By Truan S.B. No. 1921
75R10090 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, operation, and funding of a long-term
1-3 care insurance education program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 9, Human Resources Code, is amended by
1-6 adding Chapter 133 to read as follows:
1-7 CHAPTER 133. LONG-TERM CARE INSURANCE EDUCATION PROGRAM
1-8 Sec. 133.001. DEFINITIONS. In this chapter:
1-9 (1) "Board" means the Texas Board of Human Services.
1-10 (2) "Commissioner" means the commissioner of human
1-11 services.
1-12 (3) "Department" means the Texas Department of Human
1-13 Services.
1-14 (4) "Long-term care insurance" means insurance
1-15 provided under a long-term care insurance policy as defined by
1-16 Article 3.70-12, Insurance Code.
1-17 (5) "Program" means the long-term care insurance
1-18 education program established under this chapter.
1-19 Sec. 133.002. LONG-TERM CARE INSURANCE EDUCATION PROGRAM.
1-20 (a) The long-term care insurance program is a program within the
1-21 department.
1-22 (b) The commissioner shall administer and implement the
1-23 program in accordance with this article and the rules adopted by
1-24 the board.
2-1 (c) The board may adopt rules necessary to administer and
2-2 implement this chapter.
2-3 (d) The commissioner may employ or contract with any person
2-4 as necessary to administer and implement this chapter.
2-5 Sec. 133.003. PURPOSE OF PROGRAM. The purpose of the
2-6 program is to educate the public on long-term care insurance,
2-7 including the dissemination of information relating to the purchase
2-8 and content of long-term care insurance policies approved for sale
2-9 in this state.
2-10 Sec. 133.004. PUBLIC EDUCATION PLAN. (a) Under the
2-11 direction of the commissioner, the department shall develop a
2-12 comprehensive plan to educate the public in the evaluation and
2-13 purchase of long-term care insurance. The plan is subject to the
2-14 approval of the board and may be amended by the board on the
2-15 recommendation of the commissioner or the staff of the program.
2-16 (b) The plan must include:
2-17 (1) a detailed description of the mechanisms to be
2-18 used to educate the public with respect to long-term care
2-19 insurance, including the development of:
2-20 (A) written material and advertising as
2-21 described by Section 133.005;
2-22 (B) a speakers program as described by Section
2-23 133.006; and
2-24 (C) a toll-free telephone number as described by
2-25 Section 133.007;
2-26 (2) procedures governing the development and operation
2-27 of the program; and
3-1 (3) any other procedures necessary to effectively
3-2 implement the program.
3-3 Sec. 133.005. PUBLICATIONS AND ADVERTISING. (a) The
3-4 department may develop, issue, and circulate to the public written
3-5 material that provides information relating to:
3-6 (1) the background and nature of long-term care
3-7 insurance;
3-8 (2) the types of benefits provided under long-term
3-9 care insurance;
3-10 (3) the types of long-term care insurance policies
3-11 available;
3-12 (4) comparisons of different long-term care insurance
3-13 policies; and
3-14 (5) other educational information useful in
3-15 understanding and evaluating long-term care insurance policies.
3-16 (b) The department may develop educational advertising for
3-17 dissemination to newspapers, magazines, radio, television, and
3-18 other media to educate the public regarding the purchase and
3-19 evaluation of long-term care insurance.
3-20 (c) The department may not disseminate to the public under
3-21 the program any written material or advertisement of any insurer.
3-22 (d) In developing written material and advertising under
3-23 this section, the department shall consult with the Texas
3-24 Department of Insurance. The Texas Department of Insurance shall
3-25 provide expert staff as necessary to assist the department in
3-26 developing the written material and advertising.
3-27 Sec. 133.006. SPEAKERS PROGRAM. (a) The department, as
4-1 part of the program, may develop a speakers program through which
4-2 the department makes persons with expertise in long-term care
4-3 insurance available to provide educational information relating to
4-4 the background, coverage, and purchase of long-term care insurance
4-5 policies.
4-6 (b) The commissioner may designate officers and employees of
4-7 the department, employees of the Texas Department of Insurance, or
4-8 independent expert consultants to serve as speakers under the
4-9 speakers program. An officer or employee of an insurer authorized
4-10 to issue long-term care insurance in this state may not serve as a
4-11 speaker.
4-12 (c) The department may enter into contracts with persons
4-13 with expertise in long-term care insurance to serve as speakers.
