By Harris                                               S.B. No. 92
         76R2973 DB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the voluntary surrender or automatic forfeiture of a
 1-3     license of a title insurance agent, direct operation, escrow
 1-4     officer, or title attorney.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Article 9.37, Insurance Code, is amended by
 1-7     adding Section F to read as follows:
 1-8           F.  The voluntary surrender or automatic forfeiture of a
 1-9     title insurance agent license or direct operation license to the
1-10     department under Section A of this article does not affect the
1-11     culpability of the license holder for conduct of the license holder
1-12     committed before the effective date of the surrender or forfeiture,
1-13     and the commissioner may institute a disciplinary proceeding
1-14     against the license holder for conduct of the license holder
1-15     committed before the effective date of the surrender or forfeiture.
1-16           SECTION 2.  Article 9.44, Insurance Code, is amended by
1-17     adding Section 6 to read as follows:
1-18           Sec. 6.  The voluntary surrender or automatic forfeiture of
1-19     an escrow officer license to the department under Section 1 of this
1-20     article does  not affect the culpability of the license holder for
1-21     conduct of the license holder committed before the effective date
1-22     of the surrender or forfeiture, and the commissioner may institute
1-23     a disciplinary proceeding against the license holder for conduct of
1-24     the license holder committed before the effective date of the
 2-1     surrender or forfeiture.
 2-2           SECTION 3.  Section 8, Article 9.56, Insurance Code, is
 2-3     amended by amending Subsection (a) and adding Subsection (f) to
 2-4     read as follows:
 2-5           (a)  Any title attorney may surrender the [his] license at
 2-6     any time by giving notice to the board and to the attorney's title
 2-7     insurance  company concerned[, except that no title attorney shall
 2-8     be permitted to surrender his license under the provisions of this
 2-9     Section 8 if prior to the offer to surrender such license an action
2-10     shall have been commenced under the provisions of this Section 8 by
2-11     the Commissioner of Insurance for revocation of such title
2-12     attorney's license].  Any title attorney shall automatically
2-13     forfeit the license under the attorney's title insurance company
2-14     represented if the title attorney terminates the title  attorney's
2-15     [he shall terminate his] relationship with the attorney's title
2-16     insurance company.
2-17           (f)  The voluntary surrender or automatic forfeiture of a
2-18     title attorney license to the department under Subsection (a) of
2-19     this section does not affect the culpability of the license holder
2-20     for conduct of the license holder committed before the effective
2-21     date of the surrender or forfeiture, and the commissioner may
2-22     institute a disciplinary proceeding against the license holder for
2-23     conduct of the license holder committed before the effective date
2-24     of the surrender or forfeiture.
2-25           SECTION 4.  Articles 9.51 and 9.52, Insurance Code, are
2-26     repealed.
2-27           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.