BILL ANALYSIS Insurance Committee By: Shields 03-29-95 Committee Report (Substituted) BACKGROUND Currently, life insurance agents who represent themselves as a counselor, advisor, or other similar title are required to obtain a "Life Insurance Counselor's license after successful completion of examination as required by the Texas Department of Insurance. Agents may market life insurance and receive commissions in the course of routine life insurance sales, however they must have a Life Insurance Counselor's License if they desire to do business as "insurance counselor", "insurance specialist", or "insurance advisor". A licensed agent is permitted to give advice, counsel or recommended information about insurance products and receive a fee for that service, however, an agent may not receive both a fee and a commission. Any person who acts as a life insurance counselor under the provisions of Art. 21.07-2 is subject to misdemeanor penalties of a fine of a fine of not more than $500, or imprisoned not more than six months, or both. PURPOSE As proposed, House Bill 2794 would change the current penalty under Section 7, Chapter 29, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-2, V.T.I.C.) to conform with the Texas Penal Code. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 7, Chapter 29, Acts of the 54th Legislature, Regular Session, 1955 (Article 21.07-2, V.T.I.C.) by changing the current penalty to a Class C misdemeanor. SECTION 2. (a) This Act applies only to the punishment for an offense committed on or after the effective date of the Act. (b) An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed. SECTION 3. Effective Date. SECTION 4. Emergency Clause COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute to H.B. 2794 strikes existing language under Article 21.07-2, Insurance Code relating to the conviction under this Act and the penalty of a fine not more than $500 or imprisonment of not more than 6 months. The substitute also provides punishment transition language. SUMMARY OF COMMITTEE ACTION In accordance with House Rules, H.B. 2794 was heard in a public hearing on March 29, 1995. The Chair laid out H.B. 2794 and recognized Representative Shields who offered a substitute to H.B. 2794 and moved the Committee to adopt the substitute. The Chair heard no objections and the substitute to H.B. 2794 was adopted. The Chair recognized the following person to testify in support of H.B. 2794: E. Kenneth Tooley, Texas Association of Life Underwriters. No one testified in opposition to or neutrally on H.B. 2794. The Chair recognized Representative Driver who moved the Committee report H.B. 2794 as substituted to the full House with the recommendation that it do pass and be printed. Representative Averitt seconded the motion and the motion prevailed by the following vote: AYES (7); NAYES (0); ABSENT (2); PNV (0).