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.