Texas 2023 - 88th Regular

Texas House Bill HB619 Compare Versions

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1	1	88R1913 CJD-D
2	2	By: Shaheen H.B. No. 619
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) "Designated contribution" means a contribution
17	17	for which an entity provides notice under Section 230.152(c).
18	18	(2) "Educational assistance organization" means an
19	19	organization that:
20	20	(A) has the ability according to the
21	21	organization's charter to award scholarships to or pay educational
22	22	expenses for eligible students in:
23	23	(i) public elementary or secondary schools
24	24	located in this state; or
25	25	(ii) nonpublic elementary or secondary
26	26	schools located in this state:
27	27	(a) that meet the requirements of
28	28	Section 230.101;
29	29	(b) at which a student may fulfill
30	30	this state's compulsory attendance requirements; and
31	31	(c) that are not in violation of the
32	32	federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.);
33	33	and
34	34	(B) uses part of its annual revenue for the
35	35	purpose provided by Paragraph (A).
36	36	(3) "Eligible nonpublic school" means a school that
37	37	meets the requirements of Section 230.101.
38	38	(4) "Net savings" means any positive difference in a
39	39	state fiscal year between:
40	40	(A) the amount by which state spending on public
41	41	education for that year is reduced as a result of students receiving
42	42	scholarships and educational expense assistance from the certified
43	43	educational assistance organization under this chapter; and
44	44	(B) the amount by which state revenue derived
45	45	from Chapters 221 through 226 is reduced as a result of credits
46	46	under this chapter.
47	47	(5) "State premium tax liability" means any liability
48	48	incurred by an entity under Chapters 221 through 226.
49	49	Sec. 230.002. TREATMENT OF CERTAIN CONTRIBUTIONS AS PROGRAM
50	50	FUNDS. (a) In this chapter, "program funds" means money
51	51	contributed to the certified educational assistance organization
52	52	in a state fiscal year for which entities are granted credits under
53	53	Subchapter D.
54	54	(b) Except as provided by Subsection (d), the certified
55	55	educational assistance organization shall treat a designated
56	56	contribution as program funds until the date the comptroller
57	57	notifies the certified educational assistance organization that
58	58	the entity that made the designated contribution:
59	59	(1) failed to apply for a credit under Section 230.155
60	60	on or with the tax report covering the period in which the
61	61	designated contribution was made; or
62	62	(2) was denied a credit under Subchapter D for the
63	63	designated contribution.
64	64	(c) The comptroller shall promptly notify the certified
65	65	educational assistance organization of a condition described by
66	66	Subsection (b).
67	67	(d) If the comptroller expects that, for a state fiscal
68	68	year, the amount of designated contributions will exceed the amount
69	69	of credits available under this chapter, the comptroller may
70	70	establish a reserve amount for the state fiscal year equal to the
71	71	estimated amount of designated contributions that will qualify as
72	72	program funds. If the comptroller establishes a reserve amount for
73	73	a state fiscal year, the certified educational assistance
74	74	organization is only required to treat as program funds an amount of
75	75	designated contributions received in the state fiscal year equal to
76	76	the reserve amount for that year.
77	77	(e) The certified educational assistance organization shall
78	78	use designated contributions treated as program funds under this
79	79	section for any purpose authorized by Subchapter C for the
80	80	expenditure of program funds.
81	81	Sec. 230.003. RULES; PROCEDURES. (a) The comptroller
82	82	shall adopt rules and procedures to implement, administer, and
83	83	enforce this chapter.
84	84	(b) A rule adopted under Subsection (a) is binding on an
85	85	organization that bids for a contract to serve as the certified
86	86	educational assistance organization, an entity that applies for a
87	87	credit, and a state or local governmental entity, including a
88	88	political subdivision, as necessary to implement, administer, and
89	89	enforce this chapter.
