BILL ANALYSIS



H.B. 2710
By: Haggerty
04-27-95
Committee Report (Unamended)


BACKGROUND

     Currently, the Texas Insurance Holding Company System
Regulatory Act requires that the commissioner of insurance
affirmatively find that it is not necessary that a holding company
system be regulated before granting an exemption.  The Texas
Department of Insurance estimates that the bill would automatically
exempt up to 100 insurers from the Holding Company Act.
Additionally, only two insurers have been granted an exemption from
the Holding Company Act.

PURPOSE

     The purpose of this bill is to provide an exemption in certain
holding companies where management of the holding companies where
management and ownership is basically the same.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.

Amends Section 2(r), Article 21.49-1, Insurance Code by exempting
certain holding companies comprised of five individuals or natural
persons from the provisions of the Texas Insurance Holding Company
System Regulatory Act.

SECTION 2. Emergency Clause and Effective Date

SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, H.B. 2710 was heard in a
public hearing on March 22, 1995.  The Chair laid out H.B. 2710 and
recognized Representative Haggerty to explain the bill.  The Chair
recognized the following persons testify in support of H.B. 2710: 
Carl A. Parker, Insurance Alliance of America; James L. Young,
Statesman National Life Insurance Company.

     The Chair recognized the following person to testify neutrally
on H.B. 2710:
A.W. "Woody" Pogue, Texas Department of Insurance. The Chair left
H.B. 2710 as pending business before the Committee.

     Pursuant to an announcement filed with the Journal Clerk and
read by the Reading Clerk, in accordance with House Rules, the
House Committee on Insurance met in  a formal meeting on April 27,
1995 on the House Floor.

     The Chair laid out H.B. 2710 and recognized Representative
Counts who moved the Committee report H.B. 2710 as filed to the
full House with the recommendation that it do pass, be printed, and
sent to the Committee on Local and Consent Calendars. 
Representative Shields seconded the motion and the motion prevailed
by the following vote:  AYES (8); NAYES (0); ABSENT (1); PNV (0).