By Giddings H.B. No. 3254 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to limitations period for certain diciplinary actions. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 81, Section 81.001, Subsection (b) Texas 1-5 Insurance Code, is amended to read as follows: 1-6 (a) Except as provided by Subsection (b), the department or 1-7 commissioner may not begin an action to impose a sanction, penalty, 1-8 or fine, including an administrative penalty, against an insurer, 1-9 agent, or other license holder who is subject to the jurisdiction 1-10 of the department for conduct that is a violation of this code or 1-11 another insurance law of this state after the earlier of: 1-12 (1) the fifth anniversary of the date on which the 1-13 conduct that is a violation occurred; or 1-14 (2) the second anniversary of the earlier of: 1-15 (A) the date on which the conduct that is a 1-16 violation is first discovered by the department; or 1-17 (B) the date on which the conduct that is a 1-18 violation is made known to the department. 1-19 (b) The department or commissioner may not begin an action 1-20 to impose a sanction, penalty, or fine, including an administrative 1-21 penalty, against an insurer, agent, or other license holder who is 1-22 subject to the jurisdiction of the department for conduct that is a 1-23 violation of this code or another insurance law of this state and 2-1 that involves fraud by the insurer, agent, or license holder after 2-2 the fifth anniversary of the earlier of: 2-3 (1) the date on which the conduct that is a violation 2-4 is first discovered by the department; or 2-5 (2) the date on which the conduct that is a violation 2-6 is made known to the department. 2-7 (c) This section does not apply to conduct that is a 2-8 violation that is ongoing at the time the department seeks to 2-9 impose the sanction, penalty, or fine or conduct, regardless of the 2-10 time of its occurrence, that is a violation of Unfair 2-11 Discrimination, Chapter 21, Subchapter B, Article 21.21-6, 2-12 Subsection 3(a).