Bill Text: TX SB4 | 2015-2016 | 84th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a franchise or insurance premium tax credit for contributions made to certain educational assistance organizations; adding provisions subject to a criminal penalty.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2015-05-05 - Referred to Ways & Means [SB4 Detail]
Download: Texas-2015-SB4-Comm_Sub.html
Bill Title: Relating to a franchise or insurance premium tax credit for contributions made to certain educational assistance organizations; adding provisions subject to a criminal penalty.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2015-05-05 - Referred to Ways & Means [SB4 Detail]
Download: Texas-2015-SB4-Comm_Sub.html
By: Taylor of Galveston, Bettencourt, Campbell | S.B. No. 4 | |
(In the Senate - Filed March 13, 2015; March 16, 2015, read | ||
first time and referred to Committee on Education; April 13, 2015, | ||
reported adversely, with favorable Committee Substitute by the | ||
following vote: Yeas 8, Nays 3; April 13, 2015, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 4 | By: Taylor of Galveston |
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relating to a franchise or insurance premium tax credit for | ||
contributions made to certain educational assistance | ||
organizations; adding provisions subject to a criminal penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter K to read as follows: | ||
SUBCHAPTER K. TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN EDUCATIONAL | ||
ASSISTANCE ORGANIZATIONS | ||
Sec. 171.551. DEFINITION. In this subchapter, "educational | ||
assistance organization" means an organization that: | ||
(1) has the ability according to the organization's | ||
charter to award scholarships to or pay educational expenses for | ||
eligible students in: | ||
(A) public elementary or secondary schools | ||
located in this state; or | ||
(B) nonpublic elementary or secondary schools | ||
located in this state: | ||
(i) that meet the requirements of Section | ||
171.553; | ||
(ii) at which a student may fulfill this | ||
state's compulsory attendance requirements; and | ||
(iii) that are not in violation of the | ||
federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.); | ||
and | ||
(2) uses part of its annual revenue for the purpose | ||
provided by Subdivision (1). | ||
Sec. 171.552. ELIGIBILITY REQUIREMENTS FOR CERTIFICATION | ||
OF EDUCATIONAL ASSISTANCE ORGANIZATION. (a) An organization may | ||
apply to the comptroller for certification as a certified | ||
educational assistance organization. | ||
(b) To be eligible for certification, the organization: | ||
(1) must: | ||
(A) be exempt from federal tax under Section | ||
501(a) of the Internal Revenue Code by being listed as an exempt | ||
organization in Section 501(c)(3) of that code; | ||
(B) be in good standing with the state; | ||
(C) be located in the state; | ||
(D) allocate at least 90 percent of its annual | ||
revenue from contributions that are designated for scholarships or | ||
educational expense assistance for eligible students under this | ||
subchapter for student scholarships and assistance for educational | ||
expenses, including tuition, transportation, textbooks, and other | ||
supplies, and for other related educational expense assistance as | ||
described by this section; | ||
(E) award scholarships and assistance for | ||
qualifying educational expenses to eligible students who | ||
demonstrate the greatest financial and academic need; | ||
(F) give each donor a receipt for money | ||
contributed to the organization that includes the name of the | ||
organization, the name of the donor, the amount of the | ||
contribution, the information required by Section 171.556(c), and | ||
any other information required by the comptroller; | ||
(G) demonstrate experience and technical | ||
expertise in: | ||
(i) accepting, processing, and tracking | ||
applications for scholarships or educational expense assistance; | ||
and | ||
(ii) awarding scholarships to students in | ||
primary or secondary schools; | ||
(H) agree to be independently audited on an | ||
annual basis and file the audit with the comptroller; and | ||
(I) disburse within two academic years of receipt | ||
contributions received from and designated by taxable entities for | ||
scholarships or educational expense assistance under this | ||
subchapter; and | ||
(2) may not: | ||
(A) award all scholarships under this subchapter | ||
to students who attend a particular school or pay educational | ||
expenses incurred only at a particular school; | ||
(B) provide to a student a scholarship in an | ||
annual amount that exceeds the amount provided under Section | ||
