Texas 2019 - 86th Regular

Texas Senate Bill SB1906 Compare Versions

Only one version of the bill is available at this time.

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1	1	86R3377 BEF-F
2	2	By: Campbell S.B. No. 1906
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an insurance premium tax credit for contributions made
8	8	to certain educational assistance organizations.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 3, Insurance Code, is amended
11	11	by adding Chapter 230 to read as follows:
12	12	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
13	13	CERTAIN EDUCATIONAL ASSISTANCE ORGANIZATIONS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 230.001. DEFINITIONS. In this chapter:
16	16	(1) "Educational assistance organization" means an
17	17	organization that:
18	18	(A) has the ability according to the
19	19	organization's charter to award scholarships to or pay educational
20	20	expenses for eligible students in:
21	21	(i) public elementary or secondary schools
22	22	located in this state; or
23	23	(ii) nonpublic elementary or secondary
24	24	schools located in this state:
25	25	(a) that meet the requirements of
26	26	Section 230.052;
27	27	(b) at which a student may fulfill
28	28	this state's compulsory attendance requirements; and
29	29	(c) that are not in violation of the
30	30	federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
31	31	and
32	32	(B) uses part of its annual revenue to award
33	33	scholarships to or pay educational expenses for primary and
34	34	secondary school students.
35	35	(2) "State premium tax liability" means any liability
36	36	incurred by an entity under Chapters 221 through 226.
37	37	(3) "Student with a disability" means a child who:
38	38	(A) has a diagnosis for a disability listed in
39	39	Section 29.003(b), Education Code; or
40	40	(B) is covered by Section 504, Rehabilitation Act
41	41	of 1973 (29 U.S.C. Section 794).
42	42	Sec. 230.002. RULES; PROCEDURES. (a) The comptroller
43	43	shall adopt rules and procedures to implement, administer, and
44	44	enforce this chapter.
45	45	(b) A rule adopted under Subsection (a) is binding on an
46	46	organization that applies for certification as an educational
47	47	assistance organization, an entity that applies for a credit, and a
48	48	state or local governmental entity, including a political
49	49	subdivision, as necessary to implement, administer, and enforce
50	50	this chapter.
51	51	SUBCHAPTER B. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE
52	52	PROGRAM
53	53	Sec. 230.051. ELIGIBILITY REQUIREMENTS FOR CERTIFICATION
54	54	OF EDUCATIONAL ASSISTANCE ORGANIZATION. (a) An organization may
55	55	apply to the comptroller for certification as a certified
56	56	educational assistance organization.
57	57	(b) To be eligible for certification, the organization:
58	58	(1) must:
59	59	(A) be exempt from federal tax under Section
60	60	501(a) of the Internal Revenue Code of 1986 by being listed as an
61	61	exempt organization in Section 501(c)(3) of that code;
62	62	(B) be in good standing with the state;
63	63	(C) be located in the state;
64	64	(D) allocate at least 90 percent of its annual
65	65	revenue from contributions that are designated for scholarships or
66	66	educational expense assistance for eligible students under this
67	67	chapter for student scholarships and assistance for educational
68	68	expenses, including tuition, transportation, textbooks, and other
69	69	supplies, and for other related educational expense assistance as
70	70	described by this section;
71	71	(E) award scholarships and assistance for
72	72	qualifying educational expenses to eligible students who
73	73	demonstrate the greatest financial and academic need;
74	74	(F) agree to give each donor a receipt for money
75	75	contributed to the organization that includes the name of the
76	76	organization, the name of the donor, the amount of the
77	77	contribution, the information required by Section 230.054(c), and
78	78	any other information required by the comptroller;
79	79	(G) demonstrate experience and technical
80	80	expertise in:
81	81	(i) accepting, processing, and tracking
82	82	applications for scholarships or educational expense assistance;
83	83	and
84	84	(ii) awarding scholarships to students in
85	85	primary or secondary schools;
86	86	(H) agree to be independently audited on an
87	87	annual basis and file the audit with the comptroller; and
88	88	(I) disburse within two academic years of receipt
89	89	contributions received from and designated by entities for
90	90	scholarships or educational expense assistance under this chapter;
91	91	and
92	92	(2) may not:
93	93	(A) award all scholarships under this chapter to
94	94	students who attend a particular school or pay educational expenses
95	95	incurred only at a particular school;
96	96	(B) provide to a student a scholarship in an
97	97	annual amount that exceeds the amount provided under Section
98	98	230.055(a) unless the money used to provide the portion of the
99	99	scholarship in excess of that amount was contributed by a person
100	100	other than an entity that notifies the organization under Section
101	101	230.054(c) that the entity may apply for a tax credit for the
102	102	contribution; and
103	103	(C) provide to a student educational expense
104	104	assistance in excess of the amount provided under Section
105	105	230.055(b) per academic year, unless the money used to provide the
106	106	portion of the assistance in excess of that amount was contributed
107	107	by a person other than an entity that notifies the organization
108	108	under Section 230.054(c) that the entity may apply for a tax credit
109	109	for the contribution, including assistance for:
110	110	(i) facility fees;
111	111	(ii) textbooks;
112	112	(iii) school supplies;
113	113	(iv) tutoring;
114	114	(v) academic after-school programs;
115	115	(vi) school or lab fees;
116	116	(vii) before-school or after-school child
117	117	care; and
118	118	(viii) transportation expenses, including
119	119	the cost to transfer from one public school to another.
