LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 2, 2007

TO:	Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB828 by West, Royce (Relating to the collection and use of certain information by insurers and related entities.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Insurance Code to allow the commissioner to establish rules requiring regulated entities to report to the Texas Department of Insurance (TDI) certain information including information regarding data mining and pattern recognition technology.  The bill would allow the commissioner to establish rules restricting the use of such technology and require TDI to include information regarding the use of this technology in its biennial report to the Legislature.

Based on analysis of TDI, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

The bill would take effect immediately upon receiving a two-thirds vote in each house, otherwise it would take effect September 1, 2007.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JOB, JRO, MW, SK