S.B. No. 1060

	AN ACT
	relating to the regulation of public insurance adjusters.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 4102.051(a), Insurance Code, is amended
	to read as follows:
	(a)  A person may not act as a public insurance adjuster in
	this state or hold himself or herself out to be a public insurance
	adjuster in this state unless the person holds a license [or
	certificate] issued by the commissioner under Section 4102.053
	or[,] 4102.054[, or 4102.069].
	SECTION 2.  Sections 4102.066(a) and (b), Insurance Code,
	are amended to read as follows:
	(a)  The commissioner shall collect in advance the following
	nonrefundable fees:
	(1)  for a public insurance adjuster license, an
	application fee in an amount to be determined by rule by the
	commissioner;
	(2)  for a nonresident public insurance adjuster
	license, an application fee in an amount to be determined by rule by
	the commissioner; and
	(3)  for each public insurance adjuster examination, a
	fee in an amount to be determined by rule by the commissioner[; and
	[(4)     for a public insurance adjuster trainee
	certificate under Section 4102.069, a registration fee in an amount
	to be determined by rule by the commissioner].
	(b)  The amount of the fee for the renewal of a license [or a
	certificate] issued under this chapter shall be determined by rule
	by the commissioner.
	SECTION 3.  Section 4102.103, Insurance Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  A license holder may not enter into a contract with an
	insured and collect a commission as provided by Section 4102.104
	without the intent to actually perform the services customarily
	provided by a licensed public insurance adjuster for the insured.
	SECTION 4.  Section 4102.104(d), Insurance Code, is amended
	to read as follows:
	(d)  A public insurance adjuster may not accept any payment
	that violates the provisions of this section [Subsection (c)].
	SECTION 5.  Section 4102.158, Insurance Code, is amended by
	amending Subsection (a) and adding Subsections (d), (e), and (f) to
	read as follows:
	(a)  A license holder may not:
	(1)  participate directly or indirectly in the
	reconstruction, repair, or restoration of damaged property that is
	the subject of a claim adjusted by the license holder; or
	(2)  engage in any other activities that may reasonably
	be construed as presenting a conflict of interest, including
	soliciting or accepting any remuneration from, [or] having a
	financial interest in, or deriving any direct or indirect financial
	benefit from, any salvage firm, repair firm, construction firm, or
	other firm that obtains business in connection with any claim the
	license holder has a contract or agreement to adjust.
	(d)  A license holder may not directly or indirectly solicit,
	as described by Chapter 38, Penal Code, employment for an attorney
	or enter into a contract with an insured for the primary purpose of
	referring an insured to an attorney and without the intent to
	actually perform the services customarily provided by a licensed
	public insurance adjuster.  This section may not be construed to
	prohibit a license holder from recommending a particular attorney
	to an insured.
	(e)  A license holder may not act on behalf of an attorney in
	having an insured sign an attorney representation agreement.
	(f)  A license holder must become familiar with and at all
	times act in conformance with the criminal barratry statute set
	forth in Section 38.12, Penal Code.
	SECTION 6.  Section 4102.160, Insurance Code, is amended to
	read as follows:
	Sec. 4102.160.  CERTAIN PAYMENTS PROHIBITED. A license
	holder may not:
	(1)  advance money to any potential client or insured;
	or
	(2)  pay, allow, or give, or offer to pay, allow, or
	give, directly or indirectly, to a person who is not a licensed
	public insurance adjuster a fee, commission, or other valuable
	consideration for the referral of an insured to the public
	insurance adjuster for purposes of [based on] the insured entering
	into a contract with that public insurance adjuster or for any other
	purpose[; or
	[(3)     otherwise offer to pay a fee, commission, or
	other valuable consideration exceeding $100 to a person not
	licensed as a public insurance adjuster for referring an insured to
	the license holder].
	SECTION 7.  Subchapter D, Chapter 4102, Insurance Code, is
	amended by adding Section 4102.164 to read as follows:
	Sec. 4102.164.  ACCEPTANCE OF REFERRAL PAYMENTS PROHIBITED.
	(a)  A licensed public insurance adjuster may not accept a fee,
	commission, or other valuable consideration of any nature,
	regardless of form or amount, in exchange for the referral by a
	licensed public insurance adjuster of an insured to any third-party
	individual or firm, including an attorney, appraiser, umpire,
	construction company, contractor, or salvage company.
	(b)  The commissioner shall adopt rules necessary to
	implement and enforce this section.
	SECTION 8.  Section 4102.069, Insurance Code, is repealed.
	SECTION 9.  The repeal by this Act of Section 4102.069,
	Insurance Code, does not affect the authority of a person to act
	under a temporary certificate issued by the Texas Department of
	Insurance under that section before the effective date of this Act.
	SECTION 10.  Sections 4102.103(d) and 4102.158(d),
	Insurance Code, as added by this Act, apply only to a contract
	entered into or solicitation made on or after the effective date of
	this Act.
	SECTION 11.  (a)  Except as provided by this section,
	Section 4102.104, Insurance Code, as amended by this Act, applies
	only to payment accepted on or after the effective date of this Act.
	(b)  Payment for a service performed before the effective
	date of this Act or performed after the effective date of this Act
	under a contract entered into before the effective date of this Act
	is governed by the law as it existed immediately before the
	effective date of this Act, and that law is continued in effect for
	that purpose.
	SECTION 12.  Section 4102.160, Insurance Code, as amended by
	this Act, and Section 4102.164, Insurance Code, as added by this
	Act, apply only to a referral made on or after the effective date of
	this Act. A referral made before the effective date of this Act is
	governed by the law as it existed immediately before the effective
	date of this Act, and that law is continued in effect for that
	purpose.
	SECTION 13.  The changes in law made by this Act apply only
	to an offense committed on or after the effective date of this Act.
	An offense committed before the effective date of this Act is
	governed by the law in effect when the offense was committed, and
	the former law is continued in effect for that purpose. For
	purposes of this section, an offense was committed before the
	effective date of this Act if any element of the offense occurred
	before that date.
	SECTION 14.  This Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1060 passed the Senate on
	May 14, 2015, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1060 passed the House on
	May 27, 2015, by the following vote:  Yeas 144, Nays 0, two
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor