By Reyna                                              H.B. No. 1422
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain fees charged by local recording agents and
    1-3  insurers.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article 21.35A, Insurance Code, is amended by
    1-6  adding a new Subsection (c) and by amending and relettering
    1-7  Subsection (c) as Subsection (d) to read as follows:
    1-8        (c)  A local recording agent is not prohibited from charging
    1-9  a reasonable fee for services rendered to a client.  Those services
   1-10  may include:
   1-11              (1)  special delivery or postal charges;
   1-12              (2)  printing and reproduction costs;
   1-13              (3)  electronic mail costs;
   1-14              (4)  telephone transmission costs; and
   1-15              (5)  similar costs that the agent incurs on behalf of
   1-16  the client.
   1-17        (d) <(c)>  An agent may not charge a client a fee under this
   1-18  article unless the agent notifies the client of the agent's fee or
   1-19  reimbursement requirement and obtains the client's written consent
   1-20  for each fee charged before the agent incurs the expense for the
   1-21  client.
   1-22        SECTION 2.  Article 21.35B, Insurance Code, is amended to
   1-23  read as follows:
   1-24        Art. 21.35B.  Permissible Payments.  (a)  No payment may be
    2-1  solicited or collected by an insurer, its agent, or sponsoring
    2-2  organization in connection with an application for insurance or the
    2-3  issuance of a policy other than:
    2-4              (1)  premiums;<,>
    2-5              (2)  taxes;<,>
    2-6              (3)  finance charges;<,>
    2-7              (4)  policy fees;<,>
    2-8              (5)  agent fees;<,>
    2-9              (6)  service fees, including charges for costs
   2-10  described under Article 21.35A of this code;
   2-11              (7)  inspection fees;<,> or
   2-12              (8)  membership dues in a sponsoring organization.
   2-13        (b)  The commissioner by rule shall permit sponsoring
   2-14  organizations to solicit voluntary contributions with a membership
   2-15  renewal solicitation when the membership renewal solicitation is
   2-16  separate from an insurance billing.
   2-17        (c)  Except as otherwise provided by statute, an insurer may
   2-18  require that membership dues in its sponsoring organization be paid
   2-19  as a condition for issuance or renewal of an insurance policy.
   2-20        (d) <(b)>  Criminal penalties for violation of this article
   2-21  are as provided for under Section 13, Article 21.49-1 of this code.
   2-22        SECTION 3.  The importance of this legislation and the
   2-23  crowded condition of the calendars in both houses create an
   2-24  emergency and an imperative public necessity that the
   2-25  constitutional rule requiring bills to be read on three several
   2-26  days in each house be suspended, and this rule is hereby suspended,
   2-27  and that this Act take effect and be in force from and after its
    3-1  passage, and it is so enacted.