HBA-DMD H.J.R. 69 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 69
By: Lewis, Glenn
County Affairs
3/29/1999
Introduced



BACKGROUND AND PURPOSE 

Before it was amended in 1986, Article III, Section 52(a) of the Texas
Constitution prohibited counties, cities, towns, or other political
subdivisions (entity) from becoming stockholders in any association,
corporation, or company. Since mutual insurance companies are corporations,
and their policy holders own the insurance company, such entities were
prohibited from using public funds to purchase insurance contracts or
annuity contracts from mutual insurance companies. The 1986 amendment
provided an exception which allows the use of public funds or credit for
the payment of premiums on nonassessable life, health, and accident
insurance issued by mutual insurance companies. As proposed, H.J.R. 69
requires the submission to the voters of a constitutional amendment
allowing nonassessable property and casualty insurance policies to be
purchased with public funds or credit. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 52(a), Article III, Texas Constitution, to
include the premiums on nonassessable property and casualty insurance
policies among those that are not prohibited under this section (Counties,
Cities or Other Political Corporations or Subdivisions; Lending Credit;
Grants; Bonds) from being paid for by public funds or credit. 

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999. Sets forth the
required language for the ballot.