Bill Text: TX HB1040 | 2023-2024 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the authority of entities regulated by the Texas Department of Insurance to conduct business electronically.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-02 - Effective on 9/1/23 [HB1040 Detail]
Download: Texas-2023-HB1040-Engrossed.html
Bill Title: Relating to the authority of entities regulated by the Texas Department of Insurance to conduct business electronically.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-02 - Effective on 9/1/23 [HB1040 Detail]
Download: Texas-2023-HB1040-Engrossed.html
88R11782 CJD-F | ||
By: Paul | H.B. No. 1040 |
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relating to the authority of entities regulated by the Texas | ||
Department of Insurance to conduct business electronically. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 35.003, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. (a) | ||
Subject to Section 35.004, a [ |
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business electronically to the same extent that the entity is | ||
authorized to conduct business otherwise if before the conduct of | ||
business: | ||
(1) each party to the business agrees to conduct the | ||
business electronically; or | ||
(2) each other party to the business has been given | ||
notice by the entity that the business will be conducted | ||
electronically and has not requested that the business be conducted | ||
in nonelectronic form. | ||
(b) If a regulated entity provides notice under Subsection | ||
(a)(2) and the other party does not opt out of conducting business | ||
electronically, the other party is considered to have agreed to | ||
conduct business electronically for the purposes of Chapter 322, | ||
Business & Commerce Code. | ||
SECTION 2. Section 35.004, Insurance Code, is amended by | ||
amending Subsections (c) and (d) and adding Subsection (l) to read | ||
as follows: | ||
(c) A written communication may be delivered by electronic | ||
means to a party by a regulated entity under this section if: | ||
(1) the party: | ||
(A) affirmatively consented to delivery by | ||
electronic means and has not withdrawn the consent; or | ||
(B) if affirmative consent is not sought, has not | ||
requested that written communication be delivered to the party in | ||
paper or another nonelectronic form instead of by electronic means; | ||
(2) the party, before giving consent or receiving | ||
written communication by electronic means, is provided with a clear | ||
and conspicuous statement informing the party of: | ||
(A) any right or option the party may have for the | ||
written communication to be provided or made available in paper or | ||
another nonelectronic form; | ||
(B) the right of the party to withdraw consent | ||
under this section or to request written communication be delivered | ||
to the party in nonelectronic form, if the party's affirmative | ||
consent is not sought, and any conditions or consequences imposed | ||
if consent is withdrawn or delivery in nonelectronic form is | ||
requested; | ||
(C) whether the party's consent to delivery by | ||
electronic means or the party's request or the absence of the | ||
party's request for delivery in nonelectronic form applies: | ||
(i) only to a specific transaction for | ||
which the written communication must be given; or | ||
(ii) to identified categories of written | ||
communications that may be delivered [ |
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the course of the relationship between the party and the regulated | ||
entity; | ||
(D) the means[ |
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a party may obtain a paper copy of a written communication delivered | ||
by electronic means; and | ||
(E) the procedure a party must follow to: | ||
(i) withdraw consent under this section or | ||
to otherwise request delivery of written communication in | ||
nonelectronic form, as applicable; and | ||
(ii) update information needed for the | ||
regulated entity to contact the party electronically; and | ||
(3) the party: | ||
(A) before giving consent or receiving written | ||
communication by electronic means, is provided with a statement | ||
identifying the hardware and software requirements for the party's | ||
access to and retention of a written communication delivered by | ||
electronic means; and | ||
(B) if affirmative consent is sought, consents | ||
electronically or confirms consent electronically in a manner that | ||
reasonably demonstrates that the party can access a written | ||
communication in the electronic form used to deliver the | ||
communication. | ||
(d) After consent of the party is given or the opportunity | ||
to request delivery of written communication in nonelectronic form | ||
is given, as applicable, in the event a change in the hardware or | ||
software requirements to access or retain a written communication | ||
delivered by electronic means creates a material risk that the | ||
party may not be able to access or retain a subsequent written | ||
communication to which the consent applies, the regulated entity | ||
shall: | ||
(1) provide the party with a statement: | ||
(A) identifying the revised hardware and | ||
software requirements for access to and retention of a written | ||
communication delivered by electronic means; and | ||
(B) disclosing the right of the party to withdraw | ||
consent or to otherwise request delivery in nonelectronic form, as | ||
applicable, without the imposition of any condition or consequence | ||
that was not disclosed under Subsection (c)(2)(B); and | ||
(2) comply with Subsection (c)(3). | ||
(l) A notice of the cancellation or termination of a policy | ||
to which this section applies must be: | ||
(1) a written communication; and | ||
(2) delivered to a party: | ||
(A) by electronic means; and | ||
(B) in paper or another nonelectronic form. | ||
SECTION 3. Section 35.0041(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) The plan sponsor of a health benefit plan, including a | ||
vision or dental benefit plan, may, on behalf of a party enrolled in | ||
the plan, give [ |
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35.004(c)(1)(A) [ |
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SECTION 4. Sections 35.003 and 35.004, Insurance Code, as | ||
amended by this Act, apply only to business conducted on or after | ||
the effective date of this Act. Business conducted before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the business was conducted, and that law is continued in effect | ||
for that purpose. | ||
SECTION 5. This Act takes effect September 1, 2023. |