171.557(a) or (b) unless the money used to provide the portion of | ||
the scholarship in excess of that amount was contributed by a person | ||
other than an entity that notifies the organization under Section | ||
171.556(c) that the entity may apply for a tax credit for the | ||
contribution; and | ||
(C) provide to a student educational expense | ||
assistance in excess of the amount provided under Section | ||
171.557(c) per academic year, unless the money used to provide the | ||
portion of the assistance in excess of that amount was contributed | ||
by a person other than an entity that notifies the organization | ||
under Section 171.556(c) that the entity may apply for a tax credit | ||
for the contribution, including assistance for: | ||
(i) facility fees; | ||
(ii) textbooks; | ||
(iii) school supplies; | ||
(iv) tutoring; | ||
(v) academic after-school programs; | ||
(vi) school or lab fees; | ||
(vii) before-school or after-school child | ||
care; and | ||
(viii) transportation expenses, including | ||
the cost to transfer from one public school to another. | ||
(c) The comptroller may certify not more than 25 certified | ||
educational assistance organizations. The comptroller may certify | ||
as a certified educational assistance organization an organization | ||
that applies under Subsection (a) if the organization meets the | ||
requirements of Subsection (b). The comptroller has broad | ||
discretion in determining whether to grant or deny an application | ||
for certification. | ||
(d) The comptroller shall notify an organization in writing | ||
of the comptroller's decision to grant or deny the application | ||
under Subsection (a). If the comptroller denies an organization's | ||
application, the comptroller shall include in the notice of denial | ||
the reasons for the comptroller's decision. | ||
(e) If the comptroller denies an organization's application | ||
under Subsection (a), the organization may request in writing a | ||
reconsideration of the application not later than the 10th day | ||
after the date of the notice under Subsection (d). If the | ||
organization does not request a reconsideration of the application | ||
on or before that date, the comptroller's decision is final. An | ||
organization may not request reconsideration of an application if | ||
the comptroller denied the application because 25 organizations | ||
were already certified as certified educational assistance | ||
organizations. | ||
(f) An organization that requests a reconsideration under | ||
Subsection (e) may submit to the comptroller not later than the 30th | ||
day after the date the request for reconsideration is submitted | ||
additional information and documents to support the organization's | ||
request for reconsideration. | ||
(g) The comptroller's reconsideration of an application | ||
under this section is not a contested case under Chapter 2001, | ||
Government Code. The comptroller's decision on a request for | ||
reconsideration of an application is final and is not appealable. | ||
(h) This section does not create a cause of action to | ||
contest a decision of the comptroller to deny an application for | ||
certification as a certified educational assistance organization. | ||
Sec. 171.5525. ALLOCATION OF MONEY DESIGNATED FOR | ||
SCHOLARSHIPS OR EDUCATIONAL EXPENSE ASSISTANCE. Of the amount | ||
required to be allocated as provided by Section 171.552(b)(1)(D), a | ||
certified educational assistance organization shall use: | ||
(1) at least 80 percent to award scholarships as | ||
described by Sections 171.557(a) and (b); and | ||
(2) not more than 20 percent to award educational | ||
expense assistance as described by Section 171.557(c). | ||
Sec. 171.553. NONPUBLIC SCHOOL REQUIREMENTS. A certified | ||
educational assistance organization may not award scholarships to | ||
or pay educational expenses for eligible students enrolled in a | ||
nonpublic school unless the nonpublic school executes a notarized | ||
affidavit, with supporting documents, concerning the school's | ||
qualification for scholarships and educational expense assistance | ||
for eligible students who receive assistance from a certified | ||
educational assistance organization, including evidence of: | ||
(1) accreditation or of actively being in the process | ||
of accreditation by the Texas Education Agency or by an | ||
organization recognized by the Texas Private School Accreditation | ||
Commission; | ||
(2) annual administration of a nationally | ||
norm-referenced assessment instrument or the appropriate | ||
assessment instrument required under Section 39.023, Education | ||
Code; | ||
(3) valid certificate of occupancy; and | ||
(4) policy statements regarding: | ||
