1-1     By:  Hartnett (Senate Sponsor - Carona)               H.B. No. 1354
 1-2           (In the Senate - Received from the House April 26, 1999;
 1-3     April 27, 1999, read first time and referred to Committee on
 1-4     Economic Development; May 13, 1999, reported favorably by the
 1-5     following vote:  Yeas 7, Nays 0; May 13, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to requiring notice of certain appeal rights to a person
 1-9     insured or applying for medical liability insurance provided
1-10     through a joint underwriting association.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 7, Article 21.49-3, Insurance Code, is
1-13     amended to read as follows:
1-14           Sec. 7.  APPEALS.  (a)  Any person insured or applying for
1-15     insurance pursuant to this Act, or his duly authorized
1-16     representative, or any affected insurer who may be aggrieved by an
1-17     act, ruling, or decision of the association, may, within 30 days
1-18     after such act, ruling, or decision, appeal to the board of
1-19     directors of the association.  At the time the person is notified
1-20     of the act, ruling, or decision of the association, the association
1-21     shall provide to the person written notice of the person's right to
1-22     appeal under this subsection.
1-23           (b)  The board of directors of the association shall hear
1-24     said appeal within 30 days after receipt of such request or appeal
1-25     and shall give not less than 10 days' written notice of the time
1-26     and place of hearing to the person making such request or the duly
1-27     authorized representative.  Within 10 days after such hearing, the
1-28     board of directors of the association shall affirm, reverse, or
1-29     modify its previous action or the act, ruling, or decision appealed
1-30     to the board of directors of the association. At the time the
1-31     person is notified of the final action of the board of directors of
1-32     the association, the association shall provide to the person
1-33     written notice of the person's right to appeal under Subsection (c)
1-34     of this section.
1-35           (c) [(b)]  In the event any person insured or applying for
1-36     insurance is aggrieved by the final action of the board of
1-37     directors of the association, the aggrieved party may, within 30
1-38     days after such action, make a written request to the commissioner
1-39     for a hearing thereon.  The commissioner shall hear the appeal from
1-40     an act, ruling, or decision of the association, within 30 days
1-41     after receipt of such request or appeal and shall give not less
1-42     than 10 days' written notice of the time and place of hearing to
1-43     the person, or his duly authorized representative, appealing from
1-44     the act, ruling, or decision of the board of directors of the
1-45     association.  Within 30 days after such hearing, the commissioner
1-46     shall affirm, reverse, or modify the act, ruling, or decision
1-47     appealed to the commissioner.  Pending such hearing and decision
1-48     thereon, the commissioner may suspend or postpone the effective
1-49     date of the rule or of the act, ruling, or decision appealed.
1-50           (d)  The association, or the person aggrieved by any order or
1-51     decision of the commissioner, may thereafter appeal in accordance
1-52     with Article 1.04 of this code. At the time the person is notified
1-53     of the decision of the commissioner, the commissioner shall provide
1-54     to the person written notice of the person's right to appeal under
1-55     this subsection.
1-56           SECTION 2.  This Act takes effect September 1, 1999.
1-57           SECTION 3.  The importance of this legislation and the
1-58     crowded condition of the calendars in both houses create an
1-59     emergency and an imperative public necessity that the
1-60     constitutional rule requiring bills to be read on three several
1-61     days in each house be suspended, and this rule is hereby suspended.
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