Part 1.
TEXAS DEPARTMENT OF INSURANCE
Chapter 1.
GENERAL ADMINISTRATION
Subchapter D. EFFECT OF CRIMINAL CONDUCT
28 TAC §§1.501, 1.503 - 1.509
The Texas Department of Insurance proposes amending §1.501
and adding new §§1.503 - 1.509, concerning the effect of criminal
conduct on licenses. The proposal addresses who is subject to the Department's
rules regarding the consequences of prior criminal conduct and fraudulent
and dishonest activity and establishes a requirement and procedure for obtaining
an individual's criminal history information by using the individual's fingerprints.
The Department will consider the individual's criminal history information
in determining an individual's fitness for licensure or other authorization,
including certification, permit, or registration, or for control of an entity
holding or seeking a license or other authorization, including a certificate,
permit, or registration. In conjunction with this proposal and also published
in this issue of the Texas Register, the Department has proposed the repeal
of existing §§19.1801 - 19.1807 (relating to Fingerprint Card Requirement
for Applicants for License) and amendments to existing §§3.1703
(relating to the Application for Certificate of Registration for Viatical
or Life Settlement Providers, Provider Representatives, or Brokers; Fees),
5.6403 (relating to the Application for Initial Certificate of Approval for
workers' compensation group self-insurance), 7.209 (relating to Form A, Insurance
Holding Company System Regulatory Act), and 19.711 (relating to Fingerprint
Requirement for licensing of public insurance adjusters).
The proposal is necessary to maintain effective regulation of the insurance
industry by establishing requirements and procedures to further ensure that
persons receiving licensure and authorizations, including the officers, directors,
partners, and controlling shareholders of insurance agencies, insurance companies
and other regulated entities, are honest, trustworthy, reliable, and fit to
hold those positions. The proposal establishes a reasonable procedure and
funding mechanism for the Department to obtain necessary information to make
those determinations. This proposal does not impose additional requirements
or costs on individuals to maintain their current licenses or authorizations
and thus should not affect the current license or authorization status of
any person who has made a full disclosure of all past criminal conduct.
The Texas statutes applicable to the individuals affected by this proposal
require the Department to determine those individuals' fitness for holding
a license or authorization, or those individuals' fitness to control an entity
holding or seeking a license or authorization. Additionally, the federal Violent
Crime Control and Law Enforcement Act of 1994, specifically 18 U. S. C. §§1033
and 1034, prohibits an individual who has ever been convicted of a state or
federal felony involving dishonesty or breach of trust from engaging in the
business of insurance unless the individual is specifically authorized to
do so by an insurance regulatory official. Because the applicable state statutes
do not specify the method of inquiry regarding the determination of an individual's
fitness, the Department has the discretion to determine the method.
The Department has determined that the use of criminal history information
is the best means to assist the Department in performing this statutory duty.
Additionally, to assist the Department in determining an individual's fitness,
the Legislature enacted Insurance Code §§801.056 and 4001.103 authorizing
the Department to require applicants for any license or authorization issued
by the Department to submit fingerprints and Government Code §§411.106
and 411.087 authorizing access to an applicant's criminal history information
from both the Texas Department of Public Safety (DPS) and the Federal Bureau
of Investigation (FBI).
The proposed sections set forth a secure and uniform procedure by which
the Department may obtain a complete criminal history from individuals applying
for a license or authorization and from individuals who are seeking to be
associated with a regulated entity. Under the proposal, the Commissioner may
waive the fingerprinting requirement in response to Texas statutes related
to non-resident licensing, the federal Gramm-Leach-Bliley Act, and the possibility
that other state insurance departments may adopt similar background checks
for their resident licensees and authorized individuals. The proposal, however,
does not allow waiver of the requirement for persons subject to background
checks by other entities, such as the National Association of Securities Dealers.
Such an exception could create a dual standard for individuals, particularly
among Texas residents. Additionally, licensees of these other entities may
not be subject to 18 U. S. C. §§1033 and 1034. Federal law, or possibly
state law, depending on the source of the information, could also prohibit
those entities from sharing an individual's criminal history information contained
in their files. The proposal does not require any individual to be fingerprinted
or pay fingerprint-processing fees for renewing an existing license or authorization.
The Department has consulted with the DPS and determined that fingerprint
checks, and in particular electronic fingerprint checks, provide the most
effective method of identifying an individual and obtaining that individual's
criminal history information. Improvements in electronic fingerprint technology
have increased the accuracy of fingerprint capture and substantially reduced
the time frame for processing the fingerprint to obtain the criminal history
information.
The proposed procedure would require affected individuals to be fingerprinted
by an acceptable vendor and pay the associated fingerprint processing fees
charged by the DPS and FBI. The individual's fingerprints will either be submitted
directly to the DPS, if captured by the DPS electronic vendor, or to the Department
and then to the DPS if captured on paper. The associated fingerprint-processing
fee charged by the DPS is set by Government Code §411.088(a)(2). The
associated fingerprint-processing fee charged by the FBI is set by federal
authority and is made known to the Department by the DPS. The Department understands
from the DPS that all fingerprints will be processed through both the DPS
and FBI. The total costs for fingerprinting and fingerprint processing are
in line with, or less than, those costs in other states. For example, California
requires a $76 fee; Florida requires a $64 fee; and Idaho requires a $60 fee.
Therefore, it is the Department's position that the estimated costs to comply
with this proposal, which are estimated to range from $48.95 to $56, are not
unreasonable or unduly burdensome for an individual seeking a license or authorization.
The proposal does not restrict individuals or their sponsors from making arrangements
with an acceptable vendor or the DPS to facilitate the fingerprint collection
process.
The Department is proposing to implement this fingerprint identification
process using both DPS and FBI resources for the following three reasons.
The process will prevent individuals with a criminal history in another state
from attempting to evade detection by simply moving to Texas. Fingerprint
collection by an independent third party vendor allows for independent verification
of the identity of the individual being fingerprinted and increases confidence
in the review process. Finally, fingerprints are the only method the FBI will
accept to produce identity and criminal history information.
The following is a section-by-section overview of the proposal. The proposed
amendment to §1.501(a) incorporates the establishment of the procedure
for obtaining criminal history information into the purpose of the subchapter.
The proposed amendment to §1.501(b) clarifies and, to the extent necessary,
adds types of authorizations, insurers and related entities subject to the
applicability of §1.502 (relating to guidelines for licensing persons
with criminal backgrounds), including workers' compensation related authorizations
under Insurance Code Chapter 1305 and workers' compensation self-insurance
groups under Labor Code Chapter 407A. Additionally, the proposed amendment
to §1.501(b) updates Insurance Code references in the list of affected
license, authorization, certificate, permit, or registration types to reflect
the new section numbers adopted as a result of the Legislature's enactment
of the non-substantive Insurance Code revision and arranges this list of references
in numerical order. Proposed new §1.503 specifies those individuals subject
to the new fingerprint requirement proposed in §1.504. Proposed new §1.504
sets forth the requirement to submit fingerprints and pay fees and provides
exemptions to this requirement. Proposed new §1.505 addresses Insurance
Code §§4056.055 and 4101.004 reciprocal licensing provisions for
nonresident agents and adjusters by providing that the Commissioner may waive
the fingerprint requirement for nonresident individuals holding a license
in their state of residence. Proposed new §1.506 authorizes the Commissioner
to waive the fingerprint requirement for individuals if the individual, or
the insurance carrier or related entity with which the individual is associated,
is not domiciled in Texas. Proposed new §1.507 relates to licenses and
authorizations not listed in §§1.505 and 1.506 and authorizes the
Commissioner to waive the fingerprint requirement for individuals if the individual,
or the entity with which the individual is associated, is not domiciled in
Texas. Proposed new §1.508 states how the Department will use the fingerprints
and identifies certain state and federal confidentiality laws that apply to
the Department's use and maintenance of criminal history information. Proposed
new §1.509 identifies the entities that are authorized to capture an
individual's fingerprints; addresses how fingerprints will be submitted and
the method for the payment of DPS and FBI fingerprint processing fees when
captured by the electronic vendor acceptable to the DPS, the Department's
examination vendor, or a criminal law enforcement agency; requires all fingerprint
impressions to be legible and suitable for use by the DPS and FBI; specifies
that fingerprints must be submitted within the time frame indicated on the
appropriate application or biographical submission forms and allows for certain
extensions; and provides that the application or biographical submission is
not complete until the criminal history information is received.
The Department anticipates that the proposal will be effective no earlier
than 90 days following the date the proposal is adopted by the Commissioner.
The Department is requesting input from commenters on the most viable effective
date. The actual effective date will then be determined following the review
and consideration of all comments.
Matt Ray, Deputy Commissioner, Licensing Division, has determined that
for each year of the first five years the proposed amendments and new sections
will be in effect, there will be an approximate $600,000 annual increase in
revenue to state government as a result of the enforcement and administration
of this proposal due to the estimated additional fingerprint submissions to
the DPS. This amount is based on an estimated additional 40,000 annual submissions
resulting from the proposed fingerprint requirement and a statutorily authorized
$15 fee for each submission collected by the DPS. Government Code §411.088(a)(2)
authorizes the DPS to charge the $15 fee for each criminal history record
information inquiry. It is the Department's understanding based on information
provided by the DPS that this fee is for the costs of processing fingerprints
and maintaining the records and systems used by the DPS in processing submissions.
