Texas 2009 81st Regular

Texas House Bill HB1941 Introduced / Bill

Filed 02/01/2025

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                    81R8143 AJA-D
 By: Herrero H.B. No. 1941


 A BILL TO BE ENTITLED
 AN ACT
 relating to the election of the commissioner of insurance and
 qualifications of the commissioner and certain employees of the
 Texas Department of Insurance; providing civil penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 31.022, Insurance Code, is amended to
 read as follows:
 Sec. 31.022. ELECTION [APPOINTMENT; TERM]. The
 commissioner is elected by the qualified voters at the general
 election for state and county officers for a term of four years.
 [(a)     The governor, with the advice and consent of the senate,
 shall appoint the commissioner.    The commissioner serves a two-year
 term that expires on February 1 of each odd-numbered year.
 [(b)     The governor shall appoint the commissioner without
 regard to the race, color, disability, sex, religion, age, or
 national origin of the appointee.]
 SECTION 2. Section 31.023, Insurance Code, is amended to
 read as follows:
 Sec. 31.023. QUALIFICATIONS. The commissioner must:
 (1) be a competent and experienced administrator;
 (2) be well informed and qualified in the field of
 insurance and insurance regulation; and
 (3) have at least 10 [five] years of experience as an
 executive in the administration of business or government or as a
 practicing attorney or certified public accountant, with at least
 five years of that experience in the field of insurance or insurance
 regulation.
 SECTION 3. Section 31.024, Insurance Code, is amended to
 read as follows:
 Sec. 31.024. INELIGIBILITY FOR OTHER PUBLIC OFFICE. The
 commissioner is ineligible to be a candidate for another [a] public
 elective office in this state, unless the commissioner has resigned
 and the governor has accepted the resignation.
 SECTION 4. Section 31.027(a), Insurance Code, is amended to
 read as follows:
 (a) It is a ground for removal from office if the
 commissioner:
 (1) does not have at the time of taking office
 [appointment] the qualifications required by Section 31.023;
 (2) does not maintain during service as commissioner
 the qualifications required by Section 31.023;
 (3) violates a prohibition established by Section
 33.001, 33.002 [33.003], 33.004, or 33.005; or
 (4) cannot, because of illness or disability,
 discharge the commissioner's duties for a substantial part of the
 commissioner's term.
 SECTION 5. Section 33.002, Insurance Code, is amended to
 read as follows:
 Sec. 33.002. INSURANCE BUSINESS INTEREST; SERVICE AS
 COMMISSIONER. (a) A person is not eligible to serve [for
 appointment] as commissioner if the person, the person's spouse, or
 any other person who resides in the same household as the person:
 (1) is registered, certified, or licensed by the
 department;
 (2) is employed by or participates in the management
 of a business entity or other organization regulated by or
 receiving funds from the department;
 (3) owns or controls, directly or indirectly, more
 than a 10 percent interest in a business entity or other
 organization regulated by or receiving funds from the department;
 or
 (4) uses or receives a substantial amount of tangible
 goods, services, or funds from the department, other than
 compensation or reimbursement authorized by law.
 (b) In addition to the restriction imposed by Subsection
 (a), a [A] person is not eligible to serve [for appointment] as
 commissioner if the person:
 (1) is a stockholder, director, officer, attorney,
 agent, or employee of an insurance company, insurance agent,
 insurance broker, or insurance adjuster or any other business
 entity or other organization regulated by or receiving funds from
 the department; or
 (2) is directly or indirectly interested in a business
 described by Subdivision (1).
 (c) Subsection (b) does not apply to:
 (1) a person solely because the person is insured by an
 insurer or is the beneficiary of insurance; or
 (2) a person who:
 (A) is appointed as a receiver, liquidator,
 supervisor, or conservator of an insurer; or
 (B) is an employee of a receiver, liquidator,
 supervisor, or conservator of an insurer with respect to duties
 under that employment.
 (d)  In addition to the restrictions imposed by Subsection
 (a), a person is not eligible to serve as commissioner if the person
 is related within the third degree of consanguinity or affinity, as
 determined under Chapter 573, Government Code, to a person who is an
 officer, managerial employee, or paid consultant in the insurance
 industry.
