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                               * * * * *