Texas 2015 - 84th Regular

Texas House Bill HB2491 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Pickett (Senate Sponsor - Eltife) H.B. No. 2491
2		-	(In the Senate - Received from the House April 27, 2015;
3		-	April 28, 2015, read first time and referred to Committee on
4		-	Business and Commerce; May 7, 2015, reported favorably by the
5		-	following vote: Yeas 8, Nays 0; May 7, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 2491
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to licensing and appointment of title insurance escrow
12	6		officers; changing the limit applicable to a fee; authorizing a
13	7		fee.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Sections 2652.001, 2652.002, and 2652.006,
16	10		Insurance Code, are amended to read as follows:
17	11		Sec. 2652.001. LICENSE AND BOND OR DEPOSIT REQUIRED. An
18	12		individual may not act as an escrow officer unless the individual:
19	13		(1) holds a license issued by the department; [and]
20	14		(2) is covered by [maintains] a surety bond or deposit
21	15		required under Subchapter C; and
22	16		(3) is appointed under Section 2652.1511 as an escrow
23	17		officer by a title insurance agent or direct operation.
24	18		Sec. 2652.002. EMPLOYMENT OF ESCROW OFFICER. (a) A title
25	19		insurance agent or direct operation may not employ an individual as
26	20		an escrow officer unless the individual:
27	21		(1) holds a license issued by the department;
28	22		(2) is covered by [and maintains] a surety bond or
29	23		deposit as required under Subchapter C; and
30	24		(3) is appointed under Section 2652.1511 as an escrow
31	25		officer by the title insurance agent or direct operation [by this
32	26		chapter].
33	27		(b) A title insurance agent or direct operation may not
34	28		permit an individual to act as an escrow officer in this state
35	29		before the agent or direct operation has complied with Sections
36	30		2652.151 and 2652.1511 [2652.152] with respect to the individual.
37	31		Sec. 2652.006. RECORD OF ESCROW OFFICERS; PUBLIC
38	32		INFORMATION. (a) The department shall maintain a record of [the
39	33		name and address of] each escrow officer licensed by the department
40	34		in a manner that ensures that the escrow officers employed and
41	35		appointed under Section 2652.1511 by any title insurance agent or
42	36		direct operation in this state may be conveniently determined.
43	37		(b) The department shall make available to the public from
44	38		the records maintained under Subsection (a) or from other records
45	39		of the department each escrow officer's name, license number,
46	40		continuing education compliance status, and appointment history.
47	41		SECTION 2. Section 2652.051(a), Insurance Code, is amended
48	42		to read as follows:
49	43		(a) Before an initial license is issued to an individual to
50	44		act as an escrow officer in this state for a title insurance agent
51	45		or direct operation, the individual [title insurance agent or
52	46		direct operation] must file an application for an escrow officer's
53	47		license with the department on forms provided by the department and
54	48		the title insurance agent or direct operation must file an
55	49		appointment of the escrow officer under Section 2652.1511.
56	50		SECTION 3. Section 2652.052(b), Insurance Code, is amended
57	51		to read as follows:
58	52		(b) License [fees,] and renewal fees collected under this
59	53		chapter and appointment fees collected under Section 2652.1511
60	54		[Section 2652.152,] shall be deposited to the credit of the Texas
61	55		Department of Insurance operating account to be used by the
62	56		department to enforce this chapter and any other law of this state
63	57		that regulates escrow officers for title insurance agents or direct
64	58		operations.
65	59		SECTION 4. Sections 2652.055 and 2652.056, Insurance Code,
66	60		are amended to read as follows:
67	61		Sec. 2652.055. LICENSE TERM. Unless a system of staggered
68	62		license renewal is adopted or required under Chapter 4003 [under
69	63		Section 4003.002], a license expires on the second June 1 following
70	64		the date of issuance.
71	65		Sec. 2652.056. PROCEDURE FOR LICENSE RENEWAL. An
72	66		individual may renew an unexpired escrow officer license by:
73	67		(1) submitting to the department on a form provided by
74	68		the department a completed application, signed and sworn by the
75	69		individual, stating that the applicant is an individual who is a
76	70		bona fide resident of this state or a state adjacent to this state;
77	71		and
78	72		(2) paying to the department a renewal fee in an amount
79	73		set by the department [AUTOMATIC TERMINATION OF LICENSE. The
80	74		license of each escrow officer employed by a title insurance agent
81	75		or direct operation that surrenders its license or has its license
82	76		revoked by the department is automatically terminated without
83	77		notice].
84	78		SECTION 5. Section 2652.058, Insurance Code, is amended by
85	79		adding Subsection (g) to read as follows:
86	80		(g) Continuing education programs to satisfy the
87	81		requirements of this section must be certified under Subchapter C,
88	82		Chapter 4004. The department may enter into an agreement with an
89	83		independent contractor as authorized by Section 4004.104 to certify
90	84		and register the programs and providers of those programs.
91	85		SECTION 6. Section 2652.101(a), Insurance Code, is amended
92	86		to read as follows:
93	87		(a) A title insurance agent or direct operation shall
94	88		obtain, at its own expense, a bond for its escrow officers appointed
95	89		under Section 2652.1511 payable to the department. The bond shall
96	90		obligate the principal and surety to pay for any pecuniary loss
97	91		sustained by the title insurance agent or direct operation through
98	92		an act of fraud, dishonesty, forgery, theft, embezzlement, or
99	93		wilful misapplication by an escrow officer, either directly and
100	94		alone or in conspiracy with another person.
