HBA-JLV H.B. 2811 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2811
By: Wolens
State Affairs
4/12/2001
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that will accommodate future expansion of the law, eliminating repealed,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.  

Proposed Titles 6 and 7 and Subtitle H, Title 8, Insurance Code, are a
nonsubstantive revision of  certain provisions of the existing Insurance
Code applicable to insurers and related entities, including topics such as
the licensure of insurers in general, life insurance, and certain group
insurance programs for governmental employees.  The included provisions of
the Insurance Code are divided into three titles.  In the case of Title 8,
only Subtitle H is included. Specifically, the provisions of the Insurance
Code are: 

 Title 6, Organization of Insurers and Related Entities;
Title 7, Life Insurance and Annuities; and
Subtitle H, Title 8, Health Benefits and Other Coverages for Governmental
Employees. 

Each of the titles is divided into subtitles, and the subtitles are 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 titles and subtitle have been widely distributed for review and
comment to interested individuals, organizations, businesses, industry
representatives, and governmental agencies.  The text of the proposed
titles and subtitle have been made available on the Texas Legislative
Council Internet site.  The staff has studied the comments and suggestions
of persons reviewing the proposed titles and subtitle and is taking action
to satisfy the concerns expressed.  

Titles 6 and 7 and Subtitle H, Title 8, Insurance Code, are a
nonsubstantive revision of Texas law.  The substance of the law has not
been altered.  The sole purpose of these provisions 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. 

ANALYSIS

The bill proposes Titles 6 and 7 and Subtitle H, Title 8, Insurance Code, a
nonsubstantive revision of certain provisions of the existing Insurance
Code applicable to insurers and related entities, including licensure of
insurers in general, life insurance, and certain group insurance programs
for governmental employees.  The bill also includes conforming amendments
to Titles 1 and 2 of the Insurance Code, necessary to continue without
substantive change  provisions of law not codified as part of Titles 6 and
7 and Subtitle H, Title 8, Insurance Code, and to ensure that other
substantive changes are not made.  In addition, the bill repeals the laws
that are revised in the bill as well as laws that have expired or that have
been impliedly repealed. Finally, the bill includes a statement of the
legislative intent to recodify only.  

EFFECTIVE DATE

The bill is effective June 1, 2003, in order to provide all affected
parties a complete legislative cycle to review more closely what the
legislature has enacted. 

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 incorporates nonsubstantive comments and
suggestions received after the bill was introduced.