Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Shields                                      H.B. No. 3008

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain inquiries made by the Texas Department of

 1-3     Insurance and information from those inquiries.

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

 1-5           SECTION 1.  Article 1.24, Insurance Code, is amended to read

 1-6     as follows:

 1-7           Art. 1.24.  To Make Inquiries.  (a)  The department [Board]

 1-8     is authorized to address any reasonable inquiries to any insurance

 1-9     company or insurance agent, or to the holder of any permit,

1-10     certificate of registration, or other authorization issued or

1-11     existing under the authority or authorization of this code, in

1-12     relation to the company's, agent's, or holder's business condition,

1-13     or any matter connected with its regulated activities or

1-14     transactions which the department [Board] may deem necessary for

1-15     the [public good or for a] proper discharge of the department's

1-16     [its] duties.  It shall be the duty of the addressee to answer such

1-17     inquiries in writing not later than the 30th [10th] day after the

1-18     date the request is received.  A response made under this article

1-19     is for the exclusive use of the department in the discharge of its

1-20     regulatory duties.  Information provided in a response that is

1-21     otherwise privileged or confidential by law remains privileged or

1-22     confidential except as necessary to discharge the duties of the

1-23     department, including introducing a response or information

1-24     provided in a response as evidence in a department proceeding.

 2-1     [unless and until introduced into evidence at an administrative

 2-2     hearing or in a court of competent jurisdiction.]  Information

 2-3     provided in a response that is proprietary in nature shall be

 2-4     maintained as confidential by the department.  Use of the response

 2-5     or the information provided in the response in a court of competent

 2-6     jurisdiction must comply with applicable rules of evidence and

 2-7     procedure.

 2-8           (b)  An inquiry made under this article must be signed by the

 2-9     commissioner or by one of the four associate commissioners with

2-10     jurisdiction over the subject matter of the inquiry. The

2-11     commissioner or associate commissioner may not delegate the duty

2-12     imposed by this subsection to another individual.

2-13           (c)  Except as provided in Subsection (a) of this article, a

2-14     response and the information contained in a response is not subject

2-15     to Chapter 552 or 2001, Government Code, or discovery from the

2-16     department under the Texas Rules of Civil Procedure.

2-17           Section 2.  This Act applies only to inquiries made by the

2-18     Texas Department of Insurance on or after the effective date of

2-19     this Act.  An inquiry made before the effective date of this Act is

2-20     governed by the law as it existed before the effective date of this

2-21     Act, and that law is continued in effect for this purpose.

2-22           Section 3.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

2-26     days in each house be suspended, and this rule is hereby suspended,

2-27     and that this Act take effect and be in force from and after its

2-28     passage, and it is so enacted.