BILL ANALYSIS


                                                        H.B. 1422
                                               By: Reyna (Leedom)
                                             Economic Development
                                                         05-17-95
                              Senate Committee Report (Unamended)
BACKGROUND

The 73rd Legislature passed H.B. 1461 which repealed provisions
permitting a recording agent to charge a fee for special delivery
postal charges along with printing, reproduction, electronic mail,
and telephone transmission costs.  

PURPOSE

As proposed, H.B. 1422 authorizes a local recording insurance agent
to charge certain administrative fees after notifying the client
and obtaining the client's written consent.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 21.35A, Insurance Code, by adding a new
Subsection (c) and by amending and relettering Subsection (c) as
Subsection (d), as follows:

     (c) Provides that a local recording agent (agent) is not
     prohibited from charging a fee for services rendered to a
     client.  Authorizes those services to include special delivery
     or postal charges, printing and reproduction costs, electronic
     mail costs, telephone transmission costs, and similar costs
     that the agent incurs on behalf of the client.
     
     (d) Prohibits an agent from charging a client a fee unless the
     agent notifies the client of the agent's fee or reimbursement
     requirement and obtains the client's written consent for each
     fee charged.  Redesignates existing Subsection (c).
     
     SECTION 2.     Amends Article 21.35B, Insurance Code, as follows:

     Art.  21.35B.  PERMISSIBLE PAYMENTS.  (a) Prohibits any fees
     from being solicited or collected by an insurer, its agent, or
     sponsoring organization in connection with an application for
     insurance or the insurance of a policy other than service
     fees, including charges for costs described under Section
     21.35A, among others.
     
     (b) Created from existing text.
       
       (c) Authorizes an insurer, except as otherwise provided by
       this statute, to require membership dues in its sponsoring
       organization be paid as a condition for issuance or renewal
       of an insurance policy.
       
       (d) Redesignates existing Subsection (b).
       
       SECTION 3.   Emergency clause.
           Effective date: upon passage.