HBA-TYH H.B. 3359 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3359 By: Eiland Insurance 4/1/1999 Introduced BACKGROUND AND PURPOSE The current benchmark rating system provided in Article 5.101 (Flexible Rating Program for Certain Insurance Lines), Insurance Code, requires that rates be set after a contested case hearing. This can be a lengthy and expensive process. H.B. 3359 requires the commissioner of insurance to promulgate, rather than conduct hearings to determine, the benchmark rates. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of insurance in SECTION 1 (Article 5.101, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 5.101, Insurance Code, to require the commissioner of insurance to enter an order promulgating, rather than conduct hearings to determine, the benchmark rates by line on or before September 1 of each year. Provides that Subchapter B (Rulemaking), Chapter 2001, Government Code (The Administrative Procedure Act), applies to all rate hearings conducted under this article. Deletes text regarding benchmark rate hearing procedures. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.