S.B. No. 1214




AN ACT

relating to the selection and retention of an insurance broker by 
certain counties; imposing an administrative penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 262, Local Government 
Code, is amended by adding Section 262.036 to read as follows:
	Sec. 262.036.  SELECTION AND RETENTION OF INSURANCE BROKER.  
(a)  Notwithstanding any other provision in this chapter, a county 
with a population of 800,000 or more may select an appropriately 
licensed insurance agent as the sole broker of record to obtain 
proposals and coverages for insurance that provides necessary 
coverage and adequate limits of coverage in all areas of risk, 
including public official liability, property, casualty, workers' 
compensation, and specific and aggregate stop-loss coverage for 
self-funded health care.
	(b)  The county may retain a broker of record selected under 
this section only on a fee basis paid by the county.  A broker of 
record retained in this manner may not directly or indirectly 
receive any other remuneration, compensation, or other form of 
payment from any other source for the placement of insurance 
business under the broker of record contract.
	(c)  A broker of record retained under this section may not 
submit any insurance carrier proposal to the county or direct any 
county insurance business to an insurance carrier if the broker has 
a business relationship or proposed business relationship with the 
carrier, including an appointment, unless the broker first 
discloses the nature of that relationship or proposed relationship, 
in writing, to the county.
	(d)  A broker who violates this section is subject to any 
disciplinary remedy available under Chapter 82, Insurance Code, or 
Section 4005.102, Insurance Code, including license revocation and 
fine.
	SECTION 2.  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, 2005.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1214 passed the Senate on 
May 3, 2005, by the following vote:  Yeas 31, Nays 0; and that the 
Senate concurred in House amendment on May 24, 2005, by the 
following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1214 passed the House, with 
amendment, on May 20, 2005, by the following vote:  Yeas 139, 
Nays 0, one present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor