HBA-TYH H.B. 3359 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3359
By: Eiland
Insurance
4/1/1999
Introduced



BACKGROUND AND PURPOSE 

The current benchmark rating system provided in Article 5.101 (Flexible
Rating Program for Certain Insurance Lines), Insurance Code, requires that
rates be set after a contested case hearing.  This can be a lengthy and
expensive process.  H.B. 3359 requires the commissioner of insurance to
promulgate, rather than conduct hearings to determine, the benchmark rates. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 1 (Article 5.101, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 5.101, Insurance Code, to require the
commissioner of insurance to enter an order promulgating, rather than
conduct hearings to determine, the benchmark rates by line on or before
September 1 of each year.  Provides that Subchapter B (Rulemaking), Chapter
2001, Government Code (The Administrative Procedure Act), applies to all
rate hearings conducted under this article.  Deletes text regarding
benchmark rate hearing procedures. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.