Texas 2017 - 85th Regular

Texas House Bill HB2367 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R10209 SCL-D
2	2	By: Davis of Dallas H.B. No. 2367
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the election of the state board of insurance.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 31.001 and 31.007, Insurance Code, are
10	10	amended to read as follows:
11	11	Sec. 31.001. DEFINITIONS. (a) In this code and other
12	12	insurance laws:
13	13	(1) "Board" ["Commissioner"] means the state board
14	14	[commissioner] of insurance.
15	15	(2) "Department" means the Texas Department of
16	16	Insurance.
17	17	(b) For purposes of this code and other insurance laws, a
18	18	reference to "commissioner" means "board."
19	19	Sec. 31.007. REFERENCES TO BOARD OR COMMISSIONER. A
20	20	reference in this code or other law to the former State Board of
21	21	Insurance, the Board of Insurance Commissioners, [or] an individual
22	22	commissioner, or the commissioner of insurance means the board
23	23	[commissioner] or the department as consistent with the respective
24	24	duties of the board [commissioner] and the department under this
25	25	code and other insurance laws.
26	26	SECTION 2. The heading to Subchapter B, Chapter 31,
27	27	Insurance Code, is amended to read as follows:
28	28	SUBCHAPTER B. STATE BOARD [COMMISSIONER] OF INSURANCE
29	29	SECTION 3. Section 31.021, Insurance Code, is amended to
30	30	read as follows:
31	31	Sec. 31.021. GOVERNING BODY [CHIEF EXECUTIVE]. (a) The
32	32	board [commissioner] is the department's governing body [chief
33	33	executive and administrative officer]. The board [commissioner]
34	34	shall administer and enforce this code, other insurance laws of
35	35	this state, and other laws granting jurisdiction or applicable to
36	36	the department or the board [commissioner].
37	37	(b) The board [commissioner] has the powers and duties
38	38	vested in the department by:
39	39	(1) this code and other insurance laws of this state;
40	40	and
41	41	(2) Title 5, Labor Code, and other workers'
42	42	compensation insurance laws of this state.
43	43	SECTION 4. Section 31.022, Insurance Code, is amended to
44	44	read as follows:
45	45	Sec. 31.022. ELECTION [APPOINTMENT; TERM]. (a) The state
46	46	board of insurance is composed of three members elected from
47	47	districts serving staggered terms of four years [The governor, with
48	48	the advice and consent of the senate, shall appoint the
49	49	commissioner. The commissioner serves a two-year term that expires
50	50	on February 1 of each odd-numbered year].
51	51	(b) Members of the board are elected at biennial general
52	52	elections held in compliance with the Election Code [The governor
53	53	shall appoint the commissioner without regard to the race, color,
54	54	disability, sex, religion, age, or national origin of the
55	55	appointee].
56	56	SECTION 5. Section 31.024, Insurance Code, is amended to
57	57	read as follows:
58	58	Sec. 31.024. INELIGIBILITY FOR PUBLIC OFFICE. A member of
59	59	the board [The commissioner] is ineligible to be a candidate for
60	60	another [a] public elective office in this state, unless the member
61	61	[commissioner] has resigned and the governor has accepted the
62	62	resignation.
63	63	SECTION 6. Section 31.027, Insurance Code, is amended to
64	64	read as follows:
65	65	Sec. 31.027. GROUNDS FOR REMOVAL. (a) It is a ground for
66	66	removal from office if a member of the board [the commissioner]:
67	67	(1) [does not have at the time of appointment the
68	68	qualifications required by Section 31.023;
69	69	[(2) does not maintain during service as commissioner
70	70	the qualifications required by Section 31.023;
71	71	[(3)] violates a prohibition established by Section
72	72	33.001, 33.003, [33.004,] or 33.005; or
73	73	(2) [(4)] cannot, because of illness or disability,
74	74	discharge the member's [commissioner's] duties for a substantial
75	75	part of the member's [commissioner's] term.
76	76	(b) The validity of an action of the board [commissioner] or
77	77	the department is not affected by the fact that it is taken when a
78	78	ground for removal of a member of the board [commissioner] exists.
79	79	SECTION 7. Subchapter B, Chapter 31, Insurance Code, is
80	80	amended by adding Section 31.029 to read as follows:
81	81	Sec. 31.029. CERTAIN POLITICAL CONTRIBUTIONS PROHIBITED.
