79R16731 KEG-F
By: Barrientos S.B. No. 1214
Substitute the following for S.B. No. 1214:
By: Naishtat C.S.S.B. No. 1214
A BILL TO BE ENTITLED
AN ACT
relating to the selection and retention of an insurance broker by
certain counties; imposing an administrative penalty.
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 AND RETENTION 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 county may retain a broker of record selected under
this section only on a fee basis paid by the county. A broker of
record retained in this manner may not directly or indirectly
receive any other remuneration, compensation, or other form of
payment from any other source for the placement of insurance
business under the broker of record contract.
(c) A broker of record retained under this section may not
submit any insurance carrier proposal to the county or direct any
county insurance business to an insurance carrier if the broker has
a business relationship or proposed business relationship with the
carrier, including an appointment, unless the broker first
discloses the nature of that relationship or proposed relationship,
in writing, to the county.
(d) A broker who violates this section is subject to any
disciplinary remedy available under Chapter 82, Insurance Code, or
Section 4005.102, Insurance Code, including license revocation and
fine.
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.