By:  Van de Putte                                     S.B. No. 1707
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to prohibiting discrimination and tying of services and to
 1-3     allowing underwriting by certain insurance companies.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 1, Article 9, Insurance Code, is amended
 1-6     by adding Article 9.07C to read as follows:
 1-7           Art. 9.07C.  DISCRIMINATION AND TYING OF SERVICES PROHIBITED.
 1-8     No title insurance company and no title insurance agent may
 1-9     discriminate in providing insurance coverage as to discrepancies,
1-10     conflicts, encroachments, location of boundary lines or similar
1-11     insurance coverage, based on whether a home or other land is
1-12     located in a platted or unplatted subdivision, or based on the
1-13     race, color, religion, gender, or national origin of the owner.  No
1-14     regulation or rule relating to this insurance coverage may (1)
1-15     discriminate against economically disadvantaged individuals or (2)
1-16     require that other services or goods be provided or purchased by
1-17     any person from third parties or affiliates of title insurance
1-18     companies in order to secure this insurance coverage for the
1-19     benefit of any person.  No regulation or rule relating to this
1-20     insurance coverage may prohibit a title insurance company from
1-21     making sound underwriting decisions in order to provide this
1-22     insurance coverage.  The title insurance company's underwriting
1-23     shall be based on information or guidelines that the title
 2-1     insurance company deems reasonable and the title insurance company
 2-2     shall not require an indemnity from a seller, buyer, borrower or
 2-3     lender to provide this insurance coverage.
 2-4           SECTION 2.  This Act takes effect immediately if it receives
 2-5     a vote of two-thirds of all the members elected to each house, as
 2-6     provided by Section 39, Article III, Texas Constitution.  If this
 2-7     Act does not receive the vote necessary for immediate effect, this
 2-8     Act takes effect September 1, 2001.