1-1                                   AN ACT

 1-2     relating to administrative procedures for certain orders and

 1-3     decisions of the Texas Department of Insurance.

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

 1-5           SECTION 1.  Article 1.10B, Insurance Code, is amended to read

 1-6     as follows:

 1-7           Art. 1.10B.  MAILING PROCEDURES FOR CERTAIN ORDERS AND

 1-8     DECISIONS.  [(a)]  Notwithstanding Section 2001.142, Government

 1-9     Code [the requirements of Subsection (b), Section 16,

1-10     Administrative Procedure and Texas Register Act (Article 6252-13a,

1-11     Vernon's Texas Civil Statutes)], the department [State Board of

1-12     Insurance] shall mail to each party and the party's attorney of

1-13     record in a contested case before the department [board] or the

1-14     commissioner [of insurance] a copy of the department's [board's] or

1-15     commissioner's written decision or order in that case by certified

1-16     mail, return receipt requested.

1-17           [(b)  Notwithstanding the requirements of Subsection (e),

1-18     Section 16, Administrative Procedure and Texas Register Act

1-19     (Article 6252-13a, Vernon's Texas Civil Statutes), a motion for

1-20     rehearing in a contested case must be filed not later than the 15th

1-21     day after the date of receipt of the decision or order under

1-22     Section (a) of this article.  For purposes of this section, the

1-23     date of receipt of the decision or order is the date it is

1-24     delivered as reflected on the return receipt or the fifth day after

 2-1     the date of the postmark stamped on the certified correspondence

 2-2     under Section (a) of this article, whichever date is later.]

 2-3           SECTION 2.  Subsection (b), Article 1.33B, Insurance Code,

 2-4     is amended to read as follows:

 2-5           (b)  The State Office of Administrative Hearings established

 2-6     under Chapter 2003, Government Code, [591, Acts of the 72nd

 2-7     Legislature, Regular Session, 1991 (Article 6252-13f, Vernon's

 2-8     Texas Civil Statutes), and its subsequent amendments] shall conduct

 2-9     any administrative hearing required to be held or that may be held

2-10     under this code or another insurance law of this state.  This

2-11     article applies only to hearings required to be held before a

2-12     decision may be rendered or action taken by the commissioner or the

2-13     department.

2-14           SECTION 3.  Subsection (c)(1), Article 1.33B, Insurance Code,

2-15     is amended to read as follows:

2-16                 (1)  Rate promulgation proceedings shall be governed by

2-17     the provisions of this subsection and shall be treated as a

2-18     contested case under the Administrative Procedure [and Texas

2-19     Register] Act, Chapter 2001, Government Code [(Article 6252-13a,

2-20     Vernon's Texas Civil  Statutes)].  Accordingly, the procedures

2-21     before the commissioner shall be guided by the principles and

2-22     procedures for contested cases as provided by [in] the

2-23     Administrative Procedure [and Texas Register] Act, Chapter 2001,

2-24     Government Code, [(Article  6252-13a, Vernon's Texas Civil

2-25     Statutes)] and the Texas Rules of Civil Procedure to the extent not

2-26     inconsistent with the provisions of this subsection.

2-27           SECTION 4.  This Act takes effect September 1, 1997.

 3-1           SECTION 5.  The importance of this legislation and the

 3-2     crowded condition of the calendars in both houses create an

 3-3     emergency and an imperative public necessity that the

 3-4     constitutional rule requiring bills to be read on three several

 3-5     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1902 was passed by the House on April

         22, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1902 was passed by the Senate on May

         8, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor