Texas 2019 - 86th Regular

Texas House Bill HB3228 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3228
	1	+	By: Muñoz, Jr., Raymond, Hunter H.B. No. 3228
	2	+	(Senate Sponsor - Hancock)
	3	+	(In the Senate - Received from the House May 6, 2019;
	4	+	May 6, 2019, read first time and referred to Committee on Business &
	5	+	Commerce; May 15, 2019, reported favorably by the following vote:
	6	+	Yeas 7, Nays 0; May 15, 2019, sent to printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to certain hearings concerning title insurance rates and
6	13		other matters relating to regulating the business of title
7	14		insurance.
8	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	16		SECTION 1. Section 2703.202, Insurance Code, is amended by
10	17		adding Subsections (b-1), (b-2), (d-1), and (d-2) and amending
11	18		Subsections (d), (g), (h), (k), and (l) to read as follows:
12	19		(b-1) An interested person by a written request to the
13	20		commissioner may request a public hearing to consider changing a
14	21		premium rate, including fixing a new premium rate. For the purposes
15	22		of this subsection, "interested person" means:
16	23		(1) a resident of this state;
17	24		(2) a business entity doing business in this state;
18	25		(3) a political subdivision located in this state; or
19	26		(4) a public or private organization, other than a
20	27		state agency, that is located in this state.
21	28		(b-2) Not later than the 60th day after the date of
22	29		submission of a request under Subsection (b-1), the commissioner
23	30		shall:
24	31		(1) deny the request in writing, stating the reasons
25	32		for the denial; or
26	33		(2) initiate a hearing under Subsection (a).
27	34		(d) Notwithstanding Subsection (c), a person or entity
28	35		described by Subsection (b) or an interested person described by,
29	36		and subject to, Subsection (b-1) may petition the commissioner in
30	37		writing that a public hearing held under Subsection (a) or under
31	38		Section 2703.206 [must] be conducted by the commissioner as a
32	39		contested case hearing under Subchapters C through H and Subchapter
33	40		Z, Chapter 2001, Government Code. The petition must state the
34	41		grounds for the petitioner's request[, at the request of:
35	42		[(1) a title insurance company;
36	43		[(2) an association composed of at least 50 percent of
37	44		the number of title insurance agents and title insurance companies
38	45		licensed or authorized by the department;
39	46		[(3) an association composed of at least 20 percent of
40	47		the number of title insurance agents licensed or authorized by the
41	48		department; or
42	49		[(4) the office of public insurance counsel].
43	50		(d-1) Not later than the 30th day after the date the
44	51		commissioner receives a petition under Subsection (d), the
45	52		commissioner shall hold a public hearing on the petition to
46	53		determine whether:
47	54		(1) the petition is made in good faith; and
48	55		(2) the grounds stated in the petition otherwise
49	56		justify conducting the proceeding as a contested case hearing.
50	57		(d-2) Not later than the 60th day after the date a petition
51	58		under Subsection (d) is submitted, the commissioner shall:
52	59		(1) deny the petition in writing, stating the reasons
53	60		for the denial; or
54	61		(2) grant the petition to initiate a hearing under
55	62		Subsections (a) and (h) as a contested hearing.
56	63		(g) If a hearing held under Subsection (a) is not conducted
57	64		as a contested case hearing, the commissioner shall render a
58	65		decision and issue a final order not later than the 120th day after
59	66		the date the commissioner receives a written request under
60	67		Subsection (b) or (b-1).
