85R11031 PMO-D
By: Davis of Dallas H.B. No. 2144
A BILL TO BE ENTITLED
AN ACT
relating to disclosure of foreign ownership of insurers authorized
to engage in the business of insurance in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 38, Insurance Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. REPORTING REGARDING FOREIGN OWNERSHIP INTERESTS
Sec. 38.501. APPLICABILITY. This subchapter applies to an
entity authorized to engage in the business of insurance in this
state that has issued any class of equity securities.
Sec. 38.502. DEFINITION. In this subchapter, "major
shareholder" means an individual, corporation, partnership,
association, joint stock company, business trust, or
unincorporated organization that is directly or indirectly the
beneficial owner of more than 10 percent of any class of an equity
security of an entity described by Section 38.501.
Sec. 38.503. REPORTING REGARDING OWNERSHIP INTERESTS IN
INSURERS. (a) An entity described by Section 38.501 shall file
with the department an annual report that identifies each majority
shareholder in the entity that, as of the date of the report, is:
(1) an entity organized under the laws of another
country or that has its principal place of business in another
country; or
(2) an individual who is a resident of another
country.
(b) The department shall make available on the department's
Internet website a report submitted under Subsection (a) until at
least the third anniversary of the date the report is submitted.
SECTION 2. Not later than December 31, 2017, the
comptroller of public accounts shall adopt rules as necessary to
implement Subchapter K, Chapter 38, Insurance Code, as added by
this Act. The rules must require that an insurer subject to that
subchapter submit the initial annual report required under that
subchapter not later than the 60th day after the effective date of
the rules.
SECTION 3. This Act takes effect September 1, 2017.