LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 14, 1995



 TO:     Honorable John Smithee, Chair          IN RE:  House Bill No. 2256
         Committee on Insurance                         By: Shields
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2256 (relating to viatical settlements) this office has
determined the following:

The bill would repeal Article 3.50-6A, Insurance Code, which
assigns the regulation of viatical settlements to the Texas
Department of Insurance.  Attorney General Opinion DM-314
(January 19, 1995) concluded that the provision is an
unconstitutional delegation of authority.  The Texas Department
of Insurance is not presently enforcing Article 3.50-6A and would
not be affected by its repeal.




No fiscal implication to the State or units of local government
is anticipated.




Source:   Department of Insurance
          LBB Staff: JK, RM, RR