1-1 By: Jackson S.B. No. 1657
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Economic Development;
1-4 March 25, 1999, reported favorably by the following vote: Yeas 4,
1-5 Nays 0; March 25, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the compensation of an officer, trustee, or director of
1-9 a domestic insurance company.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (a), Article 3.12, Insurance Code, is
1-12 amended to read as follows:
1-13 (a) A [No] "domestic" company may not [shall] pay any
1-14 salary, compensation or emolument which, together with any salary,
1-15 compensation or emolument from an affiliated "domestic" company,
1-16 amounts in any year to more than $100,000 [Fifty Thousand Dollars
1-17 ($50,000)] to any officer, trustee or director of the "domestic"
1-18 company [thereof], or to any person, firm or corporation, unless
1-19 such payment be first authorized by a vote of the board of
1-20 directors of such company, or by a committee of such board charged
1-21 with the duty of authorizing such payments. The limitation as to
1-22 time contained in this article does [herein shall] not prevent a
1-23 [be construed as preventing any] "domestic" company from entering
1-24 into contracts with its agents for the payment of renewal
1-25 commissions.
1-26 SECTION 2. This Act takes effect September 1, 1999.
1-27 SECTION 3. The importance of this legislation and the
1-28 crowded condition of the calendars in both houses create an
1-29 emergency and an imperative public necessity that the
1-30 constitutional rule requiring bills to be read on three several
1-31 days in each house be suspended, and this rule is hereby suspended.
1-32 * * * * *