H.C.R. No. 59 



HOUSE CONCURRENT RESOLUTION
	WHEREAS, The regulation and oversight of business and the 
protection of consumers are powers that have traditionally and 
historically been reserved for state governments; and
	WHEREAS, State legislatures are the proper governmental 
entities to determine public policy on insurance issues, as 
provided under the McCarran-Ferguson Act of 1945, which reserves 
the regulation of the business of insurance to the states; and
	WHEREAS, State legislatures are uniquely positioned to 
respond quickly to the needs of local constituents due to their 
knowledge regarding market conditions in their respective states 
and their awareness of the type of insurance products and 
regulations that would best meet their states' specific market 
demands; and
	WHEREAS, State legislatures and organizations such as the 
National Conference of Insurance Legislators (NCOIL), the National 
Conference of State Legislatures (NCSL), and the National 
Association of Insurance Commissioners (NAIC) have recognized that 
certain difficulties in the marketplace have resulted in regulatory 
hurdles in certain states and have delayed the introduction of 
insurance products to consumers; and
	WHEREAS, State legislatures, NCOIL, and NAIC have addressed 
and will continue to address uniformity among the states by 
adopting model laws relating to such insurance issues as market 
conduct, product approval, agent licensing, and rate deregulation; 
and
	WHEREAS, Many state governments derive general revenue from 
the regulation of the business of insurance, including $1.045 
billion from premium taxes generated for the state of Texas in 2003; 
and
	WHEREAS, The State Modernization and Regulatory Transparency 
(SMART) Act, which would create mandatory federal insurance 
standards preempting state laws and undermining the sovereignty of 
state governments, is being contemplated by certain members of the 
United States Congress; and
	WHEREAS, This proposed legislation would "federalize" 
insurance regulation and thereby threaten the power of state 
legislators, governors, insurance commissioners, and attorneys 
general to oversee, regulate, and investigate the business of 
insurance, thereby impairing, eroding, and limiting the ability of 
state officials to protect the interests of their constituents; and
	WHEREAS, Many states, including Texas, recently enacted or 
amended their insurance laws to modernize market regulation, 
providing insurers with greater ability to respond quickly to 
changes in market conditions and providing consumers with 
additional protections; now, therefore, be it
	RESOLVED, That the 79th Legislature of the State of Texas 
express its strong opposition to the SMART Act and any similar 
federal legislation that would impair, erode, and limit the ability 
of state governments to regulate the business of insurance; and, be 
it further
	RESOLVED, That the Texas secretary of state forward official 
copies of this resolution to the chair of the U.S. Senate Committee 
on Commerce, Science, and Transportation; to the chair of the U.S. 
House Committee on Financial Services; and to all the members of the 
Texas delegation to the United States Congress.

                                                                          Eiland
                                                                         Smithee
                                                                          Seaman
                                                                          Taylor
                                                                        Thompson




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.C.R. No. 59 was adopted by the House on 
February 23, 2005, by a non-record vote.

                                                   _____________________________
                                                     Chief Clerk of the House   



	


I certify that H.C.R. No. 59 was adopted by the Senate on May 
10, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED:  __________________                                               
 
                 Date                                                        




 
          __________________                                             
 
               Governor