1-1 By: Van de Putte S.B. No. 1707 1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read 1-3 first time and referred to Committee on Business and Commerce; 1-4 April 24, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 0; April 24, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1707 By: Van de Putte 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to certain practices of title insurance companies in 1-11 providing area and boundary coverage. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Chapter 9, Insurance Code, is amended by adding 1-14 Article 9.07C to read as follows: 1-15 Art. 9.07C. AREA AND BOUNDARY COVERAGE. (a) In this 1-16 article, "area and boundary coverage" means title insurance 1-17 coverage relating to discrepancies, conflicts, or shortages in area 1-18 or boundary lines, or any encroachments or protrusions, or any 1-19 overlapping of improvements. 1-20 (b) The commissioner may adopt rules allowing a title 1-21 insurance company to accept an existing real property survey and 1-22 not require a new survey when providing area and boundary coverage 1-23 if the title insurance company is willing to accept evidence of an 1-24 existing real property survey, and an affidavit verifying the 1-25 existing survey, as prescribed by the commissioner, notwithstanding 1-26 the age of the survey or the identity of the person for whom the 1-27 survey was prepared. 1-28 (c) A title insurance company may not discriminate in 1-29 providing area and boundary coverage in connection with residential 1-30 real property solely because: 1-31 (1) the real property is platted or unplatted; or 1-32 (2) a municipality did not accept a subdivision plat 1-33 in relation to the real property before September 1, 1975. 1-34 (d) A title insurance company may not require an indemnity 1-35 from a seller, buyer, borrower, or lender to provide area and 1-36 boundary coverage. 1-37 SECTION 2. This Act takes effect immediately if it receives 1-38 a vote of two-thirds of all the members elected to each house, as 1-39 provided by Section 39, Article III, Texas Constitution. If this 1-40 Act does not receive the vote necessary for immediate effect, this 1-41 Act takes effect September 1, 2001. 1-42 * * * * *