RS H.B. 3028 75(R)    BILL ANALYSIS


INSURANCE
H.B. 3028
By: Smithee
4-16-97
Committee Report (Unamended)



BACKGROUND 

 Currently, the Texas Statutes (Article 5.73) authorizes advisory
organizations to do business in the state of Texas and require these
organizations to be reviewed periodically.  One of the most important
provisions of Article 5.73 is promoting competition in general liability,
workers' compensation, and commercial property insurance markets.  Small
Texas business owners particularly benefit by the existing classifications
systems and enhanced competition.   

PURPOSE

As proposed, H.B. 3028 will require advisory organizations to be reviewed
during the normal Sunset cycle of 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 Article 5.73 of the Insurance Code by deleting Section
4D 
relating to the select committee on rate and form regulation to be
performed by an independent consulting form. 

Sec. 5. - Is amended to provide for review by the Sunset Commission during
the review of the Department of Insurance. 

SECTION 2.  EMERGENCY CLAUSE.