SRC-JFA S.B. 1894 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1894
By: Sibley
Economic Development
3-26-97
As Filed


DIGEST 

Currently, the commissioner of insurance (commissioner) is authorized to
adopt rules and regulations for the conduct and execution of the duties
and functions of the Texas Department of Insurance as authorized by
statute.  This general rulemaking authority is continually used to justify
the adoption of rules.  This bill would require rules adopted by the
commissioner to state the subject matter to be regulated and the specific
statutory authority for the rule.  

PURPOSE

As proposed, S.B. 1894 sets forth guidelines in regard to the adoption of
rules by the commissioner of insurance.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in
SECTION 1 (Article 1.03A(c) and (d)) of this bill.   

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 1.03A, Insurance Code, to authorize the
commissioner of insurance (commissioner) to adopt rules, rather than rules
and regulations, for the conduct and execution of the duties and functions
of the Department of Insurance only as authorized by a statute.  Provides
that each rule adopted under this article must be written in clear and
concise language.  Requires each rule adopted under this article to state
the subject matter to be regulated and the specific statutory authority
for the rule.  Provides that the use of this article or any other
provision of this code as general authority for the commissioner to adopt
rules is not sufficient to satisfy the requirements of this subsection.
Provides that a rule adopted by the commissioner that does not comply with
the requirements of this article is void.  Makes conforming and
nonsubstantive changes. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.