1-1 By: Smith (Senate Sponsor - Madla) H.B. No. 1453 1-2 (In the Senate - Received from the House May 10, 1999; 1-3 May 10, 1999, read first time and referred to Committee on Economic 1-4 Development; May 14, 1999, reported favorably by the following 1-5 vote: Yeas 5, Nays 0; May 14, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to coverage under a title insurance policy issued with 1-9 respect to residential real property. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Article 9.07A, Insurance Code, is amended by 1-12 adding Subsection (f) to read as follows: 1-13 (f) For an owner policy on residential real property that is 1-14 issued to a natural person, the commissioner may adopt coverages 1-15 that insure against: 1-16 (1) 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 sale, diversion, or change of use, unless 1-20 excluded because the insured has actual knowledge of the delinquent 1-21 taxes; and 1-22 (2) ad valorem taxes, including penalties and 1-23 interest, to be paid with respect to the property for a previous 1-24 tax year and that are delinquent on the effective date of the 1-25 policy because of an exemption granted to a previous owner of the 1-26 property under Section 11.13, Tax Code, or because of improvements 1-27 not assessed for a previous tax year, unless excluded because the 1-28 insured has actual knowledge of the delinquent taxes. 1-29 SECTION 2. This Act takes effect September 1, 1999. 1-30 SECTION 3. Article 9.07A(f), Insurance Code, as added by 1-31 this Act, applies only to an owner policy of title insurance that 1-32 is delivered or issued for delivery on or after January 1, 2000. 1-33 An owner policy of title insurance that is delivered or issued for 1-34 delivery before January 1, 2000, is governed by the law as it 1-35 existed immediately before the effective date of this Act, and that 1-36 law is continued in effect for that purpose. 1-37 SECTION 4. The importance of this legislation and the 1-38 crowded condition of the calendars in both houses create an 1-39 emergency and an imperative public necessity that the 1-40 constitutional rule requiring bills to be read on three several 1-41 days in each house be suspended, and this rule is hereby suspended. 1-42 * * * * *