By:  Barrientos                                                   S.B. No. 1214


A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain counties to select an 
insurance broker.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter C, Chapter 262, Local Government 
Code, is amended by adding Section 262.036 to read as follows:
	Sec. 262.036.  SELECTION OF INSURANCE BROKER.  
(a)  Notwithstanding any other provision in this chapter, a county 
with a population of 800,000 or more may select an appropriately 
licensed insurance agent as the sole broker of record to obtain 
proposals and coverages for insurance that provides necessary 
coverage and adequate limits of coverage in all areas of risk, 
including public official liability, property, casualty, workers' 
compensation, and specific and aggregate stop-loss coverage for 
self-funded health care.
	(b)  The broker may be retained only on a fee basis paid by 
the county and may not directly, or indirectly, receive any other 
remuneration, compensation, or payment of any type from any other 
source for the placement of insurance business under the broker of 
record contract.
	(c)  The broker may not submit any insurance carrier proposal 
to the county, or direct any county insurance business to any 
carrier, if the broker has a business relationship or proposed 
business relationship with the carrier, including an appointment, 
unless the broker discloses in writing to the county the full nature 
of the relationship, including all written and oral contracts and 
proposals, prior to the earlier of the county's review of any 
insurance proposals provided by the broker or the direction of any 
county insurance business to the carrier.
	(d)  A broker violating this section is subject to any 
disciplinary remedy, including license revocation or fine, 
available under Chapter 82, Insurance Code, and Section 4005.102, 
Insurance Code.
	SECTION 2.  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, 2005.