By Ellis, et al.                                S.B. No. 1335

      75R8468 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to funding the housing trust fund.

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

 1-4           SECTION 1.  Section 6, Article 9.48, Insurance Code, is

 1-5     amended by amending Subsections (a) and (c) and adding Subsection

 1-6     (f) to read as follows:

 1-7           (a)  The agent, or the insurer if there is no agent, who is

 1-8     required to report an owner or mortgagee title insurance policy on

 1-9     its statistical report to the State Board of Insurance, shall remit

1-10     a guaranty fee of [in an amount not to exceed] $5 for each owner or

1-11     mortgagee policy which is required to be reported.  The board of

1-12     directors shall determine at least annually the portion of the

1-13     guaranty fee that is necessary to fund [amount and may adjust the

1-14     amount more frequently.  In determining the amount of the guaranty

1-15     fee, the board of directors shall take into consideration the

1-16     amount of funds to be maintained in] the guaranty fee account,

1-17     including any portion of the fee that [which] is reasonably

1-18     necessary for efficient future operation under the terms of this

1-19     article.

1-20           (c)  Subject to Subsection (f), funds [Funds] derived from

1-21     guaranty fees shall be authorized only for the payment of the

1-22     following:

1-23                 (1)  "covered claims" as defined by Subparagraph (iv)

1-24     of Paragraph A and Paragraphs C and D of Subsection (2), Section 5

 2-1     of this article;  and

 2-2                 (2)  audit expenses as provided by Paragraph (13),

 2-3     Subsection (c), Section 14 of this article.

 2-4           (f)  The association shall remit to the comptroller, in the

 2-5     manner required by the comptroller, any portion of the guaranty fee

 2-6     that exceeds the amount that the board of directors has determined

 2-7     is necessary to fund the guaranty fee account under Subsection (a)

 2-8     of this section. The comptroller shall deposit amounts remitted to

 2-9     the comptroller under this subsection to the housing trust fund

2-10     established under Section 2306.201, Government Code, for use in

2-11     accordance with the purposes of that fund.

2-12           SECTION 2.  Section 2306.201(b), Government Code, is amended

2-13     to read as follows:

2-14           (b)  The fund consists of:

2-15                 (1)  appropriations or transfers made to the fund;

2-16                 (2)  money deposited to the fund under Section 6,

2-17     Article 9.48, Insurance Code;

2-18                 (3)  unencumbered fund balances;  and

2-19                 (4) [(3)]  public or private gifts or grants.

2-20           SECTION 3.  The change in law made by this Act to Section 6,

2-21     Article 9.48, Insurance Code, applies only to a title insurance

2-22     policy guaranty fee that is originally due on or after the

2-23     effective date of this Act. A title insurance policy guaranty fee

2-24     that is originally due before the effective date of this Act is

2-25     governed by the law as it existed immediately before the effective

2-26     date of this Act and that law is continued in effect for that

2-27     purpose.

 3-1           SECTION 4.  This Act takes effect September 1, 1997.

 3-2           SECTION 5.  The importance of this legislation and the

 3-3     crowded condition of the calendars in both houses create an

 3-4     emergency and an imperative public necessity that the

 3-5     constitutional rule requiring bills to be read on three several

 3-6     days in each house be suspended, and this rule is hereby suspended.