By Brimer H.B. No. 3575 75R11393 PB-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the conversion or transfer of the Texas workers' 1-3 compensation insurance facility. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 PART 1. PRIVATIZATION OF FACILITY 1-6 SECTION 1.01. PURPOSE. The purpose of this part is to 1-7 provide a means to: 1-8 (1) convert the Texas workers' compensation insurance 1-9 facility into a stock insurance company and facilitate the transfer 1-10 of control to a third party as provided by this part; and 1-11 (2) ensure that the converted facility has full 1-12 authority to enforce the rights of the facility existing 1-13 immediately before the effective date of the conversion without 1-14 impairment or limitation, except as expressly provided by this 1-15 part. 1-16 SECTION 1.02. DEFINITIONS. In this part: 1-17 (1) "Closing date" means the effective date of the 1-18 closing of the transactions contemplated by a conversion agreement, 1-19 as provided by that agreement, and is the effective date of the 1-20 conversion. 1-21 (2) "Commission" means the Texas Workers' Compensation 1-22 Commission. 1-23 (3) "Commissioner" means the commissioner of 1-24 insurance. 2-1 (4) "Converted facility" means the entity that exists 2-2 after the facility is converted under this part. 2-3 (5) "Facility" means the Texas workers' compensation 2-4 insurance facility that was established under Article 5.76-2, 2-5 Insurance Code. 2-6 (6) "Fund" means the employers' rejected risk fund for 2-7 providing workers' compensation coverages for rejected risks, as 2-8 provided by Article 5.76-2, Insurance Code, as that article existed 2-9 before its repeal. 2-10 (7) "Insurer" means a stock company, mutual company, 2-11 reciprocal, or interinsurance exchange, the Texas Workers' 2-12 Compensation Insurance Fund, or a Lloyd's association authorized to 2-13 write workers' compensation insurance in this state. 2-14 (8) "Servicing company" means a member of the facility 2-15 or other eligible entity that is designated by the commissioner to 2-16 issue a policy that evidences the insurance coverages provided by 2-17 the fund to a rejected risk and to service the risk as provided by 2-18 Article 5.76-2, Insurance Code, as that article existed before its 2-19 repeal. 2-20 SECTION 1.03. CONVERSION; CONVERSION EFFECTIVE DATE; 2-21 CONTINGENT TRANSFER. (a) If a conversion agreement receives the 2-22 approvals described by Sections 1.04 and 1.05 of this part, the 2-23 facility shall convert from a nonprofit unincorporated association 2-24 to a Texas stock property and casualty insurance company 2-25 incorporated under Chapter 2, Insurance Code, effective on the 2-26 consummation of the transactions contemplated by the agreement. 2-27 (b) If the required approvals are not obtained or the 3-1 transactions are not consummated on or before August 31, 1997, the 3-2 facility may not be converted, and instead, the operation of the 3-3 facility shall be transferred to the Texas Property and Casualty 3-4 Insurance Guaranty Association in accordance with Part 2 of this 3-5 Act. 3-6 SECTION 1.04. CONVERSION AGREEMENT. The facility may enter 3-7 into an agreement to issue and sell shares of the capital stock 3-8 created as a result of the conversion described by Section 1.03 of 3-9 this part. To take effect, the agreement must be approved by a 3-10 majority of the voting members of the governing committee of the 3-11 facility at a meeting at which a quorum is present. 3-12 SECTION 1.05. COMMISSIONER APPROVAL. (a) On approval under 3-13 Section 1.04 of this part, an agreement shall be submitted to the 3-14 commissioner for approval. The agreement must be submitted to the 3-15 commissioner not later than June 30, 1997. The commissioner shall 3-16 review the agreement in the manner provided for review of a filing 3-17 under Article 21.49-1, Insurance Code. 3-18 (b) If the commissioner approves the agreement, the 3-19 commissioner shall order that the facility be converted. 3-20 SECTION 1.06. EFFECT OF CONVERSION. (a) The converted 3-21 facility may exercise all the rights, privileges, powers, and 3-22 authority of any other stock corporation organized to transact 3-23 property and casualty insurance business in this state, subject to 3-24 the requirements of this part. On the closing date: 3-25 (1) the converted facility is considered to be a 3-26 continuation of the facility; and 3-27 (2) subject to Section 1.07 of this part, the 4-1 converted facility is vested with all property of the facility. 