By Averitt                                            H.B. No. 3327
         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 production of documents produced in response to an
 1-3     investigation by the Texas Department of Insurance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 38, Texas Insurance Code, is amended by
 1-6     adding section 38.003 to read as follows:
 1-7           Sec. 38.003.  REQUEST OF DOCUMENTS PURSUANT TO AN
 1-8     INVESTIGATION BY THE DEPARTMENT. (a)  In this section,
 1-9     "authorization" means a permit, certificate of registration, or
1-10     other authorization issued or existing under this code.
1-11           (b)  The department may request relevant documents as part of
1-12     an investigation from an insurance company, agent, or holder of an
1-13     authorization relating to:
1-14                 (1)  the insurer's business activities; or
1-15                 (2)  any matter connected with the insurer's
1-16     transactions that the department considers necessary for the public
1-17     good or for the proper discharge of the department's duties.
1-18           (c)  A person receiving an inquiry under Subsection (b) shall
1-19     respond to the production of requested documents not later than the
1-20     30th business day after the date the inquiry is received unless
1-21     additional time is requested and approved by the Department.  The
1-22     Department shall grant a reasonable extension if the documentary
1-23     evidence requested is voluminous in nature or other extenuating
 2-1     circumstances warrant such an extension.
 2-2           (d)  No documentary material produced pursuant to an inquiry
 2-3     under this section, unless otherwise ordered by a court for good
 2-4     cause shown, shall be produced for inspection or copying by, nor
 2-5     shall its contents be disclosed to any person other than the
 2-6     authorized employee of the department without the consent of the
 2-7     person who produced the material.  The department shall prescribe
 2-8     reasonable terms and conditions allowing the documentary material
 2-9     to be available for inspection and copying by the person who
2-10     produced the material or any duly authorized representative of that
2-11     person.  The department may use the documentary material or copies
2-12     of it as it determines necessary in the discharge of the
2-13     department's duties, including presentation before any court.  Any
2-14     material which contains trade secrets shall not be presented except
2-15     with the approval of the court in which the action is pending after
2-16     adequate notice to the person furnishing the material.