SRC-AAA S.B. 1197 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1197
By: Lucio
Economic Development
4-23-97
As Filed


DIGEST 

Currently, fiscal notes and/or public benefit-cost notes try to achieve
policy goals within a stated range.  Rules adopted with fiscal notes which
either greatly exceed or underestimate the costs associated with the
implementation of the rule are unfair to the industry.  This bill lessens
the acceptable margin of error in the fiscal notes which accompany rules
proposed by the Texas Department of Insurance and provides a mechanism by
which a rule adopted with a fiscal note projecting costs outside the
acceptable range error would be null and void on the date it is accepted. 

PURPOSE

As proposed, S.B. 1197 lessens the acceptable margin of error in the
fiscal notes which accompany rules proposed by the Texas Department of
Insurance and provides a mechanism by which a rule adopted with a fiscal
note projecting costs outside the acceptable range error would be null and
void on the date it is accepted. 

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 1.03B, Insurance Code, to provide that this
article applies to rules adopted by the commissioner of insurance in
accordance with Chapter 2001, Government Code. Provides that the rule is
void effective on the date the rule is adopted, if the fiscal note
required by Section 2001.0241, Government Code, rather than Article
6252-13a(5)(a), V.T.C.S., fails to state actual costs, and the reasonable
costs exceeds actual costs by at least 10, rather than 25, percent.
Provides that a high figure in a cost estimate shall not exceed the low
figure by 15 percent. 

SECTION 2. Severability clause.

SECTION 3. Provides that a rule not in conformity with SECTION 1 is null
and void. 

SECTION 4. Provides that this Act controls if in conflict with other laws,
rules, regulations, or provisions. 

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