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Relating to nonprofit legal services corporations.
No significant fiscal implication to the State is anticipated.
SB 1623 would provide that a nonprofit legal services corporation is not subject to regulation by the Texas Department of Insurance. It would also provide that a nonprofit legal services corporation is not engaged in the business of insurance and is not subject to laws relating to insurers.
This bill relates to the Texas Legal Protection Plan (Texas Legal) which was created by the legislature to provide comprehensible and affordable coverage for various legal issues. For a monthly fee, Texas Legal's members gain access to a network of attorneys throughout the state. This bill would put Texas Legal, the only nonprofit legal service provider in the state and the last regulated legal services corporation, on the same footing as its for-profit counterparts by deregulating it, too.
Texas Action remains neutral on SB 1623 because it does not affect our liberty principles.