LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 25, 2003

TO:	Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB113 by Van de Putte (relating to premium discounts for certain residential property insurance policies. ), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

According to the Comptroller of Public Accounts, the proposed premium discounts may exert some downward pressure on individual premiums and insurance premium tax collections. However, the Comptroller of Public Accounts assumes that the discounts would also promote insurance availability and reduce incentives for taking higher deductibles which would offset potential reductions in premiums and insurance premiums tax collections.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:	304 Comptroller of Public Accounts, 359 Office of Public Insurance Counsel, 454 Department of Insurance
LBB Staff:	JK, JRO, RT, DLBe, RB