1-1 By: McCall (Senate Sponsor - Duncan) H.B. No. 906 1-2 (In the Senate - Received from the House March 26, 1997; 1-3 April 2, 1997, read first time and referred to Committee on 1-4 Jurisprudence; May 6, 1997, reported favorably by the following 1-5 vote: Yeas 6, Nays 0; May 6, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to approval by a lienholder required for payment of an 1-9 insurance claim; providing a civil penalty. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Title 132, Revised Statutes, is amended by adding 1-12 Article 9031 to read as follows: 1-13 Art. 9031. LIENHOLDER APPROVAL OF INSURANCE CLAIM PAYMENT 1-14 Sec. 1. If payment of an insurance claim relating to 1-15 personal property requires the endorsement of a check or draft by a 1-16 holder of a lien on the property or otherwise requires approval of 1-17 the lienholder, the lienholder, not later than the 14th day after 1-18 the date the lienholder receives a request for the endorsement or 1-19 other approval, shall: 1-20 (1) provide the endorsement or other approval; or 1-21 (2) provide the person who requested the endorsement 1-22 or other approval a written statement of the reason for denial of 1-23 the endorsement or other approval. 1-24 Sec. 2. (a) A lienholder who violates Section 1 of this 1-25 article is liable for a civil penalty not to exceed $500 for each 1-26 violation. 1-27 (b) The attorney general may sue to collect a civil penalty 1-28 under this section. 1-29 SECTION 2. This Act takes effect September 1, 1997. 1-30 SECTION 3. The importance of this legislation and the 1-31 crowded condition of the calendars in both houses create an 1-32 emergency and an imperative public necessity that the 1-33 constitutional rule requiring bills to be read on three several 1-34 days in each house be suspended, and this rule is hereby suspended. 1-35 * * * * *