Therefore, the additional submissions may result in increased costs to the
DPS, which may substantially offset or eliminate the additional revenue. It
is anticipated that most individuals within Texas will utilize the convenience
and reliability offered by the authorized electronic fingerprint services
and, as such, the Department estimates that there will be no measurable fiscal
impact to local governments from the capture of fingerprints on paper cards
by local law enforcement agencies as a result of the enforcement or administration
of this proposal. There will be no anticipated effect on local employment
or the local economy as a result of the proposal.
Mr. Ray has determined that for each year of the first five years the proposed
amendments and new sections are in effect, the anticipated public benefit
will be a more thorough and comprehensive review of the suitability of individuals
seeking to obtain a license or other authorization, including certification,
permit, or registration, or to control an entity holding or seeking a license
or other authorization, including a certificate, permit, or registration.
This more thorough and comprehensive review will further ensure that each
of these individuals, including the officers, directors, partners, and controlling
shareholders of insurance agencies, insurance companies and other regulated
entities, is honest, trustworthy, reliable, and fit to hold the licensure
or authorization. The total probable economic costs to individuals required
to comply with the proposal are estimated to range between $48.95 and $56.
This cost estimate is based on compliance with the proposed amendment to §1.501(a)
and proposed new §§1.503 - 1.509. Any economic costs to comply with
the proposed amendment to §1.501(b) result from the enactment of several
statutes in the Occupations Code, Labor Code, and the Insurance Code, and
are not a result of the adoption, enforcement, or administration of the proposal.
These statutes include Occupations Code Chapter 53 (states the general procedure
a licensing authority must employ when considering the consequences of a criminal
record on granting or continuing a person's license, authorization, certificate,
permit, or registration); Occupations Code §53.025 (authorizes a licensing
authority to issue guidelines relating to its practice under Chapter 53);
Labor Code §407A.051 (authorizes the Commissioner to establish application
requirements for self-insured workers' compensation groups); Insurance Code §§801.101,
801.102, 801.151, and 801.152 (authorize the Commissioner to review the fitness
and reputation of officers, directors and persons in control of insurance
companies and to refuse or revoke a certificate of authority to any company
based on a determination that such officer, director or controlling person
is not worthy of public confidence or has been convicted of a felony involving
moral turpitude or breach of a fiduciary duty); Insurance Code §822.060
(authorizes the Commissioner to deny the charter of an insurance company if
the Commissioner determines that proposed officers, directors, attorney in
fact or managing head of the company lack sufficient standing and good record
to make success of the proposed company probable); Insurance Code §823.052(b)(2)
(requires an insurer's registration statement to contain current information
about ownership and management of the insurer, the insurer's holding company,
and, if the Commissioner considers the information necessary, any of the insurer's
other affiliates); Insurance Code §823.053(a) (requires the insurer to
report each material change to information disclosed in a registration statement,
including additional information); Insurance Code §823.157 (authorizes
the Commissioner to deny the acquisition or change of control of an insurer
if the Commissioner determines that due to a lack of trustworthiness or integrity
of the persons who would control the operations of the domestic insurer, the
acquisition or change of control would not be in the interest of the insurer's
policyholders and the public); Insurance Code §841.061 (authorizes the
Commissioner to deny the charter of a life, accident, or health insurance
company if the Commissioner determines that the proposed officers, directors,
or managing executive of the company lack sufficient standing to make success
of the proposed company probable); Insurance Code §843.082 (authorizes
the Commissioner to deny a certificate to a health maintenance organization
if the Commissioner determines that the person responsible for the conduct
of the affairs of the applicant is not competent, trustworthy, and of good
reputation); Insurance Code §844.052 (establishes that nonprofit corporations
seeking a certificate under Insurance Code Chapter 844 must meet the same
requirements for the issuance of a certificate of authority that a health
maintenance organization is required to meet under Insurance Code Chapter
843); Insurance Code §846.003 (subjects a multiple employer welfare arrangement
to Insurance Code Chapter 801); Insurance Code §846.058 (a multiple employer
welfare arrangement, each board member and officer of the arrangement, and
any agent or other person associated with the arrangement is subject to disqualification
for eligibility for a certificate of authority if the person is prohibited
from serving in any capacity with the arrangement under Section 411, Employee
Retirement Income Security Act of 1974 (29 U. S. C. 1111)); Insurance Code §1305.053(2)
(authorizes the Commissioner to consider the fitness and reputation of each
officer or director or other person having control of a workers' compensation
health care network); and Insurance Code §1305.102(d) (authorizes the
Commissioner to consider a workers' compensation management contractor's prior
criminal history before approving the contract).
The estimated $48.95 - $56 cost to individuals to comply with the proposed
amendment to §1.501(a) and proposed new §§1.503 - 1.509 is
for charges by a vendor or criminal law enforcement agency to capture fingerprints
and the fees charged by the DPS and the FBI to process the fingerprints and
provide the Department with the individual's criminal history information.
It is anticipated that these costs will apply only once to an individual affected
by this rule as long as that individual maintains a continuous license or
authorization with the Department. These costs are in line with, or less than,
those required under similar requirements in other states. For example, California
requires a $76 fee, Florida requires a $64 fee, and Idaho requires a $60 fee.
The estimated $48.95 - $56 cost is based on the following considerations.
The Department estimates that the cost of being fingerprinted will be $9.95,
$10, or $17, depending on the vendor chosen by the individual. The $9.95 amount
is based on the charge that is collected, according to the DPS, by the DPS'
electronic fingerprint vendor for electronically capturing an individual's
fingerprints. The $10 amount is based on the current maximum charge criminal
law enforcement agencies are authorized to collect, as provided under the
Human Resources Code §80.001(b), from individuals for capturing fingerprints,
usually on paper cards. Additionally, the Department's licensing examination
vendor currently charges $10 to electronically capture the fingerprints of
an applicant taking a Department examination. The $17 amount is based on the
Department's examination vendor's charge for electronically capturing fingerprints
on an individual who is not taking a Department licensing examination. The
current cost of processing fingerprints by the DPS and FBI are, respectively,
$15 and $24 per individual. Other economic costs to comply with the proposal
result from existing rules or from the enactment of the Government Code and
the Insurance Code, including Government Code §§411.083 (dissemination
of criminal history record information by the DPS), 411.086 (relevant rules
adopted by the DPS), 411.106 (authorizes the Department to access criminal
history record information from the DPS), Insurance Code §§801.056
(authorizes the Department to request a complete set of fingerprints from
individuals controlling an insurance company, an insurance company's corporate
officers, and individual applicants for any license, permit registration,
certification, or other authorization issued by the Department to engage in
a regulated activity under the Insurance Code), and 4001.103 (authorizes the
Department to request a complete set of fingerprints from individual applicants
for any license, permit, certificate, registration, or other authorization
issued by the Department to engage in a regulated activity under Insurance
Code Title 13 (Regulation of Professionals)) and are not a result of the adoption,
enforcement, or administration of proposed amendment of §1.501(a) and
new §§1.503 - 1.509.
On a per individual basis, there will be no difference in the cost of compliance
between a large and small business as a result of the proposal since the costs
will be the same for each category of individual required to comply with the
proposal. Different business models or personnel benefits offered may result
in cost differences between entities; these differences, however, are a matter
of choice and are not a result of the proposed rules. Based upon the cost
of labor per hour, there is no disproportionate economic impact on small or
micro businesses. Even if the proposal results in some adverse effect on small
or micro businesses, the agency has considered the purpose of the applicable
statutes, which is to maintain effective regulation of the insurance industry
by further ensuring that persons applying for licensure or authorization,
including the officers, directors, partners, and controlling shareholders
of insurance agencies, insurance companies and other regulated entities, are
honest, trustworthy, reliable, and fit to hold the licensure or authorization,
and has determined that it is neither legal nor feasible to waive the provisions
of the proposal for small or micro businesses. Additionally, it is the Department's
position that the various applicable statutes require equal application of
any fingerprint identification process to all affected individuals.
To be considered, written comments on the proposal must be submitted no
later than 5:00 p.m. on September 5, 2006 to Gene C. Jarmon, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comments must
be simultaneously submitted to Matt Ray, Deputy Commissioner, Licensing Division,
Mail Code 107-1A, Texas Department of Insurance, P.O. Box 149104, Austin,
Texas 78714-9104.
The Commissioner will consider the adoption of the proposed amendments
and new sections in a public hearing under Docket No. 2644 scheduled for September
6, 2006, at 10:00 a.m. in Room 100 of the William P. Hobby Jr. State Office
Building, 333 Guadalupe Street in Austin, Texas. Written and oral comments
presented at the hearing will be considered.
