IIAH Legislative Committee by Thomas M. Braniff, JD, CPCU
“A good laugh and a long nap are the two best cures for almost anything.” Irish Proverb
2021 TEXAS LEGISLATIVE SESSION The Republican party maintained control of both the Texas House of Representatives and Senate, and all statewide offices, in spite of what was supposed to be a “Democratic Blue Wave” in Texas. In the House of Representatives, Republicans and Democrats each lost one seat in the November elections…maintaining the same 83 Republicans and 67 Democrats. In the Senate, the Republicans lost 1 seat, bringing the totals to 18 Republicans and 13 Democrats. The 2021 Legislative Session got off to its usual slow start. A new Speaker of the House, Dade Phelan (R) of Beaumont was elected, and they promptly adjourned for 10 days. A new Speaker means new Committee Chairs and a shuffling of members appointed to each Committee. The Speaker should announce these appointments around the 1st of February. Dan Patrick (R) from Houston, was reelected Lieutenant Governor, and therefore presides over the Senate, which voted to reduce the number of votes necessary to bring a Bill to the floor to 18. Since there are 18 Republicans in the Senate, the Democrats will have a difficult time preventing Bills from coming to the floor for a vote. Due to the Chinese virus, there will be limited access to the Capitol, with masks required and no “Big I Days” or groups allowed. A major issue will be passing a balanced budget with a $1 billion shortfall caused by the pandemic. Fortunately, the Texas Constitution requires that our State maintain a balanced budget. The current Texas budget is $112 billion…so a $1 billion shortfall is less than 1% of the total budget. Because of the contentious nature of the process of redistricting Senate and House Districts due to population changes throughout our State, which follows the
nation’s census every 10 years, will most likely be completed in a Special Session later this fall. VIRUS LIABILITY LEGISLATION The Texas Civil Justice League and Texans For Lawsuit Reform are pushing for legislation to “shield” private businesses and others from liability suits by employees or customers alleging the company caused them to contract the virus. Such legislation would grant businesses, doctors and others a “presumption of innocence” if they followed Federal, State, and/or other governmental guidelines regarding virus hygiene controls. OTHER EXPECTED ISSUES Commercial auto insurers are reporting an avalanche of litigation generated by constant lawyer advertising, which is beginning to limit the availability of liability insurance and skyrocketing premiums. The organization KeepTexasTrucking. com, insurance companies and others are proposing legislative reforms. Another issue is that the funding mechanism for the Texas Windstorm Insurance Association (“TWIA”) has become unsustainable. Some of the changes being discussed include a statewide assessment on insurance companies, and possibly reducing agents’ commission percentage. There are numerous other Bills already filed that our association is monitoring. They range from requiring insurers to cover pandemic related business interruption claims regardless of policy wording…to legislation legalizing casino gambling on barrier islands to help fund TWIA. Stay tuned for a wild “mostly virtual” ride!
Legislative Update
With great sadness, we must inform our readers that this is the last article from Tom Braniff that we will publish as our beloved contributor, colleague and friend passed away on 2/12/21. All of us on the committee will miss Tom greatly. He was not only an advocate for Houston Insurance News but he was an advocate for our insurance profession as well as many others.
