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.