The amendments and new sections are proposed under the Occupations
Code, Government Code, Labor Code, and Insurance Code. Occupations Code Chapter
53 states the general procedure a licensing authority must employ when considering
the consequences of a criminal record on granting or continuing a person's
license, authorization, certificate, permit, or registration. Occupations
Code §53.025 authorizes a licensing authority to issue guidelines relating
to its practice under Chapter 53. Government Code §411.106 authorizes
the Department to receive criminal history information from the DPS regarding
insurance company principals and officers and applicants for any entity holding
or seeking a license, certificate, permit, registration, or other authorization
issued by the Department to engage in a regulated activity under the Insurance
Code. Government Code §§411.083 and 411.087 authorize the Department
to obtain, through the DPS, criminal history information from the FBI on those
individuals described in Government Code §411.106. Labor Code §407A.051
authorizes the Commissioner to establish application requirements for self-insured
workers' compensation groups. Labor Code §407A.008 authorizes the Commissioner
to adopt rules to implement Labor Code Chapter 407A. Insurance Code §801.056
authorizes the Department to request a complete set of fingerprints from individuals
controlling an insurance company, an insurance company's corporate officers,
and individual applicants for any license, permit, registration, certification,
or other authorization issued by the Department to engage in a regulated activity
under the Insurance Code. Insurance Code §§801.101, 801.102, and
801.151 - 801.155 authorize the Commissioner to review the fitness and reputation
of officers, directors and persons in control of insurance companies and to
refuse or revoke a certificate of authority to any company based on a determination
that such officer, director or controlling person is not worthy of public
confidence. Insurance Code §822.060 authorizes the Commissioner to deny
the charter of an insurance company if the Commissioner determines that proposed
officers, directors, attorney in fact or managing head of the company lack
sufficient standing and good record to make success of the proposed company
probable. Insurance Code §823.052(b)(2) requires an insurer's registration
statement to contain current information about ownership and management of
the insurer, the insurer's holding company, and, if the Commissioner considers
the information necessary, any of the insurer's other affiliates. Insurance
Code §823.053(a) requires the insurer to report each material change
to information disclosed in a registration statement, including additional
information. Insurance Code §823.157 authorizes the Commissioner to deny
the acquisition or change of control of an insurer if the Commissioner determines
that due to a lack of trustworthiness or integrity of the persons who would
control the operations of the domestic insurer, the acquisition or change
of control would not be in the interest of the insurer's policyholders and
the public. Insurance Code §841.061 authorizes the Commissioner to deny
the charter of a life, accident, or health insurance company if the Commissioner
determines that the proposed officers, directors, or managing executive of
the company lack sufficient standing to make success of the proposed company
probable. Insurance Code §843.082 authorizes the Commissioner to deny
a certificate to a health maintenance organization if the Commissioner determines
that the person responsible for the conduct of the affairs of the applicant
is not competent, trustworthy, and of good reputation. Insurance Code §844.052
establishes that nonprofit corporations seeking a certificate under Insurance
Code Chapter 844 must meet the same requirements for the issuance of a certificate
of authority that a health maintenance organization is required to meet under
Insurance Code Chapter 843. Insurance Code §846.003 subjects a multiple
employer welfare arrangement to Insurance Code Chapter 801, and under Insurance
Code §846.058, a multiple employer welfare arrangement, each board member
and officer of the arrangement, and any agent or other person associated with
the arrangement is subject to disqualification for eligibility for a certificate
of authority if the person is prohibited from serving in any capacity with
the arrangement under Section 411, Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1111). Insurance Code §2551.001 subjects title insurance
companies to Insurance Code Chapter 801, which in §801.056 authorizes
the Department to request a complete set of fingerprints from individuals
controlling an insurance company, an insurance company's corporate officers,
and individual applicants for any license, permit, registration, certification,
or other authorization issued by the Department to engage in a regulated activity
under the Insurance Code. Insurance Code §2552.003 subjects attorney's
title insurance companies to the same provisions that apply to title insurance
companies. Insurance Code §§2651.301 and 2652.201 authorize the
Commissioner to deny or revoke the license of a title insurance agent or direct
operation, or escrow officer if the person has been found guilty of fraudulent
or dishonest practices. Insurance Code §4001.002(a) provides that, except
as otherwise provided by the Insurance Code, the provisions of Insurance Code
Title 13 apply to the persons licensed under the provisions listed in §4001.002(a).
Insurance Code §4001.005 authorizes the Commissioner to adopt rules necessary
to implement Insurance Code Title 13. Insurance Code §4001.102(b) authorizes
the Commissioner to prescribe by rule the requirements for a properly completed
application. Insurance Code §4001.103 also authorizes the Department
to request a complete set of fingerprints from individual applicants for any
license, permit or other authorization issued by the Department to engage
in a regulated activity under Insurance Code Title 13. Insurance Code §4005.101
provides that the Department may deny or revoke a license to an individual
licensed under Insurance Code Title 13, if that individual has been convicted
of a felony or has engaged in fraudulent or dishonest activities. Insurance
Code license types within the scope of Insurance Code Title 13 under Insurance
Code §4001.002(b) include: surplus lines agent, §981.202; general
property and casualty agent, §4051.051; limited property and casualty
agent, §4051.101; insurance service representative, §4051.151; county
mutual agent, §4051.201; agricultural agent, §4051.251; full-time
home office employee, §4051.301; life and health insurance counselor,
Chapter 4052; managing general agent, Chapter 4053; general life, accident,
and heath agent, §4054.051; limited life, accident, and health agent, §4054.101;
funeral prearrangement life insurance agent, §4054.151; life insurance
not exceeding $15,000 agent, §4054.201; nonresident agent applicants,
Chapter 4056; adjuster, Chapter 4101; public insurance adjuster, Chapter 4102;
reinsurance intermediary manager and broker, Chapter 4152; and risk manager,
Chapter 4153. Further, for a partnership or corporation applying for an agent's
license, Insurance Code §§4001.106(b)(7)(B) and 4001.253(c) require
the Department to find that the applicant's officers, directors, partners
and other persons with a right to control the applicant have not committed
an act for which licensure can be denied or revoked under Chapter 4005. Additionally,
Insurance Code §4052.003 states that life and health insurance counselors
are subject to the same licensing requirements as are applicable to agents
under the Insurance Code. Insurance Code §4101.052(a)(2) authorizes the
Department to make reasonable inquiries into an adjuster's personal history.
Insurance Code §4101.053(a)(2)(D) requires the Department to determine
that an adjuster is trustworthy and §4101.201 authorizes the Department
to revoke or deny an adjuster license application under the applicable insurance
laws of this state, which includes Chapter 4005. Insurance Code §4101.005
authorizes the Commissioner to adopt rules necessary to implement Insurance
Code Chapter 4101. Insurance Code §§4102.053(a)(5) and (b), and
4102.054(5) require the Department to restrict or deny issuance of a public
insurance adjuster license to a resident or nonresident individual based on
a felony conviction. Further, for a partnership or corporation applying for
a public insurance adjuster license, §§4102.055(b) and 4102.056(b)
authorize the Commissioner to adopt rules analogous to the provisions of Chapter
4001 concerning the licensure of business entities organized under Texas law
and business entities organized under the laws of another state. In addition
to the provisions of Chapter 4001 previously listed concerning agent licensure,
the Department has adopted §19.704 (b)(7) and (i) of this title (relating
to Public Insurance Adjuster Licensing) which require the Department to find
that a public insurance adjuster license applicant's officers, directors,
partners and other persons with a right to control the applicant have not
committed an act for which licensure can be denied or revoked under Insurance
Code Chapters 4005 and 4102. Insurance Code §4102.201 authorizes the
Department to revoke or deny issuing a public insurance adjuster license based
on a felony conviction or engagement in fraudulent or dishonest activities.
Insurance Code §4102.004 authorizes the Commissioner to adopt rules to
implement Insurance Code Chapter 4102. Insurance Code Article 21.58A §§3(b)
and 13 authorize the Commissioner to adopt rules relating to the certification
of utilization review agents. Insurance Code Article 21.58C §2(a) authorizes
the Commissioner to adopt rules relating to the certification of independent
review organizations. Insurance Code §1111.005(a)(1), (5) and (8) provide
that the Commissioner may deny or revoke a viatical and life settlement registration
if the Commissioner finds the applicant or registrant, individually or through
any officer, director, or shareholder of the applicant or registrant, has
been convicted of a felony or has been convicted of a misdemeanor involving
moral turpitude or fraud. Insurance Code §1111.003(a) authorizes the
Commissioner to adopt rules relating to viatical and life settlements. Insurance
Code §1305.053(2) authorizes the Commissioner to consider the fitness
and reputation of each officer or director or other person having control
of a workers' compensation health care network. Insurance Code §1305.102(d)
authorizes the Commissioner to consider a workers' compensation management
contractor's prior criminal history before approving the contract. Insurance
Code §36.001 provides that the Commissioner of Insurance may adopt any
rules necessary and appropriate to implement the powers and duties of the
Texas Department of Insurance under the Insurance Code and other laws of this
state.
The following statutes are affected by the proposal: Occupations Code Chapter
53 Labor Code Chapter 407A; Insurance Code Articles 21.58A, 21.58C, Insurance
Code Chapters 801, 822, 823, 841, 843, 846, 981, 1111, 1305, 2551, 2552, 2651,
2652, 4001, 4005, 4051, 4052, 4053, 4054, 4055, 4056, 4101, 4102, 4152, and
4153 Government Code §§411.083, 411.087 and 411.106; Labor Code
Chapter 407A; Insurance Code Articles 21.58A, 21.58C, Insurance Code Chapters
801, 822, 823, 841, 843, 846, 981, 1111, 1305, 2551, 2552, 2651, 2652, 4001,
4005, 4051, 4052, 4053, 4054, 4056, 4101, 4102, 4152, and 4153
§1.501.Purpose and Application.
