State Budget With No New Taxes
State government has grown by more than 600% since 1978. It has expanded 125% in just the last ten years alone. This session, under the leadership of Speaker Tom Craddick, we prioritized spending and reduced the size of the state bureaucracy for the first time in decades. Responsible members of both parties joined together to actually increase funding for Health and Human Services, fund our public schools and provide a safety net for the most vulnerable in our society – all without a tax increase.
Under this budget, Texas is increasing the amount of tax dollars we are getting back from the federal government in Washington, D.C. while actually spending $10 billion less in state funds than the last biennium. We have found new savings and eliminated waste to make government work more efficiently.
This budget was endorsed by the NFIB because it protects the small, main street businesses that create most of the new jobs in Texas.
It was endorsed by the Texas Farm Bureau for its fairness to rural Texas and our agricultural economy.
Lawsuit Reform & Medical Liability Reform
The greed of personal injury plaintiff lawyers has created a crisis in Texas courts. Frivolous lawsuits place a severe burden on our economy, forcing businesses to leave the state and destroying jobs in communities across Texas. And skyrocketing medical malpractice insurance premiums are hurting the availability and affordability of medical care. HB 4 and HJR 3 address both problems, restoring sanity to an out-of-control civil justice system through much-needed reforms that take care of average citizens – not the lawyers.
The caps for medical liability are as follows:
- $250,000 cap for all doctors or nurses individually named in a lawsuit.
- $250,000 cap for hospital or nursing home sued.
- $250,000 in damages available if more than one health care institution is named.
- This means that in a case with more than one health care institution involved, a plaintiff could be awarded up to $750,000.
Insurance Reform
SB 14 Creates a Prior Approval system for homeowner insurance rate approval until December 1, 2004.
TDI has 30 days to approve or disapprove rates filed with the commissioner. Previous rates stay in effect until a new rate approved.
After 30 days if no action is taken, rates are deemed approved.
Commissioner may extend the consideration period another 30 days for good cause.
Commissioner may simplify filing requirements for small insurers with less than two percent of the market or for new insurers entering the Texas market.
TDI may request additional information and time period is halted for the duration of this request.
If the commissioner disapproves a rate the insurer has 30 days to appeal.
The commissioner may withdraw approval for a rate in effect after a hearing and implement an interim rate for the insurer.
An insured, the public insurance counsel, and any interested person may make a written application for a rate hearing.
If commissioner’s rate is upheld, insurer must refund overcharges to policy holders with interest.
Refund for excessive or discriminatory premium discount:
Commissioner may order a refund of an excessive or discriminatory premium if that premium is 7.5% or more of the total premium.
For excessive or discriminatory premiums less than 7.5%, the commissioner may order a premium discount upon renewal or refund if the consumer non-renews.
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