Texas 2017 - 85th Regular

Texas Senate Bill SB1450 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1450
	1	+	By: Taylor of Galveston S.B. No. 1450
	2	+	(Bonnen of Galveston)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5		-	relating to the regulatory authority of the commissioner of
6		-	insurance and the Texas Department of Insurance.
	7	+	relating to the rulemaking authority of the commissioner of
	8	+	insurance with respect to certain agreements and the effect of
	9	+	those agreements on this state's authority to regulate insurance.
7	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8		-	SECTION 1. Section 36.004, Insurance Code, is amended to
9		-	read as follows:
10		-	Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF
11		-	INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (a) Except as
12		-	provided by Subsection (c) and Section 36.005, the department may
13		-	not require an insurer to comply with a rule, regulation,
14		-	directive, or standard adopted by the National Association of
15		-	Insurance Commissioners, including a rule, regulation, directive,
16		-	or standard relating to policy reserves, unless application of the
17		-	rule, regulation, directive, or standard is expressly authorized by
18		-	statute [and approved by the commissioner].
19		-	(b) For purposes of Subsection (a), a version of a rule,
20		-	regulation, directive, or standard is expressly authorized by
21		-	statute if:
22		-	(1) the statute explicitly authorizes the
23		-	commissioner to adopt rules consistent with the rule, regulation,
24		-	directive, or standard; or
25		-	(2) that version is the latest version of the rule,
26		-	regulation, directive, or standard on the date that the statute was
27		-	enacted.
28		-	(c) The commissioner may adopt a rule to require compliance
29		-	with a rule, regulation, directive, or standard adopted by the
30		-	National Association of Insurance Commissioners if:
31		-	(1) the commissioner finds the rule is technical or
32		-	nonsubstantive in nature or necessary to preserve the department's
33		-	accreditation; and
34		-	(2) before the adoption of the rule, the commissioner
35		-	provides the standing committees of the senate and house of
36		-	representatives with primary jurisdiction over the department with
37		-	written notice of the commissioner's intent to adopt the rule.
38		-	SECTION 2. Subchapter A, Chapter 36, Insurance Code, is
	11	+	SECTION 1. Subchapter A, Chapter 36, Insurance Code, is
39	12		amended by adding Section 36.007 to read as follows:
40	13		Sec. 36.007. RULES RELATING TO AGREEMENTS LIMITING STATE
41	14		AUTHORITY TO REGULATE INSURANCE PROHIBITED; EFFECT OF AGREEMENT.
42	15		(a) The commissioner may not adopt or enforce a rule that
43	16		implements an interstate, national, or international agreement
44	17		that:
45	18		(1) infringes on the authority of this state to
46	19		regulate the business of insurance in this state; and
47	20		(2) was not approved by the legislature.
48	21		(b) An agreement described by Subsection (a) has no effect
49	22		on the authority of this state to regulate the business of insurance
50	23		in this state unless the agreement is approved by the legislature.
51		-	SECTION 3. Subchapter C, Chapter 551, Insurance Code, is
52		-	amended by adding Section 551.1041 to read as follows:
53		-	Sec. 551.1041. RULEMAKING AUTHORITY RELATING TO NOTICE OF
54		-	CANCELLATION OF CERTAIN PERSONAL AUTOMOBILE INSURANCE COVERAGES.
55		-	The commissioner shall exercise the commissioner's rulemaking
56		-	authority to adopt rules under which an insurer that cancels a
57		-	personal automobile insurance policy that provides comprehensive
58		-	or collision physical damage coverage for an automobile that is
59		-	subject to a purchase money lien is required to notify the
60		-	lienholder, if known, that the coverage will be canceled.
61		-	SECTION 4. Section 36.004, Insurance Code, as amended by
62		-	this Act, applies only to a rule adopted or amended on or after the
63		-	effective date of this Act. A rule adopted before the effective
64		-	date of this Act and not amended on or after that date is governed by
65		-	the law applicable to the rule immediately before the effective
66		-	date of this Act, and that law is continued in effect for that
67		-	purpose.
68		-	SECTION 5. This Act takes effect immediately if it receives
	24	+	SECTION 2. This Act takes effect immediately if it receives
69	25		a vote of two-thirds of all the members elected to each house, as
70	26		provided by Section 39, Article III, Texas Constitution. If this
71	27		Act does not receive the vote necessary for immediate effect, this
72	28		Act takes effect September 1, 2017.
73		-	______________________________ ______________________________
74		-	President of the Senate Speaker of the House
75		-	I hereby certify that S.B. No. 1450 passed the Senate on
76		-	May 4, 2017, by the following vote: Yeas 31, Nays 0; May 26, 2017,
77		-	Senate refused to concur in House amendments and requested
78		-	appointment of Conference Committee; May 27, 2017, House granted
79		-	request of the Senate; May 28, 2017, Senate adopted Conference
80		-	Committee Report by the following vote: Yeas 30, Nays 1.
81		-	______________________________
82		-	Secretary of the Senate
83		-	I hereby certify that S.B. No. 1450 passed the House, with
84		-	amendments, on May 24, 2017, by the following vote: Yeas 141,
85		-	Nays 4, one present not voting; May 27, 2017, House granted request
86		-	of the Senate for appointment of Conference Committee;
87		-	May 28, 2017, House adopted Conference Committee Report by the
88		-	following vote: Yeas 99, Nays 47, one present not voting.
89		-	______________________________
90		-	Chief Clerk of the House
91		-	Approved:
92		-	______________________________
93		-	Date
94		-	______________________________
95		-	Governor