SB1642 - Relating to the administration of the Texas Department of Insurance, including the appointment of the state commission of insurance.

      By: Schwertner, Middleton S.B. No. 1642     A BILL TO BE ENTITLED   AN ACT   relating to the administration of the Texas Department of   Insurance, including the appointment of the state commission of   insurance.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 31.001(1), Insurance Code, is amended to   read as follows:                (1)   "Commission" [ "Commissioner" ] means the state   commission [ commissioner ] of insurance.          SECTION 2.  Section 31.007, Insurance Code, is amended to   read as follows:          Sec. 31.007.  REFERENCES TO BOARD OR COMMISSIONER .  A   reference in this code or other law to the former State Board of   Insurance, the Board of Insurance Commissioners, [ or ] an individual   commissioner , or the commissioner of insurance means the commission   [ commissioner ] or the department as consistent with the respective   duties of the commission [ commissioner ] and the department under   this code and other insurance laws.          SECTION 3.  The heading to Subchapter B, Chapter 31,   Insurance Code, is amended to read as follows:   SUBCHAPTER B. STATE COMMISSION [ COMMISSIONER ] OF INSURANCE          SECTION 4.  Section 31.021, Insurance Code, is amended to   read as follows:          Sec. 31.021.   GOVERNING BODY [ CHIEF EXECUTIVE ].  (a)  The   commission [ commissioner ] is the department's governing body   [ chief executive and administrative officer ].  The commission   [ commissioner ] shall administer and enforce this code, other   insurance laws of this state, and other laws granting jurisdiction   or applicable to the department or the commission [ commissioner ].          (b)  The commission [ commissioner ] has the powers and duties   vested in the department by:                (1)  this code and other insurance laws of this state;   and                (2)  Title 5, Labor Code, and other workers'   compensation insurance laws of this state.          SECTION 5.  Section 31.022, Insurance Code, is amended to   read as follows:          Sec. 31.022.  APPOINTMENT; TERM ; PRESIDING OFFICER .     (a)  The governor, with the advice and consent of the senate, shall   appoint three members to serve on the commission serving staggered   terms of six years [ the commissioner.   The commissioner serves a   two-year term that expires on February 1 of each odd-numbered   year ].          (b)   In appointing members to serve on the commission, the   governor shall appoint:                 (1)  one member with expertise in insurance regulation;                 (2)     one member with expertise in insurance   administration; and                 (3)     one member with expertise in insurance consumer   advocacy.           (c)     The governor shall designate one member of the   commission as the presiding officer.   The presiding officer:                 (1)  serves at the pleasure of the governor;                 (2)     serves for a two-year term that expires February 1   of each odd-numbered year; and                 (3)     is ineligible to be designated as presiding   officer more than once during a six-year period.           (d)   The governor shall appoint a member of the commission   [ the commissioner ] without regard to the race, color, disability,   sex, religion, age, or national origin of the appointee.          SECTION 6.  Section 31.023, Insurance Code, is amended to   read as follows:          Sec. 31.023.  QUALIFICATIONS.   A member of the commission     [ The commissioner ] must:                (1)  be a competent and experienced administrator;                (2)  be well informed and qualified in the field of   insurance and insurance regulation; [ and ]                (3)   be well informed and qualified in consumer   advocacy;                 (4)   have at least five years of experience in the   administration of business or government or as a practicing   attorney , [ or ] certified public accountant , physician, dentist,   chiropractor, podiatrist, or health care administrator or business   owner; and                 (5)  be a resident of this state .          SECTION 7.  Section 31.024, Insurance Code, is amended to   read as follows:          Sec. 31.024.  INELIGIBILITY FOR PUBLIC OFFICE.   A member of   the commission [ The commissioner ] is ineligible to be a candidate   for another [ a ] public elective office in this state, unless the   member [ commissioner ] has resigned and the governor has accepted   the resignation.          SECTION 8.  Section 31.027, Insurance Code, is amended to   read as follows:          Sec. 31.027.  GROUNDS FOR REMOVAL. (a)  It is a ground for   removal from office if a member of the commission [ the   commissioner ]:                (1)  does not have at the time of appointment the   qualifications required by Section 31.023;                (2)  does not maintain during service as member   [ commissioner ] the qualifications required by Section 31.023;                (3)  violates a prohibition established by Section   33.001, 33.003, 33.004, or 33.005; or                (4)  cannot, because of illness or disability,   discharge the member's [ commissioner's ] duties for a substantial   part of the member's [ commissioner's ] term.          (b)  The validity of an action of the commission   [ commissioner ] or the department is not affected by the fact that it   is taken when a ground for removal of a member of the commission   [ commissioner ] exists.          SECTION 9.  Subchapter C, Chapter 31, Insurance Code, is   amended by adding Section 31.040 to read as follows:           Sec.   31.040.     DEFINITION. In this subchapter, "executive   director" means the department's executive director employed under   Section 31.041.          SECTION 10.  Section 31.041, Insurance Code, is amended to   read as follows:          Sec. 31.041.   EXECUTIVE DIRECTOR;  DEPARTMENT PERSONNEL.     (a)  Subject to the General Appropriations Act or other law, the   commission  [ commissioner ] shall employ:                 (1)  an executive director; and                   (2)  officers and employees the commission considers   [ appoint deputies, assistants, and other personnel as ] necessary to   carry out the powers and duties of the commission [ commissioner ]   and the department under this code, other insurance laws of this   state, and other laws granting jurisdiction or applicable to the   department or the commission [ commissioner ].          (b)  A person employed [ appointed ] under this section must   have the professional, administrative, and insurance experience   necessary to qualify the person for the position to which the person   is employed  [ appointed ].          [ (c)     A person appointed as an associate or deputy   commissioner or to hold an equivalent position must have at least   five years of the experience required for appointment as   commissioner under Section 31.023.     At least two years of that   experience must be in work related to the position to be held. ]          SECTION 11.  Section 31.042, Insurance Code, is amended to   read as follows:          Sec. 31.042.   DUTIES OF EXECUTIVE DIRECTOR;  DIVISION OF   DEPARTMENT PERSONNEL RESPONSIBILITIES.   (a)   The executive director   is responsible for the daily operations of the department and shall   coordinate the activities of department officers and employees.           (b)   The executive director [ commissioner ] shall develop and   implement policies that clearly define the respective   responsibilities of [ the commissioner and the staff of the ]   department officers and employees .          SECTION 12.  Section 31.043(a), Insurance Code, is amended   to read as follows:          (a)  The executive director [ commissioner or the   commissioner's designee ] shall prepare and maintain a written   policy statement to ensure implementation of a program of equal   employment opportunity under which all personnel transactions are   made without regard to race, color, disability, sex, religion, age,   or national origin.  The policy statement must include:                (1)  personnel policies, including policies relating   to recruitment, evaluation, selection, appointment, training, and   promotion of personnel that are in compliance with Chapter 21,   Labor Code;                (2)  a comprehensive analysis of the department   workforce that meets federal and state guidelines;                (3)  procedures by which a determination can be made of   significant underuse in the department workforce of all persons for   whom federal or state guidelines encourage a more equitable   balance; and                (4)  reasonable methods to appropriately address those   areas of significant underuse.          SECTION 13.  Section 31.044, Insurance Code, is amended to   read as follows:          Sec. 31.044.  QUALIFICATIONS AND STANDARDS OF CONDUCT.  The   executive director [ commissioner ] shall provide to the commission   and  department officers and  employees, as often as necessary,   information regarding their:                (1)  qualification for office or employment under this   code; and                (2)  responsibilities under applicable laws relating   to standards of conduct for state officers and  employees.          SECTION 14.  Section 31.045, Insurance Code, is amended to   read as follows:          Sec. 31.045.  CAREER LADDER PROGRAM; PERFORMANCE   EVALUATIONS.  (a)  The executive director [ commissioner or the   commissioner's designee ] shall develop an intra-agency career   ladder program.  The program must require intra-agency posting of   all nonentry level positions concurrently with any public posting.          (b)  The executive director [ commissioner or the   commissioner's designee ] shall develop a system of annual   performance evaluations.  All merit pay for department officers and   employees must be based on the system established under this   subsection.          SECTION 15.  Sections 33.002(a) and (b), Insurance Code, are   amended to read as follows:          (a [Text truncated for display. 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