CHAPTER 31. ORGANIZATION OF DEPARTMENT - Texas Statutes

INSURANCE CODE

TITLE 2. TEXAS DEPARTMENT OF INSURANCE

SUBTITLE A. ADMINISTRATION OF THE TEXAS DEPARTMENT OF INSURANCE

CHAPTER 31. ORGANIZATION OF DEPARTMENT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 31.001. DEFINITIONS. In this code and other insurance

laws:

(1) "Commissioner" means the commissioner of insurance.

(2) "Department" means the Texas Department of Insurance.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.002. DUTIES OF DEPARTMENT. In addition to the other

duties required of the Texas Department of Insurance, the

department shall:

(1) regulate the business of insurance in this state;

(2) administer the workers' compensation system of this state as

provided by Title 5, Labor Code; and

(3) ensure that this code and other laws regarding insurance and

insurance companies are executed.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 6.051, eff. September 1, 2005.

Sec. 31.003. COMPOSITION OF DEPARTMENT. The department is

composed of the commissioner and other officers and employees

required to efficiently implement:

(1) this code;

(2) other insurance laws of this state; and

(3) other laws granting jurisdiction or applicable to the

department or the commissioner.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.004. SUNSET PROVISION. (a) The Texas Department of

Insurance is subject to Chapter 325, Government Code (Texas

Sunset Act). Unless continued in existence as provided by that

chapter, the department is abolished September 1, 2011.

(b) Unless continued as provided by Chapter 325, Government

Code, the duties of the division of workers' compensation of the

Texas Department of Insurance under Title 5, Labor Code, expire

September 1, 2011, or another date designated by the legislature.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 1112, Sec. 2.02, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 6.052, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1227, Sec. 2.05, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

928, Sec. 3.09, eff. June 15, 2007.

Acts 2009, 81st Leg., 1st C.S., Ch.

2, Sec. 1.06, eff. July 10, 2009.

Sec. 31.005. DEFENSE BY ATTORNEY GENERAL. The attorney general

shall defend an action brought against the commissioner or an

employee or officer of the department as a result of that

person's official act or omission, whether or not at the time of

the institution of the action that person has terminated service

with the department.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.006. TEXAS WORKERS' COMPENSATION COMMISSION NOT

AFFECTED. This code does not affect the duties imposed by law on

the Texas Workers' Compensation Commission.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.007. REFERENCES TO BOARD. A reference in this code or

other law to the State Board of Insurance, the Board of Insurance

Commissioners, or an individual commissioner means the

commissioner or the department as consistent with the respective

duties of the commissioner and the department under this code and

other insurance laws.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. COMMISSIONER OF INSURANCE

Sec. 31.021. CHIEF EXECUTIVE. (a) The commissioner is the

department's chief executive and administrative officer. The

commissioner shall administer and enforce this code, other

insurance laws of this state, and other laws granting

jurisdiction or applicable to the department or the commissioner.

(b) The commissioner has the powers and duties vested in the

department by:

(1) this code and other insurance laws of this state; and

(2) Title 5, Labor Code, and other workers' compensation

insurance laws of this state.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 6.053, eff. September 1, 2005.

Sec. 31.022. APPOINTMENT; TERM. (a) The governor, with the

advice and consent of the senate, shall appoint the commissioner.

The commissioner serves a two-year term that expires on February

1 of each odd-numbered year.

(b) The governor shall appoint the commissioner without regard

to the race, color, disability, sex, religion, age, or national

origin of the appointee.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.023. QUALIFICATIONS. The commissioner must:

(1) be a competent and experienced administrator;

(2) be well informed and qualified in the field of insurance and

insurance regulation; and

(3) have at least five years of experience in the administration

of business or government or as a practicing attorney or

certified public accountant.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec.

10.01, eff. Jan. 11, 2004.