(a)
The purpose of this subchapter is to implement Chapter
53, Occupations Code, and sections and articles of the Insurance Code and
Occupations Code that require and authorize the department to determine a
person's fitness for holding a license, authorization,
certification,
permit,
or registration, or a person's fitness to have the ability to
control licensed
, registered, permitted, certificate holding,
and
authorized entities, when that person has committed a criminal offense or
has
engaged in fraudulent or dishonest activity.
This subchapter
also establishes the procedure by which the department may obtain criminal
history information on persons applying for a license, authorization, certification,
permit, or registration, or acquiring the ability to control an entity holding
or seeking a license, authorization, certificate, permit, or registration.
To effect this implementation the department has developed guidelines
in §1.502 of this subchapter (relating to Licensing Persons with Criminal
Backgrounds) identifying the types of criminal offenses that directly relate
to the duties and responsibilities of licensed and authorized insurance activities
which are of such a serious nature that they are of prime importance in determining
the person's fitness for licensure, authorization
, certification, permit
or registration,
or control of a licensed
, registered, permitted,
certificate holding,
or authorized entity.
(b)
Section 1.502 of this
[
(1)
applicants for, or holders of, any license, registration,
permit, authorization,
or certification, including temporary or training
licenses or certificates, as agents, adjusters, public insurance adjusters,
counselors, risk managers, reinsurance intermediaries, title agents, title
escrow officers, title attorneys, utilization review agents, independent review
organizations, [
(A)
Article
21.58A
[
(B)
Article
21.58C
[
(C)
Chapter 981
[
(D)
Chapter 1111
[
(E)
Chapter 1305
[
(F)
Chapter 2552
[
(G)
Chapter 2651 Subchapter A
[
(H)
Chapter 2652
[
(I)
Chapter 4001
[
(J)
Chapter 4051
[
(K)
Chapter 4052
[
(L)
Chapter 4053
[
(M)
Chapter 4054
[
(N)
Chapter 4055
[
(O)
Chapter 4056
[
(P)
Chapter 4101
[
(Q)
Chapter 4102
[
(R)
Chapter 4151
[
(S)
Chapter
4152
[
(T)
Chapter
4153
[
(U)
any other
provision providing for any
type of
license, registration,
certification, permit,
or authorization
that the department may deny or revoke because of a criminal offense of the
applicant or license holder;
(2)
applicants for, or holders of, a license, registration,
permit or authorization issued by the State Fire Marshal's Office, including
the following provisions:
(A)
Insurance Code Article 5.43-1;
(B)
Insurance Code Article 5.43-2;
(C)
Insurance Code Article 5.43-3;
(D)
Occupations Code Chapter 2154; or
(E)
any other
provision providing for any
type of
license, registration, or authorization that the State Fire Marshal's Office
may deny or revoke because of a criminal offense of the applicant or license
holder;
(3)
those who are or become
partners or
officers,
directors,
or
[
(4)
with regard to insurance companies, health
maintenance organizations, holding companies, and other related entities,
an individual who is required to provide biographical information and who:
(A)
is the applicant, if the applicant is an
individual, or an officer, director, or controlling shareholder of the applicant
seeking an authorization as an insurer as described in Insurance Code Chapter
801 or an authorization under Insurance Code Chapters 822, 823, 841, 843,
844, 846, 2551, or 2552;
(B)
becomes an officer, director, or controlling
shareholder of an entity authorized as an insurer as described in Insurance
Code Chapter 801 or an entity authorized under Insurance Code Chapters 822,
823, 841, 843, 844, 846, 2551, or 2552; or
(C)
is the applicant if such person is an individual,
or the chairman of the board, chief executive officer, president, chief financial
officer, treasurer, and controller of the applicant if the applicant is not
an individual, for each applicant under §7.209 of this title (relating
to Form A); and
[
(5)
each member of the initial board of trustees,
subsequent members of the board, and the chief executive officer, president,
secretary, treasurer, chief financial officer, and controller of the administrator
and any service company filing biographical information under §5.6403
of this title (relating to Application for Initial Certificate of Approval).
(c) - (d)
(No change.)
§1.503.Application of Fingerprint Requirement.
The fingerprint requirement in §1.504(a) of this subchapter (relating
to Fingerprint Requirement) applies to the following individuals:
(1)
applicants for any license, registration, certification,
authorization or permit, including temporary or training licenses or certificates,
as agents, adjusters, public insurance adjusters, counselors, risk managers,
reinsurance intermediaries, title agents, title escrow officers, viatical
and life settlement registrants, and workers' compensation health care networks
and management contractors, under the following Insurance Code provisions:
(A)
Article 21.58A;
(B)
Article 21.58C;
(C)
Chapter 981;
(D)
Chapter 1111;
(E)
Chapter 1305;
(F)
Chapter 2651, Subchapter A;
(G)
Chapter 2652;
(H)
Chapter 4001;
(I)
Chapter 4051;
(J)
Chapter 4052;
(K)
Chapter 4053;
(L)
Chapter 4054;
(M)
Chapter 4056;
(N)
Chapter 4101;
(O)
Chapter 4102;
(P)
Chapter 4152; or
(Q)
Chapter 4153.
(2)
with the exception of those individuals associated with
licenses issued to corporations and limited liability companies under Insurance
Code Chapter 2651 Subchapter A, individuals who are required to provide biographical
information and who:
(A)
are partners or officers, directors, or controlling shareholders,
including limited liability company members and managers, of entities that
are applicants for a license, certification, permit, registration, or authorization
under provisions specified in paragraph (1) of this section; or
(B)
become partners or officers, directors, or controlling
shareholders, including limited liability company members and managers, of
entities that are holders of a license, authorization, permit, certification
or registration under provisions specified in paragraph (1) of this section.
(3)
with regard to insurance companies, health maintenance
organizations, holding companies, and other related entities, an individual
who is required to provide biographical information and who:
(A)
is the applicant, if the applicant is an individual, or
an officer, director, or controlling shareholder of the applicant seeking
an authorization as an insurer as described in Insurance Code Chapter 801
or an authorization under Insurance Code Chapters 822, 823, 841, 843, 844,
846, 2551, or 2552;
(B)
becomes an officer, director, or controlling shareholder
of an entity authorized as an insurer as described in Insurance Code Chapter
801 or an entity authorized under Insurance Code Chapters 822, 823, 841, 843,
844, 846, 2551, or 2552; or
(C)
is the applicant if such person is an individual, or the
chairman of the board, chief executive officer, president, chief financial
officer, treasurer, and controller of the applicant if the applicant is not
an individual, for each applicant under §7.209 of this title (relating
to Form A).
(4)
each member of the initial board of trustees, subsequent
members of the board, and the chief executive officer, president, secretary,
treasurer, chief financial officer, and controller of the administrator and
any service company filing biographical information under §5.6403 of
this title (relating to Application for Initial Certificate of Approval).
§1.504.Fingerprint Requirement.
(a)
In the manner described in §1.509 of this subchapter
(relating to Fingerprint Format and Complete Application), each individual
listed in §1.503 of this subchapter (relating to Application of Fingerprint
Requirement) must, at or near the same time that they submit their biographical
information or application for licensure, registration, authorization, certification,
or permit, also submit:
(1)
a complete set of the individual's fingerprints;
(2)
full payment for all processing fees charged by the Texas
Department of Public Safety and the Federal Bureau of Investigation; and
(3)
all additional identifying information required by the
Texas Department of Public Safety and the Federal Bureau of Investigation
for processing fingerprints.
(b)
An individual listed in §1.503 of this subchapter
is exempt from the requirement set forth in subsection (a) of this section
if the individual satisfies the requirements of paragraphs (1), (2), (3),
(4), (5) or (6) of this subsection.
(1)
Except as provided in subsection (d) of this section, the
individual is submitting an application or biographical information, and:
(A)
previously provided the department a complete, legible
fingerprint card or electronic set of fingerprints as part of an earlier submission
which was granted or approved; and
(B)
maintains that prior license, or licensed entity association,
in good standing on the date of the subsequent application.
(2)
The individual is licensed, or associated with an entity
licensee, under Insurance Code Chapter 981 Subchapter E or Title 13 Subtitles
A - D, and is:
(A)
renewing an unexpired license or license that has been
expired for not more than 90 days; or
(B)
applying for a license that has been expired for more than
90 days but not more than one year.
(3)
The individual is applying for an original emergency license
pursuant to Insurance Code Chapters 4051, 4053, or 4101. Emergency licensees
who later qualify for a permanent license by examination must submit a complete
set of fingerprints and payment of all fingerprint processing fees prior to
issuance of the permanent license.
(4)
The individual, or the entity with which the individual
is associated, is renewing an unexpired license, certification, registration,
or authorization.
(5)
The individual is licensed under Insurance Code Chapter
2651 Subchapter A or Chapter 2652 and is renewing an unexpired license or
license that has been expired for not more than 90 days.
(6)
The individual is submitting an application under Insurance
Code Chapter 2651 Subchapter A or Chapter 2652 and has previously provided
the department a complete, legible fingerprint card or electronic set of fingerprints
as part of an earlier Insurance Code Chapter 2651 Subchapter A or Chapter
2652 submission that was granted or approved; and either:
(A)
maintains that prior license in good standing on the date
of the current application; or
(B)
held a prior Insurance Code Chapter 2651 Subchapter A or
Chapter 2652 license that has not been canceled for more than 60 days and
maintained that license in good standing at the time of cancellation.
