1-1 AN ACT 1-2 relating to coverage under a title insurance policy issued with 1-3 respect to residential real property. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Article 9.07A, Insurance Code, is amended by 1-6 adding Subsection (f) to read as follows: 1-7 (f) For an owner policy on residential real property that is 1-8 issued to a natural person, the commissioner may adopt coverages 1-9 that insure against: 1-10 (1) ad valorem taxes, including penalties and 1-11 interest, to be paid with respect to the property for a previous 1-12 tax year and that are delinquent on the effective date of the 1-13 policy because of sale, diversion, or change of use, unless 1-14 excluded because the insured has actual knowledge of the delinquent 1-15 taxes; and 1-16 (2) ad valorem taxes, including penalties and 1-17 interest, to be paid with respect to the property for a previous 1-18 tax year because of an exemption granted to a previous owner of the 1-19 property under Section 11.13, Tax Code, or because of improvements 1-20 not assessed for a previous tax year, unless excluded because the 1-21 insured has actual knowledge of the taxes. 1-22 SECTION 2. This Act takes effect September 1, 1999. 1-23 SECTION 3. Article 9.07A(f), Insurance Code, as added by 1-24 this Act, applies only to an owner policy of title insurance that 2-1 is delivered or issued for delivery on or after January 1, 2000. 2-2 An owner policy of title insurance that is delivered or issued for 2-3 delivery before January 1, 2000, is governed by the law as it 2-4 existed immediately before the effective date of this Act, and that 2-5 law is continued in effect for that purpose. 2-6 SECTION 4. 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. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1453 was passed by the House on May 8, 1999, by a non-record vote; that the House refused to concur in Senate amendments to H.B. No. 1453 on May 22, 1999, and requested the appointment of a conference committee to consider the differences between the two houses; and that the House adopted the conference committee report on H.B. No. 1453 on May 30, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1453 was passed by the Senate, with amendments, on May 19, 1999, by a viva-voce vote; at the request of the House, the Senate appointed a conference committee to consider the differences between the two houses; and that the Senate adopted the conference committee report on H.B. No. 1453 on May 30, 1999, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor