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).