The Texas Captive Insurance Association (TxCIA) has advanced its 2015 legislative agenda.
HB 1700 was considered in a public hearing by the Texas House Insurance Committee. Republican John Smithee, who sponsored the captive legislation in the House in 2013, reviewed the current Texas law on captives.
In urging the Committee to pass HB 1700, he said it was a "good thing for Texas" and would incentivise more Texas businesses to domicile captives in Texas, and to bring foreign captives "back home".
No one registered in opposition to the bill and so the chairman of the Committee left HB 1700 pending, which is typical for House committees.
In the Texas Senate, the Senate Business and Commerce Committee voted to place SB 667 on the local and uncontested calendar because it had unanimous support. The Senate Administration Committee, which sets the calendar, will meet Tuesday to determine which bills will be placed on the calendar for Thursday, April 9th.
If SB 667 passes the Senate next week, it will go to the House and be referred to House Insurance where HB 1700 is pending. Smithee can then choose to proceed with SB 667 since at that point it will be further along in the process than HB 1700.
“There could also be the opportunity to introduce a committee substitute for SB 667 in House Insurance, provided language can be worked out to expand credit for reinsurance to commercial reinsurers, authorise reciprocals, transfer incorporation of captives from the Secretary of State's Office to the Department of Insurance, and finally clarify some investment options for captives,” said the TxCIA.
The Texas Legislative Session ends on June 1, with procedural deadlines kicking in mid-May.
The Texas Captive Insurance Association, Insurance, North America, John Smithee