61	68		(h) If a hearing held under Subsection (a) is conducted as a
62	69		contested case hearing:
63	70		(1) not later than the 30th day after the date the
64	71		commissioner rules on a petition [receives a request] for a public
65	72		hearing under Subsection (d-2) [(b)], the commissioner shall issue
66	73		a notice of call for items to be considered at the hearing;
67	74		(2) the commissioner may not require responses to the
68	75		notice of call before the 60th day after the date the commissioner
69	76		issues the notice of call;
70	77		(3) the commissioner shall issue a notice of the
71	78		public hearing [requested under Subsection (d)] not later than the
72	79		30th day after the date responses to the notice of call are required
73	80		under Subdivision (2);
74	81		(4) the commissioner shall commence the public hearing
75	82		not earlier than the 120th day after the date the commissioner
76	83		issues a notice of hearing under Subdivision (3);
77	84		(5) the commissioner shall close the public hearing
78	85		not later than the 150th day after the date the commissioner issues
79	86		the notice of hearing under Subdivision (3); and
80	87		(6) the commissioner shall render a decision and issue
81	88		a final order not later than the 60th day after the record made in
82	89		the public hearing is closed under Subdivision (5).
83	90		(k) A party described by Subsection (b) or (b-1) may
84	91		petition a district court in Travis County to enter an order
85	92		requiring the commissioner to comply with the deadlines described
86	93		by this section if the commissioner fails to meet a requirement in
87	94		Subsection (g) or (h).
88	95		(l) Subject to Subsection (m), if the commissioner fails to
89	96		comply with the requirements under Subsection (g) or (h)(6), a
90	97		combination of at least three associations, persons, or entities
91	98		listed in Subsection (b) or (b-1) may jointly petition a district
92	99		court of Travis County to adopt a rate based on the record made in
93	100		the hearing before the commissioner under this section.
94	101		SECTION 2. Section 2703.203, Insurance Code, is amended to
95	102		read as follows:
96	103		Sec. 2703.203. PERIODIC HEARING. The commissioner shall
97	104		hold a public hearing not earlier than July 1 after the fifth
98	105		anniversary of the closing of a hearing held under this chapter to
99	106		consider adoption of premium rates and other matters relating to
100	107		regulating the business of title insurance that an interested
101	108		person, association, title insurance company, title insurance
102	109		agent, or entity [member of the public admitted as a party] under
103	110		Section 2703.204 requests to be considered or that the commissioner
104	111		determines necessary to consider.
105	112		SECTION 3. Section 2703.204, Insurance Code, is amended to
106	113		read as follows:
107	114		Sec. 2703.204. ADMISSION AS PARTY TO [PERIODIC] HEARING.
108	115		(a) Subject to this section, the following persons, associations,
109	116		and entities shall be admitted as parties to a contested case
110	117		hearing under Section 2703.202, the periodic hearing under Section
111	118		2703.203, or a hearing under Section 2703.206:
112	119		(1) a trade association whose membership is composed
113	120		of at least 20 percent of the members of an industry or group
114	121		represented by the trade association;
115	122		(2) [,] an association, [a] person, or entity
116	123		described by Section 2703.202(b);
117	124		(3) an interested person described by Section
118	125		2703.202(b-1);[,] or
119	126		(4) department staff [shall be admitted as a party to
120	127		the periodic hearing under Section 2703.203].
121	128		(b) A party to any portion of the periodic hearing relating
122	129		to ratemaking may request that the commissioner remove any other
123	130		party to that portion of the hearing on the grounds that the other
124	131		party does not have a substantial interest in the subject matter of
125	132		the hearing [title insurance]. A decision of the commission to deny
126	133		or grant the request is final and subject to appeal in accordance
127	134		with Section 36.202.
128	135		SECTION 4. This Act takes effect September 1, 2019.
129		-	______________________________ ______________________________
130		-	President of the Senate Speaker of the House
131		-	I certify that H.B. No. 3228 was passed by the House on May 3,
132		-	2019, by the following vote: Yeas 143, Nays 0, 1 present, not
133		-	voting.
134		-	______________________________
135		-	Chief Clerk of the House
136		-	I certify that H.B. No. 3228 was passed by the Senate on May
137		-	21, 2019, by the following vote: Yeas 31, Nays 0.
138		-	______________________________
139		-	Secretary of the Senate
140		-	APPROVED: _____________________
141		-	Date
142		-	_____________________
143		-	Governor
	136	+	* * * * *