HBA-DMD H.J.R. 69 76(R)BILL ANALYSIS Office of House Bill AnalysisH.J.R. 69 By: Lewis, Glenn County Affairs 10/19/1999 Enrolled BACKGROUND AND PURPOSE Before it was amended in 1986, Section 52(a), Article III of the Texas Constitution prohibited counties, cities, towns, or other political subdivisions (entity) from becoming stockholders in any association, corporation, or company. Since mutual insurance companies are corporations, and their policy holders own the insurance company, such entities were prohibited from using public funds to purchase insurance contracts or annuity contracts from mutual insurance companies. The 1986 amendment provided an exception which allows the use of public funds or credit for the payment of premiums on nonassessable life, health, and accident insurance issued by mutual insurance companies. As proposed, H.J.R. 69 requires the submission to the voters of a constitutional amendment allowing nonassessable property and casualty insurance policies to be purchased with public funds or credit. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 52(a), Article III, Texas Constitution, to include the premiums on nonassessable property and casualty insurance policies among those that are not prohibited under this section (Counties, Cities or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds) from being paid for by public funds or credit. SECTION 2. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held November 2, 1999. Sets forth the required language for the ballot.