By Hartnett                                           H.B. No. 1354
         Substitute the following for H.B. No. 1354:
         By Wise                                           C.S.H.B. No. 1354
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring notice of certain appeal rights to a person
 1-3     insured or applying for medical liability insurance provided
 1-4     through a joint underwriting association.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 7, Article 21.49-3, Insurance Code, is
 1-7     amended to read as follows:
 1-8           Sec. 7.  APPEALS.  (a)  Any person insured or applying for
 1-9     insurance pursuant to this Act, or his duly authorized
1-10     representative, or any affected insurer who may be aggrieved by an
1-11     act, ruling, or decision of the association, may, within 30 days
1-12     after such act, ruling, or decision, appeal to the board of
1-13     directors of the association.  At the time the person is notified
1-14     of the act, ruling, or decision of the association, the association
1-15     shall provide to the person written notice of the person's right to
1-16     appeal under this subsection.
1-17           (b)  The board of directors of the association shall hear
1-18     said appeal within 30 days after receipt of such request or appeal
1-19     and shall give not less than 10 days' written notice of the time
1-20     and place of hearing to the person making such request or the duly
1-21     authorized representative.  Within 10 days after such hearing, the
1-22     board of directors of the association shall affirm, reverse, or
1-23     modify its previous action or the act, ruling, or decision appealed
1-24     to the board of directors of the association. At the time the
 2-1     person is notified of the final action of the board of directors of
 2-2     the association, the association shall provide to the person
 2-3     written notice of the person's right to appeal under Subsection (c)
 2-4     of this section.
 2-5           (c) [(b)]  In the event any person insured or applying for
 2-6     insurance is aggrieved by the final action of the board of
 2-7     directors of the association, the aggrieved party may, within 30
 2-8     days after such action, make a written request to the commissioner
 2-9     for a hearing thereon.  The commissioner shall hear the appeal from
2-10     an act, ruling, or decision of the association, within 30 days
2-11     after receipt of such request or appeal and shall give not less
2-12     than 10 days' written notice of the time and place of hearing to
2-13     the person, or his duly authorized representative, appealing from
2-14     the act, ruling, or decision of the board of directors of the
2-15     association.  Within 30 days after such hearing, the commissioner
2-16     shall affirm, reverse, or modify the act, ruling, or decision
2-17     appealed to the commissioner.  Pending such hearing and decision
2-18     thereon, the commissioner may suspend or postpone the effective
2-19     date of the rule or of the act, ruling, or decision appealed.
2-20           (d)  The association, or the person aggrieved by any order or
2-21     decision of the commissioner, may thereafter appeal in accordance
2-22     with Article 1.04 of this code. At the time the person is notified
2-23     of the decision of the commissioner, the commissioner shall provide
2-24     to the person written notice of the person's right to appeal under
2-25     this subsection.
2-26           SECTION 2.  This Act takes effect September 1, 1999.
2-27           SECTION 3.  The importance of this legislation and the
 3-1     crowded condition of the calendars in both houses create an
 3-2     emergency and an imperative public necessity that the
 3-3     constitutional rule requiring bills to be read on three several
 3-4     days in each house be suspended, and this rule is hereby suspended.