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