BILL ANALYSIS


                                                        S.B. 1101
                                                    By: Henderson
                                             Economic Development
                                                         04-12-95
                                     Committee Report (Unamended)
BACKGROUND

Under current law, the Department of Insurance is charged with the
responsibility of regulating and overseeing the insurance business
in Texas, and ensuring compliance with appropriate laws.  Current
law also authorizes the attorney general to file suit against any
insurance company or person in the insurance business for violation
of the Insurance Code.  As a result, a conflict of interest can
arise between the department and attorney general.

PURPOSE

As proposed, S.B. 1101 authorizes the commissioner of insurance to
ask the attorney general to bring an action against a person the
commissioner believes to be in violation of Article 21.21,
Insurance Code, or Section 17.46, Business and Commerce Code.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 15(a), Article 21.21, Insurance Code, to
authorize the commissioner of insurance to request that the
attorney general bring an action against a person the commissioner
believes to be in violation of this article or Section 17.46,
Business and Commerce Code, if such action would be in the public
interest.

SECTION 2. Emergency clause.
           Effective date: upon passage.