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.