1-1 By: Lewis of Tarrant (Senate Sponsor - Shapleigh) H.B. No. 1901
1-2 (In the Senate - Received from the House April 23, 1997;
1-3 April 24, 1997, read first time and referred to Committee on
1-4 Economic Development; April 30, 1997, reported favorably by the
1-5 following vote: Yeas 11, Nays 0; April 30, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain sanctions imposed by the commissioner of
1-9 insurance.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 7(a), Article 1.10, Insurance Code, is
1-12 amended to read as follows:
1-13 (a) After notice and opportunity for a hearing, the
1-14 Commissioner may cancel or revoke any permit, license, certificate
1-15 of authority, certificate of registration, or other authorization
1-16 issued or existing under the Commissioner's [its] authority or the
1-17 authorization of this Code if the holder or possessor of same is
1-18 found to be in violation of, or to have failed to comply with, a
1-19 specific provision of the Code or any duly promulgated rule or
1-20 regulation of the Commissioner. The [In lieu of such cancellation
1-21 or revocation, the] Commissioner may also order one or more of the
1-22 following sanctions [if it determines from the facts that such
1-23 would be more fair, reasonable, or equitable]:
1-24 (1) Suspend such authorization for a time certain, not
1-25 to exceed one year;
1-26 (2) Order the holder or possessor of such
1-27 authorization to cease and desist from the specified activity
1-28 determined to be in violation of specific provisions of this Code
1-29 or rules and regulations of the Commissioner or from failure to
1-30 comply with such provisions of this Code or such rules and
1-31 regulations;
1-32 (3) Direct the holder or possessor of such
1-33 authorization to pay an administrative penalty in accordance with
1-34 Article 1.10E of this code; or
1-35 (4) Direct the holder or possessor of such
1-36 authorization to make complete restitution to all Texas residents,
1-37 Texas insureds, and entities operating in Texas harmed by the
1-38 violation or failure to comply.
1-39 SECTION 2. The change in law made by this Act applies only
1-40 to sanctions imposed for conduct that occurred on or after the
1-41 effective date of this Act. Sanctions imposed for conduct that
1-42 occurred before the effective date of this Act are governed by the
1-43 law as it existed immediately before the effective date of this
1-44 Act, and that law is continued in effect for that purpose.
1-45 SECTION 3. This Act takes effect September 1, 1997.
1-46 SECTION 4. The importance of this legislation and the
1-47 crowded condition of the calendars in both houses create an
1-48 emergency and an imperative public necessity that the
1-49 constitutional rule requiring bills to be read on three several
1-50 days in each house be suspended, and this rule is hereby suspended.
1-51 * * * * *