(A) admissions; | ||
(B) curriculum; | ||
(C) safety; | ||
(D) food service inspection; and | ||
(E) student to teacher ratios. | ||
Sec. 171.554. ELIGIBILITY. A taxable entity may apply for a | ||
credit against the tax imposed under this chapter in the amount and | ||
under the conditions and limitations provided by this subchapter. | ||
The comptroller shall award credits as provided by Section 171.559. | ||
Sec. 171.555. ELIGIBILITY OF STUDENTS; NOTICE TO CERTAIN | ||
PARENTS; INCLUSION IN CALCULATION OF EQUALIZED WEALTH LEVEL. | ||
(a) To be eligible to apply for assistance from a certified | ||
educational assistance organization under this subchapter: | ||
(1) a student: | ||
(A) must: | ||
(i) be in foster care; | ||
(ii) be in institutional care; or | ||
(iii) have a household income not greater | ||
than 250 percent of the income guidelines necessary to qualify for | ||
the national free or reduced-price lunch program established under | ||
42 U.S.C. Section 1751 et seq.; and | ||
(B) must: | ||
(i) have been enrolled in a public school | ||
during the preceding school year; | ||
(ii) be starting school in the state for the | ||
first time; | ||
(iii) be the sibling of a student who is | ||
eligible; or | ||
(iv) if the person attends a nonpublic | ||
school: | ||
(a) qualify as a student who is not | ||
counted toward a public school's average daily attendance during | ||
the year in which the student receives the scholarship or | ||
educational expense assistance to attend the school, except as | ||
provided by Subsection (f); and | ||
(b) be located in a county with a | ||
population greater than 50,000; or | ||
(2) the student must have previously qualified under | ||
Subdivision (1). | ||
(a-1) Notwithstanding Subsection (a), a school district | ||
located in a county described by that subsection may vote at a | ||
general election to allow students to participate in the tax credit | ||
scholarship program described by this subchapter. | ||
(b) In addition to the students eligible under Subsection | ||
(a), a student is eligible to apply for assistance from a certified | ||
educational assistance organization under this subchapter if: | ||
(1) the student is in kindergarten through grade 12 | ||
and eligible under Section 29.003, Education Code, to participate | ||
in a school district's special education program; and | ||
(2) an individualized education program has been | ||
developed for the student under Section 29.005, Education Code. | ||
(c) A school district shall provide written notice of the | ||
availability of assistance under this subchapter to the parent of a | ||
student who is eligible to apply for assistance under Subsection | ||
(b). The notice under this subsection must inform the parent that a | ||
qualifying school is not subject to laws regarding the provision of | ||
education services in the same manner as a public school, and a | ||
student with disabilities attending a qualifying school may not | ||
receive the services a student with disabilities attending a public | ||
school is entitled to receive under federal and state law. The | ||
notice must provide information regarding rights a student with | ||
disabilities is entitled to under federal and state law if the | ||
student attends a public school, including: | ||
(1) rights provided under the Individuals with | ||
Disabilities Education Act (20 U.S.C. Section 1400 et seq.), | ||
including: | ||
(A) an individualized education program; | ||
(B) education services provided in the least | ||
restrictive environment; | ||
(C) instruction from certified teachers; | ||
(D) due process hearings to ensure proper and | ||
full implementation of an individualized education program; | ||
(E) transition and planning services; and | ||
(F) supplementary aids and services; | ||
(2) rights provided under Subchapter A, Chapter 29, | ||
Education Code; and | ||
(3) other rights provided under federal or state law. | ||
(d) A student who establishes eligibility under Subsection | ||
(b) may continue to receive assistance under this subchapter until | ||
the earlier of the date the student graduates from high school or | ||
the student's 22nd birthday. | ||
(e) A certified educational assistance organization shall | ||
award scholarships and educational expense assistance to eligible | ||
students who apply in accordance with this subchapter. | ||
(f) A student who receives a scholarship under this | ||
subchapter is included in the weighted average daily attendance of | ||
the school district the student would otherwise attend for purposes | ||
of determining the district's equalized wealth level under Chapter | ||
41, Education Code. | ||
Sec. 171.556. CREDIT FOR CONTRIBUTIONS. (a) A taxable | ||
