HBA-CMT C.S.H.B. 3254 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3254
By: Giddings
Insurance
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

There have been instances in the past where some companies in the life
insurance industry have charged different policy premiums based on a
person's race.  A settlement last year penalized American General for its
former practice of race-based premiums.  It is believed that other
companies working in the state of Texas still have some of these race-based
policy rates on the books.  Currently, there are time limitations for when
an investigation of a violation by the Texas Department of Insurance
(department) or the commissioner of insurance (commissioner) must start.
C.S.H.B. 3254 provides that the statute of limitations on investigations of
a violation do not apply to discrimination on the basis of race or color.   

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. 

ANALYSIS

C.S.H.B. 3254 amends the Insurance Code to set forth that the limitations
period for certain disciplinary actions by the commissioner of insurance or
the Texas Department of Insurance does not apply to conduct that is a
violation of the unfair discrimination, unfair competition, or unfair
practices provisions of the code as those provisions relate to
discrimination on the basis of race or color,  regardless of the time of
its occurrence.  

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3254 modifies the original bill to include unfair practices and
unfair competition in the provisions of the bill.  The substitute conforms
to Texas Legislative Council style and format.  The substitute adds an
effective date to the bill.