According to the Legislative Budget Board (LBB)  no significant fiscal impact to the State of Texas is anticipated with HB 3658. The primary agency involved, the Texas Department of Insurance (TDI), is expected to absorb any costs associated with implementing the bill using existing resources. This assessment is based on TDI’s current capacity to develop or certify continuing education courses, as the agency already oversees similar training programs.

Moreover, the LBB indicates that there will be no significant fiscal impact on local government entities. Since the bill’s requirements are directed primarily at the regulation of insurance adjusters at the state level, local governments are not expected to incur additional costs. As such, the bill’s implementation is considered fiscally neutral, posing no financial burden on state or local government operations. This assessment supports the bill’s practicality and indicates that it can be implemented without necessitating additional state funding.

HB 3658 addresses a crucial gap in the continuing education requirements for insurance adjusters in Texas. Currently, adjusters must complete 24 hours of continuing education per licensing period; however, there is no specific requirement related to building codes or mitigation and reconstruction standards. Given that most insurance claims in Texas involve assessing damage and applying current building codes—often complex and frequently updated—this bill seeks to enhance adjuster competency by requiring at least one hour of building code education during each licensing period.

From a liberty principles perspective, the bill aligns well with Individual Liberty and Personal Responsibility by promoting higher professional standards, which ultimately benefit consumers by ensuring that insurance adjusters are better equipped to process claims accurately and fairly. It also supports Private Property Rights by minimizing the risk of inaccurate damage assessments that could disadvantage property owners. Additionally, the bill’s flexible approach—offering multiple formats such as classroom, online, and self-paced study—upholds the principle of Limited Government by minimizing regulatory burden while still promoting essential training. The requirement for the Texas Department of Insurance (TDI) to develop or certify these courses ensures consistency without imposing excessive costs, as noted in the fiscal note.

Furthermore, there are no criminal justice impacts or grants of new rulemaking authority, which means the bill does not expand government power unnecessarily. This focus on professional development rather than increased regulation makes the bill a balanced and reasonable approach to maintaining industry standards. Given the bill’s clear benefits and minimal fiscal or administrative burden, a vote in favor is recommended. Texas Policy Research recommends that lawmakers vote YES on HB 3658.

• Individual Liberty: HB 3658 indirectly supports individual liberty by promoting the competency of insurance adjusters. By requiring adjusters to receive training on building codes and mitigation standards, the bill helps ensure that claimants receive fair and accurate assessments when filing insurance claims. This protection of consumers’ rights aligns with the principle of individual liberty, as it safeguards individuals from potential errors or oversights caused by lack of adjuster knowledge.
• Personal Responsibility: The bill emphasizes personal responsibility by holding insurance adjusters accountable for staying informed about evolving building codes and mitigation practices. This requirement aligns with the professional duty of adjusters to continuously enhance their knowledge and skills, particularly in areas directly relevant to their work. By mandating targeted continuing education, the bill ensures that adjusters take personal responsibility for their professional development.
• Free Enterprise: By enhancing adjuster competency, the bill positively impacts free enterprise. Better-trained adjusters reduce the likelihood of disputes and inaccuracies in insurance claims, fostering a more reliable and trustworthy insurance market. Moreover, by allowing flexibility in how training is delivered—classroom, online, or self-paced—the bill supports innovation and competition among continuing education providers. This market-driven approach encourages private sector involvement rather than imposing a state-controlled training monopoly.
• Private Property Rights: Property owners often rely on insurance adjusters to assess damages accurately and fairly. By requiring adjusters to be knowledgeable about building codes and mitigation standards, the bill helps protect property owners from erroneous assessments that could result in inadequate compensation. Ensuring that adjusters are well-trained in this area upholds private property rights by promoting just and consistent handling of property damage claims.
• Limited Government: While the bill introduces a new training requirement, it does so in a way that minimizes governmental intrusion. The Texas Department of Insurance (TDI) is responsible for either developing the training or certifying external programs, allowing for flexibility and minimal direct state involvement. The bill’s emphasis on multiple training formats—classroom, online, and self-paced—further limits the regulatory burden, providing adjusters with choices rather than mandating a single approach. This flexibility respects the principle of limited government by ensuring that regulatory updates do not become overly prescriptive or onerous.