BILL ANALYSIS



H.B. 148
By: Shields
04-26-95
Committee Report (Unamended)


BACKGROUND

     Chapter 17, Section 17.41 through 17.63 of the Business and
Commerce Code is the Texas Deceptive Trade Practices and Consumer
Protection Act which was originally passed by the 63rd Legislature
and became effective in 1973.  Subsequent amendments were made by
the 66th through 72nd Legislatures.  Article 21.21, Insurance Code,
is commonly referred to as the insurance industry's Deceptive Trade
Practices Act.

     Both Acts are similar in many ways, however, several
discrepancies exist between the respective Acts.  For instances,
the notification time period with the intent to file suit.  Chapter
17 of the Business and Commerce Code requires a 60-day time period
while the Insurance Code requires a 30-day period.  Another
difference is the Business and Commerce Code allows a court to
award treble damages if the defendant acted knowingly.  The
Insurance Code mandates treble damages in all circumstances.


PURPOSE

     This purpose of this bill make Article 21.21, Insurance Code,
consistent with Business and Commerce Code Deceptive Trade
Practices Act.


RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.


SECTION BY SECTION ANALYSIS


SECTION 1.
Amends subsections (b), (e), (f), and (g), Section 16, Article
21.21 of the Insurance Code.

1)   Subsection (b) - Provides mandatory treble damages for actual
damages under  $1000,    and discretionary treble actual damages
awarded by court if acts were      committed      knowingly.

2)   Subsection (e) - Provides reasonable inspection of goods or
properties subject of         the complaint.  If plaintiff refuses
inspection treble damages cannot be awarded.

3)   Subsections (e), (f), and (g) provide for a 60 day notice of
intent period before suit          can be filed.


SECTION 2. Effective Date


SECTION 3. Emergency Clause


SUMMARY OF COMMITTEE ACTION

     In accordance with House Rules, H.B. was heard in a public
hearing on March 8, 1995.  
The Chair laid out H.B. 148 recognized Representative Shields to
explain the bill.  The Chair recognized Representative Driver who
offered a Committee amendment to H.B. 148.  The Chair recognized
the following persons to testify in support of H.B. 148:  Wade
Spilman, Texas Association of Insurance Agents; Paul McConnell,
representing himself; James L. Gosdin, Stewart Title Guaranty
Company; Otis Fagan, private homeowner; Maxine Aaronson, Texas
Neighborhoods Together; Lawrence DeMartino, San Antonio Coalition
of Neighborhood Association of Texas; Don Wilmard, Dallas
Homeowners League; Ephesian Harden, Friendship Homeowner
Association; Victoria Frayser, Houston Homeowners Association; Mary
Wallace, San Antonio Coalition of Neighborhood Association.

     The Chair recognized the following person to testify in
opposition to H.B. 148:
Rob Schneider, Consumers Union.  The Chair left H.B. 148 and the
amendment pending before the Committee.

     On April 26, 1995, the chair laid out H.B. 148 and recognized
Representative Counts who moved the Committee report H.B. 148 as
filed to the full House with the recommendation that it do pass and
be printed.  The motion prevailed by the following vote: AYES: (7);
NAYES (0); PNV (0); ABSENT (2).