entity may apply for a credit under this subchapter only for money | ||
contributed to a certified educational assistance organization and | ||
designated for scholarships or educational expense assistance for | ||
eligible students. | ||
(b) A taxable entity may not apply for a credit under this | ||
subchapter for a contribution made to a certified educational | ||
assistance organization if: | ||
(1) the taxable entity requires that the contribution | ||
benefit a particular person or school; or | ||
(2) the contribution is designated to provide a | ||
scholarship or educational expense assistance for a taxable entity | ||
employee or for a spouse or dependent of a taxable entity employee. | ||
(c) An entity shall notify a certified educational | ||
assistance organization in writing when the entity makes a | ||
contribution if the entity may apply for a tax credit under this | ||
subchapter or Chapter 230, Insurance Code, for the contribution. | ||
An entity may not apply for a credit for the contribution unless the | ||
entity provides the notification at the time the contribution is | ||
made. The certified educational assistance organization shall | ||
indicate on the receipt provided under Section 171.552(b)(1)(F) | ||
that the entity made the notification under this subsection. | ||
Sec. 171.557. LIMIT ON AMOUNT OF SCHOLARSHIP OR EDUCATIONAL | ||
EXPENSE ASSISTANCE. (a) Except as provided by Subsection (b), the | ||
maximum scholarship amount a certified educational assistance | ||
organization may award to a student under this subchapter using | ||
money contributed by an entity that notifies the organization under | ||
Section 171.556(c) that the entity may apply for a tax credit for | ||
the contribution may not exceed 75 percent of the amount of funding | ||
equal to the statewide average amount to which a school district | ||
would be entitled under the Foundation School Program under Chapter | ||
42, Education Code, for a student in average daily attendance. | ||
(b) The maximum scholarship amount under Subsection (a) may | ||
not exceed 50 percent of the statewide average amount described by | ||
Subsection (a) if the student receiving the scholarship has a | ||
household income greater than 175 percent of the income guidelines | ||
necessary to qualify for the national free or reduced-price lunch | ||
program established under 42 U.S.C. Section 1751 et seq. This | ||
subsection does not apply to a student who is eligible for | ||
assistance under Section 171.555(b) or (d). | ||
(c) The maximum educational expense assistance a certified | ||
educational assistance organization may award to a student under | ||
this subchapter using money contributed by an entity that notifies | ||
the organization under Section 171.556(c) that the entity may apply | ||
for a tax credit for the contribution may not exceed $500 for the | ||
2016 state fiscal year, increased by five percent each subsequent | ||
year. | ||
Sec. 171.558. AMOUNTS; LIMITATION ON TOTAL CREDITS. | ||
(a) Subject to Subsections (b) and (c), the amount of a taxable | ||
entity's annual credit is equal to the lesser of the amount of the | ||
qualifying contributions made by the taxable entity or 50 percent | ||
of the taxable entity's tax liability under this chapter. | ||
(b) For the 2016 state fiscal year, the total amount of tax | ||
credits that may be awarded under this subchapter and Chapter 230, | ||
Insurance Code, may not exceed $100 million. For each subsequent | ||
state fiscal year, the total amount of tax credits that may be | ||
awarded is an amount equal to 110 percent of the total amount of tax | ||
credits that may be awarded in the previous state fiscal year. | ||
(c) The comptroller by rule shall prescribe procedures by | ||
which the comptroller may allocate credits under this subchapter. | ||
The procedures must provide that credits are first allocated to | ||
taxable entities that were granted preliminary approval for a | ||
credit under Section 171.5585 in the amount that was preliminarily | ||
approved. The procedures must provide that any remaining credits | ||
are allocated on a first-come, first-served basis, based on the | ||
date the contribution was initially made. | ||
(d) The comptroller may require a taxable entity to notify | ||
the comptroller of the amount the taxable entity intends or expects | ||
to apply for under this subchapter before the beginning of a state | ||
fiscal year or at any other time required by the comptroller. | ||
Sec. 171.5585. PRELIMINARY APPROVAL FOR CREDIT. | ||
(a) Before making a contribution to a certified educational | ||
assistance organization, a taxable entity may apply to the | ||
