By Garcia H.B. No. 2503 75R5082 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain solicitations made in relation to insured fire 1-3 losses; providing a penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 21, Insurance Code, is 1-6 amended by adding Article 21.07-5 to read as follows: 1-7 Art. 21.07-5. PUBLIC ADJUSTERS; PROHIBITED CONDUCT 1-8 Sec. 1. DEFINITIONS. In this article, "public adjuster" 1-9 means a person who: 1-10 (1) represents a named insured in an insurance policy 1-11 that covers damage to property by: 1-12 (A) giving advice to the named insured regarding 1-13 a first-party claim for damage to property; or 1-14 (B) preparing or negotiating the claim; and 1-15 (2) directly or indirectly solicits from the insured 1-16 or the insured's representative the right to provide the services 1-17 described by Subdivision (1) of this section. 1-18 Sec. 2. PROHIBITED CONDUCT RELATING TO FIRE LOSS. A person 1-19 may not, in person, in writing, through an agent, or by telephone, 1-20 offer to provide services as a public adjuster to another person in 1-21 relation to damages from a fire that may be subject to a 1-22 first-party claim under an insurance policy: 1-23 (1) during the fire; and 1-24 (2) before the second day after the date on which the 2-1 fire is extinguished. 2-2 Sec. 3. PENALTY. A person commits an offense if the person 2-3 violates Section 2 of this article. An offense under this section 2-4 is a Class C misdemeanor. 2-5 SECTION 2. This Act takes effect September 1, 1997. 2-6 SECTION 3. The importance of this legislation and the 2-7 crowded condition of the calendars in both houses create an 2-8 emergency and an imperative public necessity that the 2-9 constitutional rule requiring bills to be read on three several 2-10 days in each house be suspended, and this rule is hereby suspended.