| TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB652 by Darby (Relating to licensing of escrow officers.), As Engrossed |
The bill would amend the Insurance Code to allow residents of states adjacent to this state to be escrow officers if the escrow officer is an employee of a title insurance agent or direct operation with an office in this state. The bill would add that the bond or deposit for an application of an individual who is a resident of a state adjacent to this state is $10,000. Additionally, the bill would restrict the Texas Department of Insurance (TDI) from denying an escrow officer application or conducting any disciplinary action solely because the individual is a resident of a state adjacent to this state. The provisions of the bill would apply to applications that are filed with TDI on or after September 1, 2009.
Based on the analysis of TDI, implementing the requirements of this bill would require TDI to review administrative rules to ensure compliance with statute and would increase the amount of agency time spent tracking resident status and escrow bond amounts. It is assumed that costs associated with implementing the provisions of the bill could be absorbed within existing resources.
| Source Agencies: | 454 Department of Insurance
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| LBB Staff: | JOB, JRO, KJG, MW, CH
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