SRC-AXB H.J.R. 69 76(R)   BILL ANALYSIS


Senate Research Center   H.J.R. 69
76R7981  DB-FBy: Lewis, Glenn (Harris)
Intergovernmental Relations
5/11/1999
Engrossed


DIGEST 

Currently, political subdivisions are allowed to buy most insurance
policies from mutual insurance companies, except for property and casualty
lines, although not nonassessable property and casualty policies.  If it
were possible to purchase such insurance policies from mutual insurance
companies, competitive bidding could reduce the cost of buying policies for
taxpayers.  H.J.R. 69 requires the submission to the voters of a
constitutional amendment to permit a political subdivision to purchase
certain nonassessable insurance from an authorized mutual insurance company
in the same manner that other insurance is purchased. 

PURPOSE

As proposed, H.J.R. 69 requires the submission to the voters of a
constitutional amendment to permit a political subdivision to purchase
certain nonassessable insurance from an authorized mutual insurance company
in the same manner that other insurance is purchased. 

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 Section 52(a), Article III, Texas Constitution, to allow
property and casualty insurance policy premiums to be paid through public
funds or credits. 

SECTION 2.   Requires this constitutional amendment to be submitted to the
voters at an election to be held on November 2, 1999.  Sets forth the
required language for the ballot.