
157	157	submit a bid under Subsection (a) of the comptroller's selection
158	158	under Subsection (c).
159	159	(e) The comptroller shall attempt to maintain one certified
160	160	educational assistance organization at all times. The comptroller
161	161	shall provide a bidding period under Subsection (a) as soon as
162	162	practicable after the comptroller learns there is, or is likely to
163	163	be, a vacancy for the certified educational assistance
164	164	organization.
165	165	(f) The comptroller's selection under Subsection (c) is
166	166	final and is not appealable.
167	167	Sec. 230.052. TERMINATION OF CONTRACT. (a) A contract
168	168	between the comptroller and a certified educational assistance
169	169	organization entered into under Section 230.051 must include
170	170	provisions regarding termination of the contract that are
171	171	consistent with the requirements of this section.
172	172	(b) The comptroller shall terminate a contract under
173	173	Section 230.051 if the comptroller finds that the certified
174	174	educational assistance organization:
175	175	(1) is no longer eligible under Section 230.051; or
176	176	(2) intentionally and substantially violates this
177	177	chapter.
178	178	(c) The comptroller has broad discretion in determining
179	179	whether to terminate a contract under Subsection (b).
180	180	(d) The comptroller shall notify the certified educational
181	181	assistance organization in writing of the comptroller's decision to
182	182	terminate the organization's contract. The comptroller shall
183	183	include in the notice of termination the reasons for the proposed
184	184	termination.
185	185	(e) If the comptroller notifies the certified educational
186	186	assistance organization of the proposed termination of the
187	187	organization's contract, the organization may request in writing a
188	188	reconsideration of the proposed termination not later than the 10th
189	189	day after the date the notice under Subsection (d) is received. If
190	190	the organization does not request a reconsideration of the proposed
191	191	termination on or before that date, the termination is final.
192	192	(f) An organization that requests a reconsideration under
193	193	Subsection (e) may submit to the comptroller, not later than the
194	194	30th day after the date the request for reconsideration is
195	195	submitted, additional information and documents to support the
196	196	organization's request for reconsideration.
197	197	(g) The comptroller's reconsideration of a proposed
198	198	termination under this section is not a contested case under
199	199	Chapter 2001, Government Code. The comptroller's decision on a
200	200	request for reconsideration of a proposed termination is final and
201	201	is not appealable.
202	202	(h) Termination of a contract under this section does not
203	203	affect the validity of a tax credit relating to a designated
204	204	contribution made before the date of termination.
205	205	SUBCHAPTER C. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE
206	206	PROGRAM
207	207	Sec. 230.101. ELIGIBILITY OF NONPUBLIC SCHOOLS. The
208	208	certified educational assistance organization may award
209	209	scholarships to or pay educational expenses for eligible students
210	210	enrolled in a nonpublic school if the nonpublic school executes a
211	211	notarized affidavit, with supporting documents, concerning the
212	212	school's qualification for scholarships and educational expense
213	213	assistance for eligible students who receive assistance from the
214	214	certified educational assistance organization, including evidence
215	215	of:
216	216	(1) accreditation by the Texas Education Agency or by
217	217	an organization recognized by the Texas Private School
218	218	Accreditation Commission;
219	219	(2) annual administration of a nationally
220	220	norm-referenced assessment instrument or the appropriate
221	221	assessment instrument required under Section 39.023, Education
222	222	Code;
223	223	(3) valid certificate of occupancy; and
224	224	(4) policy statements regarding:
225	225	(A) admissions;
226	226	(B) curriculum;
227	227	(C) safety;
228	228	(D) food service inspection; and
229	229	(E) student to teacher ratios.
