According to the Legislative Budget Board (LBB), the bill does not impose significant costs on the state government. It is assumed that any administrative expenses related to implementing the bill’s provisions—such as overseeing insurer compliance with new written notice and reporting requirements—can be absorbed using existing resources within the Texas Department of Insurance (TDI).

Similarly, local governments are not expected to experience any significant fiscal impact as a result of this bill. Since the bill primarily affects private insurance companies and their interactions with policyholders, no direct financial obligations will be placed on cities, counties, or other local entities. While insurance companies may face higher administrative costs due to the quarterly reporting requirement, these costs are not projected to result in increased state expenditures or require new appropriations.

Texas Policy Research remains NEUTRAL on SB 1006 because the bill presents both consumer protection benefits and regulatory concerns, making it a mixed policy change rather than a clear win or loss for core liberty principles. The bill improves transparency by requiring insurers to automatically provide written explanations when policies are declined, canceled, or not renewed, ensuring consumers have better access to information about their insurance status. However, it also introduces quarterly reporting requirements for insurers, which could increase administrative burdens and compliance costs, potentially impacting insurance pricing and market efficiency.

While the bill does expand government oversight by increasing the Texas Department of Insurance’s (TDI) authority, it does so in a way that is not overly restrictive—insurers retain the ability to make policy decisions based on risk. The requirement to report data by ZIP code raises privacy concerns, but its purpose is to identify market trends and ensure fair insurance practices, making it a neutral trade-off between regulatory oversight and consumer rights.

Given these competing factors, SB 1006 does not present a strong enough case for outright support or opposition. While it introduces modest regulatory burdens, it also enhances consumer protections in a reasonable way. Since the bill does not radically shift the balance of power between government, consumers, and insurers, Texas Policy Research remains NEUTRAL on SB 1006 as it acknowledges both the benefits and drawbacks of the proposed policy changes.

• HB 2067 (Same As)