LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 25, 2009

TO:	Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1757 by Thompson (Relating to review of certain license examinations for insurance agents.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would require the Texas Department of Insurance (TDI) or a vendor under contract with the department to review certain insurance agent license examinations if during any 12-month period the exam has an overall pass rate of less than 70 percent for first-time examinees. The bill would require TDI to collect demographic data and to provide an annual report indicating whether there was any disparity in the pass rate based on demographic information. The bill would authorize the Commissioner of Insurance to establish rules necessary to implement the provisions of the bill.

Based on the analysis from the Texas Department of Insurance, any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JOB, KJG, MW, CH