C.S.H.B. 1838 78(R)    BILL ANALYSIS


C.S.H.B. 1838
By: Thompson
Insurance
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Section 35.02 of the Penal Code defines the penalties imposed for
conviction of insurance fraud. However, it does not specify that a person
convicted of insurance fraud must repay the insurer for any money or
property fraudulently obtained.  The courts may order restitution, but are
not required to do so by law.  Failure to receive restitution can result
in significant losses for insurers, which may ultimately contribute to the
rising cost of insurance in this state.  C.S.H.B. 1838 requires a court to
order a defendant convicted of insurance fraud to pay restitution to an
affected insurer. 
 
RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
  
C.S.H.B. 1838 amends the Penal Code to require a court to order a
defendant convicted of insurance fraud to pay restitution, including court
costs and attorney's fees to an affected insurer. 

EFFECTIVE DATE

September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute conforms the original to Texas Legislative Council style
and format.