78R5330 AJA-D

By:  Ellis                                                        S.B. No. 1061



A BILL TO BE ENTITLED

AN ACT

relating to discrimination in the sale of insurance; providing a 
criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 21.21-6, Insurance Code, as added by 
Chapter 415, Acts of the 74th Legislature, Regular Session, 1995, 
is amended by adding Section 6 to read as follows:
	Sec. 6.  CRIMINAL PENALTY.  (a)  In this section, "person" 
means:     
		(1)  an individual, including an agent, broker, 
adjuster, or life insurance counselor; and
		(2)  an entity other than an individual that is 
described by Section 2 of this article.
	(b)  A person commits an offense if the person, with criminal 
negligence:
		(1)  offers insurance coverage at a premium based on a 
rate that is, because of race, color, religion, or national origin, 
different than another premium rate offered or used by the person 
for the same coverage; or
		(2)  collects an insurance premium based on a rate that 
is, because of race, color, religion, or national origin, different 
than another premium rate offered or used by the person for the same 
coverage.
	(c)  An offense under this section is a state jail felony.              
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.