(c)
The commissioner may waive the requirement in subsection
(a) of this section if the commissioner determines that the individual is
unable to provide fingerprints due to permanent physical injury or illness.
The individual seeking a waiver under this subsection must submit evidence
of such a condition to the satisfaction of the commissioner.
(d)
The exemption set forth in subsection (b)(1) of this section
is subject to the department's ability to maintain an individual's previously
submitted set of fingerprints, and the department may require a complete set
of fingerprints and payment of all fingerprint processing fees from an individual
notwithstanding the exemption.
(e)
This subchapter does not limit the department's statutory
authority to require the submission of fingerprints or obtain criminal history
information.
§1.505.Nonresident Agents and Adjusters.
(a)
As authorized under Insurance Code §§4056.055
and 4101.004, the commissioner may waive the requirement in §1.504 of
this subchapter (relating to Fingerprint Requirement) to the extent necessary
to comply with federal law and promote reciprocal licensing between the states
for nonresident individuals holding an agent or adjuster license in their
state of residence.
(b)
The requirement in §1.504 of this subchapter is in
addition to and does not alter the criminal history reporting requirement
set forth in Insurance Code §4056.051 for nonresident individuals who
do not hold a license in their state of residence.
§1.506.Insurance Companies and Related Entities.
The commissioner may waive the requirement in §1.504 of this subchapter
(relating to Fingerprint Requirement) for individuals listed under §1.503(3)
of this subchapter (relating to Application of Fingerprint Requirement) if
the individual, or the entity with which the individual is associated, is
not domiciled in Texas.
§1.507.Other Licensees and Registrants.
The commissioner may waive the requirement in §1.504 of this subchapter
(relating to Fingerprint Requirement) for individuals listed under §1.503(1),
(2), and (4) of this subchapter (relating to Application of Fingerprint Requirement)
if the individual, or the entity with which the individual is associated,
is not domiciled in Texas.
§1.508.Use and Confidentiality of Fingerprints.
(a)
The department shall submit all fingerprints received under
this subchapter to the Texas Department of Public Safety and the Federal Bureau
of Investigation to obtain criminal history information on the individual
for the purpose of determining the individual's fitness for licensure, authorization,
certification, permit, or registration, or control of an entity holding or
seeking a license, authorization, certificate, permit, or registration.
(b)
The department shall use and maintain all criminal history
information obtained pursuant to this subchapter in accordance with state
and federal laws, including:
(1)
Texas Government Code §411.106;
(2)
Texas Government Code §411.084;
(3)
United States Public Law 92-544; and
(4)
Code of Federal Regulations 28 CFR 50.12.
§1.509.Fingerprint Format and Complete Application.
(a)
Each individual described in §1.503 of this subchapter
(relating to Application of Fingerprint Requirement) and who is required to
submit fingerprints under §1.504 of this subchapter (relating to Fingerprint
Requirement) shall have a complete set of their fingerprints captured by:
(1)
an electronic fingerprint vendor acceptable to the Texas
Department of Public Safety;
(2)
the department's examination vendor; or
(3)
a criminal law enforcement agency, including a sheriff's
office or police department.
(b)
Individuals having their fingerprints captured by a vendor
acceptable to the Texas Department of Public Safety shall pay, in a manner
acceptable to the vendor, all fingerprint capture and processing fees directly
to the vendor at the time the fingerprints are captured or at such time as
is acceptable to the vendor.
(c)
Individuals having their fingerprints captured by the department's
examination vendor shall pay, in a manner acceptable to the vendor, all fingerprint
capture and processing fees directly to the vendor at the time the fingerprints
are captured or at such time as is acceptable to the vendor.
(d)
Individuals having their fingerprints captured by a criminal
law enforcement agency shall:
(1)
pay that agency any associated charges that may apply to
the capture of their fingerprints in a manner acceptable to that agency; and
(2)
submit to the department payment for all applicable fingerprint
processing fees in the amount and in the manner set forth on the department's
application or biographical submission form, or as otherwise posted by the
department if the individual is not using a department form.
(e)
Fingerprint cards may be obtained by sending a written
request to the Licensing Division, Mail Code 107-1B, Texas Department of Insurance,
P.O. Box 149104, Austin, Texas 78714-9104; by telecopy or facsimile to (512)
475-1819; or by e-mail to LICENSE@tdi.state.tx.us.
(f)
All fingerprint impressions must be legible and suitable
for use by the Texas Department of Public Safety and Federal Bureau of Investigation.
(g)
Individuals required to submit fingerprints shall submit
them within the time frame indicated on the specific application or biographical
submission form. Individuals may request an extension of time by contacting
the division of the department that will process the application or biographical
submission.
(h)
The application or submission of a person required to submit
fingerprints shall not be complete until the department receives the criminal
history information. Criminal history processing time and rejection rates
for applications and submissions with paper fingerprint cards may be substantially
greater than with electronic fingerprints.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 24, 2006.
TRD-200603881
Gene Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 3, 2006
For further information, please call: (512) 463-6327
Subchapter R. VIATICAL AND LIFE SETTLEMENTS
28 TAC §3.1703
The Texas Department of Insurance proposes amending §3.1703(q),
concerning the fingerprint requirement for viatical and life settlement registration
certificate applicants. The proposed amendment is necessary to conform the
existing fingerprint requirement for individuals applying for a viatical and
life settlement registration certificate, including viatical and life settlement
providers, provider representatives, and brokers, with the new fingerprint
submission requirement that the Department is proposing for adoption in amended §1.501
and new §§1.503 - 1.509, which are also published in this edition
of the Texas Register.
The Department anticipates that the proposal will be effective no earlier
than 90 days following the date the proposal is adopted by the Commissioner.
The Department is requesting input from commenters on the most viable effective
date. The actual effective date will then be determined following the review
and consideration of all comments.
Matt Ray, Deputy Commissioner, Licensing Division, has determined that
for each year of the first five years the proposed amendments and new sections
will be in effect, there will be an approximate $750 annual increase in revenue
to state government as a result of the enforcement and administration of this
proposal due to the estimated additional fingerprint submissions to the DPS.
This amount is based on an estimated additional 50 viatical and life settlement
registration certificate applicant related submissions annually that will
likely result from the proposed amended §3.1703(q), proposed amended §1.501,
proposed new §§1.503 - 1.509, and the statutorily authorized $15
fee for each submission collected by the DPS. Government Code §411.088(a)(2)
authorizes the DPS to charge the $15 fee for each criminal history record
information inquiry. It is the Department's understanding based on information
provided by the DPS that this fee is for the costs of processing fingerprints
and maintaining the records and systems used by the DPS in processing submissions.
Therefore, the additional submissions may result in increased costs to the
DPS, which may substantially offset or eliminate the additional revenue. It
is anticipated that most individuals within Texas will utilize the convenience
and reliability offered by the authorized electronic fingerprint services
and, as such, the Department estimates that there will be no measurable fiscal
impact to local governments from the capture of fingerprints on paper cards
by local law enforcement agencies as a result of the enforcement or administration
of this proposal. There will be no anticipated effect on local employment
or the local economy as a result of the proposal.
Mr. Ray has determined that for each year of the first five years the proposed
amendment is in effect, the anticipated public benefit will be a more thorough
and comprehensive review of the suitability of individuals seeking to obtain
a viatical and life settlement registration certificate. This more thorough
and comprehensive review will further ensure that each of these individuals
is honest, trustworthy, reliable, and fit to hold the certificate. The total
probable economic costs to individuals required to comply with the proposed
amended §3.1703(q), proposed amended §1.501, and proposed new §§1.503
- 1.509, are estimated to range between $48.95 and $56. This cost estimate
is based on compliance with the proposed amendment to §1.501(a) and proposed
new §§1.503 - 1.509. The proposed amendment to §1.501(b) does
not affect viatical and life settlement certificate holders and, therefore,
there are no costs for compliance with that amendment.
The estimated $48.95 - $56 cost to individuals to comply with the proposed
amendment to §1.501(a) and proposed new §§1.503 - 1.509 is
for the charges by a vendor or criminal law enforcement agency to capture
fingerprints and the fees charged by the DPS and the FBI to process the fingerprints
and provide the Department with the individual's criminal history information.
It is anticipated that these costs will apply only once to an individual affected
by this rule as long as that individual maintains a continuous license or
authorization with the Department. These costs are in line with, or less than,
those required under similar requirements in other states. For example, California
requires a $76 fee, Florida requires a $64 fee, and Idaho requires a $60 fee.
The estimated $48.95 - $56 cost is based on the following considerations.
