1-1 By: Harris S.B. No. 92
1-2 (In the Senate - Filed December 11, 1998; January 26, 1999,
1-3 read first time and referred to Committee on Economic Development;
1-4 February 18, 1999, reported favorably by the following vote: Yeas
1-5 6, Nays 0; February 18, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the voluntary surrender or automatic forfeiture of a
1-9 license of a title insurance agent, direct operation, escrow
1-10 officer, or title attorney.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Article 9.37, Insurance Code, is amended by
1-13 adding Section F to read as follows:
1-14 F. The voluntary surrender or automatic forfeiture of a
1-15 title insurance agent license or direct operation license to the
1-16 department under Section A of this article does not affect the
1-17 culpability of the license holder for conduct of the license holder
1-18 committed before the effective date of the surrender or forfeiture,
1-19 and the commissioner may institute a disciplinary proceeding
1-20 against the license holder for conduct of the license holder
1-21 committed before the effective date of the surrender or forfeiture.
1-22 SECTION 2. Article 9.44, Insurance Code, is amended by
1-23 adding Section 6 to read as follows:
1-24 Sec. 6. The voluntary surrender or automatic forfeiture of
1-25 an escrow officer license to the department under Section 1 of this
1-26 article does not affect the culpability of the license holder for
1-27 conduct of the license holder committed before the effective date
1-28 of the surrender or forfeiture, and the commissioner may institute
1-29 a disciplinary proceeding against the license holder for conduct of
1-30 the license holder committed before the effective date of the
1-31 surrender or forfeiture.
1-32 SECTION 3. Section 8, Article 9.56, Insurance Code, is
1-33 amended by amending Subsection (a) and adding Subsection (f) to
1-34 read as follows:
1-35 (a) Any title attorney may surrender the [his] license at
1-36 any time by giving notice to the board and to the attorney's title
1-37 insurance company concerned[, except that no title attorney shall
1-38 be permitted to surrender his license under the provisions of this
1-39 Section 8 if prior to the offer to surrender such license an action
1-40 shall have been commenced under the provisions of this Section 8 by
1-41 the Commissioner of Insurance for revocation of such title
1-42 attorney's license]. Any title attorney shall automatically
1-43 forfeit the license under the attorney's title insurance company
1-44 represented if the title attorney terminates the title attorney's
1-45 [he shall terminate his] relationship with the attorney's title
1-46 insurance company.
1-47 (f) The voluntary surrender or automatic forfeiture of a
1-48 title attorney license to the department under Subsection (a) of
1-49 this section does not affect the culpability of the license holder
1-50 for conduct of the license holder committed before the effective
1-51 date of the surrender or forfeiture, and the commissioner may
1-52 institute a disciplinary proceeding against the license holder for
1-53 conduct of the license holder committed before the effective date
1-54 of the surrender or forfeiture.
1-55 SECTION 4. Articles 9.51 and 9.52, Insurance Code, are
1-56 repealed.
1-57 SECTION 5. This Act takes effect September 1, 1999.
1-58 SECTION 6. The importance of this legislation and the
1-59 crowded condition of the calendars in both houses create an
1-60 emergency and an imperative public necessity that the
1-61 constitutional rule requiring bills to be read on three several
1-62 days in each house be suspended, and this rule is hereby suspended.
1-63 * * * * *