By Gray H.B. No. 2700 75R9123 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the administrative review of class action lawsuits. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Amend Article 1.10, Insurance Code by adding the 1-5 following section: 1-6 (21) Administration of Class Action Proceedings. (a) 1-7 If any person plans to file or has filed a cause of action against 1-8 an insurer, insurers or other holder of a certificate of authority 1-9 issued by the Department which will seek procedural treatment as a 1-10 class action, that person must give notice to the Commissioner of 1-11 such at the earliest opportunity. The notice shall include all 1-12 pertinent information concerning the proposed or filed cause of 1-13 action, including identity of the parties, harm alleged and damages 1-14 sought to be recovered. Failure to give this notice shall preclude 1-15 the maintenance of such cause as a class action proceeding, and the 1-16 court shall dismiss every class action proceeding so affected which 1-17 has not complied with the provisions of this section. 1-18 (b) It shall be the duty of the Commissioner to review every 1-19 cause of action filed or matter proposed to be filed as a class 1-20 action proceeding in which one or more insurers or other holders of 1-21 a certificate of authority issued by the Department are or are 1-22 proposed to be a defendant. Pending that review and any 1-23 determination as hereafter provided in (c), a pending cause of 1-24 action shall be abated, and no proposed matter shall be filed. If 2-1 the Commissioner commences an administrative action against the 2-2 affected insurer, insurers or holder of a certificate of authority 2-3 within one year from the date the Commissioner receives notice from 2-4 the plaintiff or plaintiffs, the period of review shall continue 2-5 until the administrative action is finally determined or 2-6 adjudicated. Failure to commence an administrative action within 2-7 one year from such notice shall end the period for review and 2-8 authorize the commencement or completion of a class action 2-9 proceeding, still subject, however, to all other requirements 2-10 provided in the Texas Rules of Civil Procedure. For and during the 2-11 period of review by the Commissioner any applicable statute of 2-12 limitations shall be tolled. 2-13 (c) If, after review, the Commissioner issues an order 2-14 involving one or more of such insurers or certificate holders which 2-15 results in restitution to the affected insureds, as to such 2-16 insurer, insurers or certificate holder, (i) no type of class 2-17 action lawsuit or proceeding may be filed, or (ii) if a class 2-18 action lawsuit or proceeding was filed prior to being submitted to 2-19 the Commissioner for review, the class action suit shall be 2-20 dismissed by the court without further action or prejudice to the 2-21 refiling of any individual lawsuit concerning the same subject 2-22 matter. 2-23 SECTION 2. This act takes effect on September 1, 1997, and 2-24 shall apply to all administrative actions initiated by and pending 2-25 before the Department as of that date and thereafter. It shall 2-26 also apply to every cause of action filed but in which trial has 2-27 not commenced as of that date. 3-1 SECTION 3. 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, 3-6 and that this Act take effect and be in force from and after its 3-7 passage, and it is so enacted.