Section 1. Amend HB 1131 on page 1 by striking line 17 and 18 
and replacing with the following:
	Sec. 2306.002. INSURER INTEREST. An insurer may not hold or 
acquire interest in a repair facility without disclosing such 
ownership interest.
	Section 2. Amend HB 1131 on page 1 by striking line 19 on page 
1 through line 27 on page 2 and inserting the following sections:
	Sec. 2306.003. PROHIBITION. An insurer that has any ownership 
interest in a repair facility may not:
	(a) state or suggest, either orally or in writing, to a 
beneficiary that a repair facility in which the insurer has any 
ownership interest must be used by a beneficiary in order for the 
damage repair or parts replacement to be covered by the policy; or
	(b) in a settlement of liability claims by a third-party 
against an insured for property damage claimed by the third-party, 
require the third-party claimant to have repairs made by a repair 
facility in which the insurer had any ownership interest.
	Sec. 2306.004. PENALTY. Any person alleging any actual 
damages caused by an insurer's violation of this chapter shall 
first file a complaint setting forth a claim for damages with the 
Department of Insurance.  The department shall have ninety (90) 
business days to take action upon this complaint.  If the department 
does not take action within ninety (90) business day, a third-party 
claimant may bring an action to recover damages for a violation of 
this chapter.  A third-party claimant who prevails in an action 
under this subsection is entitled to recover:
		(1) the claimant's actual damages, not to exceed $5000;                
		(2) attorney's fees as described by Chapter 38, Civil 
Practice and Remedies Code; and
		(3) court costs.                                                       
	Section 3. The effective date of this Act is September 1, 
2003.