comptroller for preliminary approval of a credit under this | ||
subchapter for the contribution. | ||
(b) A taxable entity must apply for preliminary approval of | ||
a credit on a form provided by the comptroller that includes the | ||
amount the taxable entity expects to contribute and any other | ||
information required by the comptroller. | ||
(c) The comptroller shall grant preliminary approval for | ||
credits under this subchapter and Chapter 230, Insurance Code, on a | ||
first-come, first-served basis, based on the date the application | ||
for preliminary approval is received by the comptroller. | ||
(d) The comptroller shall grant preliminary approval for a | ||
credit under this subchapter if the total amount of credits | ||
preliminarily approved under this subchapter and Chapter 230, | ||
Insurance Code, does not exceed the amount provided by Section | ||
171.558(b). | ||
(e) A credit for which the comptroller grants preliminary | ||
approval remains subject to the limitation under Section 171.558(a) | ||
and any other limitations prescribed by this subchapter. | ||
Sec. 171.559. APPLICATION FOR CREDIT. (a) A taxable | ||
entity must apply for a credit under this subchapter on or with the | ||
tax report for the period. | ||
(b) The comptroller shall adopt a form for the application | ||
for the credit. A taxable entity must use this form in applying for | ||
the credit and submit with the application the receipt issued under | ||
Section 171.552(b)(1)(F), including the information required by | ||
Section 171.556(c). | ||
(c) The comptroller may award a credit to a taxable entity | ||
that applies for the credit under Subsection (a) if the taxable | ||
entity is eligible for the credit and the credit is available under | ||
Section 171.558(b). The comptroller has broad discretion in | ||
determining whether to grant or deny an application for a credit. | ||
(d) The comptroller shall notify a taxable entity in writing | ||
of the comptroller's decision to grant or deny the application | ||
under Subsection (a). If the comptroller denies a taxable entity's | ||
application, the comptroller shall include in the notice of denial | ||
the reasons for the comptroller's decision. | ||
(e) If the comptroller denies a taxable entity's | ||
application under Subsection (a), the taxable entity may request in | ||
writing a reconsideration of the application not later than the | ||
10th day after the date of the notice under Subsection (d). If the | ||
taxable entity does not request a reconsideration of the | ||
application on or before that date, the comptroller's decision is | ||
final. | ||
(f) A taxable entity that requests a reconsideration under | ||
Subsection (e) may submit to the comptroller not later than the 30th | ||
day after the date the request for reconsideration is submitted | ||
additional information and documents to support the taxable | ||
entity's request for reconsideration. | ||
(g) The comptroller's reconsideration of an application | ||
under this section is not a contested case under Chapter 2001, | ||
Government Code. The comptroller's decision on a request for | ||
reconsideration of an application is final and is not appealable. | ||
(h) This section does not create a cause of action to | ||
contest a decision of the comptroller to deny an application for a | ||
credit under this subchapter. | ||
Sec. 171.560. RULES; PROCEDURES. (a) The comptroller | ||
shall adopt rules and procedures to implement, administer, and | ||
enforce this subchapter. | ||
(b) A rule adopted under Subsection (a) is binding on an | ||
organization that applies for certification as an educational | ||
assistance organization, a taxable entity that applies for a | ||
credit, and a state or local governmental entity, including a | ||
political subdivision, as necessary to implement, administer, and | ||
enforce this subchapter. | ||
Sec. 171.561. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable | ||
entity may not convey, assign, or transfer the credit allowed under | ||
this subchapter to another taxable entity unless all assets of the | ||
taxable entity are conveyed, assigned, or transferred in the same | ||
transaction. | ||
Sec. 171.562. REVOCATION. (a) The comptroller shall | ||
revoke a certification provided under Section 171.552 if the | ||
comptroller finds that a certified educational assistance | ||
organization: | ||
(1) is no longer eligible under Section 171.552; or | ||
(2) intentionally and substantially violates this | ||
subchapter. | ||
(b) The comptroller has broad discretion in determining | ||
whether to revoke a certification under Subsection (a). | ||
(c) The comptroller shall notify a certified educational | ||
