LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 21, 1995



 TO:     Honorable John Smithee, Chair          IN RE:  House Bill No. 2710
         Committee on Insurance                         By: Haggerty
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2710 (relating to the applicability of the Insurance Holding
Company System Regulatory Act) this office has determined the
following:

The bill would amend the Insurance Code for exemption of certain
insurance and insurance holding company systems from the
Insurance Holding Company System Regulatory Act by removing the
requirement that the commissioner affirmatively find that it is
not necessary that a holding company be regulated before granting
such an exemption.  Insurers and other entities that would become
exempt from the Act are privately owned by not more than five
security holders, each of whom must be a person.


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


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