90	90	SUBCHAPTER B. CERTIFIED EDUCATIONAL ASSISTANCE ORGANIZATION
91	91	Sec. 230.051. CERTIFIED EDUCATIONAL ASSISTANCE
92	92	ORGANIZATION; AWARD OF CONTRACT. (a) An organization may submit a
93	93	bid to the comptroller for a contract to serve as the certified
94	94	educational assistance organization during a bidding period
95	95	established by the comptroller.
96	96	(b) To be eligible for a contract awarded under this
97	97	section, an organization:
98	98	(1) must:
99	99	(A) be exempt from federal tax under Section
100	100	501(a) of the Internal Revenue Code of 1986 by being listed as an
101	101	exempt organization in Section 501(c)(3) of that code;
102	102	(B) be in good standing with the state;
103	103	(C) be located in the state;
104	104	(D) agree to allocate at least 90 percent of
105	105	program funds in the manner provided by Section 230.106;
106	106	(E) agree to award scholarships and assistance
107	107	for qualifying educational expenses to eligible students who
108	108	demonstrate the greatest financial and academic need;
109	109	(F) agree to provide each donor a receipt for
110	110	money contributed to the organization that includes the name of the
111	111	donor, the amount of the contribution, the information required by
112	112	Section 230.152(c), and any other information required by the
113	113	comptroller;
114	114	(G) demonstrate experience and technical
115	115	expertise in:
116	116	(i) accepting, processing, and tracking
117	117	applications for scholarships or educational expense assistance;
118	118	and
119	119	(ii) awarding scholarships to students in
120	120	primary or secondary schools;
121	121	(H) agree to be independently audited on an
122	122	annual basis and file the audit with the comptroller; and
123	123	(I) agree to disburse program funds within two
124	124	academic years of receipt; and
125	125	(2) may not:
126	126	(A) establish eligibility requirements, other
127	127	than the requirements under Section 230.102, for scholarships or
128	128	educational expense assistance paid from program funds;
129	129	(B) provide to a student a scholarship in an
130	130	annual amount that exceeds the amount provided under Section
131	131	230.104(a) or (b) unless the money used to provide the portion of
132	132	the scholarship in excess of that amount is not program funds; or
133	133	(C) provide to a student educational expense
134	134	assistance in excess of the amount provided under Section
135	135	230.104(c), unless the money used to provide the portion of the
136	136	assistance in excess of that amount is not program funds.
137	137	(c) The comptroller may contract with only one certified
138	138	educational assistance organization at any time. The comptroller
139	139	shall select a successful bidder from among the organizations that
140	140	submit a bid under Subsection (a) and meet the requirements of
141	141	Subsection (b) and shall award to that bidder a contract to serve as
142	142	the certified educational assistance organization. The
143	143	comptroller has broad discretion in awarding the certified
144	144	educational assistance organization contract.
145	145	(d) The comptroller shall notify all organizations that
146	146	submit a bid under Subsection (a) of the comptroller's selection
147	147	under Subsection (c).
148	148	(e) The comptroller shall attempt to maintain one certified
149	149	educational assistance organization at all times. The comptroller
150	150	shall establish a bidding period under Subsection (a) as soon as
151	151	practicable after the comptroller learns there is, or is likely to
152	152	be, a vacancy for the certified educational assistance
153	153	organization.
154	154	(f) The comptroller's selection under Subsection (c) is
155	155	final and is not appealable.
156	156	Sec. 230.052. TERMINATION OF CONTRACT. (a) A contract
157	157	between the comptroller and a certified educational assistance
158	158	organization entered into under Section 230.051 must include
159	159	provisions regarding termination of the contract that are
160	160	consistent with the requirements of this section.
161	161	(b) The comptroller shall terminate a contract under
162	162	Section 230.051 if the comptroller finds that the certified
163	163	educational assistance organization:
164	164	(1) is no longer eligible under Section 230.051; or
165	165	(2) intentionally and substantially violates this
166	166	chapter.
