H.B. No. 2113         AN ACT   relating to the regulation of for-profit legal service contract   companies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 953.001(1), Occupations Code, is amended   to read as follows:                (1)  "Administrator" means the person responsible for   the administration of a legal service contract. [The term includes   a person responsible for any filing required by this chapter.]          SECTION 2.  Section 953.156, Occupations Code, is amended to   read as follows:          Sec. 953.156.  FORM OF LEGAL SERVICE CONTRACT AND REQUIRED   DISCLOSURES. [(a) A legal service contract must be filed with the   executive director before it is marketed, sold, offered for sale,   administered, or issued in this state. Any subsequent endorsement   or attachment to the contract must also be filed with the executive   director before the endorsement or attachment is delivered to legal   service contract holders.          [(b)]  A legal service contract marketed, sold, offered for   sale, administered, or issued in this state must:                (1)  be written, printed, or typed in clear,   understandable language that is easy to read;                (2)  include the name and full address of the company;                (3)  include the purchase price of the contract and the   terms under which the contract is sold;                (4)  include the terms and restrictions governing   cancellation of the contract by the company or the legal service   contract holder;                (5)  identify:                      (A)  any administrator, if the administrator is   not the company;                      (B)  the sales representative; and                      (C)  the name of the legal service contract   holder;                (6)  include the amount of any deductible or copayment;                (7)  specify the legal services and other benefits to   be provided under the contract, and any limitation, exception, or   exclusion;                (8)  specify the legal services, if any, for which the   company will provide reimbursement and the amount of that   reimbursement;                (9)  specify any restriction governing the   transferability of the contract or the assignment of benefits;                (10)  include the duties of the legal service contract   holder;                (11)  [include the contact information for the   department, including the department's toll-free number and   electronic mail address, as well as a statement that the department   regulates the company and the company's sales representatives;                [(12)]  explain the method to be used in resolving the   legal service contract holder's complaints and grievances;                (12) [(13)]  explain how legal services may be obtained   under the legal service contract;                (13) [(14)]  include a provision stating that no change   in the contract is valid until the change has been approved by an   executive officer of the company and unless the approval is   endorsed or attached to the contract;                (14) [(15)]  include any eligibility and effective   date requirements, including a definition of eligible dependents   and the effective date of their coverage;                (15) [(16)]  include the conditions under which   coverage will terminate;                (16) [(17)]  explain any subrogation arrangements;                (17) [(18)]  contain a payment provision that provides   for a grace period of at least 31 days; and                (18) [(19)]  include conditions under which contract   rates may be modified[; and                [(20)     include any other items required by the   executive director as determined by rule].          SECTION 3.  Section 953.162, Occupations Code, is amended to   read as follows:          Sec. 953.162.  APPOINTMENT AND RESPONSIBILITIES OF   ADMINISTRATOR. [(a)] A company may appoint an administrator or   designate a person to be responsible for:                (1)  all or any part of the administration or sale of   legal service contracts; and                (2)  compliance with this chapter.          [(b)     The executive director may adopt rules regarding the   registration of an administrator with the department.]          SECTION 4.  Chapter 953, Occupations Code, is amended by   adding Subchapter F to read as follows:   SUBCHAPTER F. ENFORCEMENT          Sec. 953.251.  DECEPTIVE TRADE PRACTICE. A violation of   this chapter is a deceptive trade practice actionable under   Subchapter E, Chapter 17, Business & Commerce Code.          SECTION 5.  The following provisions of the Occupations Code   are repealed:                (1)  Sections 953.001(4), (5), and (6);                (2)  Sections 953.004, 953.005, and 953.155; and                (3)  Subchapters B, C, and E, Chapter 953.          SECTION 6.  (a)  On the effective date of this Act,  a   registration issued under former Subchapter B, Chapter 953,   Occupations Code, expires.          (b)  On the effective date of this Act, a pending proceeding   under Chapter 953, Occupations Code, including a complaint   investigation, disciplinary action, or administrative penalty   proceeding, relating to a registration issued under former   Subchapter B, Chapter 953, Occupations Code, or relating to another   former provision of Chapter 953, Occupations Code, that is repealed   by this Act, is dismissed.          SECTION 7.  This Act takes effect September 1, 2019.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2113 was passed by the House on April   26, 2017, by the following vote:  Yeas 145, Nays 1, 2 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 2113 was passed by the Senate on May   12, 2017, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor