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.

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