| 1 | 1 | | By: Thompson of Brazoria H.B. No. 2366 |
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| 2 | 2 | | (Senate Sponsor - LaMantia) |
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| 3 | 3 | | (In the Senate - Received from the House May 3, 2023; |
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| 4 | 4 | | May 5, 2023, read first time and referred to Committee on Business & |
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| 5 | 5 | | Commerce; May 17, 2023, reported favorably by the following vote: |
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| 6 | 6 | | Yeas 9, Nays 0; May 17, 2023, sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | A BILL TO BE ENTITLED |
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| 11 | 11 | | AN ACT |
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| 12 | 12 | | relating to the applicability of premium and maintenance taxes to |
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| 13 | 13 | | the Texas Windstorm Insurance Association. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Section 221.001(b), Insurance Code, is amended |
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| 16 | 16 | | to read as follows: |
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| 17 | 17 | | (b) This chapter does not apply to: |
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| 18 | 18 | | (1) a fraternal benefit society, including a fraternal |
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| 19 | 19 | | benefit society operating under Chapter 885; |
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| 20 | 20 | | (2) a group hospital service corporation operating |
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| 21 | 21 | | under Chapter 842; |
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| 22 | 22 | | (3) a stipulated premium company operating under |
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| 23 | 23 | | Chapter 884; |
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| 24 | 24 | | (4) a mutual assessment association, company, or |
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| 25 | 25 | | corporation regulated under Chapter 887; |
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| 26 | 26 | | (5) a purely cooperative or mutual fire insurance |
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| 27 | 27 | | company carried on by its members solely for the protection of their |
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| 28 | 28 | | own property and not for profit, except as provided by Section |
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| 29 | 29 | | 221.002(b)(13); [or] |
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| 30 | 30 | | (6) a farm mutual insurance company operating under |
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| 31 | 31 | | Chapter 911, unless the company is acting as a fronting insurer; or |
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| 32 | 32 | | (7) the Texas Windstorm Insurance Association. |
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| 33 | 33 | | SECTION 2. Section 252.005, Insurance Code, is amended to |
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| 34 | 34 | | read as follows: |
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| 35 | 35 | | Sec. 252.005. EXCEPTION. This chapter does not apply to: |
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| 36 | 36 | | (1) a farm mutual insurance company operating under |
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| 37 | 37 | | Chapter 911, unless the company is acting as a fronting insurer as |
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| 38 | 38 | | defined by Section 221.001(c); [or] |
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| 39 | 39 | | (2) a mutual insurance company engaged in business |
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| 40 | 40 | | under Chapter 12, Title 78, Revised Statutes, before that chapter's |
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| 41 | 41 | | repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st |
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| 42 | 42 | | Called Session, 1929, as amended by Section 1, Chapter 60, General |
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| 43 | 43 | | Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that |
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| 44 | 44 | | retains the rights and privileges under the repealed law to the |
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| 45 | 45 | | extent provided by those sections; or |
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| 46 | 46 | | (3) the Texas Windstorm Insurance Association. |
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| 47 | 47 | | SECTION 3. The changes in law made by this Act do not affect |
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| 48 | 48 | | tax liability accruing before the 2023 calendar year. That |
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| 49 | 49 | | liability continues in effect as if this Act had not been enacted, |
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| 50 | 50 | | and the former law is continued in effect for the collection of |
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| 51 | 51 | | taxes due and for enforcement of the liability for those taxes. |
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| 52 | 52 | | SECTION 4. This Act takes effect September 1, 2023. |
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| 53 | 53 | | * * * * * |
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