82	82	(a) In this section, "political committee" and "political
83	83	contribution" have the meanings assigned by Section 251.001,
84	84	Election Code.
85	85	(b) A candidate for membership on the board or a member may
86	86	not knowingly accept a political contribution, and shall refuse a
87	87	political contribution that is received, from an insurer or health
88	88	maintenance organization or a political committee affiliated with
89	89	such an insurer or organization.
90	90	(c) A candidate for membership on the board or a member
91	91	shall return a political contribution that is received and refused
92	92	under Subsection (b) not later than the 30th day after the date the
93	93	candidate or member received the contribution.
94	94	(d) The board shall adopt all rules necessary to implement
95	95	Subsections (b) and (c), including rules that direct the department
96	96	to maintain a list of insurers, health maintenance organizations,
97	97	and political committees affiliated with insurers or health
98	98	maintenance organizations in order to aid the candidates for
99	99	membership on the board and members in complying with those
100	100	subsections.
101	101	SECTION 8. Section 31.041(c), Insurance Code, is amended to
102	102	read as follows:
103	103	(c) A person appointed as an associate or deputy
104	104	commissioner or to hold an equivalent position must have at least
105	105	five years of [the] experience in the administration of business or
106	106	government or as a practicing attorney or certified public
107	107	accountant [required for appointment as commissioner under Section
108	108	31.023]. At least two years of that experience must be in work
109	109	related to the position to be held.
110	110	SECTION 9. Sections 33.004(a) and (b), Insurance Code, are
111	111	amended to read as follows:
112	112	(a) A person who is an officer, employee, or paid consultant
113	113	of a trade association in the field of insurance may not be[:
114	114	[(1) the commissioner; or
115	115	[(2)] an employee of the department in a "bona fide
116	116	executive, administrative, or professional capacity," as that
117	117	phrase is used for purposes of establishing an exemption to the
118	118	overtime provisions of the federal Fair Labor Standards Act of 1938
119	119	(29 U.S.C. Section 201 et seq.) [who is exempt from the state's
120	120	position classification plan or is compensated at or above the
121	121	amount prescribed by the General Appropriations Act for step 1,
122	122	salary group A17, of the position classification salary schedule].
123	123	(b) A person who is the spouse of an officer, manager, or
124	124	paid consultant of a trade association in the field of insurance may
125	125	not be[:
126	126	[(1) the commissioner; or
127	127	[(2)] an employee of the department in a "bona fide
128	128	executive, administrative, or professional capacity," as that
129	129	phrase is used for purposes of establishing an exemption to the
130	130	overtime provisions of the federal Fair Labor Standards Act of 1938
131	131	(29 U.S.C. Section 201 et seq.) [who is exempt from the state's
132	132	position classification plan or is compensated at or above the
133	133	amount prescribed by the General Appropriations Act for step 1,
134	134	salary group A17, of the position classification salary schedule].
135	135	SECTION 10. Section 911.001(c), Insurance Code, is amended
136	136	to read as follows:
137	137	(c) Except to the extent of any conflict with this chapter,
138	138	the following provisions apply to a farm mutual insurance company:
139	139	(1) Subchapter A, Chapter 32;
140	140	(2) Subchapter D, Chapter 36;
141	141	(3) Sections 31.002(2), 32.021(c), 32.023, 32.041,
142	142	[33.002,] 38.001, 81.001-81.004, 201.005, 201.055, 401.051,
143	143	401.052, 401.054-401.062, 401.103-401.106, 401.151, 401.152,
144	144	401.155, 401.156, 421.001, 801.051-801.055, 801.057, 801.101,
145	145	801.102, 822.204, 841.004, 841.251, 841.252, 862.101, 1806.001,
146	146	1806.101, 1806.103(b), and 1806.104-1806.107;
147	147	(4) Chapter 86;
148	148	(5) Subchapter A, Chapter 401;
149	149	(6) Subchapter B, Chapter 404;
150	150	(7) Chapter 422;
151	151	(8) Subchapter B, Chapter 424, other than Section
152	152	424.052, 424.072, or 424.073;
153	153	(9) Chapter 441;
154	154	(10) Chapter 443;
155	155	(11) Chapter 462;
156	156	(12) Chapter 481;
157	157	(13) Chapter 541;
158	158	(14) Chapter 802;
159	159	(15) Subchapter A, Chapter 805;
160	160	(16) Chapter 824; and
161	161	(17) Article 1.09-1.
