By Jackson                                            S.B. No. 1657
         76R7268 DB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the compensation of an officer, trustee, or director of
 1-3     a domestic insurance company.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 3.12(a), Insurance Code, is amended to
 1-6     read as follows:
 1-7           (a)  A [No] "domestic" company may not [shall] pay any
 1-8     salary, compensation or emolument which, together with any salary,
 1-9     compensation or emolument from an affiliated "domestic" company,
1-10     amounts in any year to more than $100,000 [Fifty Thousand Dollars
1-11     ($50,000)] to any officer, trustee or director of the "domestic"
1-12     company [thereof], or to any person, firm or corporation, unless
1-13     such payment be first authorized by a vote of the board of
1-14     directors of such company, or by a committee of such board charged
1-15     with the duty of authorizing such payments.  The limitation as to
1-16     time contained in this article does [herein shall] not prevent a
1-17     [be construed as preventing any] "domestic" company from entering
1-18     into contracts with its agents for the payment of renewal
1-19     commissions.
1-20           SECTION 2.  This Act takes effect September 1, 1999.
1-21           SECTION 3.  The importance of this legislation and the
1-22     crowded condition of the calendars in both houses create an
1-23     emergency and an imperative public necessity that the
1-24     constitutional rule requiring bills to be read on three several
 2-1     days in each house be suspended, and this rule is hereby suspended.