Texas Senate Bill SB1291

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/14/11
• Introduced: 3/8/11
• Voted on by Senate: 4/20/11
• Refer: 3/16/11
• Out of House Committee: 5/11/11
• Report Pass: 4/14/11
• Voted on by House: 5/19/11
• Governor Action: 6/17/11
• Enrolled: 5/20/11
• Passed: 6/17/11

Caption

Relating to the budget of certain divisions of the Texas Department of Insurance.

Impact

The passage of SB1291 would significantly alter how the Texas Department of Insurance manages its budget for specific divisions. This independence in budgeting is intended to streamline the examination process for insurers, potentially enhancing the efficiency and effectiveness of financial regulation in the state. Furthermore, the bill seeks to align the budget process with generally accepted accounting principles, presumably increasing transparency and accountability within the department's operations. As a result, the proposed changes may lead to increased oversight of how examinations are funded and conducted, which is critical given the financial implications for both the insurers and the state.

Summary

SB1291 aims to amend the Insurance Code by establishing a self-directed budget specifically for certain divisions of the Texas Department of Insurance. The bill seeks to facilitate better financial management and oversight in the department's financial examinations and actuarial divisions. By granting authority to the financial program to set its budget based on examination costs, the bill provides that the budget will be reviewed and approved by the commissioner of the Texas Department of Insurance, thus positioning the department to operate more autonomously while still adhering to state fiscal responsibility guidelines.

Contention

Although the bill seeks to provide efficiency and improved financial management, it may raise concerns regarding oversight and accountability. There might be apprehension about the possible gaps in regulatory scrutiny if the department operates with increased financial autonomy. Critics may argue that without sufficient external checks, there could be risks of mismanagement or lack of alignment with broader state financial goals. Nonetheless, proponents of SB1291 argue that self-direction in budgeting can lead to more responsible and effective government operations focused on maintaining the integrity of financial examinations.