 SECTION 6. Section 33.003, Insurance Code, is amended by
 amending Subsection (b) and adding Subsection (c) to read as
 follows:
 (b) A person who is related within the third degree of
 consanguinity or affinity, as determined under Chapter 573,
 Government Code, to [resides in the same household as] a person who
 is an officer, managerial employee, or paid consultant in the
 insurance industry may not be employed by the department in a "bona
 fide executive, administrative, or professional capacity," as that
 phrase is used for purposes of establishing an exemption to the
 overtime provisions of the federal Fair Labor Standards Act of 1938
 (29 U.S.C. Section 201 et seq.) [an exempt salary position as
 defined by the General Appropriations Act].
 (c)  A person who owns stock in an insurer or other entity
 regulated under this code may not be employed by the department in a
 "bona fide executive, administrative, or professional capacity,"
 as that phrase is used for purposes of establishing an exemption to
 the overtime provisions of the federal Fair Labor Standards Act of
 1938 (29 U.S.C. Section 201 et seq.).
 SECTION 7. Sections 33.004(a) and (b), Insurance Code, are
 amended to read as follows:
 (a) A person who is an officer, employee, or paid consultant
 of a trade association in the field of insurance may not be:
 (1) the commissioner; or
 (2) an employee of the department in a "bona fide
 executive, administrative, or professional capacity," as that
 phrase is used for purposes of establishing an exemption to the
 overtime provisions of the federal Fair Labor Standards Act of 1938
 (29 U.S.C. Section 201 et seq.) [who is exempt from the state's
 position classification plan or is compensated at or above the
 amount prescribed by the General Appropriations Act for step 1,
 salary group A17, of the position classification salary schedule].
 (b) A person who is related within the third degree of
 consanguinity or affinity, as determined under Chapter 573,
 Government Code, to [the spouse of] an officer, manager, or paid
 consultant of a trade association in the field of insurance may not
 be:
 (1) the commissioner; or
 (2) an employee of the department in a "bona fide
 executive, administrative, or professional capacity," as that
 phrase is used for purposes of establishing an exemption to the
 overtime provisions of the federal Fair Labor Standards Act of 1938
 (29 U.S.C. Section 201 et seq.) [who is exempt from the state's
 position classification plan or is compensated at or above the
 amount prescribed by the General Appropriations Act for step 1,
 salary group A17, of the position classification salary schedule].
 SECTION 8. Section 52.092(c), Election Code, is amended to
 read as follows:
 (c) Statewide offices of the state government shall be
 listed in the following order:
 (1) governor;
 (2) lieutenant governor;
 (3) attorney general;
 (4) comptroller of public accounts;
 (5) commissioner of the General Land Office;
 (6) commissioner of agriculture;
 (7) commissioner of insurance;
 (8) railroad commissioner;
 (9) [(8)] chief justice, supreme court;
 (10) [(9)] justice, supreme court;
 (11) [(10)] presiding judge, court of criminal
 appeals;
 (12) [(11)] judge, court of criminal appeals.
 SECTION 9. Chapter 253, Election Code, is amended by adding
 Subchapter H to read as follows:
 SUBCHAPTER H. INSURANCE COMMISSIONER CAMPAIGN FAIRNESS ACT
 Sec. 253.251.  APPLICABILITY OF SUBCHAPTER. This subchapter
 applies only to a political contribution or political expenditure
 in connection with the office of commissioner of insurance.
 Sec. 253.252. DEFINITIONS. In this subchapter:
 (1)  "Complying candidate" or "complying officeholder"
 means a candidate who files a declaration of compliance under
 Section 253.261(a)(1).
 (2) "In connection with an election" means:
 (A)  with regard to a contribution that is
 designated in writing for a particular election, the election
 designated; or
 (B)  with regard to a contribution that is not
 designated in writing for a particular election or that is
 designated as an officeholder contribution, the next election for
 the office of commissioner of insurance occurring after the
 contribution is made.