assistance organization in writing of the comptroller's decision to | ||
revoke the organization's certification. If the comptroller | ||
revokes an organization's certification, the comptroller shall | ||
include in the notice of revocation the reasons for the revocation. | ||
(d) If the comptroller revokes a certified educational | ||
assistance organization's certification under Subsection (a), the | ||
organization may request in writing a reconsideration of the | ||
revocation not later than the 10th day after the date of the notice | ||
under Subsection (c) or the revocation is final. | ||
(e) An organization that requests a reconsideration under | ||
Subsection (d) may submit to the comptroller not later than the 30th | ||
day after the date the request for reconsideration is submitted | ||
additional information and documents to support the organization's | ||
request for reconsideration. | ||
(f) The comptroller's reconsideration of a revocation under | ||
this section is not a contested case under Chapter 2001, Government | ||
Code. The comptroller's decision on a request for reconsideration | ||
of a revocation is final and is not appealable. | ||
(g) This section does not create a cause of action to | ||
contest a decision of the comptroller to revoke a certified | ||
educational assistance organization's certification under this | ||
subchapter. | ||
(h) Revocation of a certification under this section does | ||
not affect the validity of a tax credit relating to a contribution | ||
made before the date of revocation. | ||
Sec. 171.563. REPORT OF NET SAVINGS TO PUBLIC EDUCATION. | ||
(a) In this section, "net savings" means any positive difference | ||
in a state fiscal year between: | ||
(1) the amount by which state spending on public | ||
education for that year is reduced as a result of students receiving | ||
scholarships and educational expense assistance from certified | ||
educational assistance organizations under this subchapter; and | ||
(2) the amount by which state revenue derived from | ||
this chapter and Chapter 230, Insurance Code, is reduced as a result | ||
of tax credits under this subchapter and Chapter 230, Insurance | ||
Code. | ||
(b) Not later than December 31 of each even-numbered year, | ||
the comptroller shall determine the amount of net savings for the | ||
previous state fiscal biennium and make available to the public a | ||
report of that amount of savings. | ||
Sec. 171.564. NOTICE OF AVAILABILITY OF CREDIT. The | ||
comptroller shall provide notice of the availability of the credit | ||
under this subchapter on the comptroller's Internet website, in the | ||
instructions for franchise tax report forms, and in any notice sent | ||
to a taxable entity concerning the requirement to file a franchise | ||
tax report. | ||
SECTION 2. Subtitle B, Title 3, Insurance Code, is amended | ||
by adding Chapter 230 to read as follows: | ||
CHAPTER 230. CREDIT AGAINST PREMIUM TAXES | ||
FOR CERTAIN CONTRIBUTIONS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 230.001. DEFINITIONS. In this chapter: | ||
(1) "Educational assistance organization" has the | ||
meaning assigned by Section 171.551, Tax Code. | ||
(2) "State premium tax liability" means any liability | ||
incurred by an entity under Chapters 221 through 226. | ||
SUBCHAPTER B. CREDIT | ||
Sec. 230.051. CREDIT. An entity may apply for a credit | ||
against the entity's state premium tax liability in the amount and | ||
under the conditions and limitations provided by this chapter. The | ||
comptroller shall award credits as provided by Section 230.053. | ||
Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. | ||
(a) Subject to Subsections (b) and (c), the amount of an entity's | ||
credit is equal to the lesser of the amount of the qualifying | ||
contributions made to a certified educational assistance | ||
organization or 50 percent of the entity's state premium tax | ||
liability if the contributions and the organizations that received | ||
the contributions meet the requirements prescribed by Subchapter K, | ||
Chapter 171, Tax Code. | ||
(b) For the 2016 state fiscal year, the total amount of tax | ||
credits that may be awarded under this chapter and Subchapter K, | ||
Chapter 171, Tax Code, may not exceed $100 million. For each | ||
subsequent state fiscal year, the total amount of tax credits that | ||
may be awarded is an amount equal to 110 percent of the total amount | ||
of tax credits that may be applied for in the previous state fiscal | ||
year. | ||
(c) The comptroller by rule shall prescribe procedures by | ||
which the comptroller may allocate credits under this chapter. The | ||
procedures must provide that credits are first allocated to | ||
