By Thompson H.B. No. 2051 Substitute the following for H.B. No. 2051: By Lewis of Tarrant C.S.H.B. No. 2051 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to classes of business for small employer health benefit 1-3 plans. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Article 26.02(5), Insurance Code, is amended to 1-6 read as follows: 1-7 (5) "Case characteristics" means, with respect to a small 1-8 employer, the geographic area in which that employer's employees 1-9 reside, the age and gender of the individual employees and their 1-10 dependents, the appropriate industry classification as determined 1-11 by the small employer carrier, the number of employees and 1-12 dependents, and other objective criteria as established by the 1-13 small employer carrier that are considered by the small employer 1-14 carrier in setting premium rates for that small employer. The term 1-15 does not include the number of employees and dependents, health 1-16 status related factors, duration of coverage since the date of 1-17 issuance of a health benefit plan, or whether a covered person is 1-18 or may become pregnant. 1-19 SECTION 2. Article 26.73, Insurance Code, is amended by 1-20 adding Subsection (c) to read as follows: 1-21 (c) Except as provided under Subsection (a) of this article, 1-22 a small employer carrier may vary the agent commission rates paid 1-23 on small employer premiums, but only if: 1-24 (1) the only factor that is used to differentiate 2-1 agent commission levels is the number of employees covered under 2-2 the small employer plan; and 2-3 (2) the commission levels are inversely related to the 2-4 number of employees covered under the small employer plan. 2-5 SECTION 3. This Act takes effect September 1, 1999, and 2-6 applies only to a small employer health benefit plan that is 2-7 delivered, issued for delivery, or renewed on or after January 1, 2-8 2000. A health benefit plan delivered, issued for delivery, or 2-9 renewed before January 1, 2000, is governed by the law as it 2-10 existed immediately before the effective date of this Act, and that 2-11 law is continued in effect for that purpose. 2-12 SECTION 4. The importance of this legislation and the 2-13 crowded condition of the calendars in both houses create an 2-14 emergency and an imperative public necessity that the 2-15 constitutional rule requiring bills to be read on three several 2-16 days in each house be suspended, and this rule is hereby suspended.