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.