Texas 2023 - 88th Regular

Texas House Bill HB1040 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 1040
2	2
3	3
4	4	AN ACT
5	5	relating to the authority of entities regulated by the Texas
6	6	Department of Insurance to conduct business electronically.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 35.003, Insurance Code, is amended to
9	9	read as follows:
10	10	Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. (a)
11	11	Subject to Section 35.004, a [A] regulated entity may conduct
12	12	business electronically to the same extent that the entity is
13	13	authorized to conduct business otherwise if before the conduct of
14	14	business:
15	15	(1) each party to the business agrees to conduct the
16	16	business electronically; or
17	17	(2) each other party to the business has been given
18	18	notice by the entity that the business will be conducted
19	19	electronically and has not requested that the business be conducted
20	20	in nonelectronic form.
21	21	(b) If a regulated entity provides notice under Subsection
22	22	(a)(2) and the other party does not opt out of conducting business
23	23	electronically, the other party is considered to have agreed to
24	24	conduct business electronically for the purposes of Chapter 322,
25	25	Business & Commerce Code.
26	26	SECTION 2. Section 35.004, Insurance Code, is amended by
27	27	amending Subsections (c) and (d) and adding Subsection (l) to read
28	28	as follows:
29	29	(c) A written communication may be delivered by electronic
30	30	means to a party by a regulated entity under this section if:
31	31	(1) the party:
32	32	(A) affirmatively consented to delivery by
33	33	electronic means and has not withdrawn the consent; or
34	34	(B) if affirmative consent is not sought, has not
35	35	requested that written communication be delivered to the party in
36	36	paper or another nonelectronic form instead of by electronic means;
37	37	(2) the party, before giving consent or receiving
38	38	written communication by electronic means, is provided with a clear
39	39	and conspicuous statement informing the party of:
40	40	(A) any right or option the party may have for the
41	41	written communication to be provided or made available in paper or
42	42	another nonelectronic form;
43	43	(B) the right of the party to withdraw consent
44	44	under this section or to request written communication be delivered
45	45	to the party in nonelectronic form, if the party's affirmative
46	46	consent is not sought, and any conditions or consequences imposed
47	47	if consent is withdrawn or delivery in nonelectronic form is
48	48	requested;
49	49	(C) whether the party's consent to delivery by
50	50	electronic means or the party's request or the absence of the
51	51	party's request for delivery in nonelectronic form applies:
52	52	(i) only to a specific transaction for
53	53	which the written communication must be given; or
54	54	(ii) to identified categories of written
55	55	communications that may be delivered [by electronic means] during
56	56	the course of the relationship between the party and the regulated
57	57	entity;
58	58	(D) the means[, after consent is given,] by which
59	59	a party may obtain a paper copy of a written communication delivered
60	60	by electronic means; and
61	61	(E) the procedure a party must follow to:
62	62	(i) withdraw consent under this section or
63	63	to otherwise request delivery of written communication in
64	64	nonelectronic form, as applicable; and
65	65	(ii) update information needed for the
66	66	regulated entity to contact the party electronically; and
67	67	(3) the party:
68	68	(A) before giving consent or receiving written
69	69	communication by electronic means, is provided with a statement
70	70	identifying the hardware and software requirements for the party's
71	71	access to and retention of a written communication delivered by
72	72	electronic means; and
73	73	(B) if affirmative consent is sought, consents
74	74	electronically or confirms consent electronically in a manner that
75	75	reasonably demonstrates that the party can access a written
76	76	communication in the electronic form used to deliver the
77	77	communication.
78	78	(d) After consent of the party is given or the opportunity
79	79	to request delivery of written communication in nonelectronic form
80	80	is given, as applicable, in the event a change in the hardware or
81	81	software requirements to access or retain a written communication
82	82	delivered by electronic means creates a material risk that the
83	83	party may not be able to access or retain a subsequent written
84	84	communication to which the consent applies, the regulated entity
85	85	shall:
86	86	(1) provide the party with a statement:
87	87	(A) identifying the revised hardware and
88	88	software requirements for access to and retention of a written
89	89	communication delivered by electronic means; and
90	90	(B) disclosing the right of the party to withdraw
91	91	consent or to otherwise request delivery in nonelectronic form, as
92	92	applicable, without the imposition of any condition or consequence
93	93	that was not disclosed under Subsection (c)(2)(B); and
94	94	(2) comply with Subsection (c)(3).
95	95	(l) A notice of the cancellation or termination of a policy
96	96	to which this section applies must be:
97	97	(1) a written communication; and
98	98	(2) delivered to a party:
99	99	(A) by electronic means; and
100	100	(B) in paper or another nonelectronic form.
101	101	SECTION 3. Section 35.0041(a), Insurance Code, is amended
102	102	to read as follows:
103	103	(a) The plan sponsor of a health benefit plan, including a
104	104	vision or dental benefit plan, may, on behalf of a party enrolled in
105	105	the plan, give [the] consent under [required by] Section
106	106	35.004(c)(1)(A) [35.004(c)(1)].
107	107	SECTION 4. Sections 35.003 and 35.004, Insurance Code, as
108	108	amended by this Act, apply only to business conducted on or after
109	109	the effective date of this Act. Business conducted before the
110	110	effective date of this Act is governed by the law in effect on the
111	111	date the business was conducted, and that law is continued in effect
112	112	for that purpose.
113	113	SECTION 5. This Act takes effect September 1, 2023.
114	114	______________________________ ______________________________
115	115	President of the Senate Speaker of the House
116	116	I certify that H.B. No. 1040 was passed by the House on April
117	117	14, 2023, by the following vote: Yeas 140, Nays 3, 2 present, not
118	118	voting.
119	119	______________________________
120	120	Chief Clerk of the House
121	121	I certify that H.B. No. 1040 was passed by the Senate on May
122	122	16, 2023, by the following vote: Yeas 31, Nays 0.
123	123	______________________________
124	124	Secretary of the Senate
125	125	APPROVED: _____________________
126	126	Date
127	127	_____________________
128	128	Governor