230	230	Sec. 230.102. ELIGIBILITY OF STUDENTS. (a) A student is
231	231	eligible to apply to the certified educational assistance
232	232	organization for a scholarship or educational expense assistance
233	233	paid from program funds if the student was enrolled in a public
234	234	school during the entire preceding school year or is enrolling in
235	235	school in this state for the first time and the student:
236	236	(1) is in foster care;
237	237	(2) is in institutional care;
238	238	(3) has a parent who is on active duty in the military;
239	239	(4) resides in a household with income not greater
240	240	than 200 percent of the income guidelines necessary to qualify for
241	241	the national free or reduced-price lunch program established under
242	242	42 U.S.C. Section 1751 et seq.;
243	243	(5) is the sibling of a child who is eligible to apply
244	244	under this section;
245	245	(6) previously qualified to apply under this section;
246	246	or
247	247	(7) is in kindergarten through grade 12, is eligible
248	248	under Section 29.003, Education Code, to participate in a school
249	249	district's special education program, and has an individualized
250	250	education program under Section 29.005, Education Code.
251	251	(b) A student who establishes eligibility under Subsection
252	252	(a)(7) may continue to receive assistance under this chapter until
253	253	the earlier of the date the student graduates from high school or
254	254	the student's 22nd birthday.
255	255	(c) The certified educational assistance organization shall
256	256	award scholarships and educational expense assistance to eligible
257	257	students who apply in accordance with this chapter.
258	258	Sec. 230.103. NOTICE TO CERTAIN PARENTS. A school district
259	259	shall provide written notice of the availability of assistance
260	260	under this chapter to the parent of a student who is eligible to
261	261	apply for assistance under Section 230.102(a)(7). The notice must
262	262	inform the parent:
263	263	(1) that an eligible nonpublic school is not subject
264	264	to laws regarding the provision of education services in the same
265	265	manner as a public school;
266	266	(2) that a student with a disability attending an
267	267	eligible nonpublic school may not receive the services a student
268	268	with a disability attending a public school is entitled to receive
269	269	under federal and state law;
270	270	(3) of the rights provided under the Individuals with
271	271	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
272	272	including:
273	273	(A) an individualized education program;
274	274	(B) education services provided in the least
275	275	restrictive environment;
276	276	(C) instruction from certified teachers;
277	277	(D) due process hearings to ensure proper and
278	278	full implementation of an individualized education program;
279	279	(E) transition and planning services; and
280	280	(F) supplementary aids and services;
281	281	(4) of the rights provided under Subchapter A, Chapter
282	282	29, Education Code; and
283	283	(5) of any other rights provided under federal or
284	284	state law to a student with a disability who attends a public
285	285	school.
286	286	Sec. 230.104. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
287	287	EXPENSE ASSISTANCE. (a) Except as provided by Subsection (b), the
288	288	maximum scholarship amount the certified educational assistance
289	289	organization may award to a student under this chapter paid from
290	290	program funds may not exceed 75 percent of the state average
291	291	maintenance and operations expenditures per student in average
292	292	daily attendance for the preceding state fiscal year.
293	293	(b) The maximum scholarship amount under Subsection (a) may
294	294	not exceed 50 percent of the state average maintenance and
295	295	operations expenditures per student in average daily attendance for
296	296	the preceding state fiscal year if the student receiving the
297	297	scholarship resides in a household with income greater than 175
298	298	percent of the income guidelines necessary to qualify for the
299	299	national free or reduced-price lunch program established under 42
300	300	U.S.C. Section 1751 et seq. This subsection does not apply to a
301	301	student who is eligible for assistance under Section 230.102(a)(7)
302	302	or (b).
303	303	(c) The maximum educational expense assistance the
304	304	certified educational assistance organization may award to a
305	305	student under this chapter paid from program funds may not exceed
306	306	$750 for the 2018 state fiscal year, increased by five percent each
307	307	subsequent year.
308	308	Sec. 230.105. QUALIFIED EDUCATIONAL EXPENSES. (a) Except
309	309	as provided by Subsection (c), the scholarship amount described by
310	310	Section 230.104(a) or (b) may be used only to pay for the following
311	311	qualified educational expenses incurred by the student awarded the
312	312	scholarship who attends an eligible nonpublic school:
313	313	(1) tuition;
314	314	(2) transportation;
315	315	(3) textbooks;
316	316	(4) tutoring;
317	317	(5) academic after-school programs;
318	318	(6) instructional supplies required by the school;
319	319	(7) school or lab fees;
320	320	(8) before-school or after-school child care; and
321	321	(9) uniforms.