The Department estimates that the cost of being fingerprinted will be $9.95,
$10, or $17, depending on the vendor chosen by the individual. The $9.95 amount
is based on the charge that is collected, according to the DPS, by the DPS'
electronic fingerprint vendor for electronically capturing an individual's
fingerprints. The $10 amount is based on the current maximum charge criminal
law enforcement agencies are authorized to collect, as provided under the
Human Resources Code §80.001(b), from individuals for capturing fingerprints,
usually on paper cards. Additionally, the Department's licensing examination
vendor currently charges $10 to electronically capture the fingerprints of
an applicant taking a Department examination. The $17 amount is based on the
Department's examination vendor's charge for electronically capturing fingerprints
on an individual who is not taking a Department licensing examination. The
current cost of processing fingerprints by the DPS and FBI are, respectively,
$15 and $24 per individual. Any other economic costs to comply with the proposal
result from existing rules or from the enactment of the Government Code and
the Insurance Code, including Government Code §§411.083 (dissemination
of criminal history record information by the DPS), 411.086 (relevant rules
adopted by the DPS), 411.106 (authorizes the Department to access criminal
history record information from the DPS), Insurance Code §§801.056
(authorizes the Department to request a complete set of fingerprints from
individuals controlling an insurance company, an insurance company's corporate
officers, and individual applicants for any license, permit registration,
certification, or other authorization issued by the Department to engage in
a regulated activity under the Insurance Code), and 4001.103 (authorizes the
Department to request a complete set of fingerprints from individual applicants
for any license, permit, certificate, registration, or other authorization
issued by the Department to engage in a regulated activity under Insurance
Code Title 13 (Regulation of Professionals)) and are not a result of the adoption,
enforcement, or administration of proposed amendment of §1.501(a) and
proposed new §§1.503 - 1.509.
On a per individual basis, there will be no difference in the cost of compliance
between a large and small business as a result of the proposal since the costs
will be the same for each category of individual required to comply with the
proposal. Different business models or personnel benefits offered may result
in cost differences between entities; these differences, however, are a matter
of choice and are not a result of the proposed rules. Based upon the cost
of labor per hour, there is no disproportionate economic impact on small or
micro businesses. Even if the proposal results in some adverse effect on small
or micro businesses, the agency has considered the purpose of the applicable
statutes, which is to maintain effective regulation of the insurance industry
by further ensuring that persons applying for licensure or authorization,
including the officers, directors, partners, and controlling shareholders
of insurance agencies, insurance companies and other regulated entities, are
honest, trustworthy, reliable, and fit to hold the licensure or authorization,
and has determined that it is neither legal nor feasible to waive the provisions
of the proposal for small or micro businesses. Additionally, it is the Department's
position that the various applicable statutes require equal application of
any fingerprint identification process to all affected individuals.
To be considered, written comments on the proposal must be submitted no
later than 5:00 p.m. on September 5, 2006 to Gene C. Jarmon, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comments must
be simultaneously submitted to Matt Ray, Deputy Commissioner, Licensing Division,
Mail Code 107-1A, Texas Department of Insurance, P.O. Box 149104, Austin,
Texas 78714-9104.
The Commissioner will consider the adoption of the proposed amendments
and new sections in a public hearing under Docket No.2649 scheduled for September
6, 2006 at 10:00 a.m. in Room 100 of the William P. Hobby Jr. State Office
Building, 333 Guadalupe Street in Austin, Texas. Written and oral comments
presented at the hearing will be considered.
The amendment is proposed under the Occupations Code Chapter
53; Government Code Chapter 411; and Insurance Code Chapters 801, 1111, and
36. Occupations Code Chapter 53 states the general procedure a licensing authority
must employ when considering the consequences of a criminal record on granting
or continuing a person's license, registration or authorization. Occupations
Code §53.025 authorizes a licensing authority to issue guidelines relating
to its practice under Chapter 53. Government Code §411.106 authorizes
the Department to receive criminal history information from the DPS regarding
insurance company principals and officers and applicants for any license,
permit, or other authorization issued by the Department to engage in a regulated
activity under the Insurance Code. Government Code §§411.083 and
411.087 authorize the Department to obtain, through the DPS, criminal history
information from the FBI on those individuals described in Government Code §411.106.
Insurance Code §801.056 authorizes the Department to request that applicants,
including the applicant's corporate officers, provide a complete set of fingerprints
for a certificate of registration issued by the Department. Section 1111.003
authorizes the Commissioner to adopt reasonable rules governing the registration
of persons engaged in the business of viatical and life settlements. Section
36.001 provides that the Commissioner of Insurance may adopt any rules necessary
and appropriate to implement the powers and duties of the Texas Department
of Insurance under the Insurance Code and other laws of this state.
The following statutes are affected by the proposal: Occupations Code Chapter
53, Government Code Chapter 411, and Insurance Code Chapters 801 and 1111
§3.1703.Application for Certificate of Registration for Viatical or Life Settlement Providers, Provider Representatives, or Brokers; Fees.
(a) - (p)
(No change.)
(q)
An applicant shall comply with the requirements of Chapter
1
[
(r)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 24, 2006.
TRD-200603883
Gene Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 3, 2006
For further information, please call: (512) 463-6327
Subchapter G. WORKERS' COMPENSATION INSURANCE
2.
GROUP SELF-INSURANCE COVERAGE
28 TAC §5.6403
The Texas Department of Insurance proposes amending §5.6403(f),
concerning the fingerprint requirement for the trustees of a self-insured
workers' compensation group and officers of the administrator and of any service
company. The proposed amendment is necessary to conform the existing fingerprint
requirement for individuals regulated under §5.6403(f) with a new fingerprint
submission requirement that the Department is proposing for adoption in amended §1.501
and new §§1.503 - 1.509. Additionally, proposed amendments to §1.501
clarify that individuals regulated under §5.6403(f) are subject to existing §1.502
of this title (relating to Licensing Persons with Criminal Backgrounds). Proposed
amended §1.501 and new §§1.503 - 1.509 are also published in
this edition of the Texas Register.
The Department anticipates that the proposal will be effective no earlier
than 90 days following the date the proposal is adopted by the Commissioner.
The Department is requesting input from commenters on the most viable effective
date. The actual effective date will then be determined following the review
and consideration of all comments.
Matt Ray, Deputy Commissioner, Licensing Division, has determined that
for each year of the first five years the proposed amendments and new sections
will be in effect, there will be an approximate $750 annual increase in revenue
to state government as a result of the enforcement and administration of this
proposal due to the estimated additional fingerprint submissions to the DPS.
This amount is based on an estimated additional 50 self-insured workers' compensation
group related submissions annually that will likely result from the proposed
amended §5.6403(f), proposed amended §1.501, proposed new §§1.503
- 1.509 and the statutorily authorized $15 fee for each submission collected
by the DPS. Government Code §411.088(a)(2) authorizes the DPS to charge
the $15 fee for each criminal history record information inquiry. It is the
Department's understanding based on information provided by the DPS that this
fee is for the costs of processing fingerprints and maintaining the records
and systems used by the DPS in processing submissions. Therefore, the additional
submissions may result in increased costs to the DPS, which may substantially
offset or eliminate the additional revenue. It is anticipated that most individuals
within Texas will utilize the convenience and reliability offered by the authorized
electronic fingerprint services and, as such, the Department estimates that
there will be no measurable fiscal impact to local governments from the capture
of fingerprints on paper cards by local law enforcement agencies as a result
of the enforcement or administration of this proposal. There will be no anticipated
effect on local employment or the local economy as a result of the proposal.
Mr. Ray has determined that for each year of the first five years the proposed
amendment is in effect, the anticipated public benefit will be a more thorough
and comprehensive review of the suitability of individuals regulated under §5.603(f),
including each member of the initial board of trustees, subsequent members
of the board, and the chief executive officer, president, secretary, treasurer,
chief financial officer, and controller of the administrator and of any service
company, seeking a certificate of approval for a self-insured workers' compensation
group from the Department. This more thorough and comprehensive review will
further ensure that each of these individuals is honest, trustworthy, reliable,
and fit to hold the authorization. The total probable economic costs to individuals
required to comply with the proposed amended §5.6403(f), proposed amended §1.501,
and proposed new §§1.503 - 1.509, are estimated to range between
$48.95 and $56. This cost estimate is based on compliance with the proposed
amendment to §1.501(a) and proposed new §§1.503 - 1.509. Any
economic costs to comply with the proposed amendment to §1.501(b) result
from the enactment of several statutes in the Occupations Code and the Insurance
Code, and are not a result of the adoption, enforcement, or administration
of the proposal. These statutes include Occupations Code Chapter 53 (states
the general procedure a licensing authority must employ when considering the
consequences of a criminal record on granting or continuing a person's license,
authorization, certificate, permit, or registration), and Occupations Code §53.025
(authorizes a licensing authority to issue guidelines relating to its practice
under Chapter 53).
The estimated $48.95 - $56 cost to individuals to comply with the proposed
amendment to §1.501(a) and proposed new §§1.503 - 1.509 is
for the charges by a vendor or criminal law enforcement agency to capture
fingerprints and the fees charged by the DPS and the FBI to process the fingerprints
and provide the Department with the individual's criminal history information.
It is anticipated that these costs will apply only once to an individual affected
by this rule as long as that individual maintains a continuous license or
authorization with the Department. These costs are in line with, or less than,
those required under similar requirements in other states. For example, California
requires a $76 fee, Florida requires a $64 fee, and Idaho requires a $60 fee.
The estimated $48.95 - $56 cost is based on the following considerations.
