BILL ANALYSIS



S.B. 1009
By: Brown (Shields)
05-08-95
Committee Report (Unamended)


BACKGROUND

     Current sanctions relating to persons who act as a life
insurance counselor or who violate life insurance counselor
provisions in the Insurance Code are inconsistent with punishment
ranges in the Penal Code.

PURPOSE

     As proposed, S.B. 1009 provides sanctions for individuals who
act as a life insurance counselor without a license or who violate
provisions of the Insurance Code relating to life insurance
counselors.

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 Section 7, Article 21.07-2, V.T.I.C., as follows:

     Sec. 7.  (a) Provides that a person commits an offense if the
     person acts as a life insurance counselor without a license
     issued under this Act or violates this Act.  Provides that
     each violation constitutes a separate offense and an offense
     under this subsection is a Class C misdemeanor.
     
     (b) Subjects a person who commits a violation under this Act
       to license revocation under Section 5, Article 21.01-2,
       V.T.I.C.  Makes a license holder ineligible for a new
       license for two years after the effective date of the
       license revocation if the department revokes the license. 
       Deletes existing Section 7 relating to punishment of an
       offense under this Act.
       
       SECTION 2.   Makes application of this Act prospective.

SECTION 3. Emergency clause.
           Effective date: 90 days after adjournment.

SUMMARY OF COMMITTEE ACTION

     Pursuant to an announcement filed with the Journal Clerk and
read by the Reading Clerk, in accordance with House Rules, the
House Committee on Insurance met in a formal meeting on May 8, 1995
at desk #24 on the House Floor and was called to order by the
Chair, Representative John Smithee.

     The Chair laid out S.B. 1009 and recognized Representative
Shields to explain the bill.  The Chair recognized Representative
Averitt who moved the Committee report S.B. 1009 as engrossed to
the full House with the recommendation that it do pass, be printed
and be sent to the Committee on Local and Consent.  Representative
Driver seconded the motion and the motion prevailed by the
following vote: AYES: (6); NAYES: (0); PNV: (0); ABSENT (3).