101	95		SECTION 7. Section 2652.151(a), Insurance Code, is amended
102	96		to read as follows:
103	97		(a) A title insurance agent or direct operation shall
104	98		certify to the department, not later than the expiration date of the
105	99		title insurance agent's or direct operation's license, the name and
106	100		address of each individual employed and appointed under Section
107	101		2652.1511 by the title insurance agent or direct operation to serve
108	102		as an escrow officer in this state.
109	103		SECTION 8. Subchapter D, Chapter 2652, Insurance Code, is
110	104		amended by adding Section 2652.1511 to read as follows:
111	105		Sec. 2652.1511. APPOINTMENT OF ESCROW OFFICER. (a) An
112	106		escrow officer may be employed and appointed by more than one title
113	107		insurance agent or direct operation.
114	108		(b) Before an escrow officer may act in that capacity for a
115	109		title insurance agent or direct operation, the title insurance
116	110		agent or direct operation must appoint the escrow officer and file
117	111		the escrow officer's appointment with the department on the
118	112		electronic or nonelectronic form provided by the department.
119	113		(c) The appointment form must:
120	114		(1) be accompanied by a nonrefundable appointment fee;
121	115		(2) certify that:
122	116		(A) the escrow officer is a bona fide employee of
123	117		the title insurance agent or direct operation making the
124	118		appointment; and
125	119		(B) the title insurance agent or direct operation
126	120		has an office in this state;
127	121		(3) be signed and sworn to by the title insurance agent
128	122		or direct operation and by the escrow officer; and
129	123		(4) acknowledge that the escrow officer is covered by
130	124		a surety bond or deposit required under Subchapter C.
131	125		(d) The appointment of the escrow officer expires on the
132	126		revocation, termination, or nonrenewal of the escrow officer's
133	127		license or termination of the escrow officer's employment with the
134	128		title insurance agent or direct operation that made the
135	129		appointment.
136	130		(e) Unless otherwise notified by the department, the escrow
137	131		officer may act as an escrow officer for the appointing title
138	132		insurance agent or direct operation after:
139	133		(1) the second business day after the date the
140	134		appointment is submitted to the department electronically; or
141	135		(2) the eighth business day after the date the
142	136		appointment is submitted to the department on a nonelectronic form.
143	137		SECTION 9. Section 2652.153, Insurance Code, is amended to
144	138		read as follows:
145	139		Sec. 2652.153. NOTICE OF TERMINATION. A title insurance
146	140		agent or direct operation that terminates the employment of a
147	141		licensed escrow officer shall:
148	142		(1) immediately notify the department in writing of
149	143		the termination and request cancellation of the appointment under
150	144		Section 2652.1511 [license]; and
151	145		(2) notify the escrow officer of the action by the
152	146		title insurance agent or direct operation.
153	147		SECTION 10. Section 2652.203, Insurance Code, is amended by
154	148		amending Subsections (a) and (d) and adding Subsection (e) to read
155	149		as follows:
156	150		(a) The department shall notify a license holder of a
157	151		disciplinary action or enforcement action against the license
158	152		holder not later than the 30th business day after the date the
159	153		department assigns a file number to the action, except that this
160	154		subsection does not apply to a file or action:
161	155		(1) that is the subject of a pending criminal
162	156		investigation or prosecution; or
163	157		(2) about which the [deputy commissioner of the title
164	158		division of the] department makes a good faith determination that
165	159		there is a credible suspicion that there are ongoing or continuing
166	160		acts of fraud by a person who is the subject of the action.
167	161		(d) The department may provide information about an
168	162		enforcement action, including a copy of a notice issued under this
169	163		section, to each title insurance agent or direct operation with
170	164		which an escrow officer has, or proposes to obtain, an appointment
171	165		under Section 2652.1511 [employment].
172	166		(e) Except as prohibited by Chapter 552, Government Code, or
173	167		any other law, on the date an enforcement action against an escrow
174	168		officer becomes final, the department shall provide information
175	169		about the action, including a copy of a commissioner's order or
176	170		department warning issued under this section, to each title
177	171		insurance agent or direct operation for which the escrow officer
178	172		holds appointment under Section 2652.1511.
179	173		SECTION 11. Sections 2652.057(b) and 2652.152, Insurance
180	174		Code, are repealed.
181	175		SECTION 12. The changes in law made by this Act apply only
182	176		to the issuance or renewal of the license of an escrow officer on or
183	177		after January 1, 2016. The issuance or renewal of a license before
184	178		January 1, 2016, is governed by the law as it existed immediately
185	179		before the effective date of this Act, and that law is continued in
186	180		effect for that purpose.
187	181		SECTION 13. This Act takes effect September 1, 2015.
188		-	* * * * *
	182	+	______________________________ ______________________________
	183	+	President of the Senate Speaker of the House
	184	+	I certify that H.B. No. 2491 was passed by the House on April
	185	+	23, 2015, by the following vote: Yeas 131, Nays 5, 5 present, not
	186	+	voting.
	187	+	______________________________
	188	+	Chief Clerk of the House
	189	+	I certify that H.B. No. 2491 was passed by the Senate on May
	190	+	15, 2015, by the following vote: Yeas 30, Nays 1.
	191	+	______________________________
	192	+	Secretary of the Senate
	193	+	APPROVED: _____________________
	194	+	Date
	195	+	_____________________
	196	+	Governor