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                                  * * * * *