76R11029 DLF-D                           
         By Smith                                              H.B. No. 1453
         Substitute the following for H.B. No. 1453:
         By Seaman                                         C.S.H.B. No. 1453
                                A BILL TO BE ENTITLED
 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 and that are delinquent on the  effective date of the
1-19     policy because of  an exemption granted to a previous owner of the
1-20     property under Section 11.13, Tax Code, or because of improvements
1-21     not assessed for a previous tax year, unless excluded because the
1-22     insured has actual knowledge of the delinquent taxes.
1-23           SECTION 2.  This Act takes effect September 1, 1999.
1-24           SECTION 3.  Article 9.07A(f), Insurance Code, as added by
 2-1     this Act, applies only to an owner policy of title insurance that
 2-2     is delivered or issued for delivery on or after January 1, 2000.
 2-3     An owner policy of title insurance that is delivered or issued for
 2-4     delivery before January 1, 2000, is governed by the law as it
 2-5     existed immediately before the effective date of this Act, and that
 2-6     law is continued in effect for that purpose.
 2-7           SECTION 4.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended.