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