April 6, 2007

House Insurance Chairman Pitches Support
Behind Push to Have Commissioner Elected

By Mike Hailey
Capitol Inside Editor

Legislation that would give Texas voters the right to choose the state's top insurance regulator received a major boost when the chairman of the House Insurance Committee threw his support behind it this week.

State Rep. John Smithee, an Amarillo Republican who's led the House panel that oversees insurance regulation for the past 14 years, gave House Bill 3323 instant credibility and bipartisan credentials when he signed on as a co-sponsor.

Sponsored by Democratic State Rep. Mark Homer of Paris, the bill that would change the appointed insurance commissioner to an elected statewide official had picked up three co-sponsors who are all Democrats before Smithee added his name to the list. The co-sponsors so far are State Reps. Stephen Frost of Atlanta, Chuck Hopson of Jacksonville, Patrick Rose of Dripping Springs and Smithee.

Homer wants to have voters elect a state insurance commissioner in 2008 for a two-year term before the term is extended to four years when the post on the ballot again in 2010. Most of the other statewide posts including the governor's office will be up for grabs in three years.

Homer is proposing the change at a time when Texas homeowners are continuing to pay high premium rates despite declines in insurance industry losses since legislation that was supposed to make coverage more affordable was approved by state lawmakers and signed into law by Governor Rick Perry four years ago. The Republican governor appointed Mike Geeslin, a former aide to Perry in both the governor's office and lieutenant governor's office, almost two years ago. Geeslin has overseen the implementation of the insurance reforms that became law in 2003.

Smithee was the chief House sponsor of the homeowners insurance protection bill four years ago - and he won praise on both sides of the partisan aisle for the way he built a bipartisan consensus for the measure and passed it with overwhelming support. State Senator Mike Jackson, a La Porte Republican, was the author of the insurance bill that Smithee guided through the lower chamber.

Texas would become one of a dozen states with elected insurance commissioners if the Homer proposal clears the Legislature and is signed by the governor or allowed to become law without his signature. Perry could end up being one of the biggest roadblocks, however, in light of the fact that the bill would be stripping him of one of the top plums that his office has to offer with the appointed insurance commissioner's post.

Homer's bill shouldn't have much trouble in House committee, however, given that it's been referred to the panel that Smithee chairs. Smithee's support as a co-sponsor should improve the bill's overall chances significantly - even though the odds against it could still be formidable amid potential opposition from the governor. .