120	120	(c) The comptroller may certify not more than 25 certified
121	121	educational assistance organizations. The comptroller may certify
122	122	as a certified educational assistance organization an organization
123	123	that applies under Subsection (a) if the organization meets the
124	124	requirements of Subsection (b). The comptroller has broad
125	125	discretion in determining whether to grant or deny an application
126	126	for certification.
127	127	(d) The comptroller shall notify an organization in writing
128	128	of the comptroller's decision to grant or deny the application
129	129	under Subsection (a). If the comptroller denies an organization's
130	130	application, the comptroller shall include in the notice of denial
131	131	the reasons for the comptroller's decision.
132	132	(e) If the comptroller denies an organization's application
133	133	under Subsection (a), the organization may request in writing a
134	134	reconsideration of the application not later than the 10th day
135	135	after the date of the notice under Subsection (d). If the
136	136	organization does not request a reconsideration of the application
137	137	on or before that date, the comptroller's decision is final. An
138	138	organization may not request reconsideration of an application if
139	139	the comptroller denied the application because 25 organizations
140	140	were already certified as certified educational assistance
141	141	organizations.
142	142	(f) An organization that requests a reconsideration under
143	143	Subsection (e) may submit to the comptroller not later than the 30th
144	144	day after the date the request for reconsideration is submitted
145	145	additional information and documents to support the organization's
146	146	request for reconsideration.
147	147	(g) The comptroller's reconsideration of an application
148	148	under this section is not a contested case under Chapter 2001,
149	149	Government Code. The comptroller's decision on a request for
150	150	reconsideration of an application is final and is not appealable.
151	151	(h) This section does not create a cause of action to
152	152	contest a decision of the comptroller to deny an application for
153	153	certification as a certified educational assistance organization.
154	154	Sec. 230.0515. ALLOCATION OF MONEY DESIGNATED FOR
155	155	SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount
156	156	required to be allocated as provided by Section 230.051(b)(1)(D), a
157	157	certified educational assistance organization shall use:
158	158	(1) at least 80 percent to award scholarships as
159	159	described by Sections 230.055(a); and
160	160	(2) not more than 20 percent to award educational
161	161	expense assistance as described by Section 230.055(b).
162	162	Sec. 230.052. NONPUBLIC SCHOOL REQUIREMENTS. A certified
163	163	educational assistance organization may not award scholarships to
164	164	or pay educational expenses for eligible students enrolled in a
165	165	nonpublic school unless the nonpublic school executes a notarized
166	166	affidavit, with supporting documents, concerning the school's
167	167	qualification for scholarships and educational expense assistance
168	168	for eligible students who receive assistance from a certified
169	169	educational assistance organization, including evidence of:
170	170	(1) accreditation or of actively being in the process
171	171	of accreditation by the Texas Education Agency or by an
172	172	organization recognized by the Texas Private School Accreditation
173	173	Commission;
174	174	(2) annual administration of a nationally
175	175	norm-referenced assessment instrument or the appropriate
176	176	assessment instrument required under Section 39.023, Education
177	177	Code;
178	178	(3) valid certificate of occupancy; and
179	179	(4) policy statements regarding:
180	180	(A) admissions;
181	181	(B) curriculum;
182	182	(C) safety;
183	183	(D) food service inspection; and
184	184	(E) student to teacher ratios.
