Texas Senate Bill SB781

Texas 2015 - 84th Regular

Caption

Relating to the purchase of certain insurance coverage and the performance of related risk management services for certain university systems and the component institutions of those systems.

Impact

The amendment enshrined in SB781 allows the Texas State University System and its component institutions to bypass board approval when purchasing non-health or non-life insurance, provided they notify the relevant state office. This change is intended to streamline the insurance acquisition process, thereby potentially increasing efficiency and responsiveness to the specific needs of the university systems. The legislation recognizes the unique operational contexts of these institutions and empowers them to engage with insurance products that best serve their requirements without unnecessary bureaucratic hindrance.

Summary

Senate Bill 781 aims to modify the regulations regarding the purchase of certain insurance coverages and the performance of related risk management services for specific university systems and their component institutions within Texas. It allows these universities a degree of autonomy concerning their insurance purchases, particularly in property, casualty, and liability insurances, exempting them from the usual approval processes that other state agencies must adhere to. This bill reflects a significant shift in how university systems manage risk and insurance responsibilities.

Contention

While the bill's proponents argue that it will foster flexibility and effectiveness in risk management practices across university systems, critics might express concerns over whether this change could lead to inadequate oversight in insurance practices. The removal of mandatory approval processes could make it easier for universities to take risks or engage in practices that may not be as rigorously examined as they would be under the previous regulations. Discussions around this bill could revolve around finding the balance between efficient management and necessary oversight.