BILL ANALYSIS

Senate Research Center	H.B. 1073
85R3691 SCL-F	By: Smithee (Creighton)
	Business & Commerce
	5/2/2017
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2015, the 84th Legislature passed H.B. 2145, which created a 90-day provisional work authority for individuals who have passed the state's insurance agent licensure exam and submitted fingerprints for criminal background reviews. This measure offers a solution to periodic application review backlogs and supports those individuals seeking to contribute to the state's economy and society as licensed insurance agents under Texas law.

The current law applies to applicants for a general life and health agent license under Subchapter A, Chapter 4054; a preneed funeral arrangement license under Subchapter D, Chapter 4054; a stipulated premium license under Subchapter E, Chapter 4054; a general property and casualty license under Subchapter B, Chapter 4051; and a county mutual agent license under Subchapter E, Chapter 4051. The bill establishing provisional work authority last session inadvertently left out the life-only license type. H.B. 1073 seeks to address this issue.

H.B. 1073 amends Chapter 4001, Insurance Code, to include the life-only insurance agent license type under Subchapter G, Chapter 4054 to the list of applicable license types the Texas Department of Insurance is authorized to issue a provisional permit.

H.B. 1073 amends current law relating to provisional permits for certain insurance agents.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 4001.351, Insurance Code, to provide that this subchapter (Provisional Permit) applies only to an applicant for a license as an agent under Subchapters B (General Life, Accident, and Health License), D (Funeral Prearrangement Life Insurance License), E (Life Insurance Not Exceeding $25,000), and G (Life Agent), Chapter 4054 (Life, Accident, and Health Agents), rather than Subchapters B, D, and E, Chapter 4054.

SECTION 2. Amends Section 4001.353(a), Insurance Code, as follows:

(a) Authorizes the Texas Department of Insurance to issue a provisional permit under this subchapter on receipt of a properly completed license application, nonrefundable fee, and each other item required for a license under this chapter and Subchapter B (General Property and Casualty License) or E (County Mutual Agent License), Chapter 4051 (Property and Casualty Agents), or Subchapter B, D, E, or G, Chapter 4054, rather than Subchapters B, D, or E, Chapter 4054, as applicable.�

SECTION 3. Effective date: September 1, 2017.