82R25699 RWG-F
 
  By: Elkins H.B. No. 3247
 
  Substitute the following for H.B. No. 3247:
 
  By:  Huberty C.S.H.B. No. 3247
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the management of the Texas Mutual Insurance Company.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2054.052(b), Insurance Code, is amended
  to read as follows:
         (b)  An individual may not serve as a board member if the
  individual, another individual related to the individual within the
  second degree by consanguinity or affinity, or another individual
  residing in the same household with the individual:
               (1)  is registered, certified, or licensed under this
  code, or is required to be registered, certified, or licensed under
  this code, as an insurer, an agent, an insurance adjuster, a
  workers' compensation health care network, or a third-party
  administrator and in that capacity transacts the business of
  workers' compensation insurance;
               (2)  is employed by or acts as a consultant on matters
  relating to workers' compensation insurance to a person, or has a
  controlling financial interest in an organization, that is 
  registered, certified, or licensed under this code, or required to
  be registered, certified, or licensed under this code, as an
  insurer, an agent, an insurance adjuster, a workers' compensation
  health care network, or a third-party administrator and in that
  capacity transacts the business of workers' compensation
  insurance;
               (3)  [owns, controls, has a financial interest in, or
  participates in the management of an organization registered or
  licensed under this code or required to be registered or licensed
  under this code;
               [(4)]  receives a substantial tangible benefit from the
  company or the department; or
               (4) [(5)] is an officer, employee, or consultant of an
  association in the field of workers' compensation insurance.
         SECTION 2.  Section 2054.059(b), Insurance Code, is amended
  to read as follows:
         (b)  A special meeting may be called by any two board members
  on five [two] days' notice.
         SECTION 3.  Section 2054.103(b), Insurance Code, is amended
  to read as follows:
         (b)  The president must have proven successful experience,
  as an executive at the general management level, in [the business
  of] insurance, general business, or actuarial principles.
         SECTION 4.  Section 2054.052(d), Insurance Code, is
  repealed.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.