185	185	Sec. 230.053. ELIGIBILITY OF STUDENTS; NOTICE TO CERTAIN
186	186	PARENTS. (a) To be eligible to apply for assistance from a
187	187	certified educational assistance organization under this chapter:
188	188	(1) a student:
189	189	(A) must:
190	190	(i) be a student with a disability; or
191	191	(ii) have a household income not greater
192	192	than 100 percent of the income guidelines necessary to qualify for
193	193	the national free or reduced-price lunch program established under
194	194	42 U.S.C. Section 1751 et seq.; and
195	195	(B) must:
196	196	(i) have been enrolled in a public school
197	197	during the preceding school year;
198	198	(ii) be starting school in the state for the
199	199	first time;
200	200	(iii) be the sibling of a student who is
201	201	eligible; or
202	202	(iv) if the person attends a nonpublic
203	203	school, qualify as a student who is not counted toward a public
204	204	school's average daily attendance during the year in which the
205	205	student receives the scholarship or educational expense assistance
206	206	to attend the school; or
207	207	(2) the student must have previously qualified under
208	208	Subdivision (1).
209	209	(b) In addition to the students eligible under Subsection
210	210	(a), a student is eligible to apply for assistance from a certified
211	211	educational assistance organization under this chapter if:
212	212	(1) the student is in kindergarten through grade 12
213	213	and eligible under Section 29.003, Education Code, to participate
214	214	in a school district's special education program; and
215	215	(2) an individualized education program has been
216	216	developed for the student under Section 29.005, Education Code.
217	217	(c) A school district shall provide written notice of the
218	218	availability of assistance under this chapter to the parent of a
219	219	student who is eligible to apply for assistance under Subsection
220	220	(b). The notice under this subsection must inform the parent that a
221	221	qualifying school is not subject to laws regarding the provision of
222	222	education services in the same manner as a public school, and a
223	223	student with disabilities attending a qualifying school may not
224	224	receive the services a student with disabilities attending a public
225	225	school is entitled to receive under federal and state law. The
226	226	notice must provide information regarding rights to which a student
227	227	with disabilities is entitled under federal and state law if the
228	228	student attends a public school, including:
229	229	(1) rights provided under the Individuals with
230	230	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
231	231	including:
232	232	(A) an individualized education program;
233	233	(B) education services provided in the least
234	234	restrictive environment;
235	235	(C) instruction from certified teachers;
236	236	(D) due process hearings to ensure proper and
237	237	full implementation of an individualized education program;
238	238	(E) transition and planning services; and
239	239	(F) supplementary aids and services;
240	240	(2) rights provided under Subchapter A, Chapter 29,
241	241	Education Code; and
242	242	(3) other rights provided under federal or state law.
243	243	(d) A student who establishes eligibility under Subsection
244	244	(b) may continue to receive assistance under this chapter until the
245	245	earlier of the date the student graduates from high school or the
246	246	student's 22nd birthday.
247	247	(e) A certified educational assistance organization shall
248	248	award scholarships and educational expense assistance to eligible
249	249	students who apply in accordance with this chapter.
250	250	Sec. 230.054. CREDIT FOR CONTRIBUTIONS. (a) An entity may
251	251	apply for a credit under this chapter only for money contributed to
252	252	a certified educational assistance organization and designated for
253	253	scholarships or educational expense assistance for eligible
254	254	students.
255	255	(b) An entity may not apply for a credit under this chapter
256	256	for a contribution made to a certified educational assistance
257	257	organization if:
258	258	(1) the entity requires that the contribution benefit
259	259	a particular person or school; or
260	260	(2) the contribution is designated to provide a
261	261	scholarship or educational expense assistance for an entity
262	262	employee or for a spouse or dependent of an entity employee.