167	167	(c) The comptroller has broad discretion in determining
168	168	whether to terminate a contract under Subsection (b).
169	169	(d) The comptroller shall notify the certified educational
170	170	assistance organization in writing of the comptroller's decision to
171	171	terminate the organization's contract. The comptroller shall
172	172	include in the notice of termination the reasons for the proposed
173	173	termination.
174	174	(e) If the comptroller notifies the certified educational
175	175	assistance organization of the proposed termination of the
176	176	organization's contract, the organization may request in writing a
177	177	reconsideration of the proposed termination not later than the 10th
178	178	day after the date the notice under Subsection (d) is received. If
179	179	the organization does not request a reconsideration of the proposed
180	180	termination on or before that date, the termination is final.
181	181	(f) An organization that requests a reconsideration under
182	182	Subsection (e) may submit to the comptroller, not later than the
183	183	30th day after the date the request for reconsideration is
184	184	submitted, additional information and documents to support the
185	185	organization's request for reconsideration.
186	186	(g) The comptroller's reconsideration of a proposed
187	187	termination under this section is not a contested case under
188	188	Chapter 2001, Government Code. The comptroller's decision on a
189	189	request for reconsideration of a proposed termination is final and
190	190	is not appealable.
191	191	(h) Termination of a contract under this section does not
192	192	affect the validity of a credit relating to a designated
193	193	contribution made before the date of termination.
194	194	SUBCHAPTER C. SCHOLARSHIP AND EDUCATIONAL EXPENSE ASSISTANCE
195	195	PROGRAM
196	196	Sec. 230.101. ELIGIBILITY OF NONPUBLIC SCHOOLS. The
197	197	certified educational assistance organization may award
198	198	scholarships to or pay educational expenses for eligible students
199	199	enrolled in a nonpublic school if the nonpublic school executes a
200	200	notarized affidavit, with supporting documents, concerning the
201	201	school's qualification for scholarships and educational expense
202	202	assistance for eligible students who receive assistance from the
203	203	certified educational assistance organization, including evidence
204	204	of:
205	205	(1) accreditation by the Texas Education Agency or by
206	206	an organization recognized by the Texas Private School
207	207	Accreditation Commission;
208	208	(2) annual administration of a nationally
209	209	norm-referenced assessment instrument or the appropriate
210	210	assessment instrument required under Section 39.023, Education
211	211	Code;
212	212	(3) valid certificate of occupancy; and
213	213	(4) policy statements regarding:
214	214	(A) admissions;
215	215	(B) curriculum;
216	216	(C) safety;
217	217	(D) food service inspection; and
218	218	(E) student to teacher ratios.
219	219	Sec. 230.102. ELIGIBILITY OF STUDENTS. (a) A student is
220	220	eligible to apply to the certified educational assistance
221	221	organization for a scholarship or educational expense assistance
222	222	paid from program funds if the student was enrolled in a public
223	223	school during the entire preceding school year or is enrolling in
224	224	school in this state for the first time and the student:
225	225	(1) is in foster care;
226	226	(2) is in institutional care;
227	227	(3) has a parent who is on active duty in the military;
228	228	(4) resides in a household with income not greater
229	229	than 200 percent of the income guidelines necessary to qualify for
230	230	the national free or reduced-price lunch program established under
231	231	42 U.S.C. Section 1751 et seq.;
232	232	(5) is the sibling of a child who is eligible to apply
233	233	under this section;
234	234	(6) previously qualified to apply under this section;
235	235	or
236	236	(7) is in kindergarten through grade 12, is eligible
237	237	under Section 29.003, Education Code, to participate in a school
238	238	district's special education program, and has an individualized
239	239	education program under Section 29.005, Education Code.
240	240	(b) A student who establishes eligibility under Subsection
241	241	(a)(7) may continue to receive assistance under this chapter until
242	242	the earlier of the date the student graduates from high school or
243	243	the student's 22nd birthday.