322	322	(b) Except as provided by Subsection (c), the educational
323	323	expense assistance amount described by Section 230.104(c) may be
324	324	used only to pay for the following qualified educational expenses
325	325	incurred by the student awarded the educational expense assistance:
326	326	(1) facility fees;
327	327	(2) transportation expenses, including the cost to
328	328	transfer from one public school to another;
329	329	(3) textbooks;
330	330	(4) tutoring;
331	331	(5) academic after-school programs;
332	332	(6) instructional supplies required by the school;
333	333	(7) school or lab fees; and
334	334	(8) before-school or after-school child care.
335	335	(c) In addition to the expenses described by Subsections (a)
336	336	and (b), the scholarship or educational expense assistance amount
337	337	awarded to a student eligible under Section 230.102(a)(7) or (b)
338	338	may be used to pay for the following qualified educational
339	339	expenses:
340	340	(1) educational therapies from a licensed or
341	341	accredited practitioner or provider;
342	342	(2) a licensed or accredited paraprofessional or
343	343	educational aide;
344	344	(3) tuition for vocational and life skills education;
345	345	and
346	346	(4) associated services that include educational and
347	347	psychological evaluations, assistive technology rentals, and
348	348	translation services.
349	349	Sec. 230.106. ALLOCATION OF PROGRAM FUNDS. Of the program
350	350	funds required to be allocated as provided by Section
351	351	230.051(b)(1)(D), the certified educational assistance
352	352	organization shall use:
353	353	(1) at least 80 percent to award scholarships
354	354	described by Sections 230.104(a) and (b); and
355	355	(2) not more than 20 percent to award educational
356	356	expense assistance as described by Section 230.104(c).
357	357	Sec. 230.107. REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
358	358	Not later than December 31 of each even-numbered year, the
359	359	comptroller shall determine the amount of net savings for the
360	360	previous state fiscal biennium and make available to the public a
361	361	report of that amount of savings.
362	362	SUBCHAPTER D. CREDIT
363	363	Sec. 230.151. CREDIT. An entity may apply for a credit
364	364	against the entity's state premium tax liability in the amount and
365	365	under the conditions and limitations provided by this chapter. The
366	366	comptroller shall award credits as provided by Section 230.155.
367	367	Sec. 230.152. CONTRIBUTIONS ELIGIBLE FOR CREDIT. (a) An
368	368	entity may apply for a credit under this chapter only for designated
369	369	contributions made by the entity.
370	370	(b) An entity may not apply for a credit under this chapter
371	371	for a designated contribution made to the certified educational
372	372	assistance organization if:
373	373	(1) the entity requires that the contribution benefit
374	374	a particular person or school; or
375	375	(2) the contribution is directed to provide a
376	376	scholarship or educational expense assistance for an entity
377	377	employee or for a spouse or dependent of an entity employee.
378	378	(c) An entity shall provide written notice to the certified
379	379	educational assistance organization when the entity makes a
380	380	contribution if the entity may apply for a tax credit under this
381	381	chapter for the contribution. An entity may not apply for a credit
382	382	for the contribution unless the entity provides the notice at the
383	383	time the contribution is made. The certified educational
384	384	assistance organization shall indicate on the receipt provided
385	385	under Section 230.051(b)(1)(F) that the entity provided notice
386	386	under this subsection.
387	387	Sec. 230.153. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
388	388	Subject to Subsections (b) and (c), the amount of an entity's credit
389	389	is equal to the lesser of:
390	390	(1) the amount of designated contributions made to the
391	391	certified educational assistance organization during the period
392	392	covered by the tax report; or
393	393	(2) 50 percent of the entity's state premium tax
394	394	liability for the report.
395	395	(b) For the 2018 state fiscal year, the total amount of tax
396	396	credits that may be awarded under this chapter and Chapter 207,
397	397	Alcoholic Beverage Code, may not exceed $100 million. For each
398	398	subsequent state fiscal year, the total amount of tax credits that
399	399	may be awarded is an amount equal to 110 percent of the total amount
400	400	of tax credits that may be awarded in the previous state fiscal
401	401	year.