263	263	(c) An entity shall notify a certified educational
264	264	assistance organization in writing when the entity makes a
265	265	contribution if the entity may apply for a tax credit under this
266	266	chapter for the contribution. An entity may not apply for a credit
267	267	for the contribution unless the entity provides the notification at
268	268	the time the contribution is made. The certified educational
269	269	assistance organization shall indicate on the receipt provided
270	270	under Section 230.051(b)(1)(F) that the entity made the
271	271	notification under this subsection.
272	272	Sec. 230.055. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
273	273	EXPENSE ASSISTANCE. (a) The maximum scholarship amount a
274	274	certified educational assistance organization may award to a
275	275	student under this chapter using money contributed by an entity
276	276	that notifies the organization under Section 230.054(c) that the
277	277	entity may apply for a tax credit for the contribution may not
278	278	exceed 75 percent of the amount of funding equal to the statewide
279	279	average amount to which a school district would be entitled under
280	280	the Foundation School Program under Chapter 42, Education Code, for
281	281	a student in average daily attendance.
282	282	(b) The maximum educational expense assistance a certified
283	283	educational assistance organization may award to a student under
284	284	this chapter using money contributed by an entity that notifies the
285	285	organization under Section 230.054(c) that the entity may apply for
286	286	a tax credit for the contribution may not exceed $500 for the 2020
287	287	state fiscal year, increased by five percent each subsequent year.
288	288	Sec. 230.056. REVOCATION. (a) The comptroller shall
289	289	revoke a certification provided under Section 230.051 if the
290	290	comptroller finds that a certified educational assistance
291	291	organization:
292	292	(1) is no longer eligible under Section 230.051; or
293	293	(2) intentionally and substantially violates this
294	294	chapter.
295	295	(b) The comptroller has broad discretion in determining
296	296	whether to revoke a certification under Subsection (a).
297	297	(c) The comptroller shall notify a certified educational
298	298	assistance organization in writing of the comptroller's decision to
299	299	revoke the organization's certification. If the comptroller
300	300	revokes an organization's certification, the comptroller shall
301	301	include in the notice of revocation the reasons for the revocation.
302	302	(d) If the comptroller revokes a certified educational
303	303	assistance organization's certification under Subsection (a), the
304	304	organization may request in writing a reconsideration of the
305	305	revocation not later than the 10th day after the date of the notice
306	306	under Subsection (c) or the revocation is final.
307	307	(e) An organization that requests a reconsideration under
308	308	Subsection (d) may submit to the comptroller not later than the 30th
309	309	day after the date the request for reconsideration is submitted
310	310	additional information and documents to support the organization's
311	311	request for reconsideration.
312	312	(f) The comptroller's reconsideration of a revocation under
313	313	this section is not a contested case under Chapter 2001, Government
314	314	Code. The comptroller's decision on a request for reconsideration
315	315	of a revocation is final and is not appealable.
316	316	(g) This section does not create a cause of action to
317	317	contest a decision of the comptroller to revoke a certified
318	318	educational assistance organization's certification under this
319	319	chapter.
320	320	(h) Revocation of a certification under this section does
321	321	not affect the validity of a tax credit relating to a contribution
322	322	made before the date of revocation.
323	323	Sec. 230.057. REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
324	324	(a) In this section, "net savings" means any positive difference in
325	325	a state fiscal year between:
326	326	(1) the amount by which state spending on public
327	327	education for that year is reduced as a result of students receiving
328	328	scholarships and educational expense assistance from certified
329	329	educational assistance organizations under this chapter; and
330	330	(2) the amount by which state revenue derived from
331	331	Chapters 221 through 226 is reduced as a result of tax credits under
332	332	this chapter.
333	333	(b) Not later than December 31 of each even-numbered year,
334	334	the comptroller shall determine the amount of net savings for the
335	335	previous state fiscal biennium and make available to the public a
336	336	report of that amount of savings.
337	337	SUBCHAPTER C. CREDIT
338	338	Sec. 230.101. CREDIT. An entity may apply for a credit
339	339	against the entity's state premium tax liability in the amount and
340	340	under the conditions and limitations provided by this chapter. The
341	341	comptroller shall award credits as provided by Section 230.103.
342	342	Sec. 230.102. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
343	343	Subject to Subsections (b) and (c), the amount of an entity's credit
344	344	is equal to the lesser of the amount of the qualifying contributions
345	345	made to a certified educational assistance organization or 50
346	346	percent of the entity's state premium tax liability.
