By Smithee H.B. No. 1945
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the rulemaking authority of the commissioner of
1-3 insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 36.001, Insurance Code, is amended to
1-6 read as follows:
1-7 Sec. 36.001. [RULES FOR] GENERAL RULEMAKING AUTHORITY [AND
1-8 UNIFORM APPLICATION]. (a) The commissioner may adopt rules
1-9 necessary and appropriate to implement [for the conduct and
1-10 execution of] the powers and duties of the department authorized
1-11 under this code and the other laws of this state [only as
1-12 authorized by statute].
1-13 (b) Rules adopted under this section must have general and
1-14 uniform application.
1-15 [(c) The commissioner shall publish the rules in a format
1-16 organized by subject matter. The published rules shall be kept
1-17 current and be available in a form convenient to any interested
1-18 person.]
1-19 SECTION 2. Section 36.004, Insurance Code, is amended to
1-20 read as follows:
1-21 Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF
1-22 INSURANCE COMMISSIONERS REQUIREMENTS. Except as provided by Section
1-23 36.005, the [The] department may not require an insurer to comply
1-24 with a rule, regulation, directive, or standard adopted by the
2-1 National Association of Insurance Commissioners, including a rule,
2-2 regulation, directive, or standard relating to policy reserves,
2-3 unless application of the rule, regulation, directive, or standard
2-4 is expressly authorized by statute and approved by the
2-5 commissioner.
2-6 SECTION 3. Subchapter A, Chapter 36, Insurance Code, is
2-7 amended by adding Section 36.005 to read as follows:
2-8 Sec. 36.005. ADOPTION OF INTERIM RULES TO COMPLY WITH
2-9 FEDERAL REQUIREMENTS. (a) The commissioner may adopt rules to
2-10 implement state responsibility in compliance with a federal law or
2-11 regulation, or an action of a federal court relating to a person or
2-12 activity under the jurisdiction of the department, if:
2-13 (1) a federal law or regulation, or an action of a
2-14 federal court, requires:
2-15 (A) a state to adopt the rules; or
2-16 (B) action by a state to ensure protection of
2-17 the citizens of the state;
2-18 (2) the rules will avoid federal preemption of state
2-19 insurance regulation; or
2-20 (3) the rules will prevent the loss of federal funds
2-21 to this state.
2-22 (b) The commissioner may adopt a rule under this section
2-23 only if the federal action necessitating adoption of the rule
2-24 occurs or takes effect while the legislature is not in session or
2-25 at a time during a session of the legislature in which sufficient
2-26 time does not exist to prepare a recommendation for legislative
2-27 action or permit the legislature to act. A rule adopted under this
3-1 section remains in effect until the expiration of the 30th day
3-2 after the final day of the next succeeding session of the
3-3 legislature, unless the legislature enacts a law that authorizes
3-4 the subject matter of the rule. If a law is enacted that
3-5 authorizes the subject matter of the rule, the rule continues in
3-6 effect.
3-7 SECTION 4. Article 3.42(p), Insurance Code, is amended to
3-8 read as follows:
3-9 (p) The commissioner may [is hereby authorized to] adopt
3-10 [such] reasonable rules [and regulations] as [are] necessary to
3-11 implement and accomplish the [specific provisions of this Article
3-12 and are within the standards and] purposes of this Article. The
3-13 commissioner shall adopt rules under this Article in compliance
3-14 with Chapter 2001, Government Code (Administrative Procedure Act).
3-15 A rule adopted under this Article may not be repealed or amended
3-16 until after the first anniversary of the adoption of the rule
3-17 unless the commissioner finds that it is in the significant and
3-18 material interests of the citizens of this state or that it is
3-19 necessary as a result of legislative enactment to amend, repeal, or
3-20 adopt a [in a public hearing after notice that there is a
3-21 compelling public need for the amendment or repeal of the] rule or
3-22 part of a [the] rule.
3-23 SECTION 5. Section 36.002, Insurance Code, is repealed.
3-24 SECTION 6. This Act takes effect immediately if it receives
3-25 a vote of two-thirds of all the members elected to each house, as
3-26 provided by Section 39, Article III, Texas Constitution. If this
3-27 Act does not receive the vote necessary for immediate effect, this
4-1 Act takes effect September 1, 2001.