LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 25, 2013 TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1701 by Taylor (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013. Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts, 454 Department of Insurance LBB Staff: UP, RB, MW, ER
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 25, 2013
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1701 by Taylor (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1701 by Taylor (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1701 by Taylor (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced
SB1701 by Taylor (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Insurance Code relating to the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013. Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury.
The bill would amend the Insurance Code relating to the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013.
Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 454 Department of Insurance
304 Comptroller of Public Accounts, 454 Department of Insurance
LBB Staff: UP, RB, MW, ER
UP, RB, MW, ER