347	347	(b) For the 2020 state fiscal year, the total amount of tax
348	348	credits that may be awarded under this chapter may not exceed $100
349	349	million. For each subsequent state fiscal year, the total amount of
350	350	tax credits that may be awarded is an amount equal to 110 percent of
351	351	the total amount of tax credits that may be applied for in the
352	352	previous state fiscal year.
353	353	(c) The comptroller by rule shall prescribe procedures by
354	354	which the comptroller may allocate credits under this chapter. The
355	355	procedures must provide that credits are first allocated to
356	356	entities that were granted preliminary approval for a credit under
357	357	Section 230.1025 in the amount that was preliminarily approved. The
358	358	procedures must provide that any remaining credits are allocated on
359	359	a first-come, first-served basis, based on the date the
360	360	contribution was initially made.
361	361	(d) The comptroller may require an entity to notify the
362	362	comptroller of the amount the entity intends or expects to apply for
363	363	under this chapter before the beginning of a state fiscal year or at
364	364	any other time required by the comptroller.
365	365	Sec. 230.1025. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
366	366	making a contribution to a certified educational assistance
367	367	organization, an entity may apply to the comptroller for
368	368	preliminary approval of a credit under this chapter for the
369	369	contribution.
370	370	(b) An entity must apply for preliminary approval of a
371	371	credit on a form provided by the comptroller that includes the
372	372	amount the entity expects to contribute and any other information
373	373	required by the comptroller.
374	374	(c) The comptroller shall grant preliminary approval for
375	375	credits under this chapter on a first-come, first-served basis,
376	376	based on the date the application for preliminary approval is
377	377	received by the comptroller.
378	378	(d) The comptroller shall grant preliminary approval for a
379	379	credit under this chapter if the total amount of credits
380	380	preliminarily approved under this chapter does not exceed the
381	381	amount provided by Section 230.102(b).
382	382	(e) A credit for which the comptroller grants preliminary
383	383	approval remains subject to the limitation under Section 230.102(a)
384	384	and any other limitations prescribed by this chapter.
385	385	Sec. 230.103. APPLICATION FOR CREDIT. (a) An entity must
386	386	apply for a credit under this chapter on or with the tax return for
387	387	the taxable year and submit with the application each receipt
388	388	issued under Section 230.051(b)(1)(F) that includes the
389	389	information required by Section 230.054(c).
390	390	(b) The comptroller shall adopt a form for the application
391	391	for the credit. An entity must use this form in applying for the
392	392	credit.
393	393	(c) The comptroller may award a credit to an entity that
394	394	applies for the credit under Subsection (a) if the entity is
395	395	eligible for the credit and the credit is available under Section
396	396	230.102(b). The comptroller has broad discretion in determining
397	397	whether to grant or deny an application for a credit.
398	398	(d) The comptroller shall notify an entity in writing of the
399	399	comptroller's decision to grant or deny the application under
400	400	Subsection (a). If the comptroller denies an entity's application,
401	401	the comptroller shall include in the notice of denial the reasons
402	402	for the comptroller's decision.
403	403	(e) If the comptroller denies an entity's application under
404	404	Subsection (a), the entity may request in writing a reconsideration
405	405	of the application not later than the 10th day after the date of the
406	406	notice under Subsection (d). If the entity does not request a
407	407	reconsideration of the application on or before that date, the
408	408	comptroller's decision is final.
409	409	(f) An entity that requests a reconsideration under
410	410	Subsection (e) may submit to the comptroller not later than the 30th
411	411	day after the date the request for reconsideration is submitted
412	412	additional information and documents to support the entity's
413	413	request for reconsideration.
414	414	(g) The comptroller's reconsideration of an application
415	415	under this section is not a contested case under Chapter 2001,
416	416	Government Code. The comptroller's decision on a request for
417	417	reconsideration of an application is final and is not appealable.
418	418	(h) This section does not create a cause of action to
419	419	contest a decision of the comptroller to deny an application for a
420	420	credit under this chapter.
421	421	Sec. 230.104. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
422	422	may not convey, assign, or transfer the credit allowed under this
423	423	chapter to another entity unless all of the assets of the entity are
424	424	conveyed, assigned, or transferred in the same transaction.