The Department estimates that the cost of being fingerprinted will be $9.95,
$10, or $17, depending on the vendor chosen by the individual. The $9.95 amount
is based on the charge that is collected, according to the DPS, by the DPS'
electronic fingerprint vendor for electronically capturing an individual's
fingerprints. The $10 amount is based on the current maximum charge criminal
law enforcement agencies are authorized to collect, as provided under the
Human Resources Code §80.001(b), from individuals for capturing fingerprints,
usually on paper cards. Additionally, the Department's licensing examination
vendor currently charges $10 to electronically capture the fingerprints of
an applicant taking a Department examination. The $17 amount is based on the
Department's examination vendor's charge for electronically capturing fingerprints
on an individual who is not taking a Department licensing examination. The
current cost of processing fingerprints by the DPS and FBI are, respectively,
$15 and $24 per individual. Any other economic costs to comply with the proposal
result from existing rules or from the enactment of the Government Code and
the Insurance Code, including Government Code §§411.083 (dissemination
of criminal history record information by the DPS), 411.086 (relevant rules
adopted by the DPS), 411.106 (authorizes the Department to access criminal
history record information from the DPS) and Insurance Code §§801.056
(authorizes the Department to request a complete set of fingerprints from
individuals controlling an insurance company, an insurance company's corporate
officers, and individual applicants for any license, permit registration,
certification, or other authorization issued by the Department to engage in
a regulated activity under the Insurance Code), and 4001.103 (authorizes the
Department to request a complete set of fingerprints from individual applicants
for any license, permit, certificate, registration, or other authorization
issued by the Department to engage in a regulated activity under Insurance
Code Title 13 (Regulation of Professionals)) and are not a result of the adoption,
enforcement, or administration of proposed amendment of §1.501(a) and
new §§1.503 - 1.509.
On a per individual basis, there will be no difference in the cost of compliance
between a large and small business as a result of the proposal since the costs
will be the same for each category of individual required to comply with the
proposal. Different business models or personnel benefits offered may result
in cost differences between entities; these differences, however, are a matter
of choice and are not a result of the proposed rules. Based upon the cost
of labor per hour, there is no disproportionate economic impact on small or
micro businesses. Even if the proposal results in some adverse effect on small
or micro businesses, the agency has considered the purpose of the applicable
statutes, which is to maintain effective regulation of the insurance industry
by further ensuring that persons applying for licensure or authorization,
including the officers, directors, partners, and controlling shareholders
of insurance agencies, insurance companies and other regulated entities, are
honest, trustworthy, reliable, and fit to hold the licensure or authorization,
and has determined that it is neither legal nor feasible to waive the provisions
of the proposal for small or micro businesses. Additionally, it is the Department's
position that the various applicable statutes require equal application of
any fingerprint identification process to all affected individuals.
To be considered, written comments on the proposal must be submitted no
later than 5:00 p.m. on September 5, 2006 to Gene C. Jarmon, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comments must
be simultaneously submitted to Matt Ray, Deputy Commissioner, Licensing Division,
Mail Code 107-1A, Texas Department of Insurance, P.O. Box 149104, Austin,
Texas 78714-9104.
The Commissioner will consider the adoption of the proposed amendments
and new sections in a public hearing under Docket No.2648 scheduled for September
6, 2006 at 10.00 a.m. in Room 100 of the William P. Hobby Jr. State Office
Building, 333 Guadalupe Street in Austin, Texas. Written and oral comments
presented at the hearing will be considered.
The amendment is proposed under the Occupations Code Chapter
53; Government Code Chapter 411; Labor Code Chapter 407A; and Insurance Code
Chapters 801 and 36. Occupations Code Chapter 53 states the general procedure
a licensing authority must employ when considering the consequences of a criminal
record on granting or continuing a person's license, registration or authorization.
Occupations Code §53.025 authorizes a licensing authority to issue guidelines
relating to its practice under Chapter 53. Government Code §411.106 authorizes
the Department to receive criminal history information from the DPS regarding
insurance company principals and officers and applicants for any license,
permit, or other authorization issued by the Department to engage in a regulated
activity under the Insurance Code. Government Code §§411.083 and
411.087 authorize the Department to obtain, through the DPS, criminal history
information from the FBI on those individuals described in Government Code §411.106.
Labor Code §407A.051 authorizes the Commissioner to establish application
requirements for self-insured workers' compensation groups. Labor Code §407A.008
authorizes the Commissioner to adopt rules to implement Labor Code Chapter
407A. Insurance Code §801.056 authorizes the Department to request a
complete set of fingerprints from individuals controlling an insurance company,
an insurance company's corporate officers, and individual applicants for any
license, permit, registration, certification, or other authorization issued
by the Department to engage in a regulated activity under the Insurance Code.
Insurance Code §36.001 provides that the Commissioner of Insurance may
adopt any rules necessary and appropriate to implement the powers and duties
of the Texas Department of Insurance under the Insurance Code and other laws
of this state.
The following statute is affected by the proposal: Occupations Code Chapter
53, Government Code Chapter 411, Labor Code Chapter 407A, and Insurance Code
Chapter 801.
§5.6403.Application for Initial Certificate of Approval.
(a) - (e)
(No change.)
(f)
Each member of the initial board of trustees, subsequent
members of the board, and the chief executive officer, president, secretary,
treasurer, chief financial officer and controller of the administrator and
any service company shall
comply with the requirements of Chapter 1,
Subchapter D of this title (relating to Effect of Criminal Conduct)
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 24, 2006.
TRD-200603886
Gene Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 3, 2006
For further information, please call: (512) 463-6327
Subchapter B. INSURANCE HOLDING COMPANY SYSTEM REGULATORY ACT
28 TAC §7.209
The Texas Department of Insurance proposes amending §7.209(d),
concerning the fingerprint requirement for insurance company individuals and
officers in connection with Form A filings. Form A is a statement regarding
the acquisition or change of control of a domestic insurer. The proposed amendment
is necessary to conform the existing fingerprint requirement for individuals
regulated under §7.209(d), including individual applicants or persons
who are the chairman of the board, chief executive officer, president, chief
financial officer, treasurer, and controller of the applicant if the applicant
is not an individual, with a new fingerprint submission requirement that the
Department is proposing for adoption in amended §1.501 and new §§1.503
- 1.509. Additionally, proposed amendments to §1.501 clarify that individuals
regulated under §7.209(d) are subject to existing §1.502 of this
title (relating to Licensing Persons with Criminal Backgrounds). The proposed
amendments to §1.501 and proposed new §§1.503 - 1.509 are also
published in this edition of the Texas Register. The proposed amendment to §7.209(d)
is also necessary to make the nonsubtantive revision of setting the listed
titles in lower case.
The Department anticipates that the proposal will be effective no earlier
than 90 days following the date the proposal is adopted by the Commissioner.
The Department is requesting input from commenters on the most viable effective
date. The actual effective date will then be determined following the review
and consideration of all comments.
Matt Ray, Deputy Commissioner, Licensing Division, has determined that
for each year of the first five years the proposed amendments and new sections
will be in effect, there will be an approximate $7,500 annual increase in
revenue to state government as a result of the enforcement and administration
of this proposal due to the estimated additional fingerprint submissions to
the DPS. This amount is based on an estimated additional 500 Form A related
submissions annually that will likely result from the proposed amended §7.209(d),
proposed amended §1.501, proposed new §§1.503 - 1.509, and
the statutorily authorized $15 fee for each submission collected by the DPS.
Government Code §411.088(a)(2) authorizes the DPS to charge the $15 fee
for each criminal history record information inquiry. It is the Department's
understanding based on information provided by the DPS that this fee is for
the costs of processing fingerprints and maintaining the records and systems
used by the DPS in processing submissions. Therefore, the additional submissions
may result in increased costs to the DPS, which may substantially offset or
eliminate the additional revenue. It is anticipated that most individuals
within Texas will utilize the convenience and reliability offered by the authorized
electronic fingerprint services and, as such, the Department estimates that
there will be no measurable fiscal impact to local governments from the capture
of fingerprints on paper cards by local law enforcement agencies as a result
of the enforcement or administration of this proposal. There will be no anticipated
effect on local employment or the local economy as a result of the proposal.
Mr. Ray has determined that for each year of the first five years the proposed
amendment is in effect, the anticipated public benefit will be a more thorough
and comprehensive review of the suitability of individuals regulated under §7.209(d),
including individual applicants or persons who are the chairman of the board,
chief executive officer, president, chief financial officer, treasurer, and
controller of the applicant if the applicant is not an individual, who are
seeking to obtain a license or authorization from the Department. This more
thorough and comprehensive review will further ensure that each of these individuals
is honest, trustworthy, reliable, and fit to hold the authorization. The total
probable economic costs to individuals required to comply with the proposed
amended §7.209(d), proposed amended §1.501, and proposed new §§1.503
- 1.509, are estimated to range between $48.95 and $56. This cost estimate
is based on compliance with the proposed amendment to §1.501(a) and proposed
new §§1.503 - 1.509. Any economic costs to comply with the proposed
amendment to §1.501(b) result from the enactment of several statutes
in the Occupations Code, Labor Code, and the Insurance Code, and are not a
result of the adoption, enforcement, or administration of the proposal. These
statutes include Occupations Code Chapter 53 (states the general procedure
a licensing authority must employ when considering the consequences of a criminal
record on granting or continuing a person's license, authorization, certificate,
permit, or registration), Occupations Code §53.025 (authorizes a licensing
authority to issue guidelines relating to its practice under Chapter 53),
and Labor Code §407A.051 (authorizes the Commissioner to establish application
requirements for self-insured workers' compensation groups).
