LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

February 24, 2005

TO:	Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB935 by Taylor (Relating to minimum enrollment in certain group life insurance policies.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Insurance Code to require a group life insurance policy delivered, issued for delivery, or renewed on or after January 1, 2006, to cover at least two employees on the date the policy would be issued.  A group life insurance policy delivered, issued for delivery, or renewed before January 1, 2006, would be governed by the law as it existed immediately before the effective date of the bill, and that law would be continued in effect for that purpose.

Based on the analysis of the Texas Department of Insurance, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

The bill would take effect September 1, 2005.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JOB, JRO, SR, MW, NV