By:  Lucio                                   S.B. No. 1197

         97S0730/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the cost estimate of Texas Department of Insurance

 1-2     rules.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Article 1.03B, Insurance Code, is amended to read

 1-5     as follows:

 1-6           Art. 1.03B.  FISCAL IMPACT OF DEPARTMENT RULES.  (a)  This

 1-7     article applies to any rule adopted by the commissioner in

 1-8     accordance with Chapter 2001, Government Code [the Administrative

 1-9     Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas

1-10     Civil Statutes)].

1-11           (b)  If the fiscal note or the public benefit-cost note

1-12     required by Subdivisions (4) and (5), Section 2001.0241, Government

1-13     Code [5(a), Administrative Procedure and Texas Register Act

1-14     (Article 6252-13a, Vernon's Texas Civil Statutes)], fails to

1-15     accurately state the reasonable actual costs required, and the

1-16     reasonable actual costs required exceed the costs stated by at

1-17     least 10 [25] percent of the costs stated, the rule is void

1-18     effective on the date the rule is adopted.

1-19           (c)  In the event a cost estimate described in Subsection (b)

1-20     of the Article is stated in a range, the high figure in the

1-21     estimate shall not exceed the low figure by 15 percent.

1-22           SECTION 2.  If any provision of this Act or its application

1-23     to any person or circumstance is held invalid, the invalidity does

 2-1     not affect other provisions or applications of this Act that can be

 2-2     given effect without the invalid provision or application, and to

 2-3     this end the provisions of this Act are declared to be severable.

 2-4           SECTION 3.  Any rule adopted by the commissioner of insurance

 2-5     which is not in conformity to the standards set forth in Section 1

 2-6     of this Act shall be null and void and of no force or effect.

 2-7           SECTION 4.  If this Act is in conflict with any other law,

 2-8     rule, regulation, or provision of the Insurance Code, this Act

 2-9     shall control.

2-10           SECTION 5.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended,

2-15     and that this Act take effect and be in force from and after its

2-16     passage, and it is so enacted.