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