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logical order, employing a numbering system and format that will accommodate future expansion of the law, eliminating repealed, invalid, duplicative, and other ineffective provisions, and improving the draftsmanship of the law if practicable--all toward promoting the stated purpose of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.