| 1 | 1 | | 88S40134 CJD-D |
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| 2 | 2 | | By: Thompson of Brazoria H.B. No. 29 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption for policies issued to school districts |
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| 8 | 8 | | and open-enrollment charter schools from insurance premium taxes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 203, Insurance Code, is amended by |
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| 11 | 11 | | adding Section 203.003 to read as follows: |
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| 12 | 12 | | Sec. 203.003. EXEMPTION FROM PREMIUM TAXES FOR PUBLIC |
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| 13 | 13 | | SCHOOL POLICIES. (a) Notwithstanding any other law, an insurer is |
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| 14 | 14 | | not liable for premium taxes on a policy issued to a school district |
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| 15 | 15 | | or open-enrollment charter school. |
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| 16 | 16 | | (b) To qualify for an exemption under this section, the |
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| 17 | 17 | | insurer must keep on file a form, signed and dated by an authorized |
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| 18 | 18 | | representative of the school district or open-enrollment charter |
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| 19 | 19 | | school, affirming that the policy is for a school district or |
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| 20 | 20 | | open-enrollment charter school that is eligible to receive funding |
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| 21 | 21 | | from the Foundation School Program under Chapter 48, Education |
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| 22 | 22 | | Code. |
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| 23 | 23 | | (c) The comptroller and the commissioner may adopt rules |
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| 24 | 24 | | necessary to implement this section. |
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| 25 | 25 | | SECTION 2. Section 281.006, Insurance Code, is amended by |
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| 26 | 26 | | adding Subsection (a) to read as follows: |
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| 27 | 27 | | (a) In determining an insurer's taxes or other charges under |
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| 28 | 28 | | this subchapter, the comptroller shall consider the insurer to be |
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| 29 | 29 | | liable for taxes for which an exemption is provided under Section |
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| 30 | 30 | | 203.003 as if that section did not exist. |
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| 31 | 31 | | SECTION 3. The changes in law made by this Act apply only to |
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| 32 | 32 | | a tax report originally due on or after the effective date of this |
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| 33 | 33 | | Act. |
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| 34 | 34 | | SECTION 4. This Act takes effect on the 91st day after the |
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| 35 | 35 | | last day of the legislative session. |
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