 (3) "Noncomplying candidate" means a candidate who:
 (A)  files a declaration of intent to exceed the
 limit on expenditures or the use of personal funds under Section
 253.261(a)(2);
 (B)  files a declaration of compliance under
 Section 253.261(a)(1) but later exceeds the limit on expenditures
 or the use of personal funds;
 (C)  fails to file a declaration of compliance
 under Section 253.261(a)(1) or a declaration of intent under
 Section 253.261(a)(2); or
 (D) violates Section 253.269 or 253.270.
 Sec. 253.253.  CONTRIBUTION LIMIT.  (a)  Subject to Section
 253.259, the commissioner of insurance or a candidate for the
 office of commissioner of insurance may not, except as provided by
 Subsection (b), knowingly accept political contributions from a
 person that in the aggregate exceed $5,000 in connection with each
 election in which the person is involved.
 (b)  This section does not apply to a political contribution
 made by an out-of-state political committee.
 (c)  Notwithstanding Section 254.034, a person who receives
 a political contribution that violates Subsection (a) shall return
 the contribution to the contributor not later than the later of:
 (1)  the last day of the reporting period in which the
 contribution is received; or
 (2)  the fifth day after the date the contribution is
 received.
 (d)  A person who violates this section is liable for a civil
 penalty not to exceed three times the amount of the political
 contributions accepted in violation of this section.
 Sec. 253.254.  LIMIT ON CONTRIBUTIONS FROM REGULATED
 INDUSTRY. (a) Subject to Section 253.259, the commissioner of
 insurance or a candidate for the office of commissioner of
 insurance may not accept a political contribution in excess of $50
 from a person if:
 (1) the person is:
 (A)  an insurer, an insurance agent, an insurance
 broker, an insurance adjuster, or any other person regulated by or
 receiving funds from the Texas Department of Insurance;
 (B)  an employee of a person regulated by or
 receiving funds from the department; or
 (C)  a general-purpose committee established or
 controlled by a person regulated by or receiving funds from the
 department or a trade association in the field of insurance; or
 (2)  the contribution when aggregated with all
 political contributions accepted by the candidate or officeholder
 from the person regulated by or receiving funds from the
 department, the person's employees, or a general-purpose committee
 established or controlled by the person in connection with the
 election would exceed six times the applicable contribution limit
 in Section 253.253.
 (b)  A person who receives a political contribution that
 violates Subsection (a) shall return the contribution to the
 contributor not later than the later of:
 (1)  the last day of the reporting period in which the
 contribution is received; or
 (2)  the fifth day after the date the contribution is
 received.
 (c)  A person who fails to return a political contribution as
 required by Subsection (b) is liable for a civil penalty not to
 exceed three times the total amount of political contributions
 accepted from the insurer, insurance agent, insurance broker,
 insurance adjuster, or other person regulated by or receiving funds
 from the Texas Department of Insurance, an employee of that person,
 or general-purpose committees established or controlled by the
 person.
 (d)  For the purposes of this section, a general-purpose
 committee is established or controlled by a person if the committee
 is established or controlled by persons employed by the person.
 Sec. 253.255.  CONTRIBUTION BY SPOUSE OR CHILD CONSIDERED TO
 BE CONTRIBUTION BY INDIVIDUAL.  (a)  For purposes of Sections
 253.253 and 253.254, a contribution by the spouse or child of an
 individual is considered to be a contribution by the individual.
 (b)  In this section, "child" means a person under 18 years
 of age who is not and has not been married or who has not had the
 disabilities of minority removed for general purposes.
 Sec. 253.256.  EXCEPTION TO CONTRIBUTION LIMITS.  Sections
 253.253 and 253.254 do not apply to an individual who is related to
 the candidate or officeholder within the second degree by
 consanguinity, as determined under Subchapter B, Chapter 573,
 Government Code.
 Sec. 253.257.  AGGREGATE LIMIT ON CONTRIBUTIONS FROM AND
 DIRECT CAMPAIGN EXPENDITURES BY GENERAL-PURPOSE COMMITTEE.  (a)
 Subject to Section 253.259, a candidate for the office of
 commissioner of insurance may not knowingly accept a political
 contribution from a general-purpose committee that, when
 aggregated with each other political contribution from a
 general-purpose committee in connection with the election, exceeds
 $300,000.
 (b)  A person who receives a political contribution that
 violates Subsection (a) shall return the contribution to the
 contributor not later than the later of:
 (1)  the last day of the reporting period in which the
 contribution is received; or
 (2)  the fifth day after the date the contribution is
 received.
