BILL ANALYSIS Insurance Committee By: Reyna 03-08-95 Committee Report (Substituted) BACKGROUND During the 73rd Legislature, House Bill 1461 repealed provisions previously contained in Article 21.14, Section 4(e) of the Insurance Code. Prior to the passage of House Bill 1461 a local recording agent was permitted to charge a fee for special delivery postal charges along with printing, reproduction, electronic mail, and telephone transmission costs. Since a local recording agent may incur, on behalf of a client, unanticipated expenses associated with the processing the policy an agent should be able to recover such expenditures. PURPOSE As proposed, House Bill 1422 would permit a local recording agent to charge a client a fee with the client's prior written consent for services rendered on behalf of the client. RULEMAKING AUTHORITY It is the committee's opinion that this bill does grant any additional rulemaking authority to the insurance commissioner under SECTION 2 of the bill, specifically amending Article 21.35B (b), Insurance Code. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 21.35A, Insurance Code, adding Subsection (c) and by amending and renumbering Subsection (c) as Subsection (d) by permitting a local recording agent to charge a reasonable fee for special delivery postal charges, printing and reproduction costs, electronic mail costs, telephone transmission costs, and analogous costs, rendered to the client. An agent may not charge a fee unless the agent notifies the client and receives the client's written consent. SECTION 2. Amends Article 21.35B, Insurance Code, to add charges for costs under Article 21.35(d) as permissible payments that may be solicited or collected by an insurer, its agent, or sponsoring organization. SECTION 3. Emergency Clause and Effective Date COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute to H.B. 1422 changes SECTION 1 of the filed bill by adding a reasonable fee for service rendered to a client and requires an agent to obtain a client's written consent prior to charging a fee. SUMMARY OF COMMITTEE ACTION In accordance with House rules, H.B. 1422 was heard in a public hearing on March 1, 1995. The Chair laid out H.B. 1422 and recognized Representative Reyna to explain H.B. 1422. The Chair recognized the following person to testify as resource witness on H.B. 1422: Bob Huxel, Texas Association of Insurance Agents. No one testified in support of or in opposition to H.B. 1422. The Chair left H.B. 1422 as pending business before the Committee. On March 8, 1995 the Committee took up H.B. 1422 as pending business. The Chair recognized Representative Driver who offered a substitute to H.B. 1422 and moved the Committee adopt the substitute to H.B. 1422. The Chair heard no objections and the Committee adopted the substitute to H.B. 1422. The Chair recognized Representative Duncan who moved the Committee report H.B. 1422 as substituted to the full House with the recommendation it do pass and be printed. Representative Driver seconded the motion and the motion prevailed by the following vote: AYES (9); NAYES (0); ABSENT (0); PNV (0).