By Lewis of Tarrant                                   H.B. No. 1901

         75R5698 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain sanctions imposed by the commissioner of

 1-3     insurance.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 7(a), Article 1.10, Insurance Code, is

 1-6     amended to read as follows:

 1-7           (a)  After notice and opportunity for a hearing, the

 1-8     Commissioner may cancel or revoke any permit, license, certificate

 1-9     of authority, certificate of registration, or other authorization

1-10     issued or existing under the Commissioner's [its] authority or the

1-11     authorization of this Code if the holder or possessor of same is

1-12     found to be in violation of, or to have failed to comply with, a

1-13     specific provision of the Code or any duly promulgated rule or

1-14     regulation of the Commissioner.  The [In lieu of such cancellation

1-15     or revocation, the] Commissioner may also order one or more of the

1-16     following sanctions [if it determines from the facts that such

1-17     would be more fair, reasonable, or equitable]:

1-18                 (1)  Suspend such authorization for a time certain, not

1-19     to exceed one year;

1-20                 (2)  Order the holder or possessor of such

1-21     authorization to cease and desist from the specified activity

1-22     determined to be in violation of specific provisions of this Code

1-23     or rules and regulations of the Commissioner or from failure to

1-24     comply with such provisions of this Code or such rules and

 2-1     regulations;

 2-2                 (3)  Direct the holder or possessor of such

 2-3     authorization to pay an administrative penalty in accordance with

 2-4     Article 1.10E of this code;  or

 2-5                 (4)  Direct the holder or possessor of such

 2-6     authorization to make complete restitution to all Texas residents,

 2-7     Texas insureds, and entities operating in Texas harmed by the

 2-8     violation or failure to comply.

 2-9           SECTION 2.  The change in law made by this Act applies only

2-10     to sanctions imposed for conduct that occurred on or after the

2-11     effective date of this Act.  Sanctions imposed for conduct that

2-12     occurred before the effective date of this Act are governed by the

2-13     law as it existed immediately before the effective date of this

2-14     Act, and that law is continued in effect for that purpose.

2-15           SECTION 3.  This Act takes effect September 1, 1997.

2-16           SECTION 4.  The importance of this legislation and the

2-17     crowded condition of the calendars in both houses create an

2-18     emergency and an imperative public necessity that the

2-19     constitutional rule requiring bills to be read on three several

2-20     days in each house be suspended, and this rule is hereby suspended.