Bill Summary – FastDemocracy

         
            88R30138 SCL-F
         
		By: Middleton, et al.
            S.B. No. 1217
         
            (Lozano)
         
            Substitute the following for S.B. No. 1217: 
										No.
            
Statutes affected: 
Introduced: Insurance Code 2210.0725, Insurance Code 2210.074, Insurance Code 2210.0742, Insurance Code 2210.102, Insurance Code 2210.103, Insurance Code 2210.105, Insurance Code 2210.352, Insurance Code 2210.453, Insurance Code 2210.618 (Insurance Code 2210)
Senate Committee Report: Insurance Code 2210.014, Insurance Code 2210.102, Insurance Code 2210.103, Insurance Code 2210.105, Insurance Code 2210.352 (Insurance Code 2210)
Engrossed: Insurance Code 2210.014, Insurance Code 2210.102, Insurance Code 2210.103, Insurance Code 2210.105, Insurance Code 2210.352 (Insurance Code 2210)
House Committee Report: Insurance Code 2210.014, Insurance Code 2210.102, Insurance Code 2210.103, Insurance Code 2210.105, Insurance Code 2210.352, Insurance Code 2210.071, Insurance Code 2210.0715, Insurance Code 2210.075, Insurance Code 2210.452, Insurance Code 2210.4521, Insurance Code 2210.453, Insurance Code 2210.601, Insurance Code 2210.0081, Insurance Code 2210.056, Insurance Code 2210.1052, Insurance Code 2210.355, Insurance Code 2210.363 (Insurance Code 2210)

               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to the Texas Windstorm Insurance Association.
         
                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
            ARTICLE 1.  ADMINISTRATION AND OPERATION OF TEXAS WINDSTORM 
         
            INSURANCE ASSOCIATION
         
                   SECTION 1.01.  Section 2210.014, Insurance Code, is amended 
         
            by adding Subsection (d) to read as follows:
         
                   (d)  The association is not subject to any insurance premium 
         
            tax or insurance maintenance fee or tax.
         
                   SECTION 1.02.  Subchapter A, Chapter 2210, Insurance Code, 
         
            is amended by adding Section 2210.016 to read as follows:
         
                   Sec. 2210.016.  LEGISLATIVE LOBBYING.  (a)  The association 
         
            may not use any money under its control to attempt to influence the 
         
            passage or defeat of a legislative measure.
         
                   (b)  An association employee or member of the board of 
         
            directors who violates Subsection (a) is subject to:
         
                         (1)  immediate termination; and
         
                         (2)  a fine of $10,000 to be deposited in the 
         
            catastrophe reserve trust fund.
         
                   (c)  This section does not prohibit an association employee 
         
            or member of the board of directors from using money under the 
         
            association's control to provide public information or to provide 
         
            information responsive to a request for public information.
         
                   SECTION 1.03.  Section 2210.102, Insurance Code, is amended 
         
            by amending Subsections (a), (c), (c-1), (d), and (g) and adding 
         
            Subsection (d-1) to read as follows:
         
                   (a)  The board of directors is composed of eleven [nine] 
         
            members appointed by the commissioner in accordance with this 
         
            section.
         
                   (c)  Five [Three] members must, as of the date of the 
         
            appointment, reside in the first tier coastal counties.  Each of 
         
            the following regions must, to the extent possible, be represented 
         
            by a member residing in the region and appointed under this 
         
            subsection:
         
                         (1)  the region consisting of Cameron, Kenedy, Kleberg, 
         
            and Willacy Counties;
         
                         (2)  the region consisting of Aransas, Calhoun, Nueces, 
         
            Refugio, and San Patricio Counties; and
         
                         (3)  the region consisting of Brazoria, Chambers, 
         
            Galveston, Jefferson, and Matagorda Counties and any part of Harris 
         
            County designated as a catastrophe area under Section 2210.005.
         
                   (c-1)  Two [One] of the members appointed under Subsection 
         
            (c) must be [a] property and casualty agents [agent] who are [is] 
         
            licensed under this code and are [is] not [a] captive agents
         
            [agent].
         
                   (d)  Three members must reside in an area of this state that 
         
            is located outside the first tier coastal counties [more than 100 
         
            miles from the Texas coastline].
         
                   (d-1)  One of the members appointed under Subsection (d) must 
         
            be the public counsel of the office of public insurance counsel or 
         
            the counsel's designee.
         
