BILL ANALYSIS H.B. 1670 By: Driver (Shapiro) Economic Development 5-18-95 Senate Committee Report (Unamended) BACKGROUND The 67th Legislature passed legislation that granted an employee, officer, director, or shareholder of certain types of licensed lending institutions the right to assign commissions earned in the sale of a credit life or credit accident and health policy to the employer lending institution. The 69th Legislature then expanded the right of assignment and allowed for the compensation to be assigned to a state or federal savings and loan association or corporation. In the 72nd Legislature the right of assignment was granted to state and federal credit unions. PURPOSE As proposed, H.B. 1670 authorizes dealerships having a dealer's license issued by the Texas Department of Transportation to assign commissions, fees, or other compensation. 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. Amends Section 18, Article 21.07, Insurance Code, as follows: Sec. 18. ASSIGNMENT OF AGENT'S COMMISSIONS. (a) Created from existing text. (b) Provides that an employee, officer, director, or shareholder of a dealer who holds a dealer's general distinguishing number issued by the Texas Department of Transportation, is licensed as an agent under this article, and enters into a contract with an insurer to act as the insurer's agent in soliciting or writing policies or certificates of credit life insurance, credit accident and health insurance, or both, may assign and transfer to the dealer or any affiliate of the dealer, any commissions, fees, or other compensation to be paid to the agent under the agent's contract with the insurer. SECTION 2. Emergency clause. Effective date: upon passage.