88S40134 CJD-D
By: Thompson of Brazoria H.B. No. 29
A BILL TO BE ENTITLED
AN ACT
relating to an exemption for policies issued to school districts
and open-enrollment charter schools from insurance premium taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 203, Insurance Code, is amended by
adding Section 203.003 to read as follows:
Sec. 203.003. EXEMPTION FROM PREMIUM TAXES FOR PUBLIC
SCHOOL POLICIES. (a) Notwithstanding any other law, an insurer is
not liable for premium taxes on a policy issued to a school district
or open-enrollment charter school.
(b) To qualify for an exemption under this section, the
insurer must keep on file a form, signed and dated by an authorized
representative of the school district or open-enrollment charter
school, affirming that the policy is for a school district or
open-enrollment charter school that is eligible to receive funding
from the Foundation School Program under Chapter 48, Education
Code.
(c) The comptroller and the commissioner may adopt rules
necessary to implement this section.
SECTION 2. Section 281.006, Insurance Code, is amended by
adding Subsection (a) to read as follows:
(a) In determining an insurer's taxes or other charges under
this subchapter, the comptroller shall consider the insurer to be
liable for taxes for which an exemption is provided under Section
203.003 as if that section did not exist.
SECTION 3. The changes in law made by this Act apply only to
a tax report originally due on or after the effective date of this
Act.
SECTION 4. This Act takes effect on the 91st day after the
last day of the legislative session.