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78R19148 KCR-D
Suspending limitations on conference committee
jurisdiction, S.B. No. 14 (Fraser/Smithee)
By: Seaman H.R. No. 1881
R E S O L U T I O N
BE IT RESOLVED by the House of Representatives of the State of
Texas, 78th Legislature, Regular Session, 2003, That House Rule 13,
Section 9(a), be suspended in part as provided by House Rule 13,
Section 9(f), to enable the conference committee appointed to
resolve the differences on Senate Bill 14, relating to certain
insurance rates, forms, and practices; providing penalties, to
consider and take action on the following matters:
House Rule 13, Section 9(a)(4), is suspended to permit the
committee to add the following new subdivision to Section 4(c),
Article 5.142, Insurance Code, as added by the bill:
(2) a "new insurer" is defined as an insurer that, as
of the effective date of S.B. 14, Acts of the 78th Legislature,
Regular Session, 2003, is not authorized to write residential
property insurance in this state and not affiliated with another
insurer that is authorized to write and is writing residential
property insurance as of the effective date of S.B. 14, Acts of the
78th Legislature, Regular Session, 2003;
Explanation: This subsection is necessary to clarify certain
filing requirements for certain insurers that were not writing
residential property insurance or that were not affiliated with an
insurer that was writing residential property insurance on the
effective date of the bill.
House Rule 13, Section 9(a)(4), is suspended to permit the
committee to add the following new article to the bill:
ARTICLE 16. RULEMAKING
SECTION 16.01. 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 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 16.02. 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 by
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 16.03. Subchapter A, Chapter 36, Insurance Code, is
amended by adding Section 36.005 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 if:
(1) federal law or regulation, or an 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 commissioner may adopt a rule under this section
only if the federal action requiring the adoption of a rule occurs
or takes effect between sessions of the legislature or at such time
during a session of the legislature that sufficient time does not
remain to permit the preparation of a recommendation for
legislative action or permit the legislature to act. A rule adopted
under this section shall remain in effect only until 30 days
following the end of the next session of the 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 16.04. 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 [in a public hearing after notice that there is a compelling
public need for the amendment or repeal of the] rule or part of a
[the] rule.
SECTION 16.05. Section 36.002, Insurance Code, is repealed.
Explanation: This article is necessary to broaden the
commissioner's general rulemaking authority and to give the
commissioner the authority to adopt certain interim rules.
House Rule 13, Section 9(a)(4), is suspended to permit the
committee to add the following new article to the bill:
ARTICLE 20A. INSURER INTERESTS IN CERTAIN REPAIR FACILITIES
SECTION 20A.01. Section 2306.001(4), Occupations Code, as
added by H.B. 1131, Acts of the 78th Legislature, Regular Session,
2003, is amended to read as follows:
(4) "Insurer" means an insurer authorized by the Texas
Department of Insurance to write motor vehicle insurance in this
state, including a county mutual insurance company, a Lloyd's plan,
and a reciprocal or interinsurance exchange if that insurer owns an
interest in a repair facility in this state. The term includes an
entity that is an affiliate of an insurer as described by Section
823.003, Insurance Code.
SECTION 20A.02. Section 2306.001(4), Occupations Code, as
amended by this article, is contingent on the passage of H.B. 1131,
Acts of the 78th Legislature, Regular Session. If that legislation
does not become law, Section 2306.001(4), Occupations Code, as
amended by this article, has no effect.
Explanation: This article is necessary to clarify that an
insurer who owns an interest in a motor vehicle repair facility in
this state is subject to Chapter 2306, Occupations Code.
House Rule 13, Section 9(a)(4), is suspended to permit the
committee to add the following new section to the bill:
SECTION 21.405. Subchapter A, Chapter 912, Insurance Code,
is amended by adding Section 912.005 to read as follows:
Sec. 912.005. LIMITATION ON TRANSFER OF BUSINESS TO COUNTY
MUTUAL INSURANCE COMPANY. An insurer may not transfer more than 10
percent of the insurer's insurance policies to a county mutual
insurance company without the prior approval of the commissioner.
Explanation: This section is necessary to prevent insurers
from shifting business into markets that are less strictly
regulated.
House Rule 13, Section 9(a)(2), is suspended to permit the
committee to omit text which is not in disagreement:
SECTION 21.47. The following laws are repealed:
(1) Articles 5.03-2, 5.03-3, 5.03-4, and 5.03-5,
Insurance Code;
(2) Articles 5.26(h), 5.33C, and 5.50, Insurance Code;
(3) Section 5(b), Article 5.13-2, Insurance Code;
(4) Section 4C, Article 5.73, Insurance Code;
(5) Article 5.33B, Insurance Code, as added by Chapter
337, Acts of the 74th Legislature, Regular Session, 1995;
(6) Articles 5.14, 5.15, and 5.15B, Insurance Code;
(7) Article 5.97(e), Insurance Code; and
(8) Section 4(b)(2), Article 21.49-3, Insurance Code.
Explanation: This section is necessary to preserve certain
hearing requirements for the operation of the flexible rating
program under Article 5.101, Insurance Code.
House Rule 13, Section 9(a)(4), is suspended to permit the
committee to add the following new section to the bill:
SECTION 21.48. Article 5.33A, Insurance Code, is repealed.
Explanation: This section is necessary to conform the bill
to the elimination of certain insurance premium discounts.