HBA-ATS S.B. 321 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 321 By: Ellis Civil Practices 4/20/1999 Engrossed BACKGROUND AND PURPOSE Texas law specifies that a person is authorized to recover reasonable attorney's fees from an individual or corporation, in addition to the amount of a valid claim and costs, but only if the person files a claim for rendered services, performed labor, furnished material, freight or express overcharges, lost or damaged freight or express, killed or injured stock, a sworn account, or an oral or written contract. Under the statute, a person may not recover reasonable attorney's fees based on a contract issued by an insurer that is subject to the provisions of certain articles of the Insurance Code. S.B. 321 includes Article 21.55 (Prompt Payment of Claims), Insurance Code, among the provisions under which recovery of reasonable attorney's fees is precluded to the extent fees are recovered under that article, and deletes Article 3.62, Insurance Code (repealed), and Section 1, Chapter 387, Acts of the 55th Legislature, Regular Session, 1957 (Article 3.62-1, Insurance Code) (repealed) from the Insurance Code provisions excepted from the recovery of reasonable attorney's fees. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 38.006, Civil Practice and Remedies Code, to provide that this chapter (Attorney's Fees) does not apply to a contract issued by an insurer to the extent fees are recovered under, rather than is subject to the provisions of, Chapter 9 (Texas Title Insurance Act), Insurance Code, Article 21.21 (Unfair Competition and Unfair Practices), Insurance Code, or Unfair Claim Settlement Practices Act (Article 21.21-2, Insurance Code). Includes Article 21.55, Insurance Code, among the provisions under which recovery of reasonable attorney's fees is precluded to the extent fees are recovered under that article, and deletes Article 3.62, Insurance Code (repealed), and Section 1, Chapter 387, Acts of the 55th Legislature, Regular Session, 1957 (Article 3.62-1, Insurance Code) (repealed) from the Insurance Code provisions excepted from the recovery of reasonable attorney's fees. Makes conforming changes. SECTION 2.Emergency clause. Effective date: upon passage.