By McCall H.B. No. 906 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to approval by a lienholder required for payment of an 1-3 insurance claim; providing a civil penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 132, Revised Statutes, is amended by adding 1-6 Article 9031 to read as follows: 1-7 Art. 9031. LIENHOLDER APPROVAL OF INSURANCE CLAIM PAYMENT 1-8 Sec. 1. If payment of an insurance claim relating to 1-9 personal property requires the endorsement of a check or draft by a 1-10 holder of a lien on the property or otherwise requires approval of 1-11 the lienholder, the lienholder, not later than the 14th day after 1-12 the date the lienholder receives a request for the endorsement or 1-13 other approval, shall: 1-14 (1) provide the endorsement or other approval; or 1-15 (2) provide the person who requested the endorsement 1-16 or other approval a written statement of the reason for denial of 1-17 the endorsement or other approval. 1-18 Sec. 2. (a) A lienholder who violates Section 1 of this 1-19 article is liable for a civil penalty not to exceed $500 for each 1-20 violation. 1-21 (b) The attorney general may sue to collect a civil penalty 1-22 under this section. 1-23 SECTION 2. This Act takes effect September 1, 1997. 1-24 SECTION 3. The importance of this legislation and the 2-1 crowded condition of the calendars in both houses create an 2-2 emergency and an imperative public necessity that the 2-3 constitutional rule requiring bills to be read on three several 2-4 days in each house be suspended, and this rule is hereby suspended.