1-1     By:  Wentworth                                        S.B. No. 1598
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 19, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 19, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1598                   By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the reorganization of a mutual life insurance company.
1-12           SECTION 1.  Article 11.01, Insurance Code, is amended by
1-13     adding Section 3 to read as follows:
1-14           Sec.  3.  (a)  Subject to Article 15.22 of this code, a
1-15     mutual life insurance company organized or operating under the
1-16     provisions of this chapter may reorganize by forming an insurance
1-17     holding company based on a mutual plan and continuing the corporate
1-18     existence of the reorganizing mutual life insurance company as a
1-19     stock insurance company if the commissioner determines that the
1-20     reorganization is fair and equitable to the policyholders of the
1-21     company and approves the proposed plan of reorganization.
1-22           (b)  The commissioner shall retain jurisdiction over a
1-23     company that is reorganized under this section.
1-24           (c)  A mutual holding company that results from a
1-25     reorganization of a domestic mutual life insurance company
1-26     organized under this chapter must be incorporated under the
1-27     provisions of this code and the Texas Non-Profit Corporation Act
1-28     (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).  The
1-29     articles of incorporation of the mutual holding company and any
1-30     amendments to the articles of incorporation are subject to approval
1-31     by the commissioner.
1-32           (d)  A sale, issuance, or offering of securities under this
1-33     section is exempt from the registration and licensing provisions of
1-34     The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
1-35     Statutes).  An officer, director, or employee who participates in a
1-36     reorganization under this section is exempt from the registration
1-37     and licensing provisions of The Securities Act (Article 581-1 et
1-38     seq., Vernon's Texas Civil Statutes).  A person may not be
1-39     compensated for services performed under the exemption provided by
1-40     this section.
1-41           SECTION 2.  This Act takes effect September 1, 2001.
1-42                                  * * * * *