1-1     By:  Lewis of Tarrant (Senate Sponsor - Shapleigh)    H.B. No. 1902

 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 administrative procedures for certain orders and

 1-9     decisions of the Texas Department of Insurance.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Article 1.10B, Insurance Code, is amended to read

1-12     as follows:

1-13           Art. 1.10B.  MAILING PROCEDURES FOR CERTAIN ORDERS AND

1-14     DECISIONS.  [(a)]  Notwithstanding Section 2001.142, Government

1-15     Code [the requirements of Subsection (b), Section 16,

1-16     Administrative Procedure and Texas Register Act (Article 6252-13a,

1-17     Vernon's Texas Civil Statutes)], the department [State Board of

1-18     Insurance] shall mail to each party and the party's attorney of

1-19     record in a contested case before the department [board] or the

1-20     commissioner [of insurance] a copy of the department's [board's] or

1-21     commissioner's written decision or order in that case by certified

1-22     mail, return receipt requested.

1-23           [(b)  Notwithstanding the requirements of Subsection (e),

1-24     Section 16, Administrative Procedure and Texas Register Act

1-25     (Article 6252-13a, Vernon's Texas Civil Statutes), a motion for

1-26     rehearing in a contested case must be filed not later than the 15th

1-27     day after the date of receipt of the decision or order under

1-28     Section (a) of this article.  For purposes of this section, the

1-29     date of receipt of the decision or order is the date it is

1-30     delivered as reflected on the return receipt or the fifth day after

1-31     the date of the postmark stamped on the certified correspondence

1-32     under Section (a) of this article, whichever date is later.]

1-33           SECTION 2.  Subsection (b), Article 1.33B, Insurance Code,

1-34     is amended to read as follows:

1-35           (b)  The State Office of Administrative Hearings established

1-36     under Chapter 2003, Government Code, [591, Acts of the 72nd

1-37     Legislature, Regular Session, 1991 (Article 6252-13f, Vernon's

1-38     Texas Civil Statutes), and its subsequent amendments] shall conduct

1-39     any administrative hearing required to be held or that may be held

1-40     under this code or another insurance law of this state.  This

1-41     article applies only to hearings required to be held before a

1-42     decision may be rendered or action taken by the commissioner or the

1-43     department.

1-44           SECTION 3.  Subsection (c)(1), Article 1.33B, Insurance Code,

1-45     is amended to read as follows:

1-46                 (1)  Rate promulgation proceedings shall be governed by

1-47     the provisions of this subsection and shall be treated as a

1-48     contested case under the Administrative Procedure [and Texas

1-49     Register] Act, Chapter 2001, Government Code [(Article 6252-13a,

1-50     Vernon's Texas Civil  Statutes)].  Accordingly, the procedures

1-51     before the commissioner shall be guided by the principles and

1-52     procedures for contested cases as provided by [in] the

1-53     Administrative Procedure [and Texas Register] Act, Chapter 2001,

1-54     Government Code, [(Article  6252-13a, Vernon's Texas Civil

1-55     Statutes)] and the Texas Rules of Civil Procedure to the extent not

1-56     inconsistent with the provisions of this subsection.

1-57           SECTION 4.  This Act takes effect September 1, 1997.

1-58           SECTION 5.  The importance of this legislation and the

1-59     crowded condition of the calendars in both houses create an

1-60     emergency and an imperative public necessity that the

1-61     constitutional rule requiring bills to be read on three several

1-62     days in each house be suspended, and this rule is hereby suspended.

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