1-1 By: Van de Putte (Senate Sponsor - Harris) H.B. No. 2062
1-2 (In the Senate - Received from the House May 7, 1997;
1-3 May 8, 1997, read first time and referred to Committee on Economic
1-4 Development; May 17, 1997, reported favorably by the following
1-5 vote: Yeas 10, Nays 0; May 17, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to rate proceedings before the commissioner of insurance.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Article 1.09-5, Insurance Code, is amended to
1-11 read as follows:
1-12 Art. 1.09-5. DEPARTMENT PARTICIPATION [EMPLOYEE] IN
1-13 PROCEEDINGS TO SET RATES. (a) The [Except as provided by
1-14 Subsection (c) of this section, an employee of the] department may
1-15 [not] appear as a matter of right as a party, present evidence, or
1-16 question witnesses in any proceeding before the commissioner
1-17 [board] or the [its] designated hearings officer in which insurance
1-18 rates are set under this code.
1-19 (b) The [This article does not prohibit access by an
1-20 employee of the department to any data collected by or submitted to
1-21 the department.]
1-22 [(c) An employee of the department may appear before the
1-23 board or its designated hearings officer only as follows:]
1-24 [(1) a member of the department's legal staff may
1-25 assist the board or its designated hearings officer in the
1-26 prehearing process and in aligning parties to board proceedings;]
1-27 [(2) one or more employees of the department may
1-28 appear as a party, present evidence, and question witnesses in a
1-29 proceeding in which the public counsel under Section 5(b)(1),
1-30 Article 1.35A of this code is not authorized by law to appear;]
1-31 [(3) an employee responsible for collecting and
1-32 compiling rate data may appear and present evidence relating to the
1-33 validity of the compiled data and a licensed attorney employed as
1-34 part of the legal staff of the department may assist such employee
1-35 in making the presentation;]
1-36 [(4) one or more employees of the department may
1-37 present evidence in any rate filing case under Article 5.13-2,
1-38 5.15, 5.55, or 5.81 of this code;]
1-39 [(5) the general counsel or an assistant general
1-40 counsel may assist the board in any proceeding in which insurance
1-41 rates are set; and]
1-42 [(6) the] general counsel or an assistant general
1-43 counsel may be designated by the commissioner [board] and may serve
1-44 as a hearings officer in any proceeding in which insurance rates
1-45 are set or any prehearing proceeding, provided that any final
1-46 decision relating to rates to be set must be made [set] by the
1-47 commissioner [board].
1-48 SECTION 2. Nothing in Article 1.09-5, Insurance Code, as
1-49 amended by this Act, shall be considered as amending, limiting,
1-50 expanding, or modifying the provisions of Article 1.33B of the
1-51 Insurance Code. In the event of any conflict between the
1-52 provisions of Article 1.09-5 and Article 1.33B, the provisions of
1-53 Article 1.33B shall control and continue to be fully effective
1-54 notwithstanding any of the provisions of Article 1.09-5.
1-55 SECTION 3. This Act takes effect September 1, 1997.
1-56 SECTION 4. The importance of this legislation and the
1-57 crowded condition of the calendars in both houses create an
1-58 emergency and an imperative public necessity that the
1-59 constitutional rule requiring bills to be read on three several
1-60 days in each house be suspended, and this rule is hereby suspended.
1-61 * * * * *