By Burnam                                             H.B. No. 3097
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to parity in benefits.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter E, Chapter 3, Insurance Code, is
 1-5     amended by adding Art. 3.51-6E to read as follows:
 1-6                        Art. 3.51-6E.  PARITY IN BENEFITS. 
 1-7           Sec. 1.  A policy of group accident and health insurance or
 1-8     blanket accident and health insurance as defined by Sections 1 and
 1-9     2, Article 3.51-6, Insurance Code, an individual policy of accident
1-10     and sickness insurance as defined by Section 1(B)(3), Chapter 396,
1-11     Acts of the 54th Legislature, Regular Session, 1955 (Article
1-12     3.70-1, Vernon's Texas Insurance Code), or an evidence of coverage
1-13     as defined by the Texas Health Maintenance Organization Act
1-14     (Chapter 20A, Vernon's Texas Insurance Code), may not be delivered,
1-15     issued for delivery, or renewed in this state if the terms of the
1-16     policy or evidence of coverage exclude or reduce the payment of
1-17     benefits to or on behalf of an insured or enrollee because of a
1-18     mental illness, disease, or disorder, unless such exclusion or
1-19     limitation is equally applicable to all other physically disabling
1-20     conditions.  A disability policy or plan shall provide parity in
1-21     benefits for mental and physical disabilities.
 2-1           Sec. 2.  A provision in a group accident and health insurance
 2-2     or blanket accident and health insurance policy, an individual
 2-3     accident and sickness insurance policy, or an evidence of coverage
 2-4     that violates Section 1 of this article is void.
 2-5           Sec. 3.  VIOLATION; PENALTY.  (a)  A violation of this
 2-6     article is an unfair and deceptive act or practice in the business
 2-7     of insurance for purposes of Article 21.21 of this code and is
 2-8     subject to the sanctions and penalties imposed under that article.
 2-9           (b)  Approval by the commissioner of the policy or product
2-10     form or other form used by the disability policy or plan issuer
2-11     under any law of this state, including Art. 3.42 of this code and
2-12     Section 9, Texas Health Maintenance Organization Act (Article
2-13     20A.09, Vernon's Texas Insurance Code), is not a defense to an
2-14     action brought under Article 21.21 of this code with respect to a
2-15     violation of this article.
2-16           SECTION 2.  This Act takes effect September 1, 1999.
2-17           SECTION 3.  This Act applies only to a disability policy or
2-18     plan that is delivered, issued for delivery, or renewed on or after
2-19     January 1, 2000.  A disability policy or plan that is delivered,
2-20     issued for delivery, or renewed before January 1, 2000, is governed
2-21     by the law as it existed immediately before the effective date of
2-22     this Act, and that law is continued in effect for this purpose.
2-23           SECTION 4.  The importance of this legislation and the
2-24     crowded condition of the calendars in both houses create an
2-25     emergency and an imperative public necessity that the
 3-1     constitutional rule requiring bills to be read on three several
 3-2     days in each house be suspended, and this rule is hereby suspended.