BILL ANALYSIS



H.B. 775
By: Smithee
02-20-95
Committee Report (Unamended)


BACKGROUND:


     On November 29, 1994, then Texas Department of Insurance
Commissioner J. Robert Hunter submitted the Department's
legislative proposals to the House Committee on Insurance
Legislative Oversight Subcommittee.  House Bill would delete
Article 21.33 of the Insurance Code which provided that a
corporation could be incorporated to transact certain types of
insurance business (other than life, fire, marine, inland,
lightning or tornado) in the same manner and by complying with the
same requirements prescribed by law for the incorporation of life
insurers.      However, those entities could not be incorporated to
write fidelity, surety or liability insurance with capital of less
than $200,000.  Currently, other statutes for incorporation for
these entities exist.


PURPOSE

     The purpose of this bill is to repeal Article 21.33 of the
Texas Insurance Code.


RULEMAKING AUTHORITY


     It is the committee's opinion that this bill does not grant
any additional rulemaking authority to a state officer,
institution, or agency.


SECTION BY SECTION ANALYSIS


SECTION 1: Article 21.33 of the Insurance Code is repealed.

SECTION 2: Emergency Clause and Effective Date


SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, H.B. 775 was heard in a Public
Hearing on February 22, 1995.  The Chair recognized Woody Pogue
with the Texas Department of Insurance as a resource witness who
testified on H.B. 775.  No one testified in support of or in
opposition to H.B. 775.  Representative Counts moved that the full
committee adopt H.B. 775 and that it be reported favorably to the
full House with the recommendation that it do pass and be printed. 
Representative Dutton seconded the motion and the motion prevailed
by the following vote:
AYES (9), NAYES (0), PNV (0), ABSENT (0).






                               -1-