 (c)  For purposes of this section, an expenditure by a
 general-purpose committee for the purpose of supporting a
 candidate, for opposing the candidate's opponent, or for assisting
 the candidate as an officeholder is considered to be a contribution
 to the candidate unless the campaign treasurer of the
 general-purpose committee, in an affidavit filed with the authority
 with whom the candidate's campaign treasurer appointment is
 required to be filed, states that the committee has not directly or
 indirectly communicated with the candidate's campaign, including
 the candidate, an aide to the candidate, a campaign officer, or a
 campaign consultant, or a specific-purpose committee in regard to a
 strategic matter, including polling data, advertising, or voter
 demographics, in connection with the candidate's campaign.
 (d)  This section does not apply to a political expenditure
 by the principal political committee of the state executive
 committee or a county executive committee of a political party that
 complies with Section 253.267(b).
 (e)  A person who violates this section is liable for a civil
 penalty not to exceed three times the amount by which the political
 contributions accepted in violation of this section exceed the
 applicable limit prescribed by Subsection (a).
 Sec. 253.258.  CONTRIBUTION TO CERTAIN COMMITTEES
 CONSIDERED CONTRIBUTION TO CANDIDATE.  For purposes of Sections
 253.253, 253.254, and 253.257, a contribution to a specific-purpose
 committee for the purpose of supporting a candidate for the office
 of commissioner of insurance, opposing the candidate's opponent, or
 assisting the candidate as an officeholder is considered to be a
 contribution to the candidate.
 Sec. 253.259.  APPLICATION OF CONTRIBUTION LIMITS TO CERTAIN
 CANDIDATES.  (a)  For purposes of a contribution limit prescribed
 by Section 253.253, 253.254, or 253.257, the general primary
 election and general election for state and county officers are
 considered to be a single election in which a candidate for the
 office of commissioner of insurance is involved if the candidate:
 (1) is unopposed in the primary election; or
 (2)  does not have an opponent in the general election
 whose name is to appear on the ballot.
 (b)  For a candidate to whom Subsection (a) applies, each
 applicable contribution limit prescribed by Section 253.253,
 253.254, or 253.257 is increased by 25 percent. A candidate who
 accepts political contributions from a person that in the aggregate
 exceed the applicable contribution limit prescribed by Section
 253.253, 253.254, or 253.257 but that do not exceed the adjusted
 limit as determined under this subsection may use the amount of
 those contributions that exceeds the limit prescribed by Section
 253.253, 253.254, or 253.257 only for making an officeholder
 expenditure.
 Sec. 253.260.  NOTICE REQUIRED FOR CERTAIN POLITICAL
 EXPENDITURES.  (a)  A person other than a candidate for the office
 of commissioner of insurance or the principal political committee
 of the state executive committee or a county executive committee of
 a political party may not make political expenditures that in the
 aggregate exceed the limit prescribed by Section 253.266 for the
 purpose of supporting or opposing a candidate for the office of
 commissioner of insurance or assisting a candidate as an
 officeholder unless the person files with the commission a written
 declaration of the person's intent to make expenditures that exceed
 the limit prescribed by Section 253.266.
 (b)  A declaration under Subsection (a) must be filed not
 later than the earlier of:
 (1)  the date the person makes the political
 expenditure that causes the person to exceed the limit prescribed
 by Section 253.266; or
 (2)  the 60th day before the date of the election in
 connection with which the political expenditures are intended to be
 made.
 (c)  The commission shall file a declaration received under
 Subsection (a) with the records of each candidate or officeholder
 on whose behalf the person filing the declaration intends to make
 political expenditures. If the person intends to make only
 political expenditures opposing a candidate, the commission shall
 file the declaration with the records of each candidate for the
 office.
 (d)  An expenditure made by a political committee or other
 association that consists only of costs incurred in contacting the
 committee's or association's membership may be made without the
 declaration required by Subsection (a).
 (e)  A person who violates this section is liable for a civil
 penalty not to exceed three times the amount of the political
 expenditures made in violation of this section.
