83R5692 TJB-D
 
  By: Stickland H.B. No. 649
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to tax reimbursement for businesses that refuse to comply
  with certain federal health care coverage requirements based solely
  on the religious convictions of the owners of the businesses;
  authorizing tax refunds and credits.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 111, Tax Code, is amended by adding
  Subchapter H to read as follows:
  SUBCHAPTER H. BUSINESS TAX REIMBURSEMENT FOR NONCOMPLIANCE WITH
  CERTAIN FEDERAL HEALTH CARE REQUIREMENTS
         Sec. 111.401.  DEFINITION. In this chapter, "emergency
  contraception" means a drug that:
               (1)  is used postcoitally;
               (2)  prevents pregnancy by preventing fertilization of
  an egg or preventing implantation of an egg in a uterus; and
               (3)  is approved by the United States Food and Drug
  Administration.
         Sec. 111.402.  ENTITLEMENT TO TAX REFUND OR CREDIT; AMOUNT.
  (a) A qualified business is entitled to a refund of or credit
  against state sales and use taxes imposed under Chapter 151, state
  franchise taxes imposed under Chapter 171, and any other tax paid by
  the business to the state.
         (b)  The total amount of the refund or credit a qualified
  business may claim in a calendar year is equal to the lesser of:
               (1)  the amount of net state sales and use taxes,
  franchise taxes, and other state taxes paid by the business, after
  any other applicable credit, in the calendar year for which the
  refund or credit is requested; or
               (2)  the total amount of fines and penalties described
  by Section 111.403 and assessed for the reasons specified in
  Section 111.403(2) that were paid by the business in the calendar
  year for which the refund or credit is requested.
         Sec. 111.403.  QUALIFICATION FOR TAX REFUND OR CREDIT. A
  business qualifies for a tax refund or credit under this subchapter
  if:
               (1)  the business makes available to its employees a
  health benefit plan;
               (2)  the business refuses to make available as part of
  the health benefit plan coverage for emergency contraception as
  required by Section 1001(a)(5) of the federal Patient Protection
  and Affordable Care Act (42 U.S.C. Section 300gg-13), based solely
  on the religious convictions of the owners of the business;
               (3)  on or after January 1, 2013, the federal
  government assesses a fine or penalty against the business for
  failure to comply with the federal requirement described by
  Subdivision (2); and
               (4)  the business has paid the fine or penalty.
         Sec. 111.404.  PROCEDURE FOR CLAIMING REFUND OR CREDIT.  (a)  
  An application for a refund or credit must be made to the
  comptroller on a form prescribed by the comptroller.
         (b)  A qualified business must provide to the comptroller any
  information the comptroller needs to determine the validity of an
  application. The burden of establishing entitlement to and the
  value of the refund or credit is on the business.
         (c)  Except as provided by Subsection (d), a qualified
  business must apply for a refund or credit under this subchapter
  before August 1 of the year after the calendar year for which the
  business requests the refund or credit.
         (d)  If a business requests a credit against franchise taxes
  under this subchapter, the business must claim the credit on or with
  the report for the accounting period on which the report is based.
         (e)  A refund payable under this subchapter does not earn
  interest.
         Sec. 111.405.  COMPTROLLER POWERS AND DUTIES.  (a) The
  comptroller shall adopt rules and forms for the administration of
  this subchapter.
         (b)  The comptroller may conduct any audit the comptroller
  determines necessary for the enforcement or administration of this
  subchapter.
         Sec. 111.406.  EXPIRATION. This subchapter expires January
  1, 2016.
         SECTION 2.  The expiration of Subchapter H, Chapter 111, Tax
  Code, as added by this Act, does not affect a qualified business's
  right to claim a refund of or credit against state taxes that was
  established under Subchapter H, Chapter 111, Tax Code, before the
  date of expiration. A qualified business's right to claim a refund
  of or credit against state taxes that was established under
  Subchapter H, Chapter 111, Tax Code, before the date of expiration
  is governed by the law in effect on the date the right to claim the
  refund or credit was established, and the former law is continued in
  effect for that purpose.
         SECTION 3.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2013.
         (b)  Section 111.405, Tax Code, as added by this Act, takes
  effect immediately if this Act receives a vote of two-thirds of all
  the members elected to each house, as provided by Section 39,
  Article III, Texas Constitution. If this Act does not receive the
  vote necessary for that section to have immediate effect, that
  section takes effect on the 91st day after the last day of the
  legislative session.