The estimated $48.95 - $56 cost to individuals to comply with the proposed
amendment to §1.501(a) and proposed new §§1.503 - 1.509 is
for the charges by a vendor or criminal law enforcement agency to capture
fingerprints and the fees charged by the DPS and the FBI to process the fingerprints
and provide the Department with the individual's criminal history information.
It is anticipated that these costs will apply only once to an individual affected
by this rule as long as that individual maintains a continuous license or
authorization with the Department. These costs are in line with, or less than,
those required under similar requirements in other states. For example, California
requires a $76 fee, Florida requires a $64 fee, and Idaho requires a $60 fee.
The estimated $48.95 - $56 cost is based on the following considerations.
The Department estimates that the cost of being fingerprinted will be $9.95,
$10, or $17, depending on the vendor chosen by the individual. The $9.95 amount
is based on the charge that is collected, according to the DPS, by the DPS'
electronic fingerprint vendor for electronically capturing an individual's
fingerprints. The $10 amount is based on the current maximum charge criminal
law enforcement agencies are authorized to collect, as provided under the
Human Resources Code §80.001(b), from individuals for capturing fingerprints,
usually on paper cards. Additionally, the Department's licensing examination
vendor currently charges $10 to electronically capture the fingerprints of
an applicant taking a Department examination. The $17 amount is based on the
Department's examination vendor's charge for electronically capturing fingerprints
on an individual who is not taking a Department licensing examination. The
current cost of processing fingerprints by the DPS and FBI are, respectively,
$15 and $24 per individual. Any other economic costs to comply with the proposal
result from existing rules or from the enactment of the Government Code and
the Insurance Code, including Government Code §§411.083 (dissemination
of criminal history record information by the DPS), 411.086 (relevant rules
adopted by the DPS), 411.106 (authorizes the Department to access criminal
history record information from the DPS), Insurance Code §§801.056
(authorizes the Department to request a complete set of fingerprints from
individuals controlling an insurance company, an insurance company's corporate
officers, and individual applicants for any license, permit registration,
certification, or other authorization issued by the Department to engage in
a regulated activity under the Insurance Code), and 4001.103 (authorizes the
Department to request a complete set of fingerprints from individual applicants
for any license, permit, certificate, registration, or other authorization
issued by the Department to engage in a regulated activity under Insurance
Code Title 13 (Regulation of Professionals)) and are not a result of the adoption,
enforcement, or administration of proposed amendment of §1.501(a) and
proposed new §§1.503 - 1.509.
On a per individual basis, there will be no difference in the cost of compliance
between a large and small business as a result of the proposal since the costs
will be the same for each category of individual required to comply with the
proposal. Different business models or personnel benefits offered may result
in cost differences between entities; these differences, however, are a matter
of choice and are not a result of the proposed rules. Based upon the cost
of labor per hour, there is no disproportionate economic impact on small or
micro businesses. Even if the proposal results in some adverse effect on small
or micro businesses, the agency has considered the purpose of the applicable
statutes, which is to maintain effective regulation of the insurance industry
by further ensuring that persons applying for licensure or authorization,
including the officers, directors, partners, and controlling shareholders
of insurance agencies, insurance companies and other regulated entities, are
honest, trustworthy, reliable, and fit to hold the licensure or authorization,
and has determined that it is neither legal nor feasible to waive the provisions
of the proposal for small or micro businesses. Additionally, it is the Department's
position that the various applicable statutes require equal application of
any fingerprint identification process to all affected individuals.
To be considered, written comments on the proposal must be submitted no
later than 5:00 p.m. on September 5, 2006 to Gene C. Jarmon, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comments must
be simultaneously submitted to Matt Ray, Deputy Commissioner, Licensing Division,
Mail Code 107-1A, Texas Department of Insurance, P.O. Box 149104, Austin,
Texas 78714-9104.
The Commissioner will consider the adoption of the proposed amendments
and new sections in a public hearing under Docket No. 2645 scheduled for September
6, 2006 at 10:00 a.m. in Room 100 of the William P. Hobby Jr. State Office
Building, 333 Guadalupe Street in Austin, Texas. Written and oral comments
presented at the hearing will be considered.
The amendment is proposed under the Occupations Code Chapter
53; Government Code Chapter 411; and Insurance Code Chapters 801, 823, and
36. Occupations Code Chapter 53 states the general procedure a licensing authority
must employ when considering the consequences of a criminal record on granting
or continuing a person's license, registration or authorization. Occupations
Code §53.025 authorizes a licensing authority to issue guidelines relating
to its practice under Chapter 53. Government Code §411.106 authorizes
the Department to receive criminal history information from the DPS regarding
insurance company principals and officers and applicants for any license,
permit, or other authorization issued by the Department to engage in a regulated
activity under the Insurance Code. Government Code §§411.083 and
411.087 authorize the Department to obtain, through the DPS, criminal history
information from the FBI on those individuals described in Government Code §411.106.
Insurance Code §801.056 authorizes the Department to request a complete
set of fingerprints from an insurance carrier applicant, or the applicant
insurance company's corporate officers. Insurance Code §823.157 authorizes
the Commissioner to deny the acquisition or change of control of an insurer
if the Commissioner determines that due to a lack of trustworthiness or integrity
of the persons who would control the operations of the domestic insurer, the
acquisition or change of control would not be in the interest of the insurer'
policyholders and the public. Insurance Code §36.001 provides that the
Commissioner of Insurance may adopt any rules necessary and appropriate to
implement the powers and duties of the Texas Department of Insurance under
the Insurance Code and other laws of this state.
The following statutes are affected by the proposal: Occupations Code Chapter
53, Government Code Chapter 411, and Insurance Code Chapters 801 and 823
§7.209.Form A.
(a) - (c)
(No change.)
(d)
Identity and background of individuals associated with
the applicant.
(1)
Furnish biographical data for the applicant if such person
is an individual, or for all persons who are directors, executive officers,
or owners of 10% or more of the voting securities of the applicant if the
applicant is not an individual, with such biographical data in the form of
the biographical affidavit form adopted by reference under §7.201(a)(1)
of this title (relating to Forms Filings). Copies of this form are available
from Financial Analysis and Examinations, Mail Code 303-1A, Texas Department
of Insurance, P.O. Box 149099, 333 Guadalupe, Austin, Texas 78714-9099.
(2)
The
[
(e) - (n)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 24, 2006.
TRD-200603882
Gene Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 3, 2006
For further information, please call: (512) 463-6327
Subchapter H. LICENSING OF PUBLIC INSURANCE ADJUSTERS
This
] subchapter
applies to the following persons:
and
] viatical
and
[
or
] life
settlement registrants
, and workers' compensation health care networks
and management contractors
, under the following Insurance Code provisions:
9.36
];
9.42
];
Article 9.56
];
Article 21.07
];
Article 21.07-1
];
Article 21.07-2
];
Article 21.07-3
];
Article 21.07-4
];
Article 21.07-5
];
Article 21.07-6
];
Article 21.07-7
];
Article 21.09
];
Article 21.11
];
Article 21.14
];
Article 21.14-1
];
Article 21.14-2
];
Article 21.58A
];
Article 21.58C
];
981
];
1111
]; or
members, managers, partners and
] controlling
shareholders
, including limited liability company members and managers,
of entities that are applicants for, or holders of, a license, authorization,
permit, certification, or registration under provisions specified in paragraphs
(1) and (2) of this subsection and from whom biographical information is required;
[
and
]
(4)
officers and directors of insurance companies
subject to Insurance Code Chapter 801.
]
Chapter 3.
LIFE, ACCIDENT AND HEALTH INSURANCE AND ANNUITIES
19
], Subchapter
D
[
S
] of this title
(relating to
Effect of Criminal Conduct
[
Fingerprint Card
Requirements for Applicants for License
]).
Chapter 5.
PROPERTY AND CASUALTY INSURANCE
provide the department a complete set of fingerprints in a manner acceptable
to the department. A complete set of fingerprints is not required when a person
has one on file with the department
].
Chapter 7.
CORPORATE AND FINANCIAL REGULATION
Furnish fingerprint cards for the
] applicant if such person is an individual, or for persons who are
the
chairman of the board, chief executive officer, president, chief
financial officer, treasurer, and controller
[
Chairman of the Board,
Chief Executive Officer, President, Chief Financial Officer, Treasurer, and
Controller
] of the applicant if the applicant is not an individual
, shall comply with the requirements of Chapter 1, Subchapter D of this title
(relating to Effect of Criminal Conduct)
. [
Copies of fingerprint
cards may be obtained by sending a written request to Licensing Division,
Mail Code 107-1B, Texas Department of Insurance, P.O. Box 149104, Austin,
Texas 78714-9104, by telecopy or facsimile to (512) 475-1819, or by e-mail
to LICENSE@tdi.state.tx.us. The request should include the name of the requestor,
address, phone number and number of cards requested and should be limited
to the actual number needed up to a maximum of 25 cards per order. Fingerprint
cards are also available from local law enforcement agencies, such as sheriff
and police departments, and agent testing centers. Each fingerprint card submitted
should be accompanied by the full name of the law enforcement agency or testing
center, the printed or typed identity of the individual performing the fingerprinting,
the address, the phone and telecopy or facsimile numbers of the law enforcement
agency or testing center
].
Chapter 19.
AGENTS' LICENSING