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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure of foreign ownership of insurers authorized |
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to engage in the business of insurance in this state. |
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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 K to read as follows: |
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SUBCHAPTER K. REPORTING REGARDING FOREIGN OWNERSHIP INTERESTS |
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Sec. 38.501. APPLICABILITY. This subchapter applies to an |
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entity authorized to engage in the business of insurance in this |
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state that has issued any class of equity securities. |
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Sec. 38.502. DEFINITION. In this subchapter, "major |
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shareholder" means an individual, corporation, partnership, |
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association, joint stock company, business trust, or |
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unincorporated organization that is directly or indirectly the |
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beneficial owner of more than 10 percent of any class of an equity |
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security of an entity described by Section 38.501. |
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Sec. 38.503. REPORTING REGARDING OWNERSHIP INTERESTS IN |
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INSURERS. (a) An entity described by Section 38.501 shall file |
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with the department an annual report that identifies each majority |
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shareholder in the entity that, as of the date of the report, is: |
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(1) an entity organized under the laws of another |
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country or that has its principal place of business in another |
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country; or |
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(2) an individual who is a resident of another |
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country. |
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(b) The department shall make available on the department's |
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Internet website a report submitted under Subsection (a) until at |
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least the third anniversary of the date the report is submitted. |
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SECTION 2. Not later than December 31, 2017, the |
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comptroller of public accounts shall adopt rules as necessary to |
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implement Subchapter K, Chapter 38, Insurance Code, as added by |
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this Act. The rules must require that an insurer subject to that |
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subchapter submit the initial annual report required under that |
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subchapter not later than the 60th day after the effective date of |
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the rules. |
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SECTION 3. This Act takes effect September 1, 2017. |