| TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1958 by Smithee (Relating to revenue bond program and procedures for certain residential property insurance.), As Introduced |
The Texas Public Finance Authority (TPFA) would be required to complete bond issues and be primarily responsible for administration of the debt. The Bond Review Board indicates the debt service would be paid by a surcharge assessed on insurers and the Fair Access to Insurance Requirement (FAIR) Plan Association, and the state would not be liable for the bonds. The TPFA indicates any costs associated with the bill could be absorbed within existing resources.
The Texas Department of Insurance indicates that an actuary would have to determine the amount of surcharge each year and the agency would assist with rules and provide information relating to the FAIR Plan as needed. Both could be accomplished with existing resources.
| Source Agencies: | 304 Comptroller of Public Accounts, 347 Public Finance Authority, 352 Bond Review Board, 454 Department of Insurance
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| LBB Staff: | JK, JRO, RT, RB
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