By Smithee H.B. No. 1945
77R7070 PB-D
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(b), Insurance Code, is amended to
1-6 read as follows:
1-7 (b) Rules adopted under this section must:
1-8 (1) have general and uniform application; and
1-9 (2) allow the department to promptly address
1-10 developing market practices that result from changes in federal
1-11 laws and rules, technology, and information availability occurring
1-12 in the financial services industry.
1-13 SECTION 2. Section 36.002, Insurance Code, is amended by
1-14 amending Subsection (a) and adding Subsection (c) to read as
1-15 follows:
1-16 (a) Except as provided by Subsection (c), a [A] rule adopted
1-17 by the commissioner under Chapter 2001, Government Code, is void
1-18 if:
1-19 (1) the fiscal note or the public benefit-cost note
1-20 required by Section 2001.024, Government Code, does not accurately
1-21 state the reasonable actual costs required; and
1-22 (2) the reasonable actual costs required exceed the
1-23 stated costs by at least 25 percent.
1-24 (c) This section does not apply to a rule the commissioner
2-1 determines is necessary to allow the department to promptly address
2-2 developing market practices that result from changes in federal
2-3 laws and rules, technology, and information availability occurring
2-4 in the financial services industry.
2-5 SECTION 3. Section 36.004, Insurance Code, is amended to read
2-6 as follows:
2-7 Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF
2-8 INSURANCE COMMISSIONERS REQUIREMENTS. (a) Except as provided by
2-9 Subsection (b), the [The] department may not require an insurer to
2-10 comply with a rule, regulation, directive, or standard adopted by
2-11 the National Association of Insurance Commissioners, including a
2-12 rule, regulation, directive, or standard relating to policy
2-13 reserves, unless application of the rule, regulation, directive, or
2-14 standard is expressly authorized by statute and approved by the
2-15 commissioner.
2-16 (b) This section does not apply to a rule the commissioner
2-17 determines is necessary to allow the department to promptly address
2-18 developing market practices that result from changes in federal
2-19 laws and rules, technology, and information availability occurring
2-20 in the financial services industry.
2-21 SECTION 4. Article 3.42(p), Insurance Code, is amended to
2-22 read as follows:
2-23 (p) The commissioner may [is hereby authorized to] adopt
2-24 [such] reasonable rules [and regulations] as [are] necessary to
2-25 implement and accomplish the specific provisions of this Article
2-26 and are within the standards and purposes of this Article. The
2-27 commissioner shall adopt rules under this Article in compliance
3-1 with Chapter 2001, Government Code (Administrative Procedure Act).
3-2 A rule adopted under this Article may not be repealed or amended
3-3 until the first anniversary of the adoption of the rule unless the
3-4 commissioner finds:
3-5 (1) in a public hearing after notice that there is a
3-6 compelling public need for the amendment or repeal of the rule or
3-7 part of the rule; or
3-8 (2) that the rule is required to allow the department
3-9 to promptly address developing market practices that result from
3-10 changes in federal laws and rules, technology, and information
3-11 availability occurring in the financial services industry.
3-12 SECTION 5. This Act takes effect immediately if it receives
3-13 a vote of two-thirds of all the members elected to each house, as
3-14 provided by Section 39, Article III, Texas Constitution. If this
3-15 Act does not receive the vote necessary for immediate effect, this
3-16 Act takes effect September 1, 2001.