For-Profit Legal Service Contracts
Justification of the Adoption of the Rule Review of Administrative Rules
RENEW YOUR LICENSE ONLINE - online renewal of LSC licenses is now available.
Effective March 20, 2006, the Texas Department of Licensing and Regulation (TDLR) will no longer accept personal checks for For-Profit Legal Service Contract licenses or license renewals.
If you already have sent in a check with your license renewal and that check is returned to you, you may still renew your license without penalty. If TDLR receives your payment in an appropriate form, such as a money order or a certified check by April 30, 2006 and you also return the letter you receive with your returned personal check, you will not be charged a renewal late fee.
You also can use a credit card to renew your license online.
Senate Bill 597, passed by the 78th Legislature and signed into law by the Governor on June 20, 2003 transfers regulation of for-profit legal service contract companies and sales representatives to the Texas Department of Licensing and Regulation (TDLR) from the Texas Department of Insurance. The bill requires the registration of companies, sales representatives and administrators working in the legal service contract industry.
The bill became effective September 1, 2003.
To receive ongoing information about the implementation of this legislation, please subscribe to the e-mail notification list. Questions regarding the regulation of legal service contracts in Texas may be directed to TDLR at legalservicecontracts@license.state.tx.us.
Justification For The Adoption Of The Rule Review For Chapter 57, For-Profit Legal Service Contract Companies
The Texas Department of Licensing and Regulation (Department) filed a notice of intent to review and consider for re-adoption, revision, or repeal, Title 16, Texas Administrative Code (TAC), Chapter 57, For-Profit Legal Service Contract Companies. The rule review is adopted effective June 16, 2008.
In accordance with the requirements of Texas Government Code, §2001.039, the Department reviewed the administrative rules of 16 TAC Chapter 57, For-Profit Legal Service Contract Companies, to determine if the rules are obsolete, reflect current legal and policy considerations, and reflect current procedures of the Department.
The Department’s review determined that the reasons for initially adopting the rules continue to exist. The rules continue to be essential in implementing the provisions of Texas Occupations Code, Chapter 953 and the Department recommends to the Texas Commission of Licensing and Regulation (Commission) the re-adoption of Chapter 57. Based on the Department’s review, however, the Department proposes that amendments be made which may be helpful in clarifying statutory and administrative rule requirements and reflecting current Department procedures.
Proposed changes to these rules as a result of the rule review will be published in the Proposed Rules Section of the Texas Register. The proposed rules will be open for public comment prior to final adoption or repeal by the Commission in accordance with the requirements of the Administrative Procedure Act, Texas Government Code, Chapter 2001.
As noted above, the Notice of Intent to Review was published in the April 18, 2008, issue of the Texas Register and distributed to persons internal and external to the agency. The public comment period closed on May 19, 2008. One public comment was received in response to the notice. The commenter expressed a concern that sales representatives are required to be registered with the Department. The requirement for sales representatives to register with the Department is statutory, and this is not an issue that can be addressed by rulemaking.
The rules are re-adopted by the Commission in accordance with Texas Government Code, §2001.039. This concludes the review of 16 TAC, Chapter 57, For-Profit Legal Service Contract Companies.
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
