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).