Texas 2021 - 87th Regular

Texas House Bill HB4210 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Paul (Senate Sponsor - Hancock) H.B. No. 4210
2		-	(In the Senate - Received from the House May 12, 2021;
3		-	May 14, 2021, read first time and referred to Committee on Business &
4		-	Commerce; May 21, 2021, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 8, Nays 0, one
6		-	present not voting; May 21, 2021, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR H.B. No. 4210 By: Hancock
	1	+	By: Paul H.B. No. 4210
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to the authority of entities regulated by the Texas
14	7		Department of Insurance to conduct business electronically.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	9		SECTION 1. Section 35.001, Insurance Code, is amended by
17	10		adding Subdivision (4-a) to read as follows:
18	11		(4-a) "Plan sponsor" means a person, other than a
19	12		regulated entity, who establishes, adopts, or maintains a health
20	13		benefit plan, including a vision or dental benefit plan, that
21	14		covers residents of this state, including a plan established,
22	15		adopted, or maintained by an employer or jointly by an employer and
23	16		one or more employee organizations, an association, a committee, a
24	17		joint board of trustees, or any similar group of representatives
25	18		who establish, adopt, or maintain a plan.
26	19		SECTION 2. Section 35.003, Insurance Code, is amended to
27	20		read as follows:
28		-	Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. (a)
29		-	Subject to Section 35.004, a [A] regulated entity may conduct
30		-	business electronically to the same extent that the entity is
31		-	authorized to conduct business otherwise if before the conduct of
32		-	business:
	21	+	Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. Subject
	22	+	to Section 35.004, a [A] regulated entity may conduct business
	23	+	electronically to the same extent that the entity is authorized to
	24	+	conduct business otherwise if before the conduct of business:
33	25		(1) each party to the business agrees to conduct the
34	26		business electronically; or
35	27		(2) each other party to the business has been given
36	28		notice by the entity that the business will be conducted
37	29		electronically and has not requested that the business be conducted
38	30		in nonelectronic form.
39		-	(b) If a regulated entity provides notice under Subsection
40		-	(a)(2) and the other party does not opt out of conducting business
41		-	electronically, the other party is considered to have agreed to
42		-	conduct business electronically for purposes of Chapter 322,
43		-	Business & Commerce Code.
44	31		SECTION 3. Sections 35.004(c) and (d), Insurance Code, are
45	32		amended to read as follows:
46	33		(c) A written communication may be delivered by electronic
47	34		means to a party by a regulated entity under this section if:
48	35		(1) the party:
49	36		(A) affirmatively consented to delivery by
50	37		electronic means and has not withdrawn the consent; or
51	38		(B) if affirmative consent is not sought, has not
52	39		requested that written communication be delivered to the party in
53	40		paper or another nonelectronic form instead of by electronic means;
54	41		(2) the party, before giving consent or receiving
55	42		written communication by electronic means, is provided with a clear
56	43		and conspicuous statement informing the party of:
57	44		(A) any right or option the party may have for the
58	45		written communication to be provided or made available in paper or
59	46		another nonelectronic form;
60	47		(B) the right of the party to withdraw consent
61	48		under this section or to request written communication be delivered
62	49		to the party in nonelectronic form, if the party's affirmative
63	50		consent is not sought, and any conditions or consequences imposed
64	51		if consent is withdrawn or delivery in nonelectronic form is
65	52		requested;
66	53		(C) whether the party's consent to delivery by
67	54		electronic means or the party's request or the absence of the
68	55		party's request for delivery in nonelectronic form applies:
69	56		(i) only to a specific transaction for
70	57		which the written communication must be given; or
71	58		(ii) to identified categories of written
72	59		communications that may be delivered by electronic means during the
73	60		course of the relationship between the party and the regulated
74	61		entity;
75	62		(D) the means[, after consent is given,] by which
76	63		a party may obtain a paper copy of a written communication delivered
77	64		by electronic means; and
78	65		(E) the procedure a party must follow to:
79	66		(i) withdraw consent under this section or
80	67		to otherwise request delivery of written communication in
81	68		nonelectronic form, as applicable; and
82	69		(ii) update information needed for the
83	70		regulated entity to contact the party electronically; and
84	71		(3) the party:
85	72		(A) before giving consent or receiving written
86	73		communication by electronic means, is provided with a statement
87	74		identifying the hardware and software requirements for the party's
88	75		access to and retention of a written communication delivered by
89	76		electronic means; and
90	77		(B) if affirmative consent is sought, consents
91	78		electronically or confirms consent electronically in a manner that
92	79		reasonably demonstrates that the party can access a written
93	80		communication in the electronic form used to deliver the
94	81		communication.
95	82		(d) After consent of the party is given or the opportunity
96	83		to request delivery of written communication in nonelectronic form
97	84		is given, as applicable, in the event a change in the hardware or
98	85		software requirements to access or retain a written communication
99	86		delivered by electronic means creates a material risk that the
100	87		party may not be able to access or retain a subsequent written
101	88		communication to which the consent applies, the regulated entity
102	89		shall:
103	90		(1) provide the party with a statement:
104	91		(A) identifying the revised hardware and
105	92		software requirements for access to and retention of a written
106	93		communication delivered by electronic means; and
107	94		(B) disclosing the right of the party to withdraw
108	95		consent or to otherwise request delivery in nonelectronic form, as
109	96		applicable, without the imposition of any condition or consequence
110	97		that was not disclosed under Subsection (c)(2)(B); and
111	98		(2) comply with Subsection (c)(3).
112	99		SECTION 4. Chapter 35, Insurance Code, is amended by adding
113	100		Section 35.0041 to read as follows:
114	101		Sec. 35.0041. CONSENT TO ELECTRONIC DELIVERY BY PLAN
115	102		SPONSOR. (a) The plan sponsor of a health benefit plan, including
116	103		a vision or dental benefit plan, may, on behalf of a party enrolled
117	104		in the plan, give the consent required by Section 35.004(c)(1).
118	105		(b) Before consenting on behalf of a party, a plan sponsor
119	106		must:
120	107		(1) provide the party with the statements required by
121	108		Sections 35.004(c)(2) and (c)(3)(A);
122	109		(2) confirm that the party routinely uses electronic
123	110		communications during the normal course of employment; and
124	111		(3) provide the party an opportunity to opt out of
125	112		delivery by electronic means.
126	113		SECTION 5. Sections 35.003 and 35.004, Insurance Code, as
127	114		amended by this Act, apply only to business conducted on or after
128	115		the effective date of this Act. Business conducted before the
129	116		effective date of this Act is governed by the law in effect on the
130	117		date the business was conducted, and that law is continued in effect
131	118		for that purpose.
132	119		SECTION 6. Section 35.0041, Insurance Code, as added by
133	120		this Act, applies only to a health benefit plan delivered, issued
134	121		for delivery, or renewed on or after January 1, 2022.
135	122		SECTION 7. This Act takes effect September 1, 2021.
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