 Sec. 253.261.  VOLUNTARY COMPLIANCE.  (a)  When a person
 becomes a candidate for the office of commissioner of insurance,
 the person shall file with the commission:
 (1)  a sworn declaration of compliance stating that the
 person voluntarily agrees to comply with the limit on expenditures
 prescribed by this subchapter; or
 (2)  a written declaration of the person's intent to
 make expenditures that exceed the limit prescribed by this
 subchapter.
 (b)  The limits on contributions prescribed by this
 subchapter apply to complying candidates unless suspended as
 provided by Section 253.262 or 253.266. The limits on
 contributions prescribed by this subchapter apply to noncomplying
 candidates regardless of whether the limits on contributions and
 expenditures are suspended for complying candidates.
 (c)  A candidate may not knowingly accept a campaign
 contribution or make or authorize a campaign expenditure before the
 candidate files a declaration under Subsection (a).
 (d)  A person who violates Subsection (c) is liable for a
 civil penalty not to exceed three times the amount of the political
 contributions or political expenditures made in violation of this
 section.
 Sec. 253.262.  EFFECT OF NONCOMPLYING CANDIDATE.  (a)  A
 complying candidate or a specific-purpose committee for supporting
 a complying candidate is not required to comply with the limits on
 contributions and expenditures prescribed by this subchapter if
 another person becomes a candidate for the office of commissioner
 of insurance and:
 (1)  files a declaration of intent to exceed the limit
 on expenditures under Section 253.261(a)(2);
 (2)  fails to file a declaration of compliance under
 Section 253.261(a)(1) or a declaration of intent under Section
 253.261(a)(2);
 (3)  files a declaration of compliance under Section
 253.261(a)(1) but later exceeds the limit on expenditures; or
 (4) violates Section 253.269 or 253.270.
 (b)  The executive director of the commission shall issue an
 order suspending the limits on contributions and expenditures for
 the office of commissioner of insurance not later than the fifth day
 after the date the executive director determines that:
 (1)  a person has become a candidate for that office
 and:
 (A)  has filed a declaration of intent to exceed
 the limits on expenditures under Section 253.261(a)(2); or
 (B)  has failed to file a declaration of
 compliance under Section 253.261(a)(1) or a declaration of intent
 under Section 253.261(a)(2);
 (2)  a complying candidate for that office has exceeded
 the applicable limit on expenditures prescribed by this subchapter;
 or
 (3)  a candidate for that office has violated Section
 253.269 or 253.270.
 Sec. 253.263.  BENEFIT TO COMPLYING CANDIDATE.  (a)  A
 complying candidate is entitled to state on political advertising
 as provided by Section 255.009 that the candidate complies with the
 Insurance Commissioner Campaign Fairness Act, regardless of
 whether the limits on contributions and expenditures are later
 suspended.
 (b)  A noncomplying candidate is not entitled to the benefit
 provided by this section.
 Sec. 253.264.  EXPENDITURE LIMIT.  (a)  For each election
 in which the candidate is involved, a complying candidate may not
 knowingly make or authorize political expenditures that in the
 aggregate exceed $2 million.
 (b)  A person who violates this section is liable for a civil
 penalty not to exceed three times the amount by which the political
 expenditures made in violation of this section exceed the
 applicable limit prescribed by Subsection (a).
 Sec. 253.265.  EXPENDITURE BY CERTAIN COMMITTEES CONSIDERED
 EXPENDITURE BY CANDIDATE.  (a)  For purposes of Section 253.264,
 an expenditure by a specific-purpose committee for the purpose of
 supporting a candidate for the office of commissioner of insurance,
 opposing the candidate's opponent, or assisting the candidate as an
 officeholder is considered to be an expenditure by the candidate
 unless the candidate, in an affidavit filed with the commission,
 states that the candidate's campaign, including the candidate, an
 aide to the candidate, a campaign officer, or a campaign consultant
 of the candidate, has not directly or indirectly communicated with
 the committee in regard to a strategic matter, including polling
 data, advertising, or voter demographics, in connection with the
 candidate's campaign.
 (b)  This section applies only to an expenditure of which the
 candidate or officeholder has notice.
 (c)  An affidavit under this section shall be filed with the
 next report the candidate or officeholder is required to file under
 Chapter 254 following the receipt of notice of the expenditure.
