BILL ANALYSIS

H.B. 3514

By: Muñoz, Jr.

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties express concern that, despite the fact that the state public information law allows trade secrets and certain other strategic business information to remain undisclosed to the public, strategic business information of a company seeking to acquire a Texas insurance company has become part of the public record. The parties contend that this situation may have an adverse impact on the Texas insurance market. H.B. 3514 seeks to address this situation.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 3514 amends the Insurance Code to subject the information provided in a statement or notice of acquisition, change of control, or divestiture of a domestic insurer, including any documents attached or incorporated by reference, to state public information law, including any applicable exception for required disclosures under that law. The bill removes the specification that such a statement or notice is open to public inspection at the office of the commissioner of insurance.

EFFECTIVE DATE

September 1, 2015.