LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 23, 2025 TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5173 by Dean (Relating to annual statistical reports for and the adoption of title insurance premium rates.), As Introduced The fiscal implications of the bill cannot be determined due to application of current rate orders and effect on future premium tax revenue. Passage of the bill would prohibit any title insurance rate ordered or adopted that is not in effect before June 2, 2025, from becoming effective. As a result, the 10 percent reduction in title insurance basic premium rates ordered by the commission of the Texas Department of Insurance, effective July 1, 2025, would not take effect and premium tax revenue would be increased. The bill would require that any title insurance rate ordered or adopted, that is not in effect before June 2, 2025, to not become effective. Any new rate ordered by the Texas Department of Insurance (TDI) would have to comply with the provisions of this bill. The bill would take effect immediately, if it receives a two-thirds vote of all members of each chamber or take effect September 1, 2025.This analysis assumes that the bill is referencing rates adopted under Title 11 of the Insurance Code. TDI Commissioner's Order 2025-9125, orders a 10 percent reduction in title insurance basic premium rates, effective July 1, 2025. If this bill takes effect immediately upon enactment, that reduction in rate would not take effect, and title insurance premium tax collections would be higher than they would otherwise be. However, the amount of any increased premium tax revenue cannot be determined.If the bill takes effect September 1, 2025, and the restrictions apply retroactively, title insurance premium tax collections would similarly be higher than they would otherwise be. However, the amount of any increased premium tax revenue cannot be determined.The bill would also require TDI to gather and publish statistical data reports related to the data used by title companies to fix premium rates. Based upon analysis of TDI, this estimate assumes that any additional workload associated with implementing this provision of the bill could be accomplished by utilizing existing resources. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 454 Department of Insurance LBB Staff: b > td > JMc, AAL, GDZ, BFa
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 23, 2025
TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5173 by Dean (Relating to annual statistical reports for and the adoption of title insurance premium rates.), As Introduced
TO: Honorable Jay Dean, Chair, House Committee on Insurance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5173 by Dean (Relating to annual statistical reports for and the adoption of title insurance premium rates.), As Introduced
Honorable Jay Dean, Chair, House Committee on Insurance
Honorable Jay Dean, Chair, House Committee on Insurance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5173 by Dean (Relating to annual statistical reports for and the adoption of title insurance premium rates.), As Introduced
HB5173 by Dean (Relating to annual statistical reports for and the adoption of title insurance premium rates.), As Introduced
The fiscal implications of the bill cannot be determined due to application of current rate orders and effect on future premium tax revenue. Passage of the bill would prohibit any title insurance rate ordered or adopted that is not in effect before June 2, 2025, from becoming effective. As a result, the 10 percent reduction in title insurance basic premium rates ordered by the commission of the Texas Department of Insurance, effective July 1, 2025, would not take effect and premium tax revenue would be increased.
The fiscal implications of the bill cannot be determined due to application of current rate orders and effect on future premium tax revenue. Passage of the bill would prohibit any title insurance rate ordered or adopted that is not in effect before June 2, 2025, from becoming effective. As a result, the 10 percent reduction in title insurance basic premium rates ordered by the commission of the Texas Department of Insurance, effective July 1, 2025, would not take effect and premium tax revenue would be increased.
The bill would require that any title insurance rate ordered or adopted, that is not in effect before June 2, 2025, to not become effective. Any new rate ordered by the Texas Department of Insurance (TDI) would have to comply with the provisions of this bill. The bill would take effect immediately, if it receives a two-thirds vote of all members of each chamber or take effect September 1, 2025.This analysis assumes that the bill is referencing rates adopted under Title 11 of the Insurance Code. TDI Commissioner's Order 2025-9125, orders a 10 percent reduction in title insurance basic premium rates, effective July 1, 2025. If this bill takes effect immediately upon enactment, that reduction in rate would not take effect, and title insurance premium tax collections would be higher than they would otherwise be. However, the amount of any increased premium tax revenue cannot be determined.If the bill takes effect September 1, 2025, and the restrictions apply retroactively, title insurance premium tax collections would similarly be higher than they would otherwise be. However, the amount of any increased premium tax revenue cannot be determined.The bill would also require TDI to gather and publish statistical data reports related to the data used by title companies to fix premium rates. Based upon analysis of TDI, this estimate assumes that any additional workload associated with implementing this provision of the bill could be accomplished by utilizing existing resources.
The bill would also require TDI to gather and publish statistical data reports related to the data used by title companies to fix premium rates. Based upon analysis of TDI, this estimate assumes that any additional workload associated with implementing this provision of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 454 Department of Insurance
304 Comptroller of Public Accounts, 454 Department of Insurance
LBB Staff: b > td > JMc, AAL, GDZ, BFa
JMc, AAL, GDZ, BFa