4-2 (b) The converted facility may enforce all contract and 4-3 statutory rights of the facility under any servicing company 4-4 arrangements, and this part may not be construed as an assignment 4-5 of the facility's rights or obligations under those agreements. 4-6 (c) Each debt, claim, and cause of action of the facility, 4-7 and all property rights, privileges, franchises, and other 4-8 interests of the facility, remain the property of the converted 4-9 facility. 4-10 (d) The rights of all policyholders and creditors and the 4-11 standing of all claims under the facility shall be preserved 4-12 unimpaired under the converted facility. 4-13 (e) Subject to Section 1.07 of this part, each debt, 4-14 liability, and duty of the facility becomes a debt, liability, or 4-15 duty of the converted facility and may be enforced against the 4-16 converted facility as if it were incurred or contracted by the 4-17 converted facility. 4-18 (f) A cause of action or similar proceeding in which the 4-19 facility was a party that is pending on the effective date of the 4-20 conversion: 4-21 (1) is not affected by the conversion; 4-22 (2) may be continued to be prosecuted by or against 4-23 the converted facility; and 4-24 (3) continues to be governed by and conducted under 4-25 Article 5.76-2, Insurance Code, as that article existed before its 4-26 repeal, and the applicable bylaws, rules, and regulations of the 4-27 facility, as amended by the converted facility. 5-1 (g) The converted facility may not, without the prior 5-2 consent of the commissioner, amend its bylaws, rules, or 5-3 regulations in a manner that would reasonably be likely to have a 5-4 material adverse effect on employees, beneficiaries, or the holders 5-5 of or insureds under policies issued under Article 5.76, Insurance 5-6 Code, or under Article 5.76-2, Insurance Code, as that article 5-7 existed before its repeal. 5-8 (h) The converted facility may audit, at the converted 5-9 facility's expense, the books and records of each company that 5-10 services policies of insurance issued under Article 5.76, Insurance 5-11 Code, or under Article 5.76-2, Insurance Code, as that article 5-12 existed before its repeal. The audit must be limited to: 5-13 (1) the books and records that relate to the policies 5-14 described by this subsection; and 5-15 (2) claims paid on behalf of or charged to the 5-16 converted facility. 5-17 SECTION 1.07. APPLICABLE LAW. Except as otherwise provided 5-18 by this part, Article 5.76-2, Insurance Code, ceases to apply to 5-19 the facility on the closing date and does not apply to the 5-20 converted facility. Specifically, neither the converted facility 5-21 nor any other insurer succeeds to the facility's right to assess 5-22 the facility's member insurers under Section 4.04, Article 5.76-2, 5-23 Insurance Code. 5-24 SECTION 1.08. COMPLIANCE; CAPITALIZATION REQUIREMENTS. (a) 5-25 The converted facility shall comply with the Insurance Code and 5-26 rules adopted by the commissioner except as otherwise provided by 5-27 this part. If the converted facility does not issue any policies 6-1 of insurance after the closing date, the converted facility: 6-2 (1) is exempt from: 6-3 (A) the risk-based capital and surplus 6-4 regulations adopted under Article 2.02, Insurance Code; and 6-5 (B) the requirements adopted under Article 6-6 21.45, Insurance Code; 6-7 (2) may discount the reserves for losses and loss 6-8 adjustment expenses in a manner and to the extent authorized by the 6-9 commissioner in the order approving the conversion agreement; 6-10 (3) may reflect accounts receivable as an admitted 6-11 asset, notwithstanding the regulations adopted under Articles 2.08 6-12 and 2.10, Insurance Code, if those accounts receivable are 6-13 guaranteed by an insurance company authorized to do business in 6-14 this state: 6-15 (A) in an amount not to exceed $15 million; and 6-16 (B) in a manner and to the extent authorized by 6-17 the commissioner in the order approving the conversion agreement; 6-18 and 6-19 (4) may receive full credit for the reinsurance 6-20 contemplated by the conversion agreement to the extent ordered by 6-21 the commissioner, notwithstanding Article 5.75-1, Insurance Code, 6-22 and the rules adopted under that article. 6-23 (b) The commissioner shall set the capitalization 6-24 requirements of the converted facility in the order approving the 6-25 conversion agreement. 