| 1 | 1 | | H.B. No. 652 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to licensing of escrow officers. |
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| 6 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 7 | 7 | | SECTION 1. Section 2652.051, Insurance Code, is amended by |
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| 8 | 8 | | amending Subsection (c) and adding Subsection (d) to read as |
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| 9 | 9 | | follows: |
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| 10 | 10 | | (c) The completed application must state that: |
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| 11 | 11 | | (1) the proposed escrow officer is an individual who |
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| 12 | 12 | | is a bona fide resident of: |
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| 13 | 13 | | (A) this state; or |
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| 14 | 14 | | (B) a state adjacent to this state; |
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| 15 | 15 | | (2) the proposed escrow officer is an attorney or is a |
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| 16 | 16 | | bona fide employee of: |
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| 17 | 17 | | (A) an attorney licensed as an escrow officer; or |
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| 18 | 18 | | (B) a title insurance agent or direct operation; |
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| 19 | 19 | | (3) the proposed escrow officer has reasonable |
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| 20 | 20 | | experience or instruction in the field of title insurance; [and] |
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| 21 | 21 | | (4) the title insurance agent or direct operation does |
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| 22 | 22 | | not know of any fact or condition that disqualifies the proposed |
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| 23 | 23 | | escrow officer from receiving a license; and |
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| 24 | 24 | | (5) the proposed escrow officer is a bona fide |
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| 25 | 25 | | employee of a title insurance agent or direct operation with an |
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| 26 | 26 | | office in this state. |
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| 27 | 27 | | (d) Notwithstanding Sections 406.004 and 406.020, |
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| 28 | 28 | | Government Code, a person qualified under this section as an escrow |
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| 29 | 29 | | officer may hold a license and operate as a notary public under |
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| 30 | 30 | | Chapter 406, Government Code. |
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| 31 | 31 | | SECTION 2. Section 2652.103, Insurance Code, is amended to |
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| 32 | 32 | | read as follows: |
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| 33 | 33 | | Sec. 2652.103. AMOUNT OF BOND OR DEPOSIT. (a) The amount |
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| 34 | 34 | | of the bond or deposit required under this subchapter is determined |
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| 35 | 35 | | by multiplying the number of escrow officers employed by the title |
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| 36 | 36 | | insurance agent or direct operation by: |
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| 37 | 37 | | (1) $5,000 for an application of an individual who is a |
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| 38 | 38 | | bona fide resident of this state; or |
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| 39 | 39 | | (2) $10,000 for an application of an individual who is |
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| 40 | 40 | | a bona fide resident of a state adjacent to this state. |
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| 41 | 41 | | (b) Notwithstanding Subsection (a), [except that] the |
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| 42 | 42 | | maximum amount of the bond or deposit required under this |
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| 43 | 43 | | subchapter is $50,000. |
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| 44 | 44 | | SECTION 3. Section 2652.201, Insurance Code, is amended to |
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| 45 | 45 | | read as follows: |
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| 46 | 46 | | Sec. 2652.201. GROUNDS FOR LICENSE DENIAL OR DISCIPLINARY |
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| 47 | 47 | | ACTION. (a) The department may deny an application for a license |
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| 48 | 48 | | or discipline an escrow officer under Sections 4005.102, 4005.103, |
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| 49 | 49 | | and 4005.104 if the department determines that the applicant or |
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| 50 | 50 | | license holder has: |
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| 51 | 51 | | (1) wilfully violated this title; |
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| 52 | 52 | | (2) intentionally made a material misstatement in the |
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| 53 | 53 | | license application; |
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| 54 | 54 | | (3) obtained or attempted to obtain the license by |
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| 55 | 55 | | fraud or misrepresentation; |
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| 56 | 56 | | (4) misappropriated or converted to the escrow |
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| 57 | 57 | | officer's own use or illegally withheld money belonging to a title |
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| 58 | 58 | | insurance agent, direct operation, or another person; |
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| 59 | 59 | | (5) been guilty of fraudulent or dishonest practices; |
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| 60 | 60 | | (6) materially misrepresented the terms and |
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| 61 | 61 | | conditions of a title insurance policy or contract; or |
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| 62 | 62 | | (7) failed to complete all educational requirements. |
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| 63 | 63 | | (b) The department may not deny an application for a license |
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| 64 | 64 | | or discipline an escrow officer under Section 4005.102, 4005.103, |
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| 65 | 65 | | or 4005.104 solely because the individual resides in an adjacent |
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| 66 | 66 | | state and acts as an escrow officer in this state as a bona fide |
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| 67 | 67 | | employee of a title insurance agent or direct operation in this |
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| 68 | 68 | | state. |
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| 69 | 69 | | SECTION 4. This Act applies to an application to act as an |
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| 70 | 70 | | escrow officer that is filed with the Texas Department of Insurance |
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| 71 | 71 | | on or after the effective date of this Act. An application filed |
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| 72 | 72 | | before that date is governed by the law in effect on the date the |
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| 73 | 73 | | application was filed, and the former law is continued in effect for |
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| 74 | 74 | | that purpose. |
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| 75 | 75 | | SECTION 5. This Act takes effect September 1, 2009. |
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| 76 | 76 | | ______________________________ ______________________________ |
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| 77 | 77 | | President of the Senate Speaker of the House |
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| 78 | 78 | | I certify that H.B. No. 652 was passed by the House on April |
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| 79 | 79 | | 9, 2009, by the following vote: Yeas 148, Nays 0, 1 present, not |
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| 80 | 80 | | voting. |
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| 81 | 81 | | ______________________________ |
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| 82 | 82 | | Chief Clerk of the House |
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| 83 | 83 | | I certify that H.B. No. 652 was passed by the Senate on May |
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| 84 | 84 | | 13, 2009, by the following vote: Yeas 31, Nays 0. |
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| 85 | 85 | | ______________________________ |
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| 86 | 86 | | Secretary of the Senate |
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| 87 | 87 | | APPROVED: _____________________ |
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| 88 | 88 | | Date |
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| 89 | 89 | | _____________________ |
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| 90 | 90 | | Governor |
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