1-1 By: Garcia (Senate Sponsor - Gallegos) H.B. No. 2503 1-2 (In the Senate - Received from the House May 8, 1997; 1-3 May 9, 1997, read first time and referred to Committee on Economic 1-4 Development; May 18, 1997, reported favorably by the following 1-5 vote: Yeas 11, Nays 0; May 18, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to certain solicitations made in relation to insured fire 1-9 losses; providing a penalty. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter A, Chapter 21, Insurance Code, is 1-12 amended by adding Article 21.07-5 to read as follows: 1-13 Art. 21.07-5. PUBLIC ADJUSTERS; PROHIBITED CONDUCT 1-14 Sec. 1. DEFINITIONS. In this article, "public adjuster" 1-15 means a person who: 1-16 (1) represents a named insured in an insurance policy 1-17 that covers damage to property by: 1-18 (A) giving advice to the named insured regarding 1-19 a first-party claim for damage to property; or 1-20 (B) preparing or negotiating the claim; and 1-21 (2) directly or indirectly solicits from the insured 1-22 or the insured's representative the right to provide the services 1-23 described by Subdivision (1) of this section. 1-24 Sec. 2. PROHIBITED CONDUCT RELATING TO FIRE LOSS. A person 1-25 may not, in person, in writing, through an agent, or by telephone, 1-26 offer to provide services as a public adjuster to another person in 1-27 relation to damages from a fire that may be subject to a 1-28 first-party claim under an insurance policy: 1-29 (1) during the fire; and 1-30 (2) before the second day after the date on which the 1-31 fire is extinguished. 1-32 Sec. 3. PENALTY. A person commits an offense if the person 1-33 violates Section 2 of this article. An offense under this section 1-34 is a Class C misdemeanor. 1-35 SECTION 2. This Act takes effect September 1, 1997. 1-36 SECTION 3. The importance of this legislation and the 1-37 crowded condition of the calendars in both houses create an 1-38 emergency and an imperative public necessity that the 1-39 constitutional rule requiring bills to be read on three several 1-40 days in each house be suspended, and this rule is hereby suspended. 1-41 * * * * *