Texas House Bill HB4190

Texas 2021 - 87th Regular

Caption

Relating to registration and annual filing requirements for governmental units establishing a self-insurance fund.

Impact

The introduction of HB 4190 is designed to enhance accountability and oversight of self-insurance funds established by government entities. By formalizing a registration and annual filing process, the bill intends to ensure transparency in the financial practices of these funds, ultimately protecting public interests. This may also facilitate better risk management practices among governmental units, potentially resulting in cost savings and improved financial health for these entities.

Summary

House Bill 4190 aims to establish a structured framework for governmental units that wish to create a self-insurance fund. Under this bill, these units will be required to register their self-insurance funds with the Texas Department of Insurance (TDI) and provide annual financial reporting. Specifically, the bill stipulates that governmental units must submit their fund's financial statements and articles of incorporation, along with any additional information required by the department.

Contention

While the bill primarily seeks to improve regulatory measures around self-insurance funds, there may be concerns regarding the additional administrative burdens it places on governmental units. Critics may argue that the registration and annual filing requirements could lead to increased bureaucracy and compliance costs, which may be challenging for smaller governmental units with limited resources. However, supporters are likely to contend that the benefits of increased oversight outweigh these concerns, emphasizing the necessity for maintaining public trust in governmental financial operations.