83R3660 PMO-F
By: Morrison H.B. No. 3106
A BILL TO BE ENTITLED
AN ACT
relating to compensatory payments made in connection with the
issuance of certain title insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 2502, Insurance Code, is
amended by adding Section 2502.057 to read as follows:
Sec. 2502.057. CERTAIN COMPENSATORY PAYMENTS RELATED TO
CERTAIN ELECTRIC ENERGY PROJECTS PERMITTED. (a) This section
applies with respect to a utility project that is:
(1) designed to produce, generate, transmit,
distribute, sell, or furnish electric energy; and
(2) valued on completion at more than $25 million.
(b) A payment for furnishing title evidence for the issuance
of a title insurance policy related to a project described by
Subsection (a) may be:
(1) a flat fee or fee calculated on an hourly basis
that:
(A) is payable on the date the title evidence is
furnished; and
(B) does not exceed $25,000; or
(2) a portion of the title insurance premium:
(A) based on the percentage established by the
commissioner for payment by a title insurance company, title
insurance agent, or direct operation for services performed by
another title insurance company, title insurance agent, or direct
operation; and
(B) payable on the date of the issuance of the
policy for which the evidence is furnished.
(c) The payment must be:
(1) made by the proposed insured to the title
insurance company, title insurance agent, or direct operation that
furnishes the title evidence; and
(2) credited against the title insurance premium
charged for the issuance of the title insurance policy for which the
evidence is furnished.
(d) Nothing in this section may be construed to allow the
payment of an amount in violation of the premium rates promulgated
or the division of premium established by the commissioner.
SECTION 2. This Act applies only to a payment for title
evidence furnished on or after the effective date of this Act. A
payment for title evidence furnished before the effective date of
this Act is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2013.