6-26 SECTION 1.09. FINAL ASSESSMENT. (a) The facility, through 6-27 action by its governing committee, may make a final assessment of 7-1 the insurance carriers licensed in this state in accordance with 7-2 Section 4.04, Article 5.76-2, Insurance Code, as that section 7-3 existed before its repeal, and the facility's bylaws, rules, and 7-4 regulations in the amount that the governing committee determines 7-5 is necessary to consummate the transactions contemplated by the 7-6 conversion agreement. The final assessment must be made at a time 7-7 to allow the assessment to be paid in full on or before the closing 7-8 date. 7-9 (b) On or before the closing date, and under terms and 7-10 conditions the governing committee considers necessary or advisable 7-11 to consummate the transactions contemplated by the conversion 7-12 agreement, the governing committee may: 7-13 (1) bind the carriers described by Subsection (a) to 7-14 reinsure a portion of the facility's liabilities instead of payment 7-15 of any or all of the final assessment under Subsection (a) of this 7-16 section; or 7-17 (2) defer payment on any or all of the final 7-18 assessment. 7-19 (c) A reinsurance arrangement approved by the governing 7-20 committee must compute a member insurer's participation in 7-21 reinsurance in the same manner that is used for the computation of 7-22 assessments under Section 4.04, Article 5.76-2, Insurance Code, as 7-23 that section existed before its repeal. 7-24 SECTION 1.10. IMMUNITY. The immunity provisions of Sections 7-25 2.05(h) and 2.12, Article 5.76-2, Insurance Code, as those 7-26 provisions existed before their repeal, continue to apply to each 7-27 act or omission that occurs before, on, or after the closing date 8-1 and that is performed by the persons or entities covered by those 8-2 provisions, including an act or omission related to the powers and 8-3 duties contained in this part. 8-4 SECTION 1.11. DEFENSE; INDEMNIFICATION. If any party 8-5 institutes or continues an action against the facility, or the 8-6 governing committee, executive director, staff, agents, servants, 8-7 or employees of the facility, whether or not serving in that 8-8 capacity on the closing date, in connection with or arising from 8-9 either the facility's operations or the transactions contemplated 8-10 by the conversion agreement, the converted facility shall defend, 8-11 indemnify, and hold harmless that person or entity from liability 8-12 for any act or omission of that person or entity in connection 8-13 with, or arising from the performance of, the powers and duties 8-14 exercised under Article 5.76-2, Insurance Code, as that article 8-15 existed before its repeal, but only on, and subject to, the terms 8-16 and conditions set forth in the conversion agreement, which must be 8-17 substantially as beneficial to the indemnified person or entity as 8-18 the indemnification set forth in the facility's bylaws in effect on 8-19 the closing date. 8-20 SECTION 1.12. CONTROLLING LAW. If a conflict exists between 8-21 this part and any other statute relating to the facility, this part 8-22 controls. 8-23 SECTION 1.13. CONFORMING AMENDMENT. Article 21.28-C, 8-24 Insurance Code, is amended by adding Sections 26 and 27 to read as 8-25 follows: 8-26 Sec. 26. COVERAGE FOR WORKERS' COMPENSATION INSURANCE 8-27 POLICIES ISSUED BY TEXAS WORKERS' COMPENSATION INSURANCE FACILITY. 9-1 (a) Notwithstanding any other provision of this article, this 9-2 article applies to each policy of insurance issued under Article 9-3 5.76 of this code or Article 5.76-2 of this code, as that article 9-4 existed before its repeal. 9-5 (b) Notwithstanding any other provision of this article, 9-6 after the conversion of the Texas workers' compensation insurance 9-7 facility to a stock insurance company, that converted facility 9-8 shall be considered an impaired insurer for purposes of this 9-9 article if any of the actions described by Section 5(9)(A) or (B) 9-10 of this article occurs to the converted facility. 9-11 (c) A claim under such an insurance policy is a covered 9-12 claim for purposes of this article if the claim satisfies the 9-13 definition under Section 5(8) of this article, whether or not the 9-14 converted facility: 9-15 (1) issued or assumed the policy; or 9-16 (2) was licensed to do business in this state at the 9-17 time: 9-18 (A) the policy was written; or 9-19 (B) the converted facility became an impaired 9-20 insurer. 9-21 (d) If a conflict exists between this section and any other 9-22 statute relating to the Texas workers' compensation insurance 9-23 facility or the Texas Property and Casualty Insurance Guaranty 9-24 Association, this section controls. 