4-14 Sec. 133.007. TOLL-FREE TELEPHONE NUMBER. (a) The
4-15 department shall establish a toll-free telephone number through
4-16 which the public may obtain general information relating to
4-17 long-term care insurance and may obtain answers to questions
4-18 relating to long-term care insurance coverage.
4-19 (b) Persons trained in long-term care insurance coverage
4-20 shall staff the toll-free telephone line.
4-21 (c) The department may contract with the Texas Department of
4-22 Insurance to provide the toll-free telephone line or staff for the
4-23 toll-free telephone line.
4-24 Sec. 133.008. OTHER EDUCATIONAL ACTIVITIES. The department,
4-25 through the program, may engage in other activities to provide
4-26 information to the public relating to long-term care insurance.
4-27 Sec. 133.009. ENDORSEMENT OF PARTICULAR POLICY PROHIBITED.
5-1 The educational activities authorized under this article, including
5-2 the activities described by Sections 133.005, 133.006, 133.007, and
5-3 133.008, may not endorse, promote, or encourage the purchase of any
5-4 particular insurance policy offered by a particular insurer in this
5-5 state.
5-6 Sec. 133.010. INTERAGENCY CONTRACT. The department and the
5-7 Texas Department of Insurance may enter into an interagency
5-8 contract or memorandum of understanding as necessary to implement
5-9 this chapter.
5-10 Sec. 133.011. APPROVED POLICIES. The program may not
5-11 provide information relating to insurance coverage that does not
5-12 meet the requirements of Article 3.70-12, Insurance Code, and the
5-13 rules adopted under that article.
5-14 Sec. 133.012. MAINTENANCE TAX FUNDS. The program shall be
5-15 funded by money appropriated to the department from maintenance tax
5-16 revenue collected under Article 4.17, Insurance Code, and made
5-17 available to the department through legislative appropriation.
5-18 SECTION 2. Article 4.17, Insurance Code, is amended by
5-19 amending Subsections (c) and (d) and adding Subsection (h) to read
5-20 as follows:
5-21 (c) The commissioner, after taking into account the
5-22 unexpended funds produced by this tax, if any, shall adjust the
5-23 rate of assessment each year to produce the amount of funds that it
5-24 estimates will be necessary to pay all the expenses of regulating
5-25 life, health, and accident insurers during the succeeding year,
5-26 including the expenses of administering and implementing the
5-27 long-term care insurance education program under Chapter 133, Human
6-1 Resources Code. In making an estimate under this subsection, the
6-2 commissioner shall take into account the requirement that the
6-3 general revenue fund be reimbursed under Article 4.19 of this code.
6-4 (d) Except as provided by Subsection (h), the [The] taxes
6-5 collected shall be deposited in the state treasury to the credit of
6-6 the general revenue fund to be reallocated to the Texas Department
6-7 of Insurance operating fund and shall be spent as authorized by
6-8 legislative appropriation on warrants issued by the comptroller
6-9 pursuant to duly certified requisitions of the commissioner.
6-10 Amounts reallocated to the Texas Department of Insurance operating
6-11 fund under this subsection may be transferred to the general
6-12 revenue fund in accordance with Article 4.19 of this code.
6-13 (h) A portion of the money collected under this article may
6-14 be appropriated to the Texas Department of Human Services to
6-15 administer and implement the long-term care insurance education
6-16 program under Chapter 133, Human Resources Code. The commissioner
6-17 and the commissioner of human services shall enter into an
6-18 interagency contract or memorandum of understanding under which the
6-19 commissioner of human services provides to the commissioner the
6-20 information necessary to establish a maintenance tax rate
6-21 sufficient to fund the program.
6-22 SECTION 3. This Act takes effect September 1, 1997.
6-23 SECTION 4. This Act applies only to an assessment of a
6-24 maintenance tax under Article 4.17, Insurance Code, that is
6-25 originally due on or after January 1, 1998. A maintenance tax that
6-26 is originally due before January 1, 1998, is governed by the law as
6-27 it existed immediately before the effective date of this Act, and
7-1 that law is continued in effect for this purpose.
7-2 SECTION 5. The importance of this legislation and the
7-3 crowded condition of the calendars in both houses create an
7-4 emergency and an imperative public necessity that the
7-5 constitutional rule requiring bills to be read on three several
7-6 days in each house be suspended, and this rule is hereby suspended.