entities that were granted preliminary approval for a credit under | ||
Section 230.0525 in the amount that was preliminarily approved. | ||
The procedures must provide that any remaining credits are | ||
allocated on a first-come, first-served basis, based on the date | ||
the contribution was initially made. | ||
(d) The comptroller may require an entity to notify the | ||
comptroller of the amount the entity intends or expects to apply for | ||
under this chapter before the beginning of a state fiscal year or at | ||
any other time required by the comptroller. | ||
Sec. 230.0525. PRELIMINARY APPROVAL FOR CREDIT. | ||
(a) Before making a contribution to a certified educational | ||
assistance organization, an entity may apply to the comptroller for | ||
preliminary approval of a credit under this chapter for the | ||
contribution. | ||
(b) An entity must apply for preliminary approval of a | ||
credit on a form provided by the comptroller that includes the | ||
amount the entity expects to contribute and any other information | ||
required by the comptroller. | ||
(c) The comptroller shall grant preliminary approval for | ||
credits under this chapter and Subchapter K, Chapter 171, Tax Code, | ||
on a first-come, first-served basis, based on the date the | ||
application for preliminary approval is received by the | ||
comptroller. | ||
(d) The comptroller shall grant preliminary approval for a | ||
credit under this chapter if the total amount of credits | ||
preliminarily approved under this chapter and Subchapter K, Chapter | ||
171, Tax Code, does not exceed the amount provided by Section | ||
230.052(b). | ||
(e) A credit for which the comptroller grants preliminary | ||
approval remains subject to the limitation under Section 230.052(a) | ||
and any other limitations prescribed by this chapter. | ||
Sec. 230.053. APPLICATION FOR CREDIT. (a) An entity must | ||
apply for a credit under this chapter on or with the tax return for | ||
the taxable year and submit with the application the receipt issued | ||
under Section 171.552(b)(1)(F), Tax Code, including the | ||
information required by Section 171.556(c), Tax Code. | ||
(b) The comptroller shall adopt a form for the application | ||
for the credit. An entity must use this form in applying for the | ||
credit. | ||
(c) The comptroller may award a credit to an entity that | ||
applies for the credit under Subsection (a) if the entity is | ||
eligible for the credit and the credit is available under Section | ||
230.052(b). The comptroller has broad discretion in determining | ||
whether to grant or deny an application for a credit. | ||
(d) The comptroller shall notify an entity in writing of the | ||
comptroller's decision to grant or deny the application under | ||
Subsection (a). If the comptroller denies an entity's application, | ||
the comptroller shall include in the notice of denial the reasons | ||
for the comptroller's decision. | ||
(e) If the comptroller denies an entity's application under | ||
Subsection (a), the entity may request in writing a reconsideration | ||
of the application not later than the 10th day after the date of the | ||
notice under Subsection (d). If the entity does not request a | ||
reconsideration of the application on or before that date, the | ||
comptroller's decision is final. | ||
(f) An entity that requests a reconsideration under | ||
Subsection (e) may submit to the comptroller not later than the 30th | ||
day after the date the request for reconsideration is submitted | ||
additional information and documents to support the entity's | ||
request for reconsideration. | ||
(g) The comptroller's reconsideration of an application | ||
under this section is not a contested case under Chapter 2001, | ||
Government Code. The comptroller's decision on a request for | ||
reconsideration of an application is final and is not appealable. | ||
(h) This section does not create a cause of action to | ||
contest a decision of the comptroller to deny an application for a | ||
credit under this chapter. | ||
Sec. 230.054. RULES; PROCEDURES. (a) The comptroller | ||
shall adopt rules and procedures to implement, administer, and | ||
enforce this chapter. | ||
(b) A rule adopted under Subsection (a) is binding on an | ||
organization that applies for certification as an educational | ||
assistance organization, an entity that applies for a credit, and a | ||
state or local governmental entity, including a political | ||
subdivision, as necessary to implement, administer, and enforce | ||
this chapter. | ||
Sec. 230.055. ASSIGNMENT PROHIBITED; EXCEPTION. An entity | ||
may not convey, assign, or transfer the credit allowed under this | ||
chapter to another entity unless all of the assets of the entity are | ||
