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.