Sec. 31.024. INELIGIBILITY FOR PUBLIC OFFICE. The commissioner

is ineligible to be a candidate for a public elective office in

this state, unless the commissioner has resigned and the governor

has accepted the resignation.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.026. COMPENSATION. The commissioner is entitled to

compensation as provided by the General Appropriations Act.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.027. GROUNDS FOR REMOVAL. (a) It is a ground for

removal from office if the commissioner:

(1) does not have at the time of appointment the qualifications

required by Section 31.023;

(2) does not maintain during service as commissioner the

qualifications required by Section 31.023;

(3) violates a prohibition established by Section 33.001,

33.003, 33.004, or 33.005; or

(4) cannot, because of illness or disability, discharge the

commissioner's duties for a substantial part of the

commissioner's term.

(b) The validity of an action of the commissioner or the

department is not affected by the fact that it is taken when a

ground for removal of the commissioner exists.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.028. TRAINING PROGRAM FOR COMMISSIONER. (a) Not later

than the 90th day after the date on which the commissioner takes

office, the commissioner shall complete a training program that

complies with this section.

(b) The training program must provide the commissioner with

information regarding:

(1) the legislation that created the department;

(2) the programs operated by the department;

(3) the role and functions of the department;

(4) the rules of the department, with an emphasis on the rules

that relate to disciplinary and investigatory authority;

(5) the current budget for the department;

(6) the results of the most recent formal audit of the

department;

(7) the requirements of:

(A) the open meetings law, Chapter 551, Government Code;

(B) the public information law, Chapter 552, Government Code;

(C) the administrative procedure law, Chapter 2001, Government

Code; and

(D) other laws relating to public officials, including conflict

of interest laws; and

(8) any applicable ethics policies adopted by the department or

the Texas Ethics Commission.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 10.04, eff.

Jan. 11, 2004.

SUBCHAPTER C. PERSONNEL

Sec. 31.041. DEPARTMENT PERSONNEL. (a) Subject to the General

Appropriations Act or other law, the commissioner shall appoint

deputies, assistants, and other personnel as necessary to carry

out the powers and duties of the commissioner and the department

under this code, other insurance laws of this state, and other

laws granting jurisdiction or applicable to the department or the

commissioner.

(b) A person appointed under this section must have the

professional, administrative, and insurance experience necessary

to qualify the person for the position to which the person is

appointed.

(c) A person appointed as an associate or deputy commissioner or

to hold an equivalent position must have at least five years of

the experience required for appointment as commissioner under

Section 31.023. At least two years of that experience must be in

work related to the position to be held.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.042. DIVISION OF RESPONSIBILITIES. The commissioner

shall develop and implement policies that clearly define the

respective responsibilities of the commissioner and the staff of

the department.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT. (a)

The commissioner or the commissioner's designee shall prepare and

maintain a written policy statement to ensure implementation of a

program of equal employment opportunity under which all personnel

transactions are made without regard to race, color, disability,

sex, religion, age, or national origin. The policy statement must

include:

(1) personnel policies, including policies relating to

recruitment, evaluation, selection, appointment, training, and

promotion of personnel that are in compliance with Chapter 21,

Labor Code;

(2) a comprehensive analysis of the department workforce that

meets federal and state guidelines;

(3) procedures by which a determination can be made of

significant underuse in the department workforce of all persons

for whom federal or state guidelines encourage a more equitable

balance; and

(4) reasonable methods to appropriately address those areas of

significant underuse.

(b) A policy statement prepared under this section must:

(1) cover an annual period;

(2) be updated annually;

(3) be reviewed by the Commission on Human Rights for compliance

with Subsection (a); and

(4) be filed with the governor.

(c) The governor shall deliver a biennial report to the

legislature based on the information received under Subsection

(b). The report may be made separately or as a part of other

biennial reports made to the legislature.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.044. QUALIFICATIONS AND STANDARDS OF CONDUCT. The

commissioner shall provide to department employees, as often as

necessary, information regarding their:

(1) qualification for office or employment under this code; and

(2) responsibilities under applicable laws relating to standards

of conduct for state employees.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 31.045. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS.

(a) The commissioner or the commissioner's designee shall

develop an intra-agency career ladder program. The program must

require intra-agency posting of all nonentry level positions

concurrently with any public posting.

(b) The commissioner or the commissioner's designee shall

develop a system of annual performance evaluations. All merit pay

for department employees must be based on the system established

under this subsection.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.