RS H.B. 1902 75(R)    BILL ANALYSIS


INSURANCE
H.B. 1902
By: Lewis, Glenn
3-24-97
Committee Report (Unamended)



BACKGROUND 

Under current statutes, a conflict exists regarding the time period in
which a party to a contested administrative action may file an appeal
through a motion for rehearing. Under Article 1.33B, which governs
contested cases heard by the State Office of Administrative Hearings
(SOAH), the parties are required to follow procedures set out in the
Administrative Procedures Act (APA). This Act provides a 20-day time
period in which to file a motion for rehearing; however, under Article
1.10B(b) of the Texas Insurance code, the appellant has only 15 days to
file the motion for rehearing. Not only does this create confusion for
parties outside the Department of Insurance who practice administrative
law, it also creates an internal conflict for staff in determining when a
motion for rehearing is timely filed. No other agency has its own
statutory provisions for the procedural filing of motions for rehearing;
all other agencies rely on the APA. 

PURPOSE

This bill repeals the subsection of the Insurance Code that establishes
the 15 day timeframe for filing a motion for rehearing and makes that
procedure subject to the APA. This will eliminate the confusion caused by
the conflicting sections and make the timeframe for TDI rehearings the
same as all other administrative agencies. 

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 Article 1.10B by eliminating the subsection
designations, repealing subsection (b) and, in the former subsection (a),
updating the reference to the Administrative Procedure Act by citing the
Government Code and deleting cite to Article 6252 13a. Changes references
to the "board" to the "department". 

SECTION 2. Amends Article 1.33B, subsection (b) of the Insurance Code by
citing the Chapter 2003, Government Code, and repealing the reference to
6252-13f.  

SECTION 3. Amends Article 1.33B, subsection (c)(1), Insurance Code, by
citing the Chapter 2001, Government Code, and repealing the reference to
6252-13a. 

SECTION 4. Act takes effect September 1, 1997.

SECTION 5. Emergency Clause.