78R9077 T
By: Keffer of Dallas H.B. No. 3108
A BILL TO BE ENTITLED
AN ACT
relating to the rulemaking authority of the Commissioner of
Insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.001, Insurance Code, is amended to
read as follows:
Sec. 36.001. [Rules for] General Rulemaking Authority [and
Uniform Application]. (a) The commissioner may adopt any rules
necessary and appropriate to implement [for the conduct and
execution of] the powers and duties of the department under this
code and the other laws of this state [only as authorized by
statute].
(b) Rules adopted under this section must have general and
uniform application.
[(c) The commissioner shall publish the rules in a format
organized by subject matter. The published rules shall be kept
current and be available in a form convenient to any interested
person.]
SECTION 2. Section 36.004, Insurance Code, is amended to
read as follows:
Sec. 36.004. Compliance With National Association of
Insurance Commissioners Requirements. Except as provided in
Section 36.005, the [The] department may not require an insurer to
comply with a rule, regulation, directive, or standard adopted by
the National Association of Insurance Commissioners, including a
rule, regulation[,] directive, or standard relating to policy
reserves, unless application of the rule, regulation, directive, or
standard is expressly authorized by statute and approved by the
commissioner.
SECTION 3. Section 36.005, Insurance Code, is added to read
as follows:
Sec. 36.005. INTERIM RULES TO COMPLY WITH FEDERAL
REQUIREMENTS. (a) The commissioner may adopt rules to implement
state responsibility in compliance with a federal law or
regulation, or action of a federal court relating to a person or
activity under the jurisdiction of the department provided:
(1) federal law or regulation, or action of a federal
court requires
(A) a state to adopt the rules; or
(B) action by a state to ensure protection of the
citizens of the state;
(2) the rules will avoid federal preemption of state
insurance regulation; or
(3) the rules will prevent the loss of federal funds to
this state.
(b) The federal action necessitating adoption of a rule
under this section must occur or take effect between sessions of the
Texas Legislature or at such time during a session of the Texas
Legislature that sufficient time does not exist to prepare a
recommendation for legislative action or permit the Legislature to
act. A rule adopted under this section will remain in effect until
30 days following the end of the next session of the Texas
Legislature, unless a law is enacted that authorizes the subject
matter of the rule. If a law is enacted that authorizes the subject
matter of the rule, the rule will continue in effect.
SECTION 4. Article 3.42(p), Insurance Code, is amended to
read as follows:
(p) The commissioner is hereby authorized to adopt such
reasonable rules [and regulations] as [are] necessary to implement
and accomplish the [specific provisions of this Article and are
within the standards and] purposes of this Article. The
commissioner shall adopt rules under this Article in compliance
with Chapter 2001, Government Code (Administrative Procedure Act).
A rule adopted under this Article may not be repealed or amended
until after the first anniversary of the adoption of the rule unless
the commissioner finds that it is in the significant and material
interests of the citizens of the state or that it is necessary as a
result of legislative enactment to amend, repeal, or adopt a rule or
a part of a rule [in a public hearing after notice that there is a
compelling public need for the amendment or repeal of the rule or
part of the rule].
SECTION 5. Section 36.002, Insurance Code, is repealed.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.