LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 19, 1995



 TO:     Honorable John Smithee, Chair          IN RE:  House Bill No. 2072
         Committee on Insurance                         By: DeLaGarza
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2072 (relating to the licensing and regulation of public
adjusters; providing criminal penalties) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend the Insurance Code for the licensing and
regulation of public adjusters, including licensing requirements,
security requirements, continuing education, prohibited conduct
and criminal penalties.  The Department of Insurance would issue
the licenses and regulate licensee activities.

Implementation of the bill would result in revenue gains to the
State from licensing application fees.  The department estimates
that 150 public adjusters would apply for licenses during the
first year and an additional 10 would become licensed in each
subsequent year.  Figures shown in the table are based on these
estimates for an initial application fee of $250 and a renewal
fee of $75.  Greater gains would occur depending upon the number
of applications for reciprocal licenses ($1,500) and trainee
certificates ($125).

Additional workload associated with implementing the bill's
provisions would be accomplished with existing agency resources
within similar current functions.    




The probable fiscal implication of implementing the provisions of 
the bill during each of the first  five years following passage
is estimated as follows:



            Fiscal   Probable Revenue 
             Year   Gain to Department
                        Insurance     
                        Operating     
                         Fund 036     
                     GR Consolidated  
                                      
          1996                 $37,500
          1997                  13,750
                                      
          1998                  14,500
                                      
          1999                  15,250
          2000                  16,000
                                      
                                      
                                      
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Comptroller of Public Accounts, Department of Insurance
          LBB Staff: JK, RM, RR