RS H.B. 2373 75(R)    BILL ANALYSIS


INSURANCE
H.B. 2373
By: Olivo
3-24-97
Committee Report (Unamended)



BACKGROUND 

Under current laws, certain casualty insurers may increase or decrease
their capital stock only after the publication of a notice in a newspaper
of general circulation for four (4) consecutive weeks.  This is
administratively burdensome for these insurers particularly given that
these transactions must also be ratified by the majority of the insurers'
stockholders and the transactions are approved by an order of the
commissioner of insurance. 


PURPOSE
To decrease the newspaper notice requirement from four (4) consecutive
weeks to five (5) consecutive days for those casualty insurers who desire
to change their capital stock structure. This will reduce the costs of
compliance for these insurers and provide some relief from certain
burdensome requirements.  This will also decrease the amount of time
necessary to have transactions of this type completely processed by the
Texas Department of Insurance. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. - Amends articles 8.13 and 8.23, Insurance Code, to decrease
the amount of   time from four (4) weeks to five (5) consecutive days that
certain casualty     insurers must publish their notice of intent to
change their capital structure. 

SECTION 2. - The Act applies only to the publication of notice of an
increase or decrease   in the capital stock of an insurance company after
the effective date of the     Act. 

SECTION 3. - Act takes effect September 1, 1997.

SECTION 4. - Emergency Clause.