By Lucio S.B. No. 459 74R3420 PB-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to dedicating interest earned on trust accounts of title 1-3 insurance companies to the housing trust fund. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 9, Insurance Code, is amended by adding 1-6 Article 9.45A to read as follows: 1-7 Art. 9.45A. INTEREST EARNED ON TRUST ACCOUNTS DEDICATED TO 1-8 HOUSING TRUST FUND. (a) Each title insurance company, title 1-9 insurance agent, direct operation, or escrow officer controlling 1-10 escrow funds shall maintain a pooled interest-bearing trust account 1-11 in a financial institution for the deposit of escrow funds. 1-12 (b) Except as provided by Subsection (e) of this article, 1-13 the deposit agreement for each trust account must provide that the 1-14 financial institution: 1-15 (1) pay at least quarterly to the state treasurer 1-16 interest earned on the account at a rate of interest not less than 1-17 the financial institution's highest current passbook savings 1-18 account rate, less reasonable service charges computed in 1-19 accordance with the financial institution's standard accounting 1-20 practice; 1-21 (2) send a quarterly statement to the state treasurer 1-22 showing the name of the title insurance company, title insurance 1-23 agent, direct operation, or escrow officer for whom the payment is 1-24 made, the rate of interest applied, the amount of service charges 2-1 deducted, and the account balance for the period for which the 2-2 report is made; and 2-3 (3) is not allowed a right of set-off against money 2-4 owed it by the title insurance company, title insurance agent, 2-5 direct operation, or escrow officer. 2-6 (c) The state treasurer shall credit amounts collected under 2-7 this article to the housing trust fund established under Subchapter 2-8 I, Chapter 2306, Government Code. 2-9 (d) This article does not require a financial institution to 2-10 perform administrative functions or assume responsibilities or 2-11 obligations in connection with a trust account except as provided 2-12 by this article. 2-13 (e) This article does not prevent a title insurance company, 2-14 title insurance agent, direct operation, or escrow officer from 2-15 depositing funds of a principal, client, or other person in a 2-16 separate interest-bearing account established on behalf of and for 2-17 the benefit of the principal, client, or person if a written 2-18 agreement between the title insurance company, title insurance 2-19 agent, direct operation, or escrow officer and the party depositing 2-20 the funds expressly provides for a separate account not subject to 2-21 this article and for interest earned on the account to be paid as 2-22 provided by that agreement. 2-23 SECTION 2. This Act takes effect September 1, 1995. 2-24 SECTION 3. The importance of this legislation and the 2-25 crowded condition of the calendars in both houses create an 2-26 emergency and an imperative public necessity that the 2-27 constitutional rule requiring bills to be read on three several 3-1 days in each house be suspended, and this rule is hereby suspended.