Texas 2017 - 85th Regular

Texas House Bill HB2113 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Goldman, et al. (Senate Sponsor - Zaffirini) H.B. No. 2113
2		-	(In the Senate - Received from the House April 27, 2017;
3		-	May 3, 2017, read first time and referred to Committee on Business &
4		-	Commerce; May 10, 2017, reported favorably by the following vote:
5		-	Yeas 7, Nays 0; May 10, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 2113
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the regulation of for-profit legal service contract
12	6		companies.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Section 953.001(1), Occupations Code, is amended
15	9		to read as follows:
16	10		(1) "Administrator" means the person responsible for
17	11		the administration of a legal service contract. [The term includes
18	12		a person responsible for any filing required by this chapter.]
19	13		SECTION 2. Section 953.156, Occupations Code, is amended to
20	14		read as follows:
21	15		Sec. 953.156. FORM OF LEGAL SERVICE CONTRACT AND REQUIRED
22	16		DISCLOSURES. [(a) A legal service contract must be filed with the
23	17		executive director before it is marketed, sold, offered for sale,
24	18		administered, or issued in this state. Any subsequent endorsement
25	19		or attachment to the contract must also be filed with the executive
26	20		director before the endorsement or attachment is delivered to legal
27	21		service contract holders.
28	22		[(b)] A legal service contract marketed, sold, offered for
29	23		sale, administered, or issued in this state must:
30	24		(1) be written, printed, or typed in clear,
31	25		understandable language that is easy to read;
32	26		(2) include the name and full address of the company;
33	27		(3) include the purchase price of the contract and the
34	28		terms under which the contract is sold;
35	29		(4) include the terms and restrictions governing
36	30		cancellation of the contract by the company or the legal service
37	31		contract holder;
38	32		(5) identify:
39	33		(A) any administrator, if the administrator is
40	34		not the company;
41	35		(B) the sales representative; and
42	36		(C) the name of the legal service contract
43	37		holder;
44	38		(6) include the amount of any deductible or copayment;
45	39		(7) specify the legal services and other benefits to
46	40		be provided under the contract, and any limitation, exception, or
47	41		exclusion;
48	42		(8) specify the legal services, if any, for which the
49	43		company will provide reimbursement and the amount of that
50	44		reimbursement;
51	45		(9) specify any restriction governing the
52	46		transferability of the contract or the assignment of benefits;
53	47		(10) include the duties of the legal service contract
54	48		holder;
55	49		(11) [include the contact information for the
56	50		department, including the department's toll-free number and
57	51		electronic mail address, as well as a statement that the department
58	52		regulates the company and the company's sales representatives;
59	53		[(12)] explain the method to be used in resolving the
60	54		legal service contract holder's complaints and grievances;
61	55		(12) [(13)] explain how legal services may be obtained
62	56		under the legal service contract;
63	57		(13) [(14)] include a provision stating that no change
64	58		in the contract is valid until the change has been approved by an
65	59		executive officer of the company and unless the approval is
66	60		endorsed or attached to the contract;
67	61		(14) [(15)] include any eligibility and effective
68	62		date requirements, including a definition of eligible dependents
69	63		and the effective date of their coverage;
70	64		(15) [(16)] include the conditions under which
71	65		coverage will terminate;
72	66		(16) [(17)] explain any subrogation arrangements;
73	67		(17) [(18)] contain a payment provision that provides
74	68		for a grace period of at least 31 days; and
75	69		(18) [(19)] include conditions under which contract
76	70		rates may be modified[; and
77	71		[(20) include any other items required by the
78	72		executive director as determined by rule].
79	73		SECTION 3. Section 953.162, Occupations Code, is amended to
80	74		read as follows:
81	75		Sec. 953.162. APPOINTMENT AND RESPONSIBILITIES OF
82	76		ADMINISTRATOR. [(a)] A company may appoint an administrator or
83	77		designate a person to be responsible for:
84	78		(1) all or any part of the administration or sale of
85	79		legal service contracts; and
86	80		(2) compliance with this chapter.
87	81		[(b) The executive director may adopt rules regarding the
88	82		registration of an administrator with the department.]
89	83		SECTION 4. Chapter 953, Occupations Code, is amended by
90	84		adding Subchapter F to read as follows:
91	85		SUBCHAPTER F. ENFORCEMENT
92	86		Sec. 953.251. DECEPTIVE TRADE PRACTICE. A violation of
93	87		this chapter is a deceptive trade practice actionable under
94	88		Subchapter E, Chapter 17, Business & Commerce Code.
95	89		SECTION 5. The following provisions of the Occupations Code
96	90		are repealed:
97	91		(1) Sections 953.001(4), (5), and (6);
98	92		(2) Sections 953.004, 953.005, and 953.155; and
99	93		(3) Subchapters B, C, and E, Chapter 953.
100	94		SECTION 6. (a) On the effective date of this Act, a
101	95		registration issued under former Subchapter B, Chapter 953,
102	96		Occupations Code, expires.
103	97		(b) On the effective date of this Act, a pending proceeding
104	98		under Chapter 953, Occupations Code, including a complaint
105	99		investigation, disciplinary action, or administrative penalty
106	100		proceeding, relating to a registration issued under former
107	101		Subchapter B, Chapter 953, Occupations Code, or relating to another
108	102		former provision of Chapter 953, Occupations Code, that is repealed
109	103		by this Act, is dismissed.
110	104		SECTION 7. This Act takes effect September 1, 2019.
111		-	* * * * *
	105	+	______________________________ ______________________________
	106	+	President of the Senate Speaker of the House
	107	+	I certify that H.B. No. 2113 was passed by the House on April
	108	+	26, 2017, by the following vote: Yeas 145, Nays 1, 2 present, not
	109	+	voting.
	110	+	______________________________
	111	+	Chief Clerk of the House
	112	+	I certify that H.B. No. 2113 was passed by the Senate on May
	113	+	12, 2017, by the following vote: Yeas 31, Nays 0.
	114	+	______________________________
	115	+	Secretary of the Senate
	116	+	APPROVED: _____________________
	117	+	Date
	118	+	_____________________
	119	+	Governor