425	425	Sec. 230.105. NOTICE OF AVAILABILITY OF CREDIT. The
426	426	comptroller shall provide notice of the availability of the credit
427	427	under this chapter on the comptroller's Internet website, in the
428	428	instructions for insurance premium tax report forms, and in any
429	429	notice sent to an entity concerning the requirement to file an
430	430	insurance premium tax report.
431	431	SECTION 2. (a) The constitutionality and other validity
432	432	under the state or federal constitution of all or any part of
433	433	Chapter 230, Insurance Code, as added by this Act, may be determined
434	434	in an action for declaratory judgment in a district court in Travis
435	435	County under Chapter 37, Civil Practice and Remedies Code, except
436	436	that this section does not authorize an award of attorney's fees
437	437	against this state and Section 37.009, Civil Practice and Remedies
438	438	Code, does not apply to an action filed under this section. This
439	439	section does not authorize a taxpayer suit to contest the denial of
440	440	a tax credit by the comptroller of public accounts.
441	441	(b) An appeal of a declaratory judgment or order, however
442	442	characterized, of a district court, including an appeal of the
443	443	judgment of an appellate court, holding or otherwise determining
444	444	that all or any part of Chapter 230, Insurance Code, as added by
445	445	this Act, is constitutional or unconstitutional, or otherwise valid
446	446	or invalid, under the state or federal constitution is an
447	447	accelerated appeal.
448	448	(c) If the judgment or order is interlocutory, an
449	449	interlocutory appeal may be taken from the judgment or order and is
450	450	an accelerated appeal.
451	451	(d) A district court in Travis County may grant or deny a
452	452	temporary or otherwise interlocutory injunction or a permanent
453	453	injunction on the grounds of the constitutionality or
454	454	unconstitutionality, or other validity or invalidity, under the
455	455	state or federal constitution of all or any part of Chapter 230,
456	456	Insurance Code, as added by this Act.
457	457	(e) There is a direct appeal to the Texas Supreme Court from
458	458	an order, however characterized, of a trial court granting or
459	459	denying a temporary or otherwise interlocutory injunction or a
460	460	permanent injunction on the grounds of the constitutionality or
461	461	unconstitutionality, or other validity or invalidity, under the
462	462	state or federal constitution of all or any part of Chapter 230,
463	463	Insurance Code, as added by this Act.
464	464	(f) The direct appeal is an accelerated appeal.
465	465	(g) This section exercises the authority granted by Section
466	466	3-b, Article V, Texas Constitution.
467	467	(h) The filing of a direct appeal under this section will
468	468	automatically stay any temporary or otherwise interlocutory
469	469	injunction or permanent injunction granted in accordance with this
470	470	section pending final determination by the Texas Supreme Court,
471	471	unless the supreme court makes specific findings that the applicant
472	472	seeking such injunctive relief has pleaded and proved that:
473	473	(1) the applicant has a probable right to the relief it
474	474	seeks on final hearing; and
475	475	(2) the applicant will suffer a probable injury that
476	476	is imminent and irreparable, and that the applicant has no other
477	477	adequate legal remedy.
478	478	(i) An appeal under this section, including an
479	479	interlocutory, accelerated, or direct appeal, is governed, as
480	480	applicable, by the Texas Rules of Appellate Procedure, including
481	481	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
482	482	38.6(a) and (b), 40.1(b), and 49.4.
483	483	SECTION 3. An entity may apply for a credit under Chapter
484	484	230, Insurance Code, as added by this Act, only for an expenditure
485	485	made on or after the effective date of this Act.
486	486	SECTION 4. Not later than February 15, 2020, the
487	487	comptroller of public accounts shall adopt rules as provided by
488	488	Section 230.002(a), Insurance Code, as added by this Act.
489	489	SECTION 5. The comptroller of public accounts shall make
490	490	the initial determination of net savings and report regarding that
491	491	savings as required by Section 230.057, Insurance Code, as added by
492	492	this Act, not later than December 31, 2022, based on the state
493	493	fiscal biennium ending August 31, 2021.
494	494	SECTION 6. This Act applies only to a report originally due
495	495	on or after the effective date of this Act.
496	496	SECTION 7. This Act takes effect January 1, 2020.