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.
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