HBA-EVB S.B. 1467 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1467
By: Harris
State Affairs
4/11/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

The Texas Legislative Council is required by law (Section 323.007,
Government Code) to carry out a complete nonsubstantive revision of the
Texas statutes.  The process involves reclassifying and rearranging the
statutes in a more logical order, employing a numbering system and format
that will accommodate future expansion of the law, eliminating repealed,
invalid, duplicative, and other ineffective provisions, and improving the
draftsmanship of the law if practicable--all toward promoting the stated
purpose of making the statutes "more accessible, understandable, and
usable" without altering the sense, meaning, or effect of the law.  

In 1965 the council adopted a long-range plan of compiling the law into 26
codes arranged by general topics.  Although some reorganization has
occurred since the original proposal, the number of projected codes remains
at 26.  

The proposed Title 2, Insurance Code, is a nonsubstantive revision of
provisions of the existing Insurance Code applicable to the Texas
Department of Insurance, including topics such as appointment of the
commissioner, employment of staff, and rulemaking, enforcement,  and other
internal department procedures.  Title 2, Insurance Code, is divided into
two subtitles, specifically: 

  Subtitle A, Administration of the Texas Department of Insurance; and
  Subtitle B, Discipline and Enforcement.

Each of the two subtitles is divided into chapters, subchapters, and
sections.  Sections are numbered decimally, and the number to the left of
the decimal point is the same as the chapter number.  Gaps in chapter and
section numbering are for future expansion.  

The council legal staff has taken meticulous care to ensure that no
substantive change has been made in the law and to preserve any ambiguity
or interpretation that may exist in current law.  

The staff has developed an extensive mailing list, and drafts of the
proposed title have been widely distributed for review and comment to
interested individuals, organizations, businesses, industry
representatives, and governmental agencies.  The staff has studied the
comments and suggestions of persons reviewing the title and has taken
action to satisfy any concerns expressed.  

Title 2, Insurance Code, is a nonsubstantive revision of Texas law.  The
substance of the law has not been altered.  The sole purpose of the title
is to compile the relevant law, arrange it in a logical fashion, and
rewrite it without altering its meaning or legal effect.  If a particular
source statute is ambiguous and the ambiguity cannot be resolved without a
potential substantive effect, the ambiguity is preserved.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 




 SECTION BY SECTION ANALYSIS

SECTION 1.  Adopts Title 2, Insurance Code, a nonsubstantive revision of
provisions of the existing Insurance Code applicable to the Texas
Department of Insurance, including topics such as appointment of the
commissioner, employment of staff, and rulemaking, enforcement, and other
internal department procedures. 

SECTION 2.  Conforming amendment to the Insurance Code, designating
Chapters 1-27 as Title 1, Insurance Code.  

SECTION 3.  Conforming amendment to Article 1.04D(a), Insurance Code,
necessary to continue without substantive change a provision of law not
codified as part of Title 2, Insurance Code.  

SECTION 4.  Conforming amendment to Article 1.10, Insurance Code, to
reflect repeal of provisions codified as part of Title 2, Insurance Code.  

SECTION 5.  Repeals the laws that are revised in the bill.  Repeals laws
that are obsolete or expired or that have been impliedly repealed.  

SECTION 6.  States legislative intent to recodify only. 

SECTION 7.  Effective date. 

SECTION 8.  Emergency. 

EXPLANATION OF AMENDMENTS

Amends S.B. 1467 to incorporate additional comments that were received
after the bill was filed and that relate to the Texas Department of
Insurance's duties with respect to giving certified copies and
certificates, venue for prosecution of certain offenses, and enforcement of
prohibitions relating to unauthorized insurance. In response to those
comments, the amendment changes language in Title 2, Insurance Code, so
that it more closely reflects the language of the law being codified.