By:  Ratliff                                          S.B. No. 1357
       73R8355 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the reimbursement of a local recording agent for
    1-3  expenses incurred by the agent in providing certain information to
    1-4  a client.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
    1-7  amended by adding Article 21.35A to read as follows:
    1-8        Art. 21.35A.  PERMISSIBLE REIMBURSEMENT.  (a)  In this
    1-9  article, "client" means an applicant for insurance coverage or an
   1-10  insured.
   1-11        (b)  A local recording agent may charge a client a fee to
   1-12  reimburse the agent for costs incurred by the agent in obtaining a
   1-13  motor vehicle record of a person, or a photograph of property,
   1-14  insured under, or to be insured under, an insurance policy.  The
   1-15  fee may not exceed the actual costs incurred by the agent.  The
   1-16  agent may obtain the record or photograph in connection with an
   1-17  application for insurance coverage by the client or the issuance of
   1-18  an insurance policy to the client or on the client's request.
   1-19        (c)  An agent may not charge a client a fee under this
   1-20  article unless the agent notifies the client of the agent's
   1-21  reimbursement requirement before the agent incurs the expense for
   1-22  the client.
   1-23        SECTION 2.  This Act takes effect September 1, 1993, and
   1-24  applies only to a fee assessed in connection with an insurance
    2-1  policy that is delivered, issued for delivery, or renewed on or
    2-2  after January 1, 1994.  A policy that is delivered, issued for
    2-3  delivery, or renewed before January 1, 1994, is governed by the law
    2-4  as it existed immediately before the effective date of this Act,
    2-5  and that law is continued in effect for that purpose.
    2-6        SECTION 3.  The importance of this legislation and the
    2-7  crowded condition of the calendars in both houses create an
    2-8  emergency and an imperative public necessity that the
    2-9  constitutional rule requiring bills to be read on three several
   2-10  days in each house be suspended, and this rule is hereby suspended.