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.