244	244	(c) The certified educational assistance organization shall
245	245	award scholarships and educational expense assistance to eligible
246	246	students who apply in accordance with this chapter.
247	247	Sec. 230.103. NOTICE TO CERTAIN PARENTS. A school district
248	248	shall provide written notice of the availability of assistance
249	249	under this chapter to the parent of a student who is eligible to
250	250	apply for assistance under Section 230.102(a)(7). The notice must
251	251	inform the parent:
252	252	(1) that an eligible nonpublic school is not subject
253	253	to laws regarding the provision of education services in the same
254	254	manner as a public school;
255	255	(2) that a student with a disability attending an
256	256	eligible nonpublic school may not receive the services a student
257	257	with a disability attending a public school is entitled to receive
258	258	under federal and state law;
259	259	(3) of the rights provided under the Individuals with
260	260	Disabilities Education Act (20 U.S.C. Section 1400 et seq.),
261	261	including:
262	262	(A) an individualized education program;
263	263	(B) education services provided in the least
264	264	restrictive environment;
265	265	(C) instruction from certified teachers;
266	266	(D) due process hearings to ensure proper and
267	267	full implementation of an individualized education program;
268	268	(E) transition and planning services; and
269	269	(F) supplementary aids and services;
270	270	(4) of the rights provided under Subchapter A, Chapter
271	271	29, Education Code; and
272	272	(5) of any other rights provided under federal or
273	273	state law to a student with a disability who attends a public
274	274	school.
275	275	Sec. 230.104. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL
276	276	EXPENSE ASSISTANCE. (a) Except as provided by Subsection (b), the
277	277	maximum scholarship amount the certified educational assistance
278	278	organization may award to a student under this chapter paid from
279	279	program funds may not exceed 75 percent of the state average
280	280	maintenance and operations expenditures per student in average
281	281	daily attendance for the preceding state fiscal year.
282	282	(b) The maximum scholarship amount under Subsection (a) may
283	283	not exceed 50 percent of the state average maintenance and
284	284	operations expenditures per student in average daily attendance for
285	285	the preceding state fiscal year if the student receiving the
286	286	scholarship resides in a household with income greater than 175
287	287	percent of the income guidelines necessary to qualify for the
288	288	national free or reduced-price lunch program established under 42
289	289	U.S.C. Section 1751 et seq. This subsection does not apply to a
290	290	student who is eligible for assistance under Section 230.102(a)(7)
291	291	or (b).
292	292	(c) The maximum educational expense assistance the
293	293	certified educational assistance organization may award to a
294	294	student under this chapter paid from program funds may not exceed
295	295	$750 for the 2024 state fiscal year, increased by five percent each
296	296	subsequent year.
297	297	Sec. 230.105. QUALIFIED EDUCATIONAL EXPENSES. (a) Except
298	298	as provided by Subsection (c), the scholarship amount described by
299	299	Section 230.104(a) or (b) may be used only to pay for the following
300	300	qualified educational expenses incurred by the student awarded the
301	301	scholarship who attends an eligible nonpublic school:
302	302	(1) tuition;
303	303	(2) transportation;
304	304	(3) textbooks;
305	305	(4) tutoring;
306	306	(5) academic after-school programs;
307	307	(6) instructional supplies required by the school;
308	308	(7) school or lab fees;
309	309	(8) before-school or after-school child care; and
310	310	(9) uniforms.
311	311	(b) Except as provided by Subsection (c), the educational
312	312	expense assistance amount described by Section 230.104(c) may be
313	313	used only to pay for the following qualified educational expenses
314	314	incurred by the student awarded the educational expense assistance:
315	315	(1) facility fees;
316	316	(2) transportation expenses, including the cost to
317	317	transfer from one public school to another;
318	318	(3) textbooks;
319	319	(4) tutoring;
320	320	(5) academic after-school programs;
321	321	(6) instructional supplies required by the school;
322	322	(7) school or lab fees; and
323	323	(8) before-school or after-school child care.
