S.B. No. 1253
  relating to the frequency and expenses of certain examinations
  conducted by the Texas Department of Insurance.
         SECTION 1.  Section 401.052, Insurance Code, is amended to
  read as follows:
         Sec. 401.052.  FREQUENCY OF EXAMINATION.  (a)  Subject to
  Subsection (b) and except as provided by the rules adopted under
  that subsection, the [The] department shall visit and examine a
  carrier as frequently[:
               [(1)     annually during the first three years after the
  carrier is organized or incorporated; and
               [(2)     except as provided by Subsection (b), once every
  three years after the period described by Subdivision (1), or on a
  more frequent basis] as the department considers necessary. At a
  minimum, the department shall examine a carrier not less frequently
  than once every five years.
         (b)  [If the commissioner determines that the financial
  strength of a carrier justifies less frequent examinations than
  those required under Subsection (a)(2), the department may conduct
  the examination at intervals not less frequent than every five
  years.] The commissioner shall adopt rules governing the frequency
  of examinations of carriers that have been organized or
  incorporated for less than five years [determination under this
  subsection of whether the financial strength of a carrier justifies
  less frequent examinations].
         SECTION 2.  Section 1305.251, Insurance Code, is amended by
  adding Subsections (c) and (d) to read as follows:
         (c)  A network shall pay a fee to the department, in an amount
  set by the commissioner and in accordance with rules adopted by the
  commissioner, for the expenses of an examination conducted under
  this section or Section 1305.252 that:
               (1)  are incurred by the commissioner or under the
  commissioner's authority; and
               (2)  are directly attributable to that examination,
  including the actual salaries and expenses of the examiners
  directly attributable to that examination, as determined under
  rules adopted by the commissioner.
         (d)  Fees collected under this section shall be deposited to
  the credit of the Texas Department of Insurance operating account.
         SECTION 3.  This Act takes effect September 1, 2007.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1253 passed the Senate on
  April 12, 2007, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1253 passed the House on
  May 10, 2007, by the following vote:  Yeas 128, Nays 0, one present
  not voting.
  Chief Clerk of the House