SRC-AAA S.B. 1076 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1076
By: Lucio
Economic Development
3-18-97
As Filed


DIGEST 

Currently, the Texas Department of Insurance promulgates rules which
enable the commissioner of insurance to enforce requirements of the
Holding Company Act (Act) upon exempted companies. These requirements are
burdensome and expensive for small companies.  This bill reinforces the
intent of the existing statute by specifically stating that in the event
of a conflict between Article 1.29, Insurance Code and Article 21.49-1,
Insurance Code, the latter prevails and exempts certain companies from the
provisions of the Act. 

PURPOSE

As proposed, S.B. 1076 reinforces the intent of the existing statute by
specifically stating that in the event of a conflict between Article 1.29,
Insurance Code and Article 21.49-1, Insurance Code, the latter prevails
and exempts certain companies from the provisions of the Holding Company
Act. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 1.29(2), Insurance Code, to provide that the
provisions of this article are applicable to all insurance companies
subject to regulation  by the Insurance Code, and any provision of
exemption or applicability are not in limitation, and, except as provided
by subsection (b), this article shall govern in the event of conflict.
Provides that Article 21.49-1 controls to the extent any conflict between
this article and Article 21.49-1. 

SECTION 2. Severability clause.

SECTION 3. Provides that any rule adopted by the commissioner of insurance
which is not in conformity with Section 1 of this Act shall be null and
void. 

SECTION 4. Provides that this Act control when in conflict with other laws.

SECTION 5. Emergency clause.
  Effective date: upon passage.