Amend CSHB 3304 by striking all below the enacting clause and
substituting the following:
      SECTION 1. Art. 1.28, Insurance Code, is amended to read as
follows:
      Art. 1.28. Out-of-State Books, Records, Accounts, and
Offices.
      Sec. 1. (a)  On giving written notice of intent to the
commissioner of insurance, and if the commissioner of insurance
does not disapprove within 30 days after that notice is given, a
domestic insurance company, including a life, health, and accident
insurance company, fire and marine insurance company, surety and
trust company, general casualty company, title insurance company,
fraternal benefit society, mutual life insurance company, local
mutual aid association, statewide mutual assessment company, mutual
insurance company other than life, farm mutual insurance company,
county mutual insurance company, Lloyds plan, reciprocal exchange,
group hospital service corporation, health maintenance
organization, stipulated premium insurance company, nonprofit legal
services corporation, or any other entity licensed under the
Insurance Code or chartered or organized under the laws of this
state that is an affiliated member of an insurance holding company
system, as defined by Article 21.49-1, Insurance Code, as added by
Chapter 356, Acts of the 62nd Legislature, Regular Session, 1971
(Article 21.49-1, Vernon's Texas Insurance Code), may locate and
maintain all or any portion of its books, records, an accounts and
it principal offices outside this state at a location within the
United States if the company meets the requirements of this
section. This article does not apply to or prohibit the location
and maintenance of the normal books, records, and accounts
including policyholder and claim files <of either a branch office
or agency office> of a domestic insurance company, relating to the
business produced by or through an agency of the company whether of
not such agency is an affiliate under Article 21.49-1, at the
branch office or agency office, if that office is located in the
United States.
      (b)  The domestic insurance company must be:
            (1)  an affiliate of an insurance holding company
system as defined in Article 21.49, Insurance Code, as added by
Chapter 356, Acts of the 62nd Legislature, Regular Session, 1971
(Article 21.49-1, Vernon's Texas Insurance Code), that has made the
necessary filings as required by that article and that is in
compliance with that article; <or>
            (2)  a nonprofit legal services corporation whose
claims and daily affairs are handled under contract by a foreign
insurer licensed to do a similar business in this state; or <.>
            (3)  a health maintenance organization that is
affiliated with other health maintenance organizations or health
care providers.
      (c)  The Ultimate controlling person of the insurance holding
company system, the immediate controlling person of the domestic
insurance company, or an intermediate controlling person of the
domestic insurance company must be legally domiciled, licensed, or
admitted to transact business in a jurisdiction within the United
States.
      (d)  The books, records, accounts or offices of the domestic
insurance company are under the company's direct supervision,
management, and control.
      (e)  Both the domestic insurance company and the controlling
person of the affiliated insurance holding company system must
appoint and maintain a person in this state as attorney for service
of process in the manner provided by Section 2(b), Article 1.36, of
this code. The commissioner is authorized to accept service and
notify the insurance company, in the manner provided by Section 3,
Article 1.36 of this code, if the insurance company does not
appoint or maintain an attorney for acceptance of process.
      (f)  A separate notice of intent shall not be required if the
domestic insurer has an agreement to maintain its books and records
outside of the state with an affiliate and such agreement has been
approved or deemed approved as required by art. 21.49-1, Insurance
Code and such agreement contains substantially all the information
required for such notice under this article.
      (g)  The commissioner shall adopt rules allowing the
maintenance of the books and records of a domestic insurer subject
to this article with a non-affiliated entity other than an agency
and to allow a domestic health maintenance organization to comply
with this article.
      Sec. 2. (a) A credit on or offset to the amount of premium
taxes to be paid by the domestic insurance company to the state in
a taxable year may not be allowed on:
            (1)  examination expenses incurred by representatives
of the department that are directly attributable to an examination
of the books, records, accounts, or principal offices of a domestic
insurance company located outside this state;
            (2)  examination expenses or fees paid to a state other
than this state; or
            (3)  examination expenses paid in a different taxable
year.
      (b)  This article prevails over any conflicting provisions in
Articles 1.16, 4.10, 9.59, and 4.11 of this code or any other law
of this state.
      SECTION 2. This Act takes effect September 1, 1999. This Act
clarifies the law as it existed immediately before the effective
date of this Act and may not be interpreted to imply that the law
as it existed immediately before the effective date of this Act is
inconsistent with the law as amended by this Act.
      SECTION 3. The importance of this legislation and the crowded
condition of the calendars in both houses create an emergency and
an imperative public necessity that the constitutional rule
requiring bills to be read on three several days in each house be
suspended, and this rule is hereby suspended.