324	324	(c) In addition to the expenses described by Subsections (a)
325	325	and (b), the scholarship or educational expense assistance amount
326	326	awarded to a student eligible under Section 230.102(a)(7) or (b)
327	327	may be used to pay for the following qualified educational
328	328	expenses:
329	329	(1) educational therapies from a licensed or
330	330	accredited practitioner or provider;
331	331	(2) a licensed or accredited paraprofessional or
332	332	educational aide;
333	333	(3) tuition for vocational and life skills education;
334	334	and
335	335	(4) associated services that include educational and
336	336	psychological evaluations, assistive technology rentals, and
337	337	translation services.
338	338	Sec. 230.106. ALLOCATION OF PROGRAM FUNDS. Of the program
339	339	funds required to be allocated as provided by Section
340	340	230.051(b)(1)(D), the certified educational assistance
341	341	organization shall use:
342	342	(1) at least 80 percent to award scholarships
343	343	described by Sections 230.104(a) and (b); and
344	344	(2) not more than 20 percent to award educational
345	345	expense assistance as described by Section 230.104(c).
346	346	Sec. 230.107. REPORT OF NET SAVINGS TO PUBLIC EDUCATION.
347	347	Not later than December 31 of each even-numbered year, the
348	348	comptroller shall determine the amount of net savings for the
349	349	previous state fiscal biennium and make available to the public a
350	350	report of that amount of savings.
351	351	SUBCHAPTER D. CREDIT
352	352	Sec. 230.151. CREDIT. An entity may apply for a credit
353	353	against the entity's state premium tax liability in the amount and
354	354	under the conditions provided by this chapter. The comptroller
355	355	shall award credits as provided by Section 230.155.
356	356	Sec. 230.152. CONTRIBUTIONS ELIGIBLE FOR CREDIT. (a) An
357	357	entity may apply for a credit under this chapter only for designated
358	358	contributions made by the entity.
359	359	(b) An entity may not apply for a credit under this chapter
360	360	for a designated contribution made to the certified educational
361	361	assistance organization if:
362	362	(1) the entity requires that the contribution benefit
363	363	a particular person or school; or
364	364	(2) the contribution is directed to provide a
365	365	scholarship or educational expense assistance for an entity
366	366	employee or for a spouse or dependent of an entity employee.
367	367	(c) An entity shall provide written notice to the certified
368	368	educational assistance organization when the entity makes a
369	369	contribution if the entity may apply for a credit under this chapter
370	370	for the contribution. An entity may not apply for a credit for the
371	371	contribution unless the entity provides the notice at the time the
372	372	contribution is made. The certified educational assistance
373	373	organization shall indicate on the receipt provided under Section
374	374	230.051(b)(1)(F) that the entity provided notice under this
375	375	subsection.
376	376	Sec. 230.153. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
377	377	Subject to Subsections (b) and (c), the amount of an entity's credit
378	378	is equal to the lesser of:
379	379	(1) the amount of designated contributions made to the
380	380	certified educational assistance organization during the period
381	381	covered by the tax report; or
382	382	(2) 50 percent of the entity's state premium tax
383	383	liability for the report.
384	384	(b) For the 2024 state fiscal year, the total amount of
385	385	credits that may be awarded under this chapter may not exceed $100
386	386	million. For each subsequent state fiscal year, the total amount of
387	387	credits that may be awarded is an amount equal to 110 percent of the
388	388	total amount of credits that may be awarded in the previous state
389	389	fiscal year.
390	390	(c) The comptroller by rule shall prescribe procedures by
391	391	which the comptroller may allocate credits under this chapter. The
392	392	procedures must provide that:
393	393	(1) credits are allocated first to entities that
394	394	received preliminary approval under Section 230.154 and that apply
395	395	under Section 230.155; and
396	396	(2) any credits remaining after the allocation under
397	397	Subdivision (1) are allocated to entities that apply under Section
398	398	230.155 on a first-come, first-served basis, based on the date the
399	399	designated contribution was initially made.
