Amend CSHB 1945 by striking all below the enacting clause and
substituting the following:
      SECTION 1.  Section 36.001, Insurance Code, is amended to
read as follows:
      Sec. 36.001.  <RULES FOR> GENERAL RULEMAKING AUTHORITY <AND
UNIFORM APPLICATION>.  (a)  The commissioner may adopt rules
necessary and appropriate to implement <for the conduct and
execution of> the powers and duties of the department authorized
under this code and the other laws of this state <only as
authorized by statute>.
      (b)  Rules adopted under this section must have general and
uniform application.
      <(c)  The commissioner shall publish the rules in a format
organized by subject matter.  The published rules shall be kept
current and be available in a form convenient to any interested
person.>
      SECTION 2.  Section 36.004, Insurance Code, is amended to
read as follows:
      Sec. 36.004.  COMPLIANCE WITH NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS REQUIREMENTS.  Except as provided by
Section 36.005, the <The> department may not require an insurer to
comply with a rule, regulation, directive, or standard adopted  by
the National Association of Insurance Commissioners, including a
rule, regulation, directive, or standard relating to policy
reserves, unless application of the rule, regulation, directive, or
standard is expressly authorized by statute and approved by the
commissioner.
      SECTION 3.  Subchapter A, Chapter 36, Insurance Code, is
amended by adding Section 36.005 to read as follows:
      Sec. 36.005.  ADOPTION OF INTERIM RULES TO COMPLY WITH
FEDERAL REQUIREMENTS.  (a) The commissioner may adopt rules to
implement state responsibility in compliance with a federal law or
regulation, or an action of a federal court relating to a person or
activity under the jurisdiction of the department, if:
            (1)  a federal law or regulation, or an action of a
federal court, requires:
                  (A)  a state to adopt the rules; or
                  (B)  action by a state to ensure protection of
the citizens of the state;
            (2)  the rules will avoid federal preemption of state
insurance regulation; or
            (3)  the rules will prevent the loss of federal funds
to this state.
      (b)  The commissioner may adopt a rule under this section
only if the federal action necessitating adoption of the rule
occurs or takes effect while the legislature is not in session or
at a time during a session of the legislature in which sufficient
time does not exist to prepare a recommendation for legislative
action or permit the legislature to act.  A rule adopted under this
section remains in effect until the expiration of the 30th day
after the final day of the next succeeding session of the
legislature, unless the legislature enacts a law that authorizes
the subject matter of the rule.  If a law is enacted that
authorizes the subject matter of the rule, the rule continues in
effect.
      SECTION 4. Article 3.42(p), Insurance Code, is amended to
read as follows:
      (p)  The commissioner may <is hereby authorized to> adopt
<such> reasonable rules <and regulations> as <are> necessary to
implement and accomplish the <specific provisions of this Article
and are within the standards and> purposes of this Article.  The
commissioner shall adopt rules under this Article in compliance
with Chapter 2001, Government Code (Administrative Procedure Act).
A rule adopted under this Article may not be repealed or amended
until after the first anniversary of the adoption of the rule
unless the commissioner finds that it is in the significant and
material interests of the citizens of this state or that it is
necessary as a result of legislative enactment to amend, repeal, or
adopt a <in a public hearing after notice that there is a
compelling public need for the amendment or repeal of the> rule or
part of a <the> rule.
      SECTION 5.  Section 36.002, Insurance Code, is repealed.
      SECTION 6.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the necessary vote for immediate effect, this
Act takes effect September 1, 2001.