9-25 Sec. 27. IMMUNITY. There is no liability on the part of, 9-26 and a cause of action does not arise against, any member insurer of 9-27 the association, the association, an agent or employee of the 10-1 association, a member of the board of directors of the association, 10-2 or the commissioner or the commissioner's representative for any 10-3 act or omission in the performance of any activity related to the 10-4 negotiations relating to the privatization of the Texas workers' 10-5 compensation insurance facility. This section applies to each 10-6 activity undertaken by such a person or entity, regardless of the 10-7 date of the act or omission. 10-8 SECTION 1.14. EFFECTIVE DATE FOR PART 1. This part takes 10-9 effect immediately. 10-10 PART 2. CONTINGENT TRANSFER 10-11 SECTION 2.01. TRANSFER TO TEXAS PROPERTY AND CASUALTY 10-12 INSURANCE GUARANTY ASSOCIATION; EFFECTIVE DATE. (a) If the 10-13 conversion required under Part 1 of this Act does not occur on or 10-14 before August 31, 1997, the Texas Property and Casualty Insurance 10-15 Guaranty Association, on September 1, 1997, shall take control of 10-16 the operations and all of the assets, liabilities, and obligations 10-17 of the Texas workers' compensation insurance facility as provided 10-18 by this part. 10-19 (b) This part takes effect September 1, 1997, but only if 10-20 the conversion described by Subsection (a) of this section does not 10-21 occur before that date. If that conversion does occur before that 10-22 date, this part has no effect. 10-23 SECTION 2.02. CONFORMING AMENDMENT. Article 21.28-C, 10-24 Insurance Code, is amended by adding Section 26 to read as 10-25 follows: 10-26 Sec. 26. TRANSFER OF FACILITY TO ASSOCIATION. (a) The 10-27 purpose of this section is to: 11-1 (1) provide a means for the transfer of control of the 11-2 assets, liabilities, and obligations of the Texas workers' 11-3 compensation insurance facility to the Texas Property and Casualty 11-4 Insurance Guaranty Association; and 11-5 (2) ensure that the association has full authority to 11-6 enforce the rights of the facility without limitation, except as 11-7 expressly provided by this section. 11-8 (b) In addition to the definitions under Section 5 of this 11-9 Act, in this section: 11-10 (1) "Comptroller" means the Texas comptroller of 11-11 public accounts. 11-12 (2) "Facility" means the Texas workers' compensation 11-13 insurance facility. 11-14 (3) "Fund" means the Texas Workers' Compensation 11-15 Insurance Fund. 11-16 (4) "Insurer" means an insurance company licensed to 11-17 do business in this state. 11-18 (5) "Texas workers' compensation insurance facility 11-19 account" means the account maintained by the association for the 11-20 assets of the facility. 11-21 (c) The association shall take control of the facility's 11-22 assets, liabilities, and obligations and may administer all of the 11-23 remaining aspects of the facility's operation. The association has 11-24 full authority to enforce the contract or statutory rights of the 11-25 facility under any servicing company agreements. This section may 11-26 not be construed to be an assignment of the facility's rights or 11-27 obligations under those agreements. 12-1 (d) The association shall maintain the Texas workers' 12-2 compensation insurance facility account separately from the 12-3 association's accounts described by Section 6 of this Act. Each 12-4 claim, expense, or other liability related to the assets, 12-5 liabilities, and obligations of the facility shall be paid from, 12-6 and all collections and receipts shall be deposited into, the Texas 12-7 workers' compensation insurance facility account. Funds in the 12-8 Texas workers' compensation insurance facility account shall be 12-9 maintained outside the state treasury. 12-10 (e) Not later than June 1 of each year, the association 12-11 shall report its operating results for the Texas workers' 12-12 compensation insurance facility account to the commissioner on a 12-13 calendar year premium and an accident year loss basis. 12-14 (f) For a claim in which the compensable injury occurred 12-15 before January 1, 1992, the association shall compute at least 12-16 annually its results for incurred losses in the Texas workers' 12-17 compensation insurance facility account, including incurred but not 12-18 reported losses, by accident year. If there is a deficit or 12-19 surplus from the operation of the Texas workers' compensation 12-20 insurance facility account for those claims, the amount of the 12-21 deficit or surplus shall be assessed or rebated to the member 12-22 insurers licensed in this state who were members of the facility 12-23 during the calendar year. Each member insurer shall pay a 12-24 proportionate share of the total assessment or receive a 12-25 proportionate share of the total rebate based on that insurer's 12-26 portion of the total voluntary workers' compensation insurance 12-27 writings during the calendar year. The fund is not liable for any 13-1 deficit incurred on a policy with an effective date before January 13-2 1, 1992. 