83R10347 TJS-F
	By: Eiland	H.B. No. 2717

	A BILL TO BE ENTITLED
	AN ACT
	relating to an insurer that establishes or significantly expands
	physical operations in this state; authorizing a premium tax
	credit.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle B, Title 3, Insurance Code, is amended
	by adding Chapter 230 to read as follows:
	CHAPTER 230. PREMIUM TAX CREDIT FOR ESTABLISHING OR EXPANDING
	OPERATIONS IN THIS STATE
	Sec. 230.001.  TAX CREDIT. The commissioner, with the
	concurrence of the comptroller, may award a premium tax credit to an
	insurer or other person with premium tax liability under this code,
	as provided by this chapter, on determination that:
	(1)  the insurer has established or significantly
	expanded physical operations in this state; and
	(2)  the establishment or expansion of operations
	described by Subdivision (1) has produced a significant economic
	benefit to this state in the taxable year during which the
	establishment or expansion occurred.
	Sec. 230.002.  APPLICABLE TAXES. The tax credit under this
	chapter may be applied to premium tax liability under Chapter 221,
	222, 223, 224, or 225.
	Sec. 230.003.  APPLICATION. (a) To receive a premium tax
	credit under this chapter, an insurer must, not earlier than the
	12th month before or later than the 12th month after the activity
	that is the basis of the insurer's eligibility for the credit,
	submit an application to the commissioner and to the comptroller
	detailing the insurer's establishment or significant expansion of
	physical operations in this state, or the insurer's plan to
	establish or expand operations in this state, as applicable, that
	includes information demonstrating that taxes, fees, and other
	sources of revenue to the state associated with the establishment
	or expansion will more than offset foregone premium tax revenue
	under this chapter. The application must include information about
	the new or expanded operations, including:
	(1)  the number of new employees hired in this state;
	(2)  the purchase price or leasing costs, as
	applicable, of properties located in this state;
	(3)  the cost of improvements made to real property
	used in the operation of the business in this state;
	(4)  the anticipated wages paid to residents;
	(5)  an estimate of all new tax revenues to be paid to
	the state or a political subdivision;
	(6)  other economic benefits to the state directly
	related to the new or expanded physical operations; and
	(7)  any other evidence to be considered in determining
	whether to allow the premium tax credit.
	(b)  The commissioner may approve an application under this
	section only by an order that contains findings related to the net
	anticipated benefit to the state. The order may contain terms that
	limit or modify the insurer's plan or that condition the allowance
	of tax credits on certain subsequent events.
	(c)  An insurer that receives a premium tax credit under this
	chapter must submit to the commissioner annual filings that provide
	evidence of the insurer's compliance with any conditions provided
	by the order allowing the credit.
	Sec. 230.004.  AMOUNT OF PREMIUM TAX CREDIT. (a) An insurer
	may apply for a premium tax credit under this chapter in an amount
	not to exceed 100 percent of an investment directly related to the
	establishment or significant expansion of physical operations in
	this state.
	(b)  The credit against state premium tax liability of an
	insurer in any one year may not exceed the state premium tax
	liability of the insurer for that taxable year.
	Sec. 230.005.  TIME PERIOD; LIMITS. (a) If the commissioner
	finds that an insurer qualifies for a premium tax credit under this
	chapter, the commissioner may issue an order granting the credit in
	the amount allowed under Section 230.004 for the taxable year in
	which the premium tax credit was granted.
	(b)  The commissioner may grant to an insurer the premium tax
	credit allowed under this chapter for not more than eight taxable
	years.
	(c)  Any unused premium tax credit granted for a taxable year
	under this chapter may be carried forward by an insurer against
	state premium tax liability for not more than seven years.
	Sec. 230.006.  RECAPTURE AND FORFEITURE OF TAX CREDIT. If
	the commissioner determines that an insurer has failed to comply
	with a condition of the order issued under Section 230.003, the
	commissioner, after notice and an opportunity for hearing, shall
	issue an order requiring:
	(1)  the recapture of the premium tax credits
	previously claimed by the insurer; and
	(2)  the forfeiture by the insurer of future premium
	tax credits under this chapter.
	Sec. 230.007.  RULES; FORMS. The commissioner shall adopt
	rules and forms as necessary to implement this chapter.
	SECTION 2.  As soon as practicable after the effective date
	of this Act, the commissioner of insurance shall adopt rules and
	forms as required by Section 230.007, Insurance Code, as added by
	this Act.
	SECTION 3.  This Act takes effect September 1, 2013.