 Sec. 253.266.  EFFECT OF CERTAIN POLITICAL EXPENDITURES. (a)
 A complying candidate or a specific-purpose committee for
 supporting a complying candidate is not required to comply with the
 applicable limits on contributions and expenditures prescribed by
 this subchapter if a person makes political expenditures supporting
 the candidate's opponent, assisting the candidate's opponent as an
 officeholder, or opposing the candidate that in the aggregate
 exceed $25,000.
 (b)  The executive director of the commission shall issue an
 order suspending the limits on contributions and expenditures for
 the office of commissioner of insurance not later than the fifth day
 after the date the executive director determines that:
 (1)  a declaration of intent to make expenditures that
 exceed the limit prescribed by Subsection (a) is filed in
 connection with the office as provided by Section 253.260; or
 (2)  a political expenditure that exceeds the limit
 prescribed by Subsection (a) has been made.
 (c)  The limit prescribed by Subsection (a) does not apply
 to:
 (1)  an expenditure made by the complying candidate's
 opponent;
 (2)  an expenditure made by the principal political
 committee of the state executive committee or a county executive
 committee of a political party; or
 (3)  an expenditure made by a political committee or
 other association that consists only of costs incurred in
 contacting the committee's or association's membership.
 Sec. 253.267.  CONTRIBUTION FROM OR DIRECT CAMPAIGN
 EXPENDITURE BY POLITICAL PARTY.  (a)  Except as provided by
 Subsection (b), a political contribution to or a direct campaign
 expenditure on behalf of a complying candidate that is made by the
 principal political committee of the state executive committee or a
 county executive committee of a political party is considered to be
 a political expenditure by the candidate for purposes of the
 expenditure limits prescribed by Section 253.264.
 (b)  Subsection (a) does not apply to a political expenditure
 for a generic get-out-the-vote campaign or for a written list of two
 or more candidates that:
 (1)  identifies the party's candidates by name and
 office sought, office held, or photograph;
 (2)  does not include any reference to the political
 philosophy or positions on issues of the party's candidates; and
 (3)  is not broadcast, cablecast, published in a
 newspaper or magazine, or placed on a billboard.
 Sec. 253.268.  RESTRICTION ON EXCEEDING EXPENDITURE
 LIMITS.  (a)  A candidate who files a declaration of compliance
 under Section 253.261(a)(1) and who later files a declaration of
 intent to exceed the limit on expenditures under Section
 253.261(a)(2) or a specific-purpose committee for supporting such a
 candidate may not make a political expenditure that causes the
 person to exceed the limit on expenditures prescribed by Section
 253.264 before the 60th day after the date the candidate files the
 declaration of intent to exceed the limit on expenditures.
 (b)  A person who violates this section is liable for a civil
 penalty not to exceed three times the amount of political
 expenditures made in violation of this section.
 Sec. 253.269.  AGREEMENT TO EVADE LIMITS PROHIBITED.  (a) A
 complying candidate may not:
 (1)  solicit a person to campaign as a noncomplying
 candidate opposing the complying candidate; or
 (2)  enter into an agreement under which a person
 campaigns as a noncomplying candidate opposing the complying
 candidate.
 (b)  A candidate who violates this section is considered to
 be a noncomplying candidate.
 Sec. 253.270.  MISREPRESENTATION OF OPPONENT'S COMPLIANCE
 WITH OR VIOLATION OF SUBCHAPTER PROHIBITED.  (a)  A candidate may
 not knowingly misrepresent that an opponent of the candidate:
 (1) is a noncomplying candidate; or
 (2) has violated this subchapter.
 (b)  A candidate who violates this section is considered to
 be a noncomplying candidate.
 Sec. 253.271.  CIVIL PENALTY.  (a)  The commission may
 impose a civil penalty under this subchapter against a person as
 provided by Subchapter E, Chapter 571, Government Code.
 (b) The commission shall base the amount of the penalty on:
 (1) the seriousness of the violation;
 (2) the history of previous violations;
 (3)  the amount necessary to deter future violations;
 and
 (4) any other matter that justice may require.
