| 1 | 1 | | 81R5380 PMO-F |
|---|
| 2 | 2 | | By: Eltife S.B. No. 510 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to licensing of certain residents of a state as escrow |
|---|
| 8 | 8 | | officers. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 2652.051(c), Insurance Code, is amended |
|---|
| 11 | 11 | | to read as follows: |
|---|
| 12 | 12 | | (c) The completed application must state that: |
|---|
| 13 | 13 | | (1) the proposed escrow officer is an individual who |
|---|
| 14 | 14 | | is a bona fide resident of: |
|---|
| 15 | 15 | | (A) this state; or |
|---|
| 16 | 16 | | (B) a state adjacent to this state; |
|---|
| 17 | 17 | | (2) the proposed escrow officer is an attorney or is a |
|---|
| 18 | 18 | | bona fide employee of: |
|---|
| 19 | 19 | | (A) an attorney licensed as an escrow officer; or |
|---|
| 20 | 20 | | (B) a title insurance agent or direct operation; |
|---|
| 21 | 21 | | (3) the proposed escrow officer has reasonable |
|---|
| 22 | 22 | | experience or instruction in the field of title insurance; [and] |
|---|
| 23 | 23 | | (4) the title insurance agent or direct operation does |
|---|
| 24 | 24 | | not know of any fact or condition that disqualifies the proposed |
|---|
| 25 | 25 | | escrow officer from receiving a license; and |
|---|
| 26 | 26 | | (5) the proposed escrow officer is a bona fide |
|---|
| 27 | 27 | | employee of a title insurance agent or direct operation with an |
|---|
| 28 | 28 | | office in this state. |
|---|
| 29 | 29 | | SECTION 2. Section 2652.103, Insurance Code, is amended to |
|---|
| 30 | 30 | | read as follows: |
|---|
| 31 | 31 | | Sec. 2652.103. AMOUNT OF BOND OR DEPOSIT. (a) The amount |
|---|
| 32 | 32 | | of the bond or deposit required under this subchapter is determined |
|---|
| 33 | 33 | | by multiplying the number of escrow officers employed by the title |
|---|
| 34 | 34 | | insurance agent or direct operation by: |
|---|
| 35 | 35 | | (1) $5,000 for an application of an individual who is a |
|---|
| 36 | 36 | | bona fide resident of this state; or |
|---|
| 37 | 37 | | (2) $10,000 for an application of an individual who is |
|---|
| 38 | 38 | | a bona fide resident of a state adjacent to this state. |
|---|
| 39 | 39 | | (b) Notwithstanding Subsection (a), [except that] the |
|---|
| 40 | 40 | | maximum amount of the bond or deposit required under this |
|---|
| 41 | 41 | | subchapter is $50,000. |
|---|
| 42 | 42 | | SECTION 3. Section 2652.201, Insurance Code, is amended to |
|---|
| 43 | 43 | | read as follows: |
|---|
| 44 | 44 | | Sec. 2652.201. GROUNDS FOR LICENSE DENIAL OR DISCIPLINARY |
|---|
| 45 | 45 | | ACTION. (a) The department may deny an application for a license |
|---|
| 46 | 46 | | or discipline an escrow officer under Sections 4005.102, 4005.103, |
|---|
| 47 | 47 | | and 4005.104 if the department determines that the applicant or |
|---|
| 48 | 48 | | license holder has: |
|---|
| 49 | 49 | | (1) wilfully violated this title; |
|---|
| 50 | 50 | | (2) intentionally made a material misstatement in the |
|---|
| 51 | 51 | | license application; |
|---|
| 52 | 52 | | (3) obtained or attempted to obtain the license by |
|---|
| 53 | 53 | | fraud or misrepresentation; |
|---|
| 54 | 54 | | (4) misappropriated or converted to the escrow |
|---|
| 55 | 55 | | officer's own use or illegally withheld money belonging to a title |
|---|
| 56 | 56 | | insurance agent, direct operation, or another person; |
|---|
| 57 | 57 | | (5) been guilty of fraudulent or dishonest practices; |
|---|
| 58 | 58 | | (6) materially misrepresented the terms and |
|---|
| 59 | 59 | | conditions of a title insurance policy or contract; or |
|---|
| 60 | 60 | | (7) failed to complete all educational requirements. |
|---|
| 61 | 61 | | (b) The department may not deny an application for a license |
|---|
| 62 | 62 | | or discipline an escrow officer under Section 4005.102, 4005.103, |
|---|
| 63 | 63 | | or 4005.104 solely because the individual resides in an adjacent |
|---|
| 64 | 64 | | state and acts as an escrow officer in this state as a bona fide |
|---|
| 65 | 65 | | employee of a title insurance agent or direct operation in this |
|---|
| 66 | 66 | | state. |
|---|
| 67 | 67 | | SECTION 4. This Act applies to an application to act as an |
|---|
| 68 | 68 | | escrow officer that is filed with the Texas Department of Insurance |
|---|
| 69 | 69 | | on or after the effective date of this Act. An application filed |
|---|
| 70 | 70 | | before that date is governed by the law in effect on the date the |
|---|
| 71 | 71 | | application was filed, and the former law is continued in effect for |
|---|
| 72 | 72 | | that purpose. |
|---|
| 73 | 73 | | SECTION 5. This Act takes effect September 1, 2009. |
|---|