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A BILL TO BE ENTITLED
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AN ACT
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relating to reporting concerning selection of certain suppliers by |
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insurers; providing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 38, Insurance Code, is amended by adding |
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Subchapter J to read as follows: |
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SUBCHAPTER J. REPORTING OF EFFORTS BY CERTAIN INSURERS |
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Sec. 38.451. APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter applies only to an insurer that: |
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(1) is authorized to engage in the business of |
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insurance in this state, including any insurer described by Section |
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82.002(a); and |
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(2) wrote premiums in this state of at least $100 |
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million in the calendar year before the year in which a report is |
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due under this subchapter. |
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(b) This subchapter does not apply to a contract between an |
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insurer and an agent. |
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Sec. 38.452. FILING OF CERTAIN INFORMATION CONCERNING |
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SUPPLIERS. (a) An insurer shall file with the commissioner not |
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later than June 1 of each even-numbered year a report detailing the |
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insurer's efforts to use businesses owned by minorities, women, and |
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disabled veterans as suppliers of goods or services. |
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(b) The report must contain: |
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(1) the insurer's diversity policy statement; |
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(2) a description of the insurer's outreach and |
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communication efforts, including: |
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(A) a description of how the insurer encourages |
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and seeks out businesses owned by minorities, women, and disabled |
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veterans to become suppliers; |
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(B) a description of how the insurer encourages |
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its employees involved in selecting suppliers to seek out |
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businesses owned by minorities, women, and disabled veterans to |
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become suppliers; |
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(C) a description of how the insurer conducts |
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outreach to and communicates with potential suppliers that are |
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businesses owned by minorities, women, and disabled veterans; |
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(D) a description of how the insurer supports |
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organizations that promote or certify businesses as businesses |
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owned by minorities, women, and disabled veterans; and |
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(E) a description of how businesses owned by |
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minorities, women, and disabled veterans may contact the insurer |
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about supplier opportunities; |
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(3) information about the insurer's selection as |
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suppliers businesses owned by minorities, women, and disabled |
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veterans that have a majority of the businesses' workforce located |
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in this state, with each category aggregated separately to the |
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extent that information is readily accessible; and |
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(4) other relevant information the insurer chooses to |
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include. |
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(c) If an insurer does not enter into contracts to obtain |
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goods or services in this state, it may file with the commissioner a |
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statement attesting that the insurer does not enter into those |
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contracts in this state to satisfy the reporting requirements of |
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this subchapter. |
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(d) An insurer that is a member of an insurance holding |
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company system as described by Chapter 823 may comply with the |
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reporting requirements in this subchapter through a single filing |
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on behalf of the entire group of affiliated companies. |
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(e) If the commissioner receives a written request from an |
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insurer that states a good cause that additional time is required to |
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file a report required under this subchapter, the commissioner may |
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grant a 30-day extension of the time for the insurer to file the |
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report. |
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Sec. 38.453. ADMINISTRATIVE PENALTY. (a) An insurer that |
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fails to file a report as required by this subchapter is subject to |
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an administrative penalty under Chapter 84. Except as provided by |
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Subsection (b), the amount of the penalty may not exceed $5,000. |
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(b) An insurer that wilfully fails to file a report as |
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required by this subchapter or wilfully fails to reply not later |
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than the 30th day after the date the insurer receives a written |
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inquiry from the department about the filing of the report is |
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subject to an administrative penalty in an amount not to exceed |
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$10,000. |
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Sec. 38.454. EFFECT OF REQUIRED REPORTING. (a) This |
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subchapter may not be construed as requiring quotas, set-asides, or |
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preferences in an insurer's selection of suppliers for goods or |
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services. |
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(b) An insurer retains the authority to use business |
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judgment to select a supplier to obtain particular goods or |
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services. |
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Sec. 38.455. PUBLIC INFORMATION. Not later than September |
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1 of each even-numbered year the department shall post the data |
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contained in the reports filed under this subchapter on the |
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department's Internet website. The commissioner by rule may |
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establish a procedure for posting data under this section that |
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includes a description of the data that must be posted and the |
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manner in which the data must be posted. |
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Sec. 38.456. RULES. The commissioner may adopt rules |
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necessary to implement this subchapter. |
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Sec. 38.457. EXPIRATION. This subchapter expires January |
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1, 2020. |
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SECTION 2. This Act takes effect September 1, 2013. |