                   (g)  Members appointed to the board of directors under 
         
            Subsections (c) and (d), other than a [the] member appointed under 
         
            Subsection (c-1), must represent the general public in the regions 
         
            described by those subsections.  A person may not be appointed to 
         
            represent the general public under Subsection (c) or (d) if the 
         
            person or the person's spouse:
         
                         (1)  is employed by or participates in the management 
         
            of a business entity or other organization:
         
                               (A)  operating in the property and casualty 
         
            insurance industry in this state;
         
                               (B)  receiving money from the association, other 
         
            than insurance claim payments; or
         
                               (C)  receiving money from association 
         
            policyholders with respect to the policyholders' claims;
         
                         (2)  owns or controls, directly or indirectly, more 
         
            than a 10 percent interest in a business entity or other 
         
            organization:
         
                               (A)  operating in the property and casualty 
         
            insurance industry in this state;

	88R30138 SCL-F

	By: Middleton, et al.	S.B. No. 1217

	(Lozano)

	Substitute the following for S.B. No. 1217: No.



	A BILL TO BE ENTITLED
	AN ACT
	relating to the Texas Windstorm Insurance Association.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. ADMINISTRATION AND OPERATION OF TEXAS WINDSTORM
	INSURANCE ASSOCIATION
	SECTION 1.01. Section 2210.014, Insurance Code, is amended
	by adding Subsection (d) to read as follows:
	(d) The association is not subject to any insurance premium
	tax or insurance maintenance fee or tax.
	SECTION 1.02. Subchapter A, Chapter 2210, Insurance Code,
	is amended by adding Section 2210.016 to read as follows:
	Sec. 2210.016. LEGISLATIVE LOBBYING. (a) The association
	may not use any money under its control to attempt to influence the
	passage or defeat of a legislative measure.
	(b) An association employee or member of the board of
	directors who violates Subsection (a) is subject to:
	(1) immediate termination; and
	(2) a fine of $10,000 to be deposited in the
	catastrophe reserve trust fund.
	(c) This section does not prohibit an association employee
	or member of the board of directors from using money under the
	association's control to provide public information or to provide
	information responsive to a request for public information.
	SECTION 1.03. Section 2210.102, Insurance Code, is amended
	by amending Subsections (a), (c), (c-1), (d), and (g) and adding
	Subsection (d-1) to read as follows:
	(a) The board of directors is composed of eleven [~~nine~~]
	members appointed by the commissioner in accordance with this
	section.
	(c) Five [~~Three~~] members must, as of the date of the
	appointment, reside in the first tier coastal counties. Each of
	the following regions must, to the extent possible, be represented
	by a member residing in the region and appointed under this
	subsection:
	(1) the region consisting of Cameron, Kenedy, Kleberg,
	and Willacy Counties;
	(2) the region consisting of Aransas, Calhoun, Nueces,
	Refugio, and San Patricio Counties; and
	(3) the region consisting of Brazoria, Chambers,
	Galveston, Jefferson, and Matagorda Counties and any part of Harris
	County designated as a catastrophe area under Section 2210.005.
	(c-1) Two [~~One~~] of the members appointed under Subsection
	(c) must be [a] property and casualty agents [~~agent~~] who are [is]
	licensed under this code and are [is] not [a] captive agents
	[~~agent~~].
	(d) Three members must reside in an area of this state that
	is located outside the first tier coastal counties [~~more than 100~~
	~~miles from the Texas coastline~~].
	(d-1) One of the members appointed under Subsection (d) must
	be the public counsel of the office of public insurance counsel or
	the counsel's designee.
	(g) Members appointed to the board of directors under
	Subsections (c) and (d), other than a [~~the~~] member appointed under
	Subsection (c-1), must represent the general public in the regions
	described by those subsections. A person may not be appointed to
	represent the general public under Subsection (c) or (d) if the
	person or the person's spouse:
	(1) is employed by or participates in the management
	of a business entity or other organization:
	(A) operating in the property and casualty
	insurance industry in this state;
	(B) receiving money from the association, other
	than insurance claim payments; or
	(C) receiving money from association
	policyholders with respect to the policyholders' claims;
	(2) owns or controls, directly or indirectly, more
	than a 10 percent interest in a business entity or other
	organization:
	(A) operating in the property and casualty
	insurance industry in this state;