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.