By Thompson H.B. No. 2051 76R6255 AJA-F 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 26.31, Insurance Code, is amended by 1-6 adding Subsection (g) to read as follows: 1-7 (g) Notwithstanding Subsection (a) of this article, a 1-8 small employer carrier may divide small employer groups with 1-9 similar case characteristics into different classes of business 1-10 based on the number of employees covered under the small employer 1-11 plan. 1-12 SECTION 2. Article 26.73, Insurance Code, is amended by 1-13 adding Subsection (c) to read as follows: 1-14 (c) Except as provided under Subsection (a) of this article, 1-15 a small employer carrier may vary the agent commission rates paid 1-16 on small employer premiums, but only if: 1-17 (1) the only factor that is used to differentiate 1-18 agent commission levels is the number of employees covered under 1-19 the small employer plan; and 1-20 (2) the commission levels are inversely related to the 1-21 number of employees covered under the small employer plan. 1-22 SECTION 3. This Act takes effect September 1, 1999, and 1-23 applies only to a small employer health benefit plan that is 1-24 delivered, issued for delivery, or renewed on or after January 1, 2-1 2000. A health benefit plan delivered, issued for delivery, or 2-2 renewed before January 1, 2000, is governed by the law as it 2-3 existed immediately before the effective date of this Act, and that 2-4 law is continued in effect for that purpose. 2-5 SECTION 4. The importance of this legislation and the 2-6 crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended.