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.