1-1 By: Reyna (Senate Sponsor - Leedom) H.B. No. 1422
1-2 (In the Senate - Received from the House April 6, 1995;
1-3 April 10, 1995, read first time and referred to Committee on
1-4 Economic Development; May 16, 1995, reported favorably by the
1-5 following vote: Yeas 8, Nays 0; May 16, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain fees charged by local recording agents and
1-9 insurers.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Article 21.35A, Insurance Code, is amended by
1-12 adding a new Subsection (c) and by amending and relettering
1-13 Subsection (c) as Subsection (d) to read as follows:
1-14 (c) A local recording agent is not prohibited from charging
1-15 a reasonable fee for services rendered to a client. Those services
1-16 may include:
1-17 (1) special delivery or postal charges;
1-18 (2) printing and reproduction costs;
1-19 (3) electronic mail costs;
1-20 (4) telephone transmission costs; and
1-21 (5) similar costs that the agent incurs on behalf of
1-22 the client.
1-23 (d) <(c)> An agent may not charge a client a fee under this
1-24 article unless the agent notifies the client of the agent's fee or
1-25 reimbursement requirement and obtains the client's written consent
1-26 for each fee charged before the agent incurs the expense for the
1-27 client.
1-28 SECTION 2. Article 21.35B, Insurance Code, is amended to
1-29 read as follows:
1-30 Art. 21.35B. Permissible Payments. (a) No payment may be
1-31 solicited or collected by an insurer, its agent, or sponsoring
1-32 organization in connection with an application for insurance or the
1-33 issuance of a policy other than:
1-34 (1) premiums;<,>
1-35 (2) taxes;<,>
1-36 (3) finance charges;<,>
1-37 (4) policy fees;<,>
1-38 (5) agent fees;<,>
1-39 (6) service fees, including charges for costs
1-40 described under Article 21.35A of this code;
1-41 (7) inspection fees;<,> or
1-42 (8) membership dues in a sponsoring organization.
1-43 (b) The commissioner by rule shall permit sponsoring
1-44 organizations to solicit voluntary contributions with a membership
1-45 renewal solicitation when the membership renewal solicitation is
1-46 separate from an insurance billing.
1-47 (c) Except as otherwise provided by statute, an insurer may
1-48 require that membership dues in its sponsoring organization be paid
1-49 as a condition for issuance or renewal of an insurance policy.
1-50 (d) <(b)> Criminal penalties for violation of this article
1-51 are as provided for under Section 13, Article 21.49-1 of this code.
1-52 SECTION 3. The importance of this legislation and the
1-53 crowded condition of the calendars in both houses create an
1-54 emergency and an imperative public necessity that the
1-55 constitutional rule requiring bills to be read on three several
1-56 days in each house be suspended, and this rule is hereby suspended,
1-57 and that this Act take effect and be in force from and after its
1-58 passage, and it is so enacted.
1-59 * * * * *