400	400	(d) The comptroller may require an entity to notify the
401	401	comptroller of the amount the entity intends or expects to apply for
402	402	under this chapter before the beginning of a state fiscal year or at
403	403	any other time required by the comptroller.
404	404	Sec. 230.154. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
405	405	making a contribution to the certified educational assistance
406	406	organization, an entity may apply to the comptroller for
407	407	preliminary approval for a credit under this chapter for the
408	408	contribution.
409	409	(b) An entity must apply for preliminary approval on a form
410	410	provided by the comptroller that includes the amount the entity
411	411	expects to contribute and any other information the comptroller
412	412	requires.
413	413	(c) The comptroller shall grant preliminary approval for
414	414	credits under this chapter on a first-come, first-served basis,
415	415	based on the date the comptroller receives the application for
416	416	preliminary approval.
417	417	(d) The comptroller shall grant preliminary approval for a
418	418	credit under this chapter for a state fiscal year if the sum of the
419	419	amount of the credit and the total amount of all other credits
420	420	preliminarily approved for that state fiscal year does not exceed
421	421	the amount provided by Section 230.153(b).
422	422	(e) Final award of a credit preliminarily approved under
423	423	this section remains subject to the limitations under Section
424	424	230.153 and all other requirements of this chapter.
425	425	Sec. 230.155. APPLICATION FOR CREDIT. (a) An entity must
426	426	apply for a credit under this chapter on or with the tax report
427	427	covering the period in which the designated contribution was made.
428	428	(b) The comptroller shall adopt a form for the application
429	429	for the credit. An entity must use this form in applying for the
430	430	credit and must include with the application form each receipt
431	431	provided under Section 230.051(b)(1)(F) that includes the
432	432	information required by Section 230.152(c).
433	433	(c) Subject to Section 230.153(c), the comptroller may
434	434	award a credit to an entity that applies for the credit under
435	435	Subsection (a) if the entity is eligible for the credit and the
436	436	credit is available under Section 230.153(b). The comptroller has
437	437	broad discretion in determining whether to grant or deny an
438	438	application for a credit.
439	439	(d) The comptroller shall notify an entity in writing of the
440	440	comptroller's decision to grant or deny the application under
441	441	Subsection (a). If the comptroller denies an entity's application,
442	442	the comptroller shall include in the notice of denial the reasons
443	443	for the comptroller's decision.
444	444	(e) If the comptroller denies an entity's application under
445	445	Subsection (a), the entity may request in writing a reconsideration
446	446	of the application not later than the 10th day after the date the
447	447	notice under Subsection (d) is received. If the entity does not
448	448	request a reconsideration of the application on or before that
449	449	date, the comptroller's decision is final.
450	450	(f) An entity that requests a reconsideration under
451	451	Subsection (e) may submit to the comptroller, not later than the
452	452	30th day after the date the request for reconsideration is
453	453	submitted, additional information and documents to support the
454	454	entity's request for reconsideration.
455	455	(g) The comptroller's reconsideration of an application
456	456	under this section is not a contested case under Chapter 2001,
457	457	Government Code. The comptroller's decision on a request for
458	458	reconsideration of an application is final and is not appealable.
459	459	(h) This section does not create a cause of action to
460	460	contest a decision of the comptroller to deny an application for a
461	461	credit under this chapter.
462	462	Sec. 230.156. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
463	463	may not convey, assign, or transfer the credit allowed under this
464	464	chapter to another entity unless all of the assets of the entity are
465	465	conveyed, assigned, or transferred in the same transaction.
466	466	Sec. 230.157. NOTICE OF AVAILABILITY OF CREDIT. The
467	467	comptroller shall provide notice of the availability of the credit
468	468	under this chapter on the comptroller's Internet website, in the
469	469	instructions for insurance premium tax report forms, and in any
470	470	notice sent to an entity concerning the requirement to file an
471	471	insurance premium tax report.