 (c)  A penalty paid under this subchapter shall be deposited
 in the general revenue fund to the credit of the commission. The
 commission may use amounts representing penalties paid under this
 subchapter only for purposes of enforcing this subchapter.
 SECTION 10. Chapter 255, Election Code, is amended by
 adding Section 255.009 to read as follows:
 Sec. 255.009.  DISCLOSURE ON POLITICAL ADVERTISING FOR
 OFFICE OF COMMISSIONER OF INSURANCE.  (a)  This section applies
 only to a candidate or political committee covered by Subchapter H,
 Chapter 253.
 (b)  Political advertising by a candidate for the office of
 commissioner of insurance who files a declaration of intent to
 comply with the limit on expenditures under Subchapter H, Chapter
 253, or a specific-purpose committee for supporting such a
 candidate may include the following statement: "Political
 advertising paid for by (name of candidate or committee) in
 compliance with the voluntary expenditure limit of the Insurance
 Commissioner Campaign Fairness Act."
 (c)  Political advertising by a candidate who files a
 declaration of intent to comply with the limit on expenditures
 under Subchapter H, Chapter 253, or a specific-purpose committee
 for supporting such a candidate that does not contain the statement
 prescribed by Subsection (b) must comply with Section 255.001.
 (d)  Political advertising by a candidate who files a
 declaration of intent to exceed the limit on expenditures under
 Subchapter H, Chapter 253, or a specific-purpose committee for
 supporting such a candidate must include the following statement:
 "Political advertising paid for by (name of candidate or
 committee), (who or which) has rejected the voluntary expenditure
 limit of the Insurance Commissioner Campaign Fairness Act."
 (e) The commission shall adopt rules providing for:
 (1)  the minimum size of the disclosure required by
 this section in political advertising that appears on television or
 in writing; and
 (2)  the minimum duration of the disclosure required by
 this section in political advertising that appears on television or
 radio.
 (f)  A person who violates this section or a rule adopted
 under this section is liable for a civil penalty not to exceed
 $15,000.
 (g)  Section 253.271 applies to the imposition and
 disposition of a civil penalty under this section.
 SECTION 11. Section 504.401(d), Transportation Code, is
 amended to read as follows:
 (d) In this section, "state official" means:
 (1) a member of the legislature;
 (2) the governor;
 (3) the lieutenant governor;
 (4) a justice of the supreme court;
 (5) a judge of the court of criminal appeals;
 (6) the attorney general;
 (7) the commissioner of the General Land Office;
 (8) the comptroller;
 (9) a member of the Railroad Commission of Texas;
 (10) the commissioner of agriculture;
 (11) the commissioner of insurance;
 (12) the secretary of state; or
 (13) [(12)] a member of the State Board of Education.
 SECTION 12. (a) The first general election for
 commissioner of insurance shall be held November 2, 2010, for a
 two-year term beginning on January 1, 2011. Thereafter, the
 commissioner of insurance shall be elected to serve a four-year
 term.
 (b) Until the first commissioner of insurance elected under
 this Act takes office, the commissioner serving on the effective
 date of this Act shall, unless otherwise removed as provided by law,
 continue in office under the prior law that governed the office, and
 that prior law is continued in effect for that purpose. If on
 January 1, 2011, there is a vacancy in the office of commissioner of
 insurance created under this Act because the first
 commissioner-elect has died or refuses or is permanently unable to
 serve, the commissioner serving on that date shall, unless
 otherwise removed as provided by law, continue in office under the
 prior law that governed the office until the governor fills the
 vacancy by appointment in the manner provided by law. The prior law
 that governed the office of the commissioner of insurance is
 continued in effect for that purpose.
 SECTION 13. Subchapter H, Chapter 253, Election Code, as
 added by this Act, applies only to a political contribution
 accepted or political expenditure made on or after the effective
 date of this Act. A political contribution accepted or political
 expenditure made before the effective date of this Act is governed
 by the law in effect on the date the contribution was accepted or
 the expenditure was made and is not aggregated with political
 contributions accepted or political expenditures made on or after
 the effective date of this Act.
 SECTION 14. (a) Except as provided by Subsection (b) of
 this section, this Act takes effect January 1, 2011.
 (b) Sections 1, 8, 9, and 13 of this Act take effect
 September 1, 2009.