BILL ANALYSIS


                                                         H.B. 775
                                             By: Smithee (Sibley)
                                             Economic Development
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

Article 21.33, Insurance Code, provides that a corporation could be
incorporated to transact certain types of insurance business in the
same manner prescribed by law for the incorporation of life
insurers. However, a corporation 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

As proposed, H.B. 775 repeals Article 21.33, Insurance Code
(Extension of Powers).

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. Repealer: Article 21.33, Insurance Code (Extension of
Powers).

SECTION 2. Emergency clause.
           Effective date: upon passage.