83R2647 AJA-D
By: Johnson H.B. No. 682
A BILL TO BE ENTITLED
AN ACT
relating to the election and qualifications of the commissioner of
insurance.
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 at least 30 years of age [a competent and
experienced administrator];
(2) be a United States citizen [well informed and
qualified in the field of insurance and insurance regulation];
[and]
(3) have resided in this state for at least five years
immediately preceding the date of the commissioner's election; and
(4) hold a bachelor's degree [of experience in the
administration of business or government or as a practicing
attorney or certified public accountant].
SECTION 3. Section 31.041(c), Insurance Code, is amended to
read as follows:
(c) A person appointed as an associate or deputy
commissioner or to hold an equivalent position must have at least
five years of [the] experience in the administration of business or
government or as a practicing attorney or certified public
accountant [required for appointment as commissioner under Section
31.023]. At least two years of that experience must be in work
related to the position to be held.
SECTION 4. Sections 33.002(a) and (b), Insurance Code, are
amended to read as follows:
(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) 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
(2) is directly or indirectly interested in a business
described by Subdivision (1).
SECTION 5. Section 961.002(b), Insurance Code, is amended
to read as follows:
(b) The following provisions of this code apply to a
nonprofit legal services corporation in the same manner that they
apply to an insurer or a person engaged in the business of
insurance, to the extent the provisions do not conflict with this
chapter:
(1) Articles 1.09-1 and 21.47;
(2) Sections 31.002, 31.004, 31.007, 31.021, 31.022,
[31.023,] 31.026, [31.027,] 32.021, 32.022(a), 32.023, 33.002,
33.006, 36.108, 38.001, 81.004, 201.005, 201.055, 401.051,
401.052, 401.054-401.062, 401.103-401.106, 401.151, 401.152,
401.155, 401.156, 801.001, 801.002, 801.051-801.055, 801.057,
801.101, 801.102, 841.251, and 841.252;
(3) Subchapter B, Chapter 31;
(4) Subchapters A and C, Chapter 32;
(5) Subchapter D, Chapter 36;
(6) Subchapter A, Chapter 401;
(7) Subchapter A, Chapter 542;
(8) Subchapter A, Chapter 805; and
(9) Chapters 86, 402, 441, 443, 481, 541, 802, and 824.
SECTION 6. 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 7. 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 8. Sections 31.024 and 31.027, Insurance Code, are
repealed.
SECTION 9. (a) The first general election for commissioner
of insurance shall be held November 4, 2014, for a four-year term
beginning on January 1, 2015.
(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, 2015, 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 10. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2015.
(b) Sections 1, 6, and 9 of this Act take effect September 1,
2013.