402	402	(c) The comptroller by rule shall prescribe procedures by
403	403	which the comptroller may allocate credits under this chapter and
404	404	Chapter 207, Alcoholic Beverage Code. The procedures must provide
405	405	that:
406	406	(1) credits are allocated first to entities and
407	407	taxpayers that received preliminary approval under Section 230.154
408	408	and that apply under Section 230.155 or under Section 207.006,
409	409	Alcoholic Beverage Code; and
410	410	(2) any credits remaining after the allocation under
411	411	Subdivision (1) are allocated to entities and taxpayers that apply
412	412	under Section 230.155 or under Section 207.006, Alcoholic Beverage
413	413	Code, on a first-come, first-served basis, based on the date the
414	414	designated contribution was initially made.
415	415	(d) The comptroller may require an entity to notify the
416	416	comptroller of the amount the entity intends or expects to apply for
417	417	under this chapter before the beginning of a state fiscal year or at
418	418	any other time required by the comptroller.
419	419	Sec. 230.154. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
420	420	making a contribution to the certified educational assistance
421	421	organization, an entity or taxpayer may apply to the comptroller
422	422	for preliminary approval for a credit under this chapter or Chapter
423	423	207, Alcoholic Beverage Code, for the contribution.
424	424	(b) An entity or taxpayer must apply for preliminary
425	425	approval on a form provided by the comptroller that includes the
426	426	amount the entity or taxpayer expects to contribute and any other
427	427	information the comptroller requires.
428	428	(c) The comptroller shall grant preliminary approval for
429	429	credits under this chapter and Chapter 207, Alcoholic Beverage
430	430	Code, on a first-come, first-served basis, based on the date the
431	431	comptroller receives the application for preliminary approval.
432	432	(d) The comptroller shall grant preliminary approval for a
433	433	credit under this chapter or Chapter 207, Alcoholic Beverage Code,
434	434	for a state fiscal year if the sum of the amount of the credit and
435	435	the total amount of all other credits preliminarily approved for
436	436	that state fiscal year does not exceed the amount provided by
437	437	Section 230.153(b).
438	438	(e) Final award of a credit preliminarily approved under
439	439	this section remains subject to the limitations under Section
440	440	230.153 and all other requirements of this chapter or Chapter 207,
441	441	Alcoholic Beverage Code, as applicable.
442	442	Sec. 230.155. APPLICATION FOR CREDIT. (a) An entity must
443	443	apply for a credit under this chapter on or with the tax report
444	444	covering the period in which the designated contribution was made.
445	445	(b) The comptroller shall adopt a form for the application
446	446	for the credit. An entity must use this form in applying for the
447	447	credit and must include with the application form each receipt
448	448	issued under Section 230.051(b)(1)(F) that includes the
449	449	information required by Section 230.152(c).
450	450	(c) Subject to Section 230.153(c), the comptroller may
451	451	award a credit to an entity that applies for the credit under
452	452	Subsection (a) if the entity is eligible for the credit and the
453	453	credit is available under Section 230.153(b). The comptroller has
454	454	broad discretion in determining whether to grant or deny an
455	455	application for a credit.
456	456	(d) The comptroller shall notify an entity in writing of the
457	457	comptroller's decision to grant or deny the application under
458	458	Subsection (a). If the comptroller denies an entity's application,
459	459	the comptroller shall include in the notice of denial the reasons
460	460	for the comptroller's decision.
461	461	(e) If the comptroller denies an entity's application under
462	462	Subsection (a), the entity may request in writing a reconsideration
463	463	of the application not later than the 10th day after the date the
464	464	notice under Subsection (d) is received. If the entity does not
465	465	request a reconsideration of the application on or before that
466	466	date, the comptroller's decision is final.
467	467	(f) An entity that requests a reconsideration under
468	468	Subsection (e) may submit to the comptroller, not later than the
469	469	30th day after the date the request for reconsideration is
470	470	submitted, additional information and documents to support the
471	471	entity's request for reconsideration.