13-3 (g) For claims with an accident date on or after January 1, 13-4 1992, the association shall compute at least annually its results 13-5 for incurred losses in the Texas workers' compensation insurance 13-6 facility account, including incurred but not reported losses, by 13-7 accident year. If there is a deficit or surplus from operation of 13-8 the Texas workers' compensation insurance facility account for 13-9 those claims, the amount of the deficit or surplus shall be 13-10 assessed or rebated to the member insurers licensed in this state 13-11 who were members of the facility during the calendar year and to 13-12 the fund. Each member insurer and the fund shall pay a 13-13 proportionate share of the total assessment or receive a 13-14 proportionate share of the total rebate based on its portion of the 13-15 total voluntary workers' compensation insurance writings during the 13-16 calendar year. 13-17 (h) The association may provide for the redistribution of 13-18 all or part of an assessment that would otherwise be levied on a 13-19 member insurer under Subsection (f) or (g) of this section if the 13-20 member insurer is unable to pay the full assessment because the 13-21 member insurer is in liquidation at the time of the assessment. 13-22 (i) The association may authorize the deferment of the 13-23 payment of an assessment made under Subsection (f) or (g) of this 13-24 section. A deferment may be allowed only if the cash flow of the 13-25 Texas workers' compensation insurance facility account is adequate 13-26 to meet all needs. 13-27 (j) If a member insurer or the fund elects to defer any 14-1 portion of an assessment as provided by this section, the entire 14-2 unpaid portion of the assessment and any accrued interest must be 14-3 shown as a liability on each financial and annual statement of that 14-4 insurer. 14-5 (k) A member insurer may not be allowed a credit against any 14-6 tax levied by this state as a result of an assessment paid under 14-7 this section. 14-8 (l) The association may invest Texas workers' compensation 14-9 insurance facility account funds only in investments authorized for 14-10 the investment of state funds as provided by Chapter 404, 14-11 Government Code. The association shall develop an investment 14-12 policy for the Texas workers' compensation insurance facility 14-13 account and shall submit that policy to the comptroller for review 14-14 and approval. 14-15 (m) The association shall submit to the commissioner for 14-16 approval a plan of operation to ensure the fair, reasonable, and 14-17 equitable administration of the Texas workers' compensation 14-18 insurance facility account not later than October 1, 1997. The 14-19 commissioner shall approve or disapprove the association's plan of 14-20 operation of the Texas workers' compensation insurance facility 14-21 account not later than the 60th day after the date on which the 14-22 association submits the plan to the commissioner. 14-23 (n) If the commissioner does not approve the plan of 14-24 operation, the association shall submit to the commissioner an 14-25 amended plan of operation with any amendments necessary or suitable 14-26 to ensure the fair, reasonable, and equitable administration of the 14-27 Texas workers' compensation insurance facility account. The plan 15-1 of operation and any amendments take effect on approval in writing 15-2 by the commissioner. If the association fails to submit suitable 15-3 amendments to the plan, the commissioner, after notice and hearing, 15-4 shall adopt reasonable rules as necessary or advisable to implement 15-5 this section. Those rules shall continue in force until modified 15-6 by the commissioner or superseded by a plan submitted by the 15-7 association and approved by the commissioner. 15-8 (o) In addition to all immunities and protections otherwise 15-9 provided by this article, the association succeeds to all rights, 15-10 defenses, immunities, and liabilities of the facility in each 15-11 cause of action or other proceeding pending by or against the 15-12 facility on September 1, 1997, or filed after that date. The 15-13 immunity provisions of Sections 2.05(h) and 2.12, Article 5.76-2 of 15-14 this code, as those provisions existed before their repeal, 15-15 continue to apply to each act or omission that occurs before, on, 15-16 or after September 1, 1997, and that is performed by the persons or 15-17 entities covered by those provisions. 