BWH C.S.H.B. 2736 75(R)    BILL ANALYSIS


COUNTY AFFAIRS
C.S.H.B. 2736
By: Uher
5-12-97
Committee Report (Substituted)



BACKGROUND 

Current insurance law provides a notice of change in policy to the policy
holder prior to implementation.   C.S.H.B. 2736 would require the Texas
Association of Counties, a quasigovernmental entity that offers risk pool
management, to comply with insurance industry standards by providing
written notice of a change in policy to all affected counties.    

PURPOSE  

 C.S.H.B. 2736 provides for adequate notice to a risk pool policy holder
of any change in policy and establishes education requirements for risk
pool administrators. 

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 Chapter 119, Local Government Code, by adding
Sections 119.012 and 119.013 which requires the county judge or presiding
officer of the governing body provides policy holders with 60 day advance
written notice of any change in liability coverage and establishes
education requirements for risk pool administrators.    

SECTION  2.  Act is prospectively applied.
 
SECTION  3.  Act is prospectively applied. 

SECTION  4.   Effective Date.

SECTION  5.   Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill provided oversight authority and required an annual
financial report to be filed with the Office of the Governor.  The
substitute provides for a 60 day advance written notice of change in
liability coverage.