conveyed, assigned, or transferred in the same transaction. | ||
Sec. 230.056. NOTICE OF AVAILABILITY OF CREDIT. The | ||
comptroller shall provide notice of the availability of the credit | ||
under this chapter on the comptroller's Internet website, in the | ||
instructions for insurance premium tax report forms, and in any | ||
notice sent to an entity concerning the requirement to file an | ||
insurance premium tax report. | ||
SECTION 3. (a) The constitutionality and other validity | ||
under the state or federal constitution of all or any part of | ||
Subchapter K, Chapter 171, Tax Code, or Chapter 230, Insurance | ||
Code, as added by this Act, may be determined in an action for | ||
declaratory judgment in a district court in Travis County under | ||
Chapter 37, Civil Practice and Remedies Code, except that this | ||
section does not authorize an award of attorney's fees against this | ||
state and Section 37.009, Civil Practice and Remedies Code, does | ||
not apply to an action filed under this section. This section does | ||
not authorize a taxpayer suit to contest the denial of a tax credit | ||
by the comptroller of public accounts. | ||
(b) An appeal of a declaratory judgment or order, however | ||
characterized, of a district court, including an appeal of the | ||
judgment of an appellate court, holding or otherwise determining | ||
that all or any part of Subchapter K, Chapter 171, Tax Code, or | ||
Chapter 230, Insurance Code, as added by this Act, is | ||
constitutional or unconstitutional, or otherwise valid or invalid, | ||
under the state or federal constitution is an accelerated appeal. | ||
(c) If the judgment or order is interlocutory, an | ||
interlocutory appeal may be taken from the judgment or order and is | ||
an accelerated appeal. | ||
(d) A district court in Travis County may grant or deny a | ||
temporary or otherwise interlocutory injunction or a permanent | ||
injunction on the grounds of the constitutionality or | ||
unconstitutionality, or other validity or invalidity, under the | ||
state or federal constitution of all or any part of Subchapter K, | ||
Chapter 171, Tax Code, or Chapter 230, Insurance Code, as added by | ||
this Act. | ||
(e) There is a direct appeal to the supreme court from an | ||
order, however characterized, of a trial court granting or denying | ||
a temporary or otherwise interlocutory injunction or a permanent | ||
injunction on the grounds of the constitutionality or | ||
unconstitutionality, or other validity or invalidity, under the | ||
state or federal constitution of all or any part of Subchapter K, | ||
Chapter 171, Tax Code, or Chapter 230, Insurance Code, as added by | ||
this Act. | ||
(f) The direct appeal is an accelerated appeal. | ||
(g) This section exercises the authority granted by Section | ||
3-b, Article V, Texas Constitution. | ||
(h) The filing of a direct appeal under this section will | ||
automatically stay any temporary or otherwise interlocutory | ||
injunction or permanent injunction granted in accordance with this | ||
section pending final determination by the supreme court, unless | ||
the supreme court makes specific findings that the applicant | ||
seeking such injunctive relief has pleaded and proved that: | ||
(1) the applicant has a probable right to the relief it | ||
seeks on final hearing; and | ||
(2) the applicant will suffer a probable injury that | ||
is imminent and irreparable, and that the applicant has no other | ||
adequate legal remedy. | ||
(i) An appeal under this section, including an | ||
interlocutory, accelerated, or direct appeal, is governed, as | ||
applicable, by the Texas Rules of Appellate Procedure, including | ||
Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1), | ||
38.6(a) and (b), 40.1(b), and 49.4. | ||
SECTION 4. An entity may apply for a credit under Subchapter | ||
K, Chapter 171, Tax Code, or Chapter 230, Insurance Code, as added | ||
by this Act, only for an expenditure made on or after the effective | ||
date of this Act. | ||
SECTION 5. Not later than February 15, 2016, the | ||
comptroller of public accounts shall adopt rules as provided by | ||
Section 171.560(a), Tax Code, and Section 230.054(a), Insurance | ||
Code, as added by this Act. | ||
SECTION 6. The comptroller of public accounts shall make | ||
the initial determination of net savings and report regarding that | ||
savings as required by Section 171.563, Tax Code, as added by this | ||
Act, not later than December 31, 2018, based on the state fiscal | ||
biennium ending August 31, 2017. | ||
SECTION 7. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 8. This Act takes effect January 1, 2016. | ||
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