AUSTIN, Texas (Feb. 27, 2013) –- The Texas Windstorm Insurance Association and Texas Public Finance Authority would be subject to stringent conflict of interests standards under new legislation filed by state Rep. Phil Stephenson, R-Wharton.
“It’s time we began an extensive examination of these organizations. The taxpayers of Texas can’t afford otherwise,” Rep. Stephenson said.
H.B. 1890 would forbid firms from advising on TWIA’s bonding capacity and subsequently participating in, and earning fees from, bond issuances that follow. It also creates disclosure and conflict of interest standards for financial advisors and investment banks that advise both TWIA and another state or federal government insurance provider, pool, fund or residual market entity.
“TWIA must be structured to be beyond reproach and the taxpayers deserve to know that the kinds of questionable practices that led to its current administrative oversight process will not be repeated,” said R Street Texas Director Julie Drenner. “This legislation would address obvious conflict of interest and better ensure TWIA receive truly unbiased advice.”