HBA-CMT S.B. 605 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 605 By: Sibley Insurance 4/22/2001 Engrossed BACKGROUND AND PURPOSE Currently, the federal Gramm-Leach-Bliley Act (GLBA) provides for states to review acquisitions, mergers, and retention of control between banks, securities firms, insurance companies, and other financial companies during the 60 days prior to the effective date or change of control. The Texas Insurance Code in some cases provides the Texas Department of Insurance (TDI) a longer period of time to review acquisitions, mergers, and retention of control. This could be interpreted as preventing or restricting acquisitions, mergers, and a retention of control, which is prohibited under provisions of the GLBA. Senate Bill 605 modifies the review time for acquisition or retention of control of or merger with domestic insurer statement (statement) filings to 60 days to conform with the GLBA, and requires TDI to review and take action on all statement filings within 60 days. 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. ANALYSIS Senate Bill 605 amends the Insurance Code to require the statement of acquisition or retention of control of or merger of a domestic insurer (statement) to be filed with the commissioner of insurance (commissioner) no later than the 60th day before the proposed effective date of the acquisition or change of control. The bill requires the commissioner to approve or deny any acquisition or change of control no later than the 60th day after the date the statement is filed. The bill authorizes the 60-day period to be waived by the party filing the statement and the domestic insurer. The bill sets forth requirements for the commissioner to consider in considering whether to approve or deny a acquisition or retention of control of or merger with a domestic insurer. The bill requires the commissioner to hold a public hearing on a denial at the request of either the party filing the statement or the domestic insurer. The bill requires a public hearing to be held no later than the 60th day, rather than 45 days after the date of denial rather than the date the statement is filed. The bill removes the authorization that the matter may be placed on the commissioner's contested case docket to hear any pre-hearing matters and motions at any time after the submission or resubmission of a statement to the commissioner. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.