BILL ANALYSIS


                                                        H.B. 2710
                                             By: Haggerty (Lucio)
                                             Economic Development
                                                          5-23-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, the Texas Insurance Holding Company System Regulatory
Act requires the commissioner of insurance to affirmatively find
that it is not necessary for a holding company to be regulated
before granting an exemption.  Only two insurers have been granted
an exemption from the Holding Company Act.

PURPOSE

As proposed, H.B. 2710 deletes language prohibiting Article 21.49-1
from applying to any insurance holding company system if the
commissioner of insurance (commissioner) has found that it is not
necessary that the holding company system be regulated under this
article and has issued a total or partial exemption certificate to
the holding company that is effective until revoked by the
commissioner.

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 2(r), Article 21.49-1, Insurance Code,
to delete language prohibiting this article from applying to any
insurance holding company system if the commissioner of insurance
(commissioner) has found that it is not necessary that the holding
company system be regulated under this article or certain
provisions of this article and has issued a total or partial
exemption certificate to the holding company that is effective
until revoked by the commissioner.

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