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.