BILL ANALYSIS

H.B. 1267

By: Smithee

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Texas counties are facing severe financial challenges.  In an effort to reduce expenditures, it is suggested that commissioners courts consider removing certain insurance or self-insurance coverages that counties provide to their officials and employees.  Among those coverages are policy endorsements for punitive damages which are occasionally sought against various public servants of the counties.

H.B. 1267 seeks to address this issue by authorizing self-insuring counties and the intergovernmental pool to require reimbursement from county officers and employees for the costs of punitive damage coverage provided to the officials and employees. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1267 amends the Local Government Code to authorize a self-insuring county or the intergovernmental pool operating under provisions of law relating to county government liability insurance pool, under policies concerning the provision of coverages adopted by the county's commissioners court or the pool's governing body, to require reimbursement for the provision of punitive damage coverage from a person to whom the county or intergovernmental pool provides coverage.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.