Highlights 77th Texas Legislature - Senate

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INSURANCE
77 th Texas Legislature
The Gramm-Leach-Bliley Act and Licensing of Insurance Agents - S.B. 414
by Senator Madla
House Sponsors: Representatives Eiland and Seaman
Passage of the federal Gramm-Leach-Bliley Act in 1999, also known as the Financial Modernization Act,
made uniformity as to insurance agent licensing criteria among the states a necessity. Due in part to the
significant changes to the delivery of financial services and the implementation of this Act in Texas, various
portions of the Texas Insurance Code dealing with consolidating the types of licenses issued to insurance
agents, among certain conditions, require amendments.
Authorizes the commissioner of insurance to adopt rules as necessary to implement provisions related to
agents and agents’ licenses and to meet the minimum requirements of federal law and regulations.
Tax Credits to Insurance Companies for Certified Capital Companies - S.B. 601
by Senator Carona
House Sponsor: Representative Solis
Authorizes the creation of certified capital companies and provides a tax credit to insurance companies that
invest funds. Heretofore, only certified capital companies that were state-regulated, privately-owned and
operated, could invest funds in early stage companies that operate in Texas. By amending the Insurance
Code, this bill allows a tax credit for insurance companies possessing the requisite amounts of capital
necessary for venture capital, among certain conditions.
Limits the total amount of certified capital for which premium tax credits may be allowed to $200 million.
Requires the Texas Department of Economic Development to promote this program in the Texas Business
and Community Economic Development Clearinghouse.
Limits implementation of this program subject to a determination made by the comptroller on the basis of a
revenue estimate that revenues are sufficient to allow certain tax credits.
60-Day Review Period for Approval of Insurance Company Mergers - S.B. 605
by Senator Sibley
House Sponsor: Representative Smithee
Amends the Insurance Code to provide for a 60-day review period within which the Texas Department of
Insurance (TDI) may approve or deny applications for acquisitions and mergers of domestic insurers by
persons who are in control or would directly or indirectly acquire control. Under current federal law, the
Gramm-Leach-Bliley Act (GLBA) allows states to review acquisitions, mergers, and retention of control
between banks, securities firms, insurance companies, and other financial companies during 60 days prior
to the effective date or change of control. The Texas Insurance Code in some cases allowed TDI a longer
time period to review such transactions.
Senate Research Center 171