1-1 AN ACT
1-2 relating to rate proceedings before the commissioner of insurance.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Article 1.09-5, Insurance Code, is amended to
1-5 read as follows:
1-6 Art. 1.09-5. DEPARTMENT PARTICIPATION [EMPLOYEE] IN
1-7 PROCEEDINGS TO SET RATES. (a) The [Except as provided by
1-8 Subsection (c) of this section, an employee of the] department may
1-9 [not] appear as a matter of right as a party, present evidence, or
1-10 question witnesses in any proceeding before the commissioner
1-11 [board] or the [its] designated hearings officer in which insurance
1-12 rates are set under this code. This subsection is temporary and
1-13 expires September 1, 2001.
1-14 (b) The [This article does not prohibit access by an
1-15 employee of the department to any data collected by or submitted to
1-16 the department.]
1-17 [(c) An employee of the department may appear before the
1-18 board or its designated hearings officer only as follows:]
1-19 [(1) a member of the department's legal staff may
1-20 assist the board or its designated hearings officer in the
1-21 prehearing process and in aligning parties to board proceedings;]
1-22 [(2) one or more employees of the department may
1-23 appear as a party, present evidence, and question witnesses in a
1-24 proceeding in which the public counsel under Section 5(b)(1),
2-1 Article 1.35A of this code is not authorized by law to appear;]
2-2 [(3) an employee responsible for collecting and
2-3 compiling rate data may appear and present evidence relating to the
2-4 validity of the compiled data and a licensed attorney employed as
2-5 part of the legal staff of the department may assist such employee
2-6 in making the presentation;]
2-7 [(4) one or more employees of the department may
2-8 present evidence in any rate filing case under Article 5.13-2,
2-9 5.15, 5.55, or 5.81 of this code;]
2-10 [(5) the general counsel or an assistant general
2-11 counsel may assist the board in any proceeding in which insurance
2-12 rates are set; and]
2-13 [(6) the] general counsel or an assistant general
2-14 counsel may be designated by the commissioner [board] and may serve
2-15 as a hearings officer in any proceeding in which insurance rates
2-16 are set or any prehearing proceeding, provided that any final
2-17 decision relating to rates to be set must be made [set] by the
2-18 commissioner [board].
2-19 (c) The department shall provide evidence in proceedings
2-20 before the commissioner or the designated hearings officer
2-21 promoting the adoption of rates that promote access to full
2-22 insurance coverage at rates that are fair and reasonable for
2-23 underserved areas.
2-24 SECTION 2. Nothing in Article 1.09-5, Insurance Code, as
2-25 amended by this Act, shall be considered as amending, limiting,
2-26 expanding, or modifying the provisions of Article 1.33B of the
2-27 Insurance Code. In the event of any conflict between the
3-1 provisions of Article 1.09-5 and Article 1.33B, the provisions of
3-2 Article 1.33B shall control and continue to be fully effective
3-3 notwithstanding any of the provisions of Article 1.09-5.
3-4 SECTION 3. This Act takes effect September 1, 1997.
3-5 SECTION 4. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2062 was passed by the House on May
6, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 2062 on May 24, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2062 was passed by the Senate, with
amendments, on May 22, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor