AN ACT
 1-1     relating to the voluntary surrender or automatic forfeiture of a
 1-2     license of a title insurance agent, direct operation, escrow
 1-3     officer, or title attorney.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 9.37, Insurance Code, is amended by
 1-6     adding Section F to read as follows:
 1-7           F.  The voluntary surrender or automatic forfeiture of a
 1-8     title insurance agent license or direct operation license to the
 1-9     department under Section A of this article does not affect the
1-10     culpability of the license holder for conduct of the license holder
1-11     committed before the effective date of the surrender or forfeiture,
1-12     and the commissioner may institute a disciplinary proceeding
1-13     against the license holder for conduct of the license holder
1-14     committed before the effective date of the surrender or forfeiture.
1-15           SECTION 2.  Article 9.44, Insurance Code, is amended by
1-16     adding Section 6 to read as follows:
1-17           Sec. 6.  The voluntary surrender or automatic forfeiture of
1-18     an escrow officer license to the department under Section 1 of this
1-19     article does not affect the culpability of the license holder for
1-20     conduct of the license holder committed before the effective date
1-21     of the surrender or forfeiture, and the commissioner may institute
1-22     a disciplinary proceeding against the license holder for conduct of
1-23     the license holder committed before the effective date of the
1-24     surrender or forfeiture.
 2-1           SECTION 3.  Section 8, Article 9.56, Insurance Code, is
 2-2     amended by amending Subsection (a) and adding Subsection (f) to
 2-3     read as follows:
 2-4           (a)  Any title attorney may surrender the [his] license at
 2-5     any time by giving notice to the board and to the attorney's title
 2-6     insurance company concerned[, except that no title attorney shall
 2-7     be permitted to surrender his license under the provisions of this
 2-8     Section 8 if prior to the offer to surrender such license an action
 2-9     shall have been commenced under the provisions of this Section 8 by
2-10     the Commissioner of Insurance for revocation of such title
2-11     attorney's license].  Any title attorney shall automatically
2-12     forfeit the license under the attorney's title insurance company
2-13     represented if the title attorney terminates the title attorney's
2-14     [he shall terminate his] relationship with the attorney's title
2-15     insurance company.
2-16           (f)  The voluntary surrender or automatic forfeiture of a
2-17     title attorney license to the department under Subsection (a) of
2-18     this section does not affect the culpability of the license holder
2-19     for conduct of the license holder committed before the effective
2-20     date of the surrender or forfeiture, and the commissioner may
2-21     institute a disciplinary proceeding against the license holder for
2-22     conduct of the license holder committed before the effective date
2-23     of the surrender or forfeiture.
2-24           SECTION 4.  Articles 9.51 and 9.52, Insurance Code, are
2-25     repealed.
2-26           SECTION 5.  This Act takes effect September 1, 1999.
 3-1           SECTION 6.  The importance of this legislation and the
 3-2     crowded condition of the calendars in both houses create an
 3-3     emergency and an imperative public necessity that the
 3-4     constitutional rule requiring bills to be read on three several
 3-5     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 92 passed the Senate on
         March 2, 1999, by the following vote:  Yeas 31, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 92 passed the House on
         May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor