By Van de Putte S.B. No. 1153
77R7562 JMM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain insurance adjusters by the
1-3 Texas Commission on Private Security.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter J, Chapter 1702, Occupations Code, is
1-6 amended by adding Section 1702.2285 to read as follows:
1-7 Sec. 1702.2285. INSURANCE ADJUSTERS. (a) The commission by
1-8 rule shall require an adjuster who works for an insurance carrier
1-9 and who is performing an investigation in connection with a
1-10 workers' compensation claim or proceeding to be registered by the
1-11 commission in the same manner as a private investigator.
1-12 (b) The requirement for an adjuster to register under this
1-13 chapter is in addition to the requirement that the adjuster hold a
1-14 license under Chapter 407, Acts of the 63rd Legislature, Regular
1-15 Session, 1973 (Article 21.07-4, Vernon's Texas Insurance Code).
1-16 (c) The commission shall adopt rules prescribing:
1-17 (1) the activities of an adjuster for which the
1-18 adjuster is required to be registered under this section; and
1-19 (2) the qualifications required for issuance of a
1-20 registration under this section.
1-21 SECTION 2. Section 1702.324(b), Occupations Code, is amended
1-22 to read as follows:
1-23 (b) This chapter does not apply to:
1-24 (1) a manufacturer or a manufacturer's authorized
2-1 distributor who sells equipment to a license holder that is used in
2-2 the operations for which the person is required to be licensed;
2-3 (2) a person engaged exclusively in the business of
2-4 obtaining and providing information to:
2-5 (A) determine creditworthiness;
2-6 (B) collect debts; or
2-7 (C) ascertain the reliability of information
2-8 provided by an applicant for property, life, or disability
2-9 insurance or an indemnity or surety bond;
2-10 (3) a person engaged exclusively in the business of
2-11 repossessing property that is secured by a mortgage or other
2-12 security interest;
2-13 (4) a locksmith who:
2-14 (A) does not install or service detection
2-15 devices;
2-16 (B) does not conduct investigations; and
2-17 (C) is not a security services contractor;
2-18 (5) a person who:
2-19 (A) is engaged in the business of psychological
2-20 testing or other testing and interviewing services, including
2-21 services to determine attitudes, honesty, intelligence,
2-22 personality, and skills, for preemployment purposes; and
2-23 (B) does not perform any other service that
2-24 requires a license under this chapter;
2-25 (6) a person who:
2-26 (A) is engaged in obtaining information that is
2-27 a public record under Chapter 552, Government Code, regardless of
3-1 whether the person receives compensation;
3-2 (B) is not a full-time employee, as defined by
3-3 Section 61.001, Labor Code, of a person licensed under this
3-4 chapter; and
3-5 (C) does not perform any other act that requires
3-6 a license under this chapter;
3-7 (7) a licensed professional engineer practicing
3-8 engineering or directly supervising engineering practice under The
3-9 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
3-10 Statutes), including forensic analysis, burglar alarm system
3-11 engineering, and necessary data collection;
3-12 (8) an employee of a cattle association who inspects
3-13 livestock brands under the authority granted to the cattle
3-14 association by the Grain Inspection, Packers and Stockyards
3-15 Administration of the United States Department of Agriculture;
3-16 (9) a landman performing activities in the course and
3-17 scope of the landman's business;
3-18 (10) an attorney while engaged in the practice of law;
3-19 (11) a person who obtains a document for use in
3-20 litigation under an authorization or subpoena issued for a written
3-21 or oral deposition; or
3-22 (12) an admitted insurer, insurance adjuster, except
3-23 as provided by Section 1702.2285, agent, or insurance broker
3-24 licensed by the state, performing duties in connection with
3-25 insurance transacted by that person.
3-26 SECTION 3. Section 401.011(1), Labor Code, is amended to read
3-27 as follows:
4-1 (1) "Adjuster" means a person:
4-2 (A) licensed under Chapter 407, Acts of the 63rd
4-3 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas
4-4 Insurance Code); and
4-5 (B) registered under Section 1702.2285,
4-6 Occupations Code, to perform investigations in connection with a
4-7 workers' compensation claim or proceeding.
4-8 SECTION 4. (a) In accordance with Section 311.031(c),
4-9 Government Code, which gives effect to a substantive amendment
4-10 enacted by the same legislature that codifies the amended statute,
4-11 the text of Section 1702.324(b), Occupations Code, as set out in
4-12 Section 2 of this Act, gives effect to changes made by Chapter 974,
4-13 Acts of the 76th Legislature, Regular Session, 1999.
4-14 (b) To the extent of any conflict, this Act prevails over
4-15 another Act of the 77th Legislature, Regular Session, 2001,
4-16 relating to nonsubstantive additions and corrections in enacted
4-17 codes.
4-18 SECTION 5. (a) This Act takes effect September 1, 2001.
4-19 (b) The change in law made by this Act by the addition of
4-20 Section 1702.2285, Occupations Code, applies only to an insurance
4-21 adjuster who performs an investigation for an insurance carrier in
4-22 connection with a workers' compensation claim or proceeding on or
4-23 after March 1, 2002.
4-24 (c) The Texas Commission on Private Security shall adopt
4-25 rules under Section 1702.2285, Occupations Code, as added by this
4-26 Act, not later than December 31, 2001.