Texas 2017 - 85th Regular

Texas Senate Bill SB1499 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	85R6676 EES-F
1	2		By: Zaffirini S.B. No. 1499
2		-	(In the Senate - Filed March 8, 2017; March 20, 2017, read
3		-	first time and referred to Committee on Business & Commerce;
4		-	April 18, 2017, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 9, Nays 0; April 18, 2017,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1499 By: Zaffirini
9	3
10	4
11	5		A BILL TO BE ENTITLED
12	6		AN ACT
13	7		relating to the regulation of for-profit legal service contract
14	8		companies.
15	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	10		SECTION 1. Section 953.001(1), Occupations Code, is amended
17	11		to read as follows:
18	12		(1) "Administrator" means the person responsible for
19	13		the administration of a legal service contract. [The term includes
20	14		a person responsible for any filing required by this chapter.]
21	15		SECTION 2. Section 953.156, Occupations Code, is amended to
22	16		read as follows:
23	17		Sec. 953.156. FORM OF LEGAL SERVICE CONTRACT AND REQUIRED
24	18		DISCLOSURES. [(a) A legal service contract must be filed with the
25	19		executive director before it is marketed, sold, offered for sale,
26	20		administered, or issued in this state. Any subsequent endorsement
27	21		or attachment to the contract must also be filed with the executive
28	22		director before the endorsement or attachment is delivered to legal
29	23		service contract holders.
30	24		[(b)] A legal service contract marketed, sold, offered for
31	25		sale, administered, or issued in this state must:
32	26		(1) be written, printed, or typed in clear,
33	27		understandable language that is easy to read;
34	28		(2) include the name and full address of the company;
35	29		(3) include the purchase price of the contract and the
36	30		terms under which the contract is sold;
37	31		(4) include the terms and restrictions governing
38	32		cancellation of the contract by the company or the legal service
39	33		contract holder;
40	34		(5) identify:
41	35		(A) any administrator, if the administrator is
42	36		not the company;
43	37		(B) the sales representative; and
44	38		(C) the name of the legal service contract
45	39		holder;
46	40		(6) include the amount of any deductible or copayment;
47	41		(7) specify the legal services and other benefits to
48	42		be provided under the contract, and any limitation, exception, or
49	43		exclusion;
50	44		(8) specify the legal services, if any, for which the
51	45		company will provide reimbursement and the amount of that
52	46		reimbursement;
53	47		(9) specify any restriction governing the
54	48		transferability of the contract or the assignment of benefits;
55	49		(10) include the duties of the legal service contract
56	50		holder;
57	51		(11) [include the contact information for the
58	52		department, including the department's toll-free number and
59	53		electronic mail address, as well as a statement that the department
60	54		regulates the company and the company's sales representatives;
61	55		[(12)] explain the method to be used in resolving the
62	56		legal service contract holder's complaints and grievances;
63	57		(12) [(13)] explain how legal services may be obtained
64	58		under the legal service contract;
65	59		(13) [(14)] include a provision stating that no change
66	60		in the contract is valid until the change has been approved by an
67	61		executive officer of the company and unless the approval is
68	62		endorsed or attached to the contract;
69	63		(14) [(15)] include any eligibility and effective
70	64		date requirements, including a definition of eligible dependents
71	65		and the effective date of their coverage;
72	66		(15) [(16)] include the conditions under which
73	67		coverage will terminate;
74	68		(16) [(17)] explain any subrogation arrangements;
75	69		(17) [(18)] contain a payment provision that provides
76	70		for a grace period of at least 31 days; and
77	71		(18) [(19)] include conditions under which contract
78	72		rates may be modified[; and
79	73		[(20) include any other items required by the
80	74		executive director as determined by rule].
81	75		SECTION 3. Section 953.162, Occupations Code, is amended to
82	76		read as follows:
83	77		Sec. 953.162. APPOINTMENT AND RESPONSIBILITIES OF
84	78		ADMINISTRATOR. [(a)] A company may appoint an administrator or
85	79		designate a person to be responsible for:
86	80		(1) all or any part of the administration or sale of
87	81		legal service contracts; and
88	82		(2) compliance with this chapter.
89	83		[(b) The executive director may adopt rules regarding the
90	84		registration of an administrator with the department.]
91	85		SECTION 4. Chapter 953, Occupations Code, is amended by
92	86		adding Subchapter F to read as follows:
93	87		SUBCHAPTER F. ENFORCEMENT
94	88		Sec. 953.251. DECEPTIVE TRADE PRACTICE. A violation of
95	89		this chapter is a deceptive trade practice actionable under
96	90		Subchapter E, Chapter 17, Business & Commerce Code.
97	91		SECTION 5. The following provisions of the Occupations Code
98	92		are repealed:
99	93		(1) Sections 953.001(4), (5), and (6);
100	94		(2) Sections 953.004, 953.005, and 953.155; and
101	95		(3) Subchapters B, C, and E, Chapter 953.
102	96		SECTION 6. (a) On the effective date of this Act, a
103	97		registration issued under former Subchapter B, Chapter 953,
104	98		Occupations Code, expires.
105	99		(b) On the effective date of this Act, a pending proceeding
106	100		under Chapter 953, Occupations Code, including a complaint
107	101		investigation, disciplinary action, or administrative penalty
108	102		proceeding, relating to a registration issued under former
109	103		Subchapter B, Chapter 953, Occupations Code, or relating to another
110	104		former provision of Chapter 953, Occupations Code, that is repealed
111	105		by this Act, is dismissed.
112		-	SECTION 7. This Act takes effect only if a specific
113		-	appropriation for the implementation of the Act is provided in a
114		-	general appropriations act of the 85th Legislature.
115		-	SECTION 8. This Act takes effect September 1, 2019.
116		-	* * * * *
	106	+	SECTION 7. This Act takes effect September 1, 2017.