162	162	SECTION 11. Section 961.002(b), Insurance Code, is amended
163	163	to read as follows:
164	164	(b) The following provisions of this code apply to a
165	165	nonprofit legal services corporation in the same manner that they
166	166	apply to an insurer or a person engaged in the business of
167	167	insurance, to the extent the provisions do not conflict with this
168	168	chapter:
169	169	(1) Articles 1.09-1 and 21.47;
170	170	(2) Sections 31.002, 31.004, 31.007, 31.021, 31.022,
171	171	[31.023,] 31.026, 31.027, 32.021, 32.022(a), 32.023, [33.002,]
172	172	33.006, 36.108, 38.001, 81.004, 201.005, 201.055, 401.051,
173	173	401.052, 401.054-401.062, 401.103-401.106, 401.151, 401.152,
174	174	401.155, 401.156, 801.001, 801.002, 801.051-801.055, 801.057,
175	175	801.101, 801.102, 841.251, and 841.252;
176	176	(3) Subchapter B, Chapter 31;
177	177	(4) Subchapters A and C, Chapter 32;
178	178	(5) Subchapter D, Chapter 36;
179	179	(6) Subchapter A, Chapter 401;
180	180	(7) Subchapter A, Chapter 542;
181	181	(8) Subchapter A, Chapter 805; and
182	182	(9) Chapters 86, 402, 441, 443, 481, 541, 802, and 824.
183	183	SECTION 12. Section 52.092(d), Election Code, is amended to
184	184	read as follows:
185	185	(d) District offices of the state government shall be listed
186	186	in the following order:
187	187	(1) member, state board of insurance;
188	188	(2) member, State Board of Education;
189	189	(3) [(2)] state senator;
190	190	(4) [(3)] state representative;
191	191	(5) [(4)] chief justice, court of appeals;
192	192	(6) [(5)] justice, court of appeals;
193	193	(7) [(6)] district judge;
194	194	(8) [(7)] criminal district judge;
195	195	(9) [(8)] family district judge;
196	196	(10) [(9)] district attorney;
197	197	(11) [(10)] criminal district attorney.
198	198	SECTION 13. Section 504.401(d), Transportation Code, is
199	199	amended to read as follows:
200	200	(d) In this section, "state official" means:
201	201	(1) a member of the legislature;
202	202	(2) the governor;
203	203	(3) the lieutenant governor;
204	204	(4) a justice of the supreme court;
205	205	(5) a judge of the court of criminal appeals;
206	206	(6) the attorney general;
207	207	(7) the commissioner of the General Land Office;
208	208	(8) the comptroller;
209	209	(9) a member of the Railroad Commission of Texas;
210	210	(10) the commissioner of agriculture;
211	211	(11) the secretary of state; [or]
212	212	(12) a member of the state board of insurance; or
213	213	(13) a member of the State Board of Education.
214	214	SECTION 14. Sections 31.023 and 33.002, Insurance Code, are
215	215	repealed.
216	216	SECTION 15. (a) The first general election for the state
217	217	board of insurance shall be held November 7, 2017. The initial
218	218	members of the board serve terms beginning on January 1, 2018, and
219	219	shall draw lots to achieve staggered terms, with one of the members
220	220	serving a two-year term and two of the members serving a four-year
221	221	term.
222	222	(b) Until each member from the initial state board of
223	223	insurance elected under this Act takes office, the commissioner of
224	224	insurance serving on the effective date of this Act shall, unless
225	225	otherwise removed as provided by law, continue in office under the
226	226	prior law that governed the office, and that prior law is continued
227	227	in effect for that purpose. If on January 1, 2018, there is a
228	228	vacancy in the office of a member of the state board of insurance
229	229	created under this Act because the initial member-elect has died or
230	230	refuses or is permanently unable to serve, the commissioner serving
231	231	on that date shall, unless otherwise removed as provided by law,
232	232	continue in office under the prior law that governed the office
233	233	until the governor fills the vacancy by appointment in the manner
234	234	provided by law. The prior law that governed the office of the
235	235	commissioner of insurance is continued in effect for that purpose.
236	236	SECTION 16. (a) Except as provided by Subsection (b) of
237	237	this section, this Act takes effect September 1, 2017.
238	238	(b) Section 31.027, Insurance Code, as amended by this Act,
239	239	and Section 504.401(d), Transportation Code, as amended by this
240	240	Act, take effect January 1, 2018.