HBA-NIK H.B. 1811 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1811 By: Counts Insurance 3/11/1999 Introduced BACKGROUND AND PURPOSE Currently, there are three unincorporated insurance guaranty associations in Texas. These unincorporated associations of member insurers were created by the legislature to provide some protection for the public upon the failure of insurers. Each association covers life and health, property and casualty, and title insurance and is governed by a board of directors appointed by the commissioner of insurance. All of the directors serve without compensation and receive only reimbursement for travel expenses. Current law requires these volunteers to make their personal financial condition a public record by filing a financial statement with the Texas Ethics Commission. As a result, some people may be unwilling to serve on these boards, especially as public members. The financial statement requirement may be an impediment to achieving effective public participation. H.B. 1811 removes the requirement for the filing of a personal financial statement by the directors of insurance guaranty associations and repeals the applicable provisions of the respective guaranty association acts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 14(c), Article 9.48, Insurance Code, as follows: (c) Deletes the requirement for each member of the board of directors of the Texas Title Insurance Guaranty Association (association) to file a financial statement with the Texas Ethics Commission in accordance with Subchapter B (Personal Financial Statement), Chapter 572 (Personal Financial Disclosure, Standards of Conduct, and Conflict of Interest), Government Code. Redesignates existing Subsections (4)-(15) to Subsections (3)-(14), respectively. SECTION 2. Repealer: Section 14(b)(3), Article 9.48, Insurance Code, which requires each member of the board to file a financial statement with the Texas Ethics Commission. Repealer: Section 7(e), Article 21.28-C, Insurance Code, which requires each member of the board of the Texas Property and Casualty Insurance Guaranty Association to file a financial statement with the secretary of state. Repealer: Section 7(b), Article 21.28-D, Insurance Code, which requires each director of the Life, Accident, Health and Hospital Service Insurance Guaranty Association to file a financial statement with the secretary of state. SECTION 3. Emergency clause. Effective date: upon passage.