| TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1848 by Hancock (Relating to the frequency of certain examinations conducted by the Texas Department of Insurance.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| Fiscal Year | Probable Revenue Gain from DEPT INS OPERATING ACCT 36 |
Probable (Cost) from DEPT INS OPERATING ACCT 36 |
|---|---|---|
| 2008 | $28,798 | ($28,798) |
| 2009 | $28,798 | ($28,798) |
| 2010 | $28,798 | ($28,798) |
| 2011 | $28,798 | ($28,798) |
| 2012 | $28,798 | ($28,798) |
The bill would amend the Insurance Code to require the Texas Department of Insurance (TDI) to conduct certain examinations no less frequently than once every five years. The bill would require networks to pay a fee to TDI to cover the expenses related to conducting an examination in an amount set by the commissioner.
The bill would take effect September 1, 2007.
Based on the analysis of TDI, it is assumed the bill would result in 12 examinations each fiscal year at a cost of $2,399.81 each.
It is assumed fees collected under the bill would be deposited to General Revenue Dedicated Account Fund 36. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year.
| Source Agencies: | 454 Department of Insurance
|
| LBB Staff: | JOB, JRO, MW, SK
|