By Reyna                                              H.B. No. 1422
       74R1901 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain fees charged by local recording agents.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article 21.35A, Insurance Code, is amended by
    1-5  amending Subsection (c) and by adding Subsection (d) to read as
    1-6  follows:
    1-7        (c)  An agent may not charge a client a fee under Subsection
    1-8  (b) of this article unless the agent notifies the client of the
    1-9  agent's reimbursement requirement and obtains the client's written
   1-10  consent for each fee charged before the agent incurs the expense
   1-11  for the client.
   1-12        (d)  A local recording agent is not prohibited from charging
   1-13  a fee for services rendered to a client that were not anticipated
   1-14  in any commission paid to the agent by an insurance company.
   1-15  Before charging such a fee, the local recording agent must obtain
   1-16  the written agreement of the client.  The agreement must contain a
   1-17  description of the services for which the fee is charged.  Those
   1-18  services may include:
   1-19              (1)  special delivery postal charges;
   1-20              (2)  printing and reproduction costs;
   1-21              (3)  electronic mail costs;
   1-22              (4)  telephone transmission costs; and
   1-23              (5)  analogous costs that the agent incurs on behalf of
   1-24  the client.
    2-1        SECTION 2.  Article 21.35B, Insurance Code, is amended to
    2-2  read as follows:
    2-3        Art. 21.35B.  PERMISSIBLE PAYMENTS.  (a)  No payment may be
    2-4  solicited or collected by an insurer, its agent, or sponsoring
    2-5  organization in connection with an application for insurance or the
    2-6  issuance of a policy other than:
    2-7              (1)  premiums;<,>
    2-8              (2)  taxes;<,>
    2-9              (3)  finance charges;<,>
   2-10              (4)  policy fees;<,>
   2-11              (5)  agent fees;<,>
   2-12              (6)  service fees, including charges for costs
   2-13  described under Article 21.35A(d) of this code;
   2-14              (7)  inspection fees;<,> or
   2-15              (8)  membership dues in a sponsoring organization.
   2-16        (b)  The commissioner by rule shall permit sponsoring
   2-17  organizations to solicit voluntary contributions with a membership
   2-18  renewal solicitation when the membership renewal solicitation is
   2-19  separate from an insurance billing.
   2-20        (c) <(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.