Honorable Jay Dean, Chair, House Committee on Insurance
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5173 by Dean (relating to annual statistical reports for fixing title insurance premium rates.), Committee Report 1st House, Substituted
The fiscal implications of the bill cannot be determined due to effects dependent on the implementation date of the bill. Passage of the bill would allow a title insurance company or agent to continue to charge the premium rates in effect on the effective date of the bill until the Texas Department of Insurance takes certain action based on information submitted to the agency as required by the bill. If the bill takes effect September 1, 2025, there would be no effect on premium tax revenue. If the bill takes effect immediately upon enactment, provisions of the bill would prevent the 10 percent reduction in title insurance basic premium rates ordered by the commissioner of TDI, effective July 1, 2025, from taking effect and premium tax revenue would be increased.
The bill would specify deadlines for certain annual statistical reports submitted to the Texas Department of Insurance (TDI) by title insurance agents and companies. TDI would be required to publish summaries of those reports by October 1 and November 1 of each year. The bill would allow a title insurance company or agent to continue to charge the premium rates in effect on the effective date of this bill until new rates are fixed using data from the reports required by the bill.
TDI Commissioner's Order 2025-9125 adopted a 10 percent reduction in title insurance basic premium rates, effective July 1, 2025. If this bill takes effect immediately upon enactment, that reduction in rate would not be required, and title insurance premium tax collections would likely be higher than they would otherwise be. However, the amount of any increased premium tax revenue cannot be determined.
If the bill takes effect September 1, 2025, there would be no effect on premium tax revenue.
The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2025.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 454 Department of Insurance