15-18 (p) If any party institutes or continues an action against 15-19 the facility, the governing committee of the facility, the 15-20 executive director of the facility, a member insurer solely in that 15-21 insurer's capacity as a member insurer, or an agent, servant, 15-22 attorney, consultant, or employee of the facility, whether or not 15-23 serving in that capacity on September 1, 1997, in connection with 15-24 or arising from either the facility's operations or the 15-25 transactions contemplated by this section, the association shall 15-26 defend, indemnify, and hold harmless that person or entity from 15-27 liability for any act or omission of that person or entity in 16-1 connection with, or arising from the performance of, the person's 16-2 or entity's powers and duties on behalf of the facility. A cause 16-3 of action or other proceeding described by this subsection shall 16-4 continue to be governed by and conducted under this section and 16-5 Article 5.76-2 of this code, as that article existed before its 16-6 repeal, and the applicable bylaws, rules, and regulations of the 16-7 facility, and those provisions are continued in effect for the 16-8 purposes of this section. 16-9 (q) The association may enter into negotiations for the 16-10 privatization to a single insurer of all the assets, liabilities, 16-11 and obligations maintained in the Texas workers' compensation 16-12 insurance facility account. If the association determines that 16-13 privatization under this subsection is in the best interest of this 16-14 state, the association shall obtain the written approval of the 16-15 commissioner before entering into a privatization agreement to 16-16 consummate the applicable transaction. 16-17 (r) Any net proceeds from the privatization of the Texas 16-18 workers' compensation insurance facility account shall be rebated 16-19 in accordance with Subsection (g) of this section. 16-20 (s) If an insurer that assumes the assets, liabilities, and 16-21 obligations maintained in the Texas workers' compensation insurance 16-22 facility account under a privatization agreement approved under 16-23 Subsection (q) of this section becomes an impaired insurer after 16-24 that privatization agreement takes effect, any remaining facility 16-25 claims shall be covered claims under this article. 16-26 (t) If a conflict exists between this section and any other 16-27 statute relating to the facility or the association, this section 17-1 controls. 17-2 PART 3. REPEALER; TRANSITION; EMERGENCY 17-3 SECTION 3.01. REPEALER. Except as otherwise provided by 17-4 this Act, the following laws are repealed on the effective date of 17-5 this Act: 17-6 (1) Article 5.76-2, Insurance Code; and 17-7 (2) Section 18.24(b), Chapter 12, Acts of the 72nd 17-8 Legislature, 2nd Called Session, 1991, as amended by Section 8, 17-9 Chapter 885, Acts of the 73rd Legislature, Regular Session, 1993. 17-10 SECTION 3.02. SEVERABILITY CLAUSE. If any provision of this 17-11 Act or the application of this Act to any person or entity or 17-12 circumstance is held invalid by a court of competent jurisdiction, 17-13 that invalidity does not affect other provisions or applications of 17-14 this Act that can be given effect without the invalid provision or 17-15 application, and to this end the provisions of this Act are 17-16 declared to be severable. 17-17 SECTION 3.03. SAVING CLAUSE. The repeal of Article 5.76-2, 17-18 Insurance Code, under Section 3.01 of this Act does not affect 17-19 rights and liabilities accruing under that article before the 17-20 effective date of this Act, and that article is continued in effect 17-21 for that purpose and for the purposes expressly provided by this 17-22 Act or Section 26, Article 21.28-C, Insurance Code, as added by 17-23 this Act. 17-24 SECTION 3.04. EFFECTIVE DATE. This part takes effect: 17-25 (1) on the closing date of the conversion of the Texas 17-26 workers' compensation insurance facility under Part 1 of this Act 17-27 as that date is defined by Section 1.02 of this Act; or 18-1 (2) on September 1, 1997, if Part 2 of this Act takes 18-2 effect. 18-3 SECTION 3.05. EMERGENCY. The importance of this legislation 18-4 and the crowded condition of the calendars in both houses create an 18-5 emergency and an imperative public necessity that the 18-6 constitutional rule requiring bills to be read on three several 18-7 days in each house be suspended, and this rule is hereby suspended, 18-8 and that this Act take effect and be in force according to its 18-9 terms, and it is so enacted.