Texas House Bill HB1084

Texas 2017 - 85th Regular

Caption

Relating to the interests of certain holding companies in certain repair facilities.

Impact

If enacted, HB 1084 would significantly impact the operations of holding companies that own insurers by allowing them more flexibility in managing repair facilities. This could potentially lead to a greater integration between insurance and repair services, allowing policyholders to have more streamlined access to repairs related to their insured vehicles. The provision, effective only for acquisitions and operations post-enactment, ensures that previous legal stipulations remain applicable to past transactions.

Summary

House Bill 1084 aims to amend the Texas Occupations Code regarding the interests of holding companies in repair facilities associated with insurance. Specifically, the bill allows a holding company that owns an insurer to acquire, own, and operate interests in a repair facility through an affiliated or subsidiary entity. The proposed amendment clearly states that such facilities must also be licensed as new motor vehicle dealerships under Chapter 2301. This act aims to provide clarity on the legal structure governing the relationship between insurers and repair facilities.

Contention

There were concerns about the implications of holding companies controlling repair facilities, particularly regarding regulatory oversight and competition. Some stakeholders have raised questions about how this relationship could affect independent repair shops and whether it might create conflicts of interest where insurers favor their affiliated repair facilities over others. Although the bill promotes efficiency and consolidates services, these issues pose notable points of contention that may need addressing through further regulations or guidelines.