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Suspending limitations on conference committee
jurisdiction, S.B. No. 14
By: Jackson S.R. No. 1052
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 78th
Legislature, Regular Session, 2003, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on
Senate Bill No. 14, relating to certain insurance rates, forms,
and practices; providing penalties, to consider and take action
on the following matter:
Senate Rule 12.03(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 subdivision 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.
Senate Rule 12.03(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 this 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.
Senate Rule 12.03(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.
Senate Rule 12.03(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.
Senate Rule 12.03(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.
Senate Rule 12.03(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.
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on June 1, 2003, by the
following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate