73R5857 PB-D
          By Dear                                               H.B. No. 1568
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to an exception from certain requirements regarding
    1-3  prepaid legal services contracts.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article 5.13-1, Insurance Code, is amended by
    1-6  adding Subsection (g) to read as follows:
    1-7        (g)  A plan that does not provide a benefit other than
    1-8  consultation and advice on a simple legal matter, either alone or
    1-9  in combination with a referral service and the promise of fee
   1-10  discounts for other matters, does not constitute a prepaid legal
   1-11  services contract subject to this article.
   1-12        SECTION 2.  This Act takes effect September 1, 1993, and
   1-13  applies only to a prepaid legal services contract entered into on
   1-14  or after that date.  A contract entered before that date is
   1-15  governed by the law in effect on the date that the contract was
   1-16  entered, and that law is continued in effect for that purpose.
   1-17        SECTION 3.  The importance of this legislation and the
   1-18  crowded condition of the calendars in both houses create an
   1-19  emergency and an imperative public necessity that the
   1-20  constitutional rule requiring bills to be read on three several
   1-21  days in each house be suspended, and this rule is hereby suspended.
   1-22                       COMMITTEE AMENDMENT NO. 1
   1-23  Amend HB 1568, page 1 line 7 and page 1 Section 2, line 13 to read
   1-24  as follows:
    2-1              (g)  For the purpose of establishing and maintaining
    2-2  rates, a plan that does not provide a benefit other than
    2-3  consultation and advice on a simple legal matter, either alone or
    2-4  in combination with a referral service and the promise of fee
    2-5  discounts for other matters, does not constitute a prepaid legal
    2-6  service contract subject to this article.
    2-7        SECTION 2.  This Act takes effect September 1, 1993, and
    2-8  applies only to a prepaid legal services contract issued or renewed
    2-9  <entered into> on or after that date.  <A contract entered before
   2-10  that date is governed by the law in effect on the date that the
   2-11  contract entered, and that law is continued in effect for that
   2-12  purpose.>
   2-13                                                                 Rudd