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Development 05-17-95 Senate Committee Report (Unamended) BACKGROUND The 73rd Legislature passed H.B. 1461 which repealed provisions permitting a recording agent to charge a fee for special delivery postal charges along with printing, reproduction, electronic mail, and telephone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.