472	472	(g) The comptroller's reconsideration of an application
473	473	under this section is not a contested case under Chapter 2001,
474	474	Government Code. The comptroller's decision on a request for
475	475	reconsideration of an application is final and is not appealable.
476	476	(h) This section does not create a cause of action to
477	477	contest a decision of the comptroller to deny an application for a
478	478	credit under this chapter.
479	479	Sec. 230.156. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
480	480	may not convey, assign, or transfer the credit allowed under this
481	481	chapter to another entity unless all of the assets of the entity are
482	482	conveyed, assigned, or transferred in the same transaction.
483	483	Sec. 230.157. NOTICE OF AVAILABILITY OF CREDIT. The
484	484	comptroller shall provide notice of the availability of the credit
485	485	under this chapter on the comptroller's Internet website, in the
486	486	instructions for insurance premium tax report forms, and in any
487	487	notice sent to an entity concerning the requirement to file an
488	488	insurance premium tax report.
489	489	SECTION 2. Title 5, Alcoholic Beverage Code, is amended by
490	490	adding Chapter 207 to read as follows:
491	491	CHAPTER 207. TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN EDUCATIONAL
492	492	ASSISTANCE ORGANIZATIONS
493	493	Sec. 207.001. DEFINITIONS. In this chapter:
494	494	(1) "Certified educational assistance organization"
495	495	means the organization awarded a contract under Section 230.051,
496	496	Insurance Code.
497	497	(2) "Designated contribution" has the meaning
498	498	assigned by Section 230.001, Insurance Code.
499	499	(3) "Taxpayer" means a person who pays a tax under this
500	500	title.
501	501	Sec. 207.002. ELIGIBILITY. A taxpayer may apply for a
502	502	credit against taxes paid under this title in the amount and under
503	503	the conditions and limitations provided by this chapter. The
504	504	comptroller shall award credits as provided by Section 207.006.
505	505	Sec. 207.003. CONTRIBUTIONS ELIGIBLE FOR CREDIT. (a) A
506	506	taxpayer may apply for a credit under this chapter only for
507	507	designated contributions made by the taxpayer that meet the
508	508	requirements prescribed by Chapter 230, Insurance Code.
509	509	(b) A taxpayer may not apply for a credit under this chapter
510	510	for a designated contribution made to the certified educational
511	511	assistance organization if:
512	512	(1) the taxpayer requires that the contribution
513	513	benefit a particular person or school; or
514	514	(2) the contribution is directed to provide a
515	515	scholarship or educational expense assistance for the taxpayer, the
516	516	taxpayer's employee, or a spouse or dependent of the taxpayer or the
517	517	taxpayer's employee.
518	518	(c) A taxpayer shall provide written notice to the certified
519	519	educational assistance organization when the taxpayer makes a
520	520	contribution if the taxpayer may apply for a tax credit under this
521	521	chapter for the contribution. A taxpayer may not apply for a credit
522	522	for the contribution unless the taxpayer provides the notice at the
523	523	time the contribution is made. The certified educational
524	524	assistance organization shall indicate on the receipt provided
525	525	under Section 230.051(b)(1)(F), Insurance Code, that the taxpayer
526	526	provided notice under this subsection.
527	527	Sec. 207.004. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
528	528	Subject to Subsections (b) and (c), the amount of a taxpayer's
529	529	credit for a state fiscal year is equal to the lesser of:
530	530	(1) the amount of designated contributions made to the
531	531	certified educational assistance organization during the state
532	532	fiscal year; or
533	533	(2) 50 percent of the amount of taxes paid by the
534	534	taxpayer under this title during the state fiscal year.
535	535	(b) The total amount of tax credits that may be awarded for a
536	536	state fiscal year under this chapter and Chapter 230, Insurance
537	537	Code, may not exceed the amount determined under Section
538	538	230.153(b), Insurance Code.
539	539	(c) The comptroller shall allocate credits under this
540	540	chapter and Chapter 230, Insurance Code, in accordance with the
541	541	procedures prescribed by rule as required by Section 230.153(c),
542	542	Insurance Code.
