77R9358 PB-D
By Smithee H.B. No. 1945
Substitute the following for H.B. No. 1945:
By Smithee C.S.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. The heading to Chapter 36, Insurance Code, is
1-6 amended to read as follows:
1-7 CHAPTER 36. DEPARTMENT [RULES AND] PROCEDURES
1-8 SECTION 2. Subtitle A, Title 2, Insurance Code, is amended by
1-9 adding Chapter 41 to read as follows:
1-10 CHAPTER 41. DEPARTMENT RULES
1-11 SUBCHAPTER B. EMERGENCY RULEMAKING
1-12 Sec. 41.051. EMERGENCY RULEMAKING AUTHORITY OF COMMISSIONER.
1-13 (a) Notwithstanding Subchapter A or any other insurance law of
1-14 this state, the commissioner may adopt emergency rules as provided
1-15 by this subchapter.
1-16 (b) The commissioner may adopt emergency rules as provided
1-17 by this subchapter if the commissioner determines, based on good
1-18 cause, that an emergency exists in the business of insurance or
1-19 another business regulated by the department under this code or
1-20 another insurance law of this state. For purposes of this
1-21 subsection, an emergency exists if changes in federal laws or
1-22 regulations or unexpected changes in market conditions threaten the
1-23 ability of:
1-24 (1) residents of this state to obtain or retain
2-1 insurance coverage or other coverage regulated by the department;
2-2 or
2-3 (2) insurers to provide insurance coverage or other
2-4 coverage regulated by the department.
2-5 (c) The commissioner may not exercise emergency rulemaking
2-6 authority under this subchapter during a regular session of the
2-7 legislature.
2-8 Sec. 41.052. REQUIREMENTS FOR EMERGENCY RULES. (a) To adopt
2-9 an emergency rule under this subchapter, the commissioner must:
2-10 (1) declare an emergency in the business of insurance
2-11 or another business regulated by the department;
2-12 (2) propose an emergency rule that specifies a remedy
2-13 for the particular circumstances resulting in the emergency; and
2-14 (3) schedule a public hearing on the proposed
2-15 emergency rule, with public notice and notice to the governor,
2-16 lieutenant governor, and speaker of the house of representatives.
2-17 (b) An emergency rule adopted under this subchapter takes
2-18 effect on the last day of the hearing required under Subsection (a)
2-19 and expires on the last day of the regular legislative session that
2-20 occurs after the adoption of the emergency rule unless legislative
2-21 authorization for the rule is granted during that legislative
2-22 session.
2-23 SECTION 3. Subchapter A, Chapter 36, Insurance Code, is
2-24 redesignated as Subchapter A, Chapter 41, Insurance Code, and
2-25 amended to read as follows:
2-26 SUBCHAPTER A. GENERAL RULEMAKING [RULES]
2-27 Sec. 41.001 [36.001]. RULES FOR GENERAL AND UNIFORM
3-1 APPLICATION. (a) The commissioner may adopt rules for the conduct
3-2 and execution of the powers and duties of the department only as
3-3 authorized by statute.
3-4 (b) Rules adopted under this section must have general and
3-5 uniform application.
3-6 (c) The commissioner shall publish the rules in a format
3-7 organized by subject matter. The published rules shall be kept
3-8 current and be available in a form convenient to any interested
3-9 person.
3-10 Sec. 41.002 [36.002]. FISCAL IMPACT OF CERTAIN DEPARTMENT
3-11 RULES. (a) A rule adopted by the commissioner under Chapter 2001,
3-12 Government Code, is void if:
3-13 (1) the fiscal note or the public benefit-cost note
3-14 required by Section 2001.024, Government Code, does not accurately
3-15 state the reasonable actual costs required; and
3-16 (2) the reasonable actual costs required exceed the
3-17 stated costs by at least 25 percent.
3-18 (b) A rule that is void under this section is void beginning
3-19 on the date the rule is adopted.
3-20 Sec. 41.003 [36.003]. RULES RESTRICTING ADVERTISING OR
3-21 COMPETITIVE BIDDING. The commissioner may not adopt rules
3-22 restricting advertising or competitive bidding by a person
3-23 regulated by the department except to prohibit false, misleading,
3-24 or deceptive practices by the person.
3-25 Sec. 41.004 [36.004]. COMPLIANCE WITH NATIONAL ASSOCIATION
3-26 OF INSURANCE COMMISSIONERS REQUIREMENTS. The department may not
3-27 require an insurer to comply with a rule, regulation, directive, or
4-1 standard adopted by the National Association of Insurance
4-2 Commissioners, including a rule, regulation, directive, or standard
4-3 relating to policy reserves, unless application of the rule,
4-4 regulation, directive, or standard is expressly authorized by
4-5 statute and approved by the commissioner.
4-6 SECTION 4. This Act takes effect September 1, 2001, and
4-7 applies only to a rule adopted by the commissioner of insurance on
4-8 or after that date.