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     During the 73rd Legislature, House Bill 1461 repealed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).