543	543	(d) The comptroller may require a taxpayer to notify the
544	544	comptroller of the amount the taxpayer intends or expects to apply
545	545	for under this chapter before the beginning of a state fiscal year
546	546	or at any other time required by the comptroller.
547	547	Sec. 207.005. PRELIMINARY APPROVAL FOR CREDIT. Before
548	548	making a contribution to the certified educational assistance
549	549	organization, a taxpayer may apply to the comptroller for and the
550	550	comptroller may grant preliminary approval for a credit under this
551	551	chapter in the manner provided by Section 230.154, Insurance Code.
552	552	Sec. 207.006. APPLICATION FOR CREDIT. (a) A taxpayer must
553	553	apply for a credit under this chapter not later than December 1
554	554	following the end of the state fiscal year for which the credit is
555	555	awarded.
556	556	(b) The comptroller shall adopt a form for the application
557	557	for the credit. A taxpayer must use this form in applying for the
558	558	credit and must include with the application form each receipt
559	559	issued under Section 230.051(b)(1)(F), Insurance Code, that
560	560	includes the information required by Section 207.003(c).
561	561	(c) Subject to Section 207.004(c), the comptroller may
562	562	award a credit to a taxpayer that applies for the credit under
563	563	Subsection (a) if the taxpayer is eligible for the credit and the
564	564	credit is available under Section 207.004(b). The comptroller has
565	565	broad discretion in determining whether to grant or deny an
566	566	application for a credit.
567	567	(d) The comptroller shall notify a taxpayer in writing of
568	568	the comptroller's decision to grant or deny the application under
569	569	Subsection (a). If the comptroller denies a taxpayer's
570	570	application, the comptroller shall include in the notice of denial
571	571	the reasons for the comptroller's decision.
572	572	(e) If the comptroller denies a taxpayer's application
573	573	under Subsection (a), the taxpayer may request in writing a
574	574	reconsideration of the application not later than the 10th day
575	575	after the date the notice under Subsection (d) is received. If the
576	576	taxpayer does not request a reconsideration of the application on
577	577	or before that date, the comptroller's decision is final.
578	578	(f) A taxpayer that requests a reconsideration under
579	579	Subsection (e) may submit to the comptroller, not later than the
580	580	30th day after the date the request for reconsideration is
581	581	submitted, additional information and documents to support the
582	582	taxpayer's request for reconsideration.
583	583	(g) The comptroller's reconsideration of an application
584	584	under this section is not a contested case under Chapter 2001,
585	585	Government Code. The comptroller's decision on a request for
586	586	reconsideration of an application is final and is not appealable.
587	587	(h) This section does not create a cause of action to
588	588	contest a decision of the comptroller to deny an application for a
589	589	credit under this chapter.
590	590	Sec. 207.007. PAYMENT OF CREDIT BY WARRANT. After the
591	591	comptroller awards all credits under this chapter and Chapter 230,
592	592	Insurance Code, for a state fiscal year, the comptroller shall
593	593	issue to each taxpayer awarded a credit under this chapter a warrant
594	594	for the amount awarded.
595	595	Sec. 207.008. ASSIGNMENT PROHIBITED. A taxpayer may not
596	596	convey, assign, or transfer the credit allowed under this chapter
597	597	to another taxpayer.
598	598	Sec. 207.009. NOTICE OF AVAILABILITY OF CREDIT. The
599	599	comptroller and the commission shall provide notice of the
600	600	availability of the credit under this chapter on the comptroller's
601	601	and the commission's Internet websites, in the instructions for tax
602	602	report forms, and in any notice sent to a taxpayer concerning the
603	603	requirement to file a tax report under this title.
604	604	SECTION 3. (a) The constitutionality and other validity
605	605	under the state or federal constitution of all or any part of
606	606	Chapter 230, Insurance Code, as added by this Act, or Chapter 207,
607	607	Alcoholic Beverage Code, as added by this Act, may be determined in
608	608	an action for declaratory judgment in a district court in Travis
609	609	County under Chapter 37, Civil Practice and Remedies Code, except
610	610	that this section does not authorize an award of attorney's fees
611	611	against this state and Section 37.009, Civil Practice and Remedies
612	612	Code, does not apply to an action filed under this section. This
613	613	section does not authorize a taxpayer suit to contest the denial of
614	614	a tax credit by the comptroller of public accounts.
