Texas 2021 - 87th Regular

Texas House Bill HB2240 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Smithee (Senate Sponsor - Creighton) H.B. No. 2240
2		-	(In the Senate - Received from the House April 19, 2021;
3		-	May 4, 2021, read first time and referred to Committee on Business &
4		-	Commerce; May 21, 2021, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 8, Nays 0;
6		-	May 21, 2021, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR H.B. No. 2240 By: Hancock
	1	+	By: Smithee H.B. No. 2240
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to the disbursement of funds from a trust fund account by a
14	7		title insurance company, title insurance agent, or escrow officer.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	9		SECTION 1. Section 2651.202, Insurance Code, is amended by
17	10		adding Subsection (a-1) to read as follows:
18	11		(a-1) For the purpose of this section, "good funds" includes
19	12		United States dollars received and deposited in an account through
20	13		an Automated Clearing House (ACH) transaction if the ACH
21	14		transaction is irrevocable and final and cannot be canceled or
22		-	reversed by the ~~consumer~~ once the funds have been directly
23		-	transferred from the ~~consumer~~'s bank account. The ACH transaction
	15	+	reversed by the customer once the funds have been directly
	16	+	transferred from the customer's bank account. The ACH transaction
24	17		must be a bank-to-bank transfer of funds or a deposit of funds from
25		-	a ~~consumer~~'s account at a depository institution and must not be
	18	+	a customer's account at a depository institution and must not be
26	19		treated as a consumer payment with respect to chargeback and
27		-	pullback consumer payment protections. The transferred funds must:
28		-	(1) be directly linked to and directly backed by funds
29		-	in the consumer's account at the depository institution;
30		-	(2) be directly transferred from the consumer's bank
31		-	account and directly deposited into the settlement service
32		-	provider's escrow account by ACH transfer in accordance with the
33		-	standards of any applicable governing body or standards
34		-	organization with oversight over ACH transactions;
35		-	(3) at all points during the transfer process, utilize
36		-	a unique identification and tracking system that designates the
37		-	funds for their authorized purpose;
38		-	(4) not be subject to third-party access or
39		-	commingling of funds at any point during the transfer process; and
40		-	(5) not utilize an intermediary account other than by
41		-	a financial institution acting as ACH originator and operator as
42		-	part of the ACH network.
	20	+	pullback consumer payment protections. The transferred funds must
	21	+	be:
	22	+	(1) directly linked to and backed by funds in the
	23	+	customer's account at the depository institution; and
	24	+	(2) directly transferred from the customer's bank
	25	+	account and deposited into the settlement service provider's escrow
	26	+	account by ACH transfer in accordance with the standards of any
	27	+	governing body with oversight over ACH transactions.
43	28		SECTION 2. Section 2652.004, Insurance Code, is amended by
44	29		adding Subsection (a-1) to read as follows:
45	30		(a-1) For the purpose of this section, "good funds" includes
46	31		United States dollars received and deposited in an account through
47	32		an Automated Clearing House (ACH) transaction if the ACH
48	33		transaction is irrevocable and final and cannot be canceled or
49		-	reversed by the ~~consumer~~ once the funds have been directly
50		-	transferred from the ~~consumer~~'s bank account. The ACH transaction
	34	+	reversed by the customer once the funds have been directly
	35	+	transferred from the customer's bank account. The ACH transaction
51	36		must be a bank-to-bank transfer of funds or a deposit of funds from
52		-	a ~~consumer~~'s account at a depository institution and must not be
	37	+	a customer's account at a depository institution and must not be
53	38		treated as a consumer payment with respect to chargeback and
54		-	pullback consumer payment protections. The transferred funds must:
55		-	(1) be directly linked to and directly backed by funds
56		-	in the consumer's account at the depository institution;
57		-	(2) be directly transferred from the consumer's bank
58		-	account and directly deposited into the settlement service
59		-	provider's escrow account by ACH transfer in accordance with the
60		-	standards of any applicable governing body or standards
61		-	organization with oversight over ACH transactions;
62		-	(3) at all points during the transfer process, utilize
63		-	a unique identification and tracking system that designates the
64		-	funds for their authorized purpose;
65		-	(4) not be subject to third-party access or
66		-	commingling of funds at any point during the transfer process; and
67		-	(5) not utilize an intermediary account other than by
68		-	a financial institution acting as ACH originator and operator as
69		-	part of the ACH network.
	39	+	pullback consumer payment protections. The transferred funds must
	40	+	be:
	41	+	(1) directly linked to and backed by funds in the
	42	+	customer's account at the depository institution; and
	43	+	(2) directly transferred from the customer's bank
	44	+	account and deposited into the settlement service provider's escrow
	45	+	account by ACH transfer in accordance with the standards of any
	46	+	governing body with oversight over ACH transactions.
70	47		SECTION 3. This Act takes effect September 1, 2021.
71		-	* * * * *