By Ramsay                                       H.B. No. 2166

      75R7592 SAW-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the tax imposed on title insurance premiums.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 4, Article 9.59, Insurance Code, is

 1-5     amended to read as follows:

 1-6           Sec. 4.   There is imposed on all premium on title insurance

 1-7     an annual tax equal to one and four-tenths [two] percent (1.4%)

 1-8     [(2.0%)].

 1-9           [Any title insurance company may remit on a tax rate lower

1-10     than the two percent (2.0%) imposed by this article.  If such title

1-11     insurance company as of the preceding December 31 owns Texas

1-12     investments in an amount in total value which is in excess of

1-13     ninety percent (90%) of the amount such title insurance company

1-14     owned in the comparison state in similar investments as herein

1-15     defined, the tax imposed shall be equal to 1.3 percent (1.3%) of

1-16     premium.]

1-17           SECTION 2.  This Act takes effect September 1, 1997, and

1-18     applies to a tax imposed on or after January 1, 1998.

1-19           SECTION 3.  The importance of this legislation and the

1-20     crowded condition of the calendars in both houses create an

1-21     emergency and an imperative public necessity that the

1-22     constitutional rule requiring bills to be read on three several

1-23     days in each house be suspended, and this rule is hereby suspended.