615	615	(b) An appeal of a declaratory judgment or order, however
616	616	characterized, of a district court, including an appeal of the
617	617	judgment of an appellate court, holding or otherwise determining
618	618	that all or any part of Chapter 230, Insurance Code, as added by
619	619	this Act, or Chapter 207, Alcoholic Beverage Code, as added by this
620	620	Act, is constitutional or unconstitutional, or otherwise valid or
621	621	invalid, under the state or federal constitution is an accelerated
622	622	appeal.
623	623	(c) If the judgment or order is interlocutory, an
624	624	interlocutory appeal may be taken from the judgment or order and is
625	625	an accelerated appeal.
626	626	(d) A district court in Travis County may grant or deny a
627	627	temporary or otherwise interlocutory injunction or a permanent
628	628	injunction on the grounds of the constitutionality or
629	629	unconstitutionality, or other validity or invalidity, under the
630	630	state or federal constitution of all or any part of Chapter 230,
631	631	Insurance Code, as added by this Act, or Chapter 207, Alcoholic
632	632	Beverage Code, as added by this Act.
633	633	(e) There is a direct appeal to the Texas Supreme Court from
634	634	an order, however characterized, of a trial court granting or
635	635	denying a temporary or otherwise interlocutory injunction or a
636	636	permanent injunction on the grounds of the constitutionality or
637	637	unconstitutionality, or other validity or invalidity, under the
638	638	state or federal constitution of all or any part of Chapter 230,
639	639	Insurance Code, as added by this Act, or Chapter 207, Alcoholic
640	640	Beverage Code, as added by this Act.
641	641	(f) The direct appeal is an accelerated appeal.
642	642	(g) This section exercises the authority granted by Section
643	643	3-b, Article V, Texas Constitution.
644	644	(h) The filing of a direct appeal under this section will
645	645	automatically stay any temporary or otherwise interlocutory
646	646	injunction or permanent injunction granted in accordance with this
647	647	section pending final determination by the Texas Supreme Court,
648	648	unless the supreme court makes specific findings that the applicant
649	649	seeking such injunctive relief has pleaded and proved that:
650	650	(1) the applicant has a probable right to the relief it
651	651	seeks on final hearing; and
652	652	(2) the applicant will suffer a probable injury that
653	653	is imminent and irreparable, and that the applicant has no other
654	654	adequate legal remedy.
655	655	(i) An appeal under this section, including an
656	656	interlocutory, accelerated, or direct appeal, is governed, as
657	657	applicable, by the Texas Rules of Appellate Procedure, including
658	658	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
659	659	38.6(a) and (b), 40.1(b), and 49.4.
660	660	SECTION 4. An entity may apply for a credit under Chapter
661	661	230, Insurance Code, as added by this Act, and a taxpayer may apply
662	662	for credit under Chapter 207, Alcoholic Beverage Code, as added by
663	663	this Act, only for an expenditure made on or after the effective
664	664	date of this Act.
665	665	SECTION 5. Not later than February 15, 2018, the
666	666	comptroller of public accounts shall adopt rules as provided by
667	667	Section 230.003(a), Insurance Code, as added by this Act.
668	668	SECTION 6. The comptroller of public accounts shall make
669	669	the initial determination of net savings and report regarding that
670	670	savings as required by Section 230.107, Insurance Code, as added by
671	671	this Act, not later than December 31, 2020, based on the state
672	672	fiscal biennium ending August 31, 2019.
673	673	SECTION 7. (a) Subchapter D, Chapter 230, Insurance Code,
674	674	as added by this Act, applies only to a report originally due on or
675	675	after the effective date of this Act.
676	676	(b) Chapter 207, Alcoholic Beverage Code, as added by this
677	677	Act, applies only to taxes originally due under Title 5, Alcoholic
678	678	Beverage Code, on or after the effective date of this Act.
679	679	SECTION 8. This Act takes effect January 1, 2018.