SRC-DPW H.B. 1453 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1453
76R11029 DLF-DBy: Smith (Madla)
Economic Development
5/13/1999
Engrossed


DIGEST 

Many times, new homeowners and title companies are unaware of any
improprieties concerning erroneous claims for homestead exemptions.  If a
person purchases a residential homestead encumbered with delinquent taxes,
penalties, and interest due to an invalid exemption, that person, rather
than the former owner, must pay as the delinquent taxes, penalties, and
interest are levied against the property, rather than the owner.  This bill
would allow the commissioner of insurance, for an owner policy on
residential real property issued to a natural person, to adopt coverages
that insure against ad valorem taxes. 

PURPOSE

As proposed, H.B. 1453 sets forth guidelines for coverage under a title
insurance policy issued with respect to residential real property. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Article 9.07A, Insurance Code, by adding Subsection (f), to
authorize the commissioner of insurance, for an owner policy on residential
real property that is issued to a natural person, to adopt coverages that
insure against ad valorem taxes, including penalties and interest, to be
paid with respect to the property for a previous tax year and that are
delinquent on the effective date of the policy because of sale, diversion,
or change of use, unless excluded because the insured has actual knowledge
of the delinquent taxes; and because of an exemption granted to a previous
owner of the property under Section 11.13, Tax Code, or because of
improvements not assessed for a previous tax year, unless excluded because
the insured has actual knowledge of the delinquent taxes. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Emergency clause.