By Van de Putte                                 H.B. No. 2062

      75R5696 DLF-F                           

                                A BILL TO BE ENTITLED

 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.

1-13           (b)  The [This article does not prohibit access by an

1-14     employee of the department to any data collected by or submitted to

1-15     the department.]

1-16           [(c)  An employee of the department may appear before the

1-17     board or its designated hearings officer only as follows:]

1-18                 [(1)  a member of the department's legal staff may

1-19     assist the board or its designated hearings officer in the

1-20     prehearing process and in aligning parties to board proceedings;]

1-21                 [(2)  one or more employees of the department may

1-22     appear as a party, present evidence, and question witnesses in a

1-23     proceeding in which the public counsel under Section 5(b)(1),

1-24     Article 1.35A of this code is not authorized by law to appear;]

 2-1                 [(3)  an employee responsible for collecting and

 2-2     compiling rate data may appear and present evidence relating to the

 2-3     validity of the compiled data and a licensed attorney employed as

 2-4     part of the legal staff of the department may assist such employee

 2-5     in making the presentation;]

 2-6                 [(4)  one or more employees of the department may

 2-7     present evidence in any rate filing case under Article 5.13-2,

 2-8     5.15, 5.55, or 5.81 of this code;]

 2-9                 [(5)  the general counsel or an assistant general

2-10     counsel may assist the board in any proceeding in which insurance

2-11     rates are set;  and]

2-12                 [(6)  the] general counsel or an assistant general

2-13     counsel may be designated by the commissioner [board] and may serve

2-14     as a hearings officer in any proceeding in which insurance rates

2-15     are set or any prehearing proceeding, provided that any final

2-16     decision relating to rates to be set must be made [set] by the

2-17     commissioner [board].

2-18           SECTION 2.  This Act takes effect September 1, 1997.

2-19           SECTION 3.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency and an imperative public necessity that the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended.