SRC-PNG S.B. 248 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 248
76R3781 PB-DBy: Ellis
Economic Development
2/17/1999
As Filed


DIGEST 

Currently, Texas law does not provide any investment program directing
insurers to make charitable contributions or community investments.  This
bill amends the Insurance Code to provide that insurers who generate annual
written premiums of at least $2 million in Texas have an affirmative
obligation to invest in low-income communities.  This bill also requires
insurers to annually report their charitable contributions and investments
in communities to the Texas Department of Insurance. 

PURPOSE

As proposed, S.B. 248 requires community investments by certain insurers,
and the annual reporting of those and other investments by the insurers to
the Department of Insurance. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the insurance commissioner in SECTION 1
(Sec.  5, Article 21.39-C, Chapter 21E, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 21E, Insurance Code, by adding Article 21.39-C,
as follows: 

Art.  21.39-C.  COMMUNITY INVESTMENTS; REPORT

 Sec.  1.  LEGISLATIVE FINDINGS; PURPOSE.  Sets forth the findings of the
legislature  regarding investment capital.  Sets forth the purpose of this
article as increasing sound  investments by insurers in low-income
communities and providing information to the state  on investments in
low-income communities. 

 Sec.  2.  DEFINITIONS.  Defines "area median income," "insurer," and "low
income." 

 Sec.  3.  COMMUNITY INVESTMENT.  Provides that each insurer that generates
an  average annual written premium of at least $2 million in this state has
a continuing and  affirmative obligation to invest in low-income
communities. 

 Sec.  4.  REPORT.  Requires each insurer to annually report to the
Department of Insurance  certain information.  Requires the information
reported to be correct as of a certain date. 

Sec.  5.  RULES.  Requires the insurance commissioner (commissioner) to
adopt rules necessary to implement Section 3.  Requires the commissioner to
adopt rules regarding the submission of reports under this article.
Authorizes the commissioner to establish different filing dates for
different types of insurers to coordinate with required filing dates under
this code. 

 Sec.  6.  INVESTMENTS NOT AUTHORIZED.  Provides that this article does not
authorize  an insurer to make an investment not otherwise authorized by
this code. 

 Sec.  7.  PUBLIC INFORMATION.  Establishes that a report filed under this
article is public  information. 
 
SECTION 2. Effective date: September 1, 1999, except that an insurer is not
required to file an   annual report under Article 21.39-C, Insurance Code,
until January 31, 2000. 

SECTION 3. Emergency clause.