SB 734

83(R) - 2013

Vote Recommendation

  • Positive
  • Neutral
  • Neutral
  • Positive
  • Neutral


John Carona

Bill Caption

Relating to the licensing of captive insurance companies.

Fiscal Notes

The fiscal implications of the bill are indeterminate due to the unknown losses of insurance premium tax revenues and unknown offsetting revenue gains from the newly created captive insurance premium tax assessment; however, significant fiscal implications to the State are not anticipated.

Bill Analysis

Summary: SB 734 would allow captive insurance companies to be created and operate within Texas. Currently, businesses based in Texas are not permitted to base a captive insurance company within the state. SB 734 would remove that barrier as well as create a regulatory and tax system for this type of insurance.

Analysis: When the government removes restrictions that completely bar an industry or business model from existing in the state it is a win for limited government and free enterprise. We support SB 734.