Monday, July 6, 2009


The American Insurance Association (AIA) commended the Texas Legislature for voting to reauthorize the operations of the Texas Department of Insurance (TDI) during the Special Session called by Gov. Rick Perry.

Scheduling a special session was necessary in part because the Legislature failed to pass legislation reauthorizing TDI and four other state agencies during its Regular Session which adjourned sine die on June 1. According to Texas law, the Legislature is required to review and reauthorize state agencies, including TDI, on a regular basis.

“The Texas Legislature’s action to reauthorize TDI removes the cloud of doubt that has been hanging over the agency since the Legislature failed to pass legislation extending its operations during the Regular Session,” said Fred Bosse, AIA regional vice president. “We were disappointed that the TDI Sunset Bill fell victim to partisan politics earlier this year and placed its day-to-day operations in jeopardy. Now we know that the department will be conducting business as usual over the next two years until the Legislature’s sunset review in 2011,” added Bosse.

The TDI “Sunset Bill” was among the many legislative casualties suffered as a result of the highly partisan debate over voter ID legislation which held up hundreds of bills from consideration by the House. Without the governor’s call for a special session to pass the reauthorizing legislation, TDI’s operations were scheduled to cease by Sept. 1, 2010.

“The insurance sector has worked hard on TDI sunset legislation for nearly two years,” said Bosse. “We are now looking forward to a comprehensive sunset review and debate during the 2011 Session which focuses on meaningful regulatory reforms that facilitate a competitive and healthy market,” added Bosse. “We will continue to oppose proposals that claim the “reform” mantle but are merely disingenuous propositions that would smother competition, lead to increased costs and be harmful to the marketplace,” concluded Bosse.

Gov. Perry is expected to sign this legislation.

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