80R7598 DLF-F

By: Eiland H.B. No. 3271

A BILL TO BE ENTITLED

AN ACT

relating to the biennial hearing concerning title insurance and related information.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 2703.153 and 2703.203, Insurance Code, are amended to read as follows:

Sec. 2703.153. COLLECTION OF DATA FOR FIXING PREMIUM RATES; ANNUAL STATISTICAL REPORT. (a) Each title insurance company and title insurance agent engaged in the business of title insurance in this state shall annually submit to the department, as required by the department to collect data to use to fix premium rates, a statistical report containing [all] information relating to:

(1) loss experience;

(2) expense of operation; and

(3) other material matters.

(b) The information must be submitted in the form adopted by rule by the commissioner in accordance with Subchapter B, Chapter 2001, Government Code [prescribed by the department].

(c) If the rules adopted under Subsection (b) are amended to require a title insurance company or title insurance agent to include new or different information in the statistical report, that information may not be considered by the commissioner in fixing premium rates until the expiration of a period stated in the rules. The period must be sufficiently long to ensure that the information collected is statistically meaningful and may not expire earlier than the second anniversary of the date the amendment to the rules becomes effective.

(d) A title insurance company or a title insurance agent aggrieved by a requirement concerning the submission of information imposed under this section or otherwise imposed in connection with a biennial hearing under Subchapter E may bring a suit in a district court in Travis County alleging that the request for information:

(1) is abusive;

(2) is unduly burdensome;

(3) is made for the purposes of harassment;

(4) is otherwise improper or improperly requests privileged information; or

(5) is not a request for information material to fixing and promulgating premium rates or another matter that may be the subject of the biennial hearing and is not a request reasonably designed to lead to the discovery of that information.

(e) On filing of a suit under Subsection (d), the requirement that the title insurance company or title insurance agent bringing the suit comply with the request for the information is abated. The district court may enter an order requiring the title insurance company or title insurance agent to comply with the request for information subject to the limitations, if any, imposed by the court.

(f) Another title insurance company or title insurance agent subject to the requirements described by Subsection (d) may intervene, as permitted by the court, in a suit brought under that subsection.

(g) A district court shall act on a suit brought under Subsection (d) not later than the 60th day after the date the suit is filed.

Sec. 2703.203. BIENNIAL HEARING. The commissioner shall hold and complete a biennial public hearing not earlier than July 1 of each even-numbered year and not later than December 15 of each even-numbered year to consider adoption of premium rates and other matters relating to regulating the business of title insurance that an association, title insurance company, title insurance agent, or member of the public admitted as a party under Section 2703.204 requests to be considered or that the commissioner determines necessary to consider.

SECTION 2. Section 2703.204, Insurance Code, is amended to read as follows:

Sec. 2703.204. ADMISSION AS PARTY TO BIENNIAL HEARING. (a) Subject to this section, an [An] individual or association or other entity recommending adoption of a premium rate or another matter relating to regulating the business of title insurance shall be admitted as a party to the biennial hearing.

(b) An individual or association seeking to be made a party with respect to a portion of the biennial hearing that relates to adoption of a premium rate or a rule must provide to the commissioner a detailed summary of the individual's or association's interest in the business of title insurance.

(c) For an individual, the summary required by Subsection (b) must include a statement of the number of real estate transactions in which the individual has been involved and with respect to which the individual has requested and paid for title insurance. For an association, the summary must include a statement of the number of members of the association.

(d) The commissioner may require that an individual or association seeking to be made a party to a portion of the biennial hearing that relates to adoption of a premium rate or a rule who has not provided adequate evidence of a substantial interest in the title insurance business file a bond. The bond must be in an amount of not less than $10,000 and not more than $100,000 and must be conditioned on the individual's or association's appearance at the hearing.

(e) For purposes of Subsection (d), an association has a substantial interest in the business of title insurance if the association has at least 250 members.

(f) A party to the biennial hearing may file an action in a district court in Travis County to remove any other party to a portion of the biennial hearing that relates to adoption of a premium rate or a rule on the grounds that the other party does not have a substantial interest in the business of title insurance.

SECTION 3. Section 2703.205(d), Insurance Code, is amended to read as follows:

(d) At the direction of the commissioner or at the written request of an association or other entity recommending adoption of a premium rate and [a person] seeking admission as a party to the ratemaking phase of the hearing, the State Office of Administrative Hearings shall conduct the ratemaking phase of the hearing in accordance with Chapter 40. A request under this subsection must be made at the time the association or entity [a person] seeks to be admitted as a party to the hearing but may not be made later than the 10th day after the date notice of the hearing is provided under Section 2703.207.

SECTION 4. This Act applies only to the premium rate applicable to a title insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2009. A premium rate applicable to a policy that is delivered, issued for delivery, or renewed before January 1, 2009, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for this purpose.

SECTION 5. This Act takes effect September 1, 2007.