LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 19, 2015 TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3910 by Paul (Relating to completion of continuing education requirements for insurance agents and adjusters.), Committee Report 2nd House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3910, Committee Report 2nd House, Substituted: a negative impact of ($1,600,000) through the biennium ending August 31, 2017. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 19, 2015
TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3910 by Paul (Relating to completion of continuing education requirements for insurance agents and adjusters.), Committee Report 2nd House, Substituted
TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3910 by Paul (Relating to completion of continuing education requirements for insurance agents and adjusters.), Committee Report 2nd House, Substituted
Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB3910 by Paul (Relating to completion of continuing education requirements for insurance agents and adjusters.), Committee Report 2nd House, Substituted
HB3910 by Paul (Relating to completion of continuing education requirements for insurance agents and adjusters.), Committee Report 2nd House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3910, Committee Report 2nd House, Substituted: a negative impact of ($1,600,000) through the biennium ending August 31, 2017. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3910, Committee Report 2nd House, Substituted: a negative impact of ($1,600,000) through the biennium ending August 31, 2017.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 ($800,000) 2017 ($800,000) 2018 ($800,000) 2019 ($800,000) 2020 ($800,000)
2016 ($800,000)
2017 ($800,000)
2018 ($800,000)
2019 ($800,000)
2020 ($800,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 ($800,000) 2017 ($800,000) 2018 ($800,000) 2019 ($800,000) 2020 ($800,000)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 ($800,000) 2017 ($800,000) 2018 ($800,000) 2019 ($800,000) 2020 ($800,000)
2016 ($800,000)
2017 ($800,000)
2018 ($800,000)
2019 ($800,000)
2020 ($800,000)
Fiscal Analysis
The bill would amend the Insurance Code relating to completion of continuing education requirements for insurance agents and adjusters.The bill would amend Section 4005.109 of the Insurance Code by limiting the amount of fines assessed under subsection (b)(1) to an amount not to exceed $500 for a licensing period.The bill takes effect November 1, 2015.
Methodology
The Texas Department of Insurance (TDI) currently deposits all revenues collected from fines associated with Section 4005.109 of the Insurance Code to the credit of General Revenue. In fiscal year 2014, the amount totaled approximately $2.0 million, of which approximately $1.4 million was collected from fines assessed on 1,200 individuals in excess of $500, with the remaining $600,000 coming from penalties assessed under $500.Based on information provided by TDI this analysis assumes that revenues from fines collected under Section 4005.109 of the Insurance Code will total approximately $1.2 million each year, which results in a decrease of approximately $800,000 a year to General Revenue. This analysis includes the following assumptions: the same number of individuals which would have paid a fine over $500 remains constant at 1,200 at a maximum fine of $500 which would result in revenues totaling $600,000; the revenue collections for fines under $500 remains constant at $600,000 with the total amount expected to be collected to be $1.2 million which would result in a decrease of $800,000 from the previous fiscal year.Based on information provided by the Texas Department of Insurance, it is assumed that all dutiesand responsibilities necessary to implement the provisions of the bill could be accomplishedwithin existing staff and resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 454 Department of Insurance
454 Department of Insurance
LBB Staff: UP, CL, NV, ER, AG
UP, CL, NV, ER, AG