472	472	SECTION 2. (a) The constitutionality and other validity
473	473	under the state or federal constitution of all or any part of
474	474	Chapter 230, Insurance Code, as added by this Act, may be determined
475	475	in an action for declaratory judgment in a district court in Travis
476	476	County under Chapter 37, Civil Practice and Remedies Code, except
477	477	that this section does not authorize an award of attorney's fees
478	478	against this state and Section 37.009, Civil Practice and Remedies
479	479	Code, does not apply to an action filed under this section. This
480	480	section does not authorize a taxpayer suit to contest the denial of
481	481	a credit by the comptroller of public accounts.
482	482	(b) An appeal of a declaratory judgment or order, however
483	483	characterized, of a district court, including an appeal of the
484	484	judgment of an appellate court, holding or otherwise determining
485	485	that all or any part of Chapter 230, Insurance Code, as added by
486	486	this Act, is constitutional or unconstitutional, or otherwise valid
487	487	or invalid, under the state or federal constitution is an
488	488	accelerated appeal.
489	489	(c) If the judgment or order is interlocutory, an
490	490	interlocutory appeal may be taken from the judgment or order and is
491	491	an accelerated appeal.
492	492	(d) A district court in Travis County may grant or deny a
493	493	temporary or otherwise interlocutory injunction or a permanent
494	494	injunction on the grounds of the constitutionality or
495	495	unconstitutionality, or other validity or invalidity, under the
496	496	state or federal constitution of all or any part of Chapter 230,
497	497	Insurance Code, as added by this Act.
498	498	(e) There is a direct appeal to the Texas Supreme Court from
499	499	an order, however characterized, of a trial court granting or
500	500	denying a temporary or otherwise interlocutory injunction or a
501	501	permanent injunction on the grounds of the constitutionality or
502	502	unconstitutionality, or other validity or invalidity, under the
503	503	state or federal constitution of all or any part of Chapter 230,
504	504	Insurance Code, as added by this Act.
505	505	(f) The direct appeal is an accelerated appeal.
506	506	(g) This section exercises the authority granted by Section
507	507	3-b, Article V, Texas Constitution.
508	508	(h) The filing of a direct appeal under this section will
509	509	automatically stay any temporary or otherwise interlocutory
510	510	injunction or permanent injunction granted in accordance with this
511	511	section pending final determination by the Texas Supreme Court,
512	512	unless the supreme court makes specific findings that the applicant
513	513	seeking such injunctive relief has pleaded and proved that:
514	514	(1) the applicant has a probable right to the relief it
515	515	seeks on final hearing; and
516	516	(2) the applicant will suffer a probable injury that
517	517	is imminent and irreparable, and that the applicant has no other
518	518	adequate legal remedy.
519	519	(i) An appeal under this section, including an
520	520	interlocutory, accelerated, or direct appeal, is governed, as
521	521	applicable, by the Texas Rules of Appellate Procedure, including
522	522	Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
523	523	38.6(a) and (b), 40.1(b), and 49.4.
524	524	SECTION 3. An entity may apply for a credit under Chapter
525	525	230, Insurance Code, as added by this Act, only for an expenditure
526	526	made on or after the effective date of this Act.
527	527	SECTION 4. Not later than February 15, 2024, the
528	528	comptroller of public accounts shall adopt rules as provided by
529	529	Section 230.003(a), Insurance Code, as added by this Act.
530	530	SECTION 5. The comptroller of public accounts shall make
531	531	the initial determination of net savings and report regarding that
532	532	savings as required by Section 230.107, Insurance Code, as added by
533	533	this Act, not later than December 31, 2026, based on the state
534	534	fiscal biennium ending August 31, 2025.
535	535	SECTION 6. This Act applies only to a report originally due
536	536	on or after the effective date of this Act.
537	537	SECTION 7. This Act takes effect January 1, 2024.