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A BILL TO BE ENTITLED
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AN ACT
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relating to compensatory payments made in connection with the |
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issuance of certain title insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 2502, Insurance Code, is |
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amended by adding Section 2502.057 to read as follows: |
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Sec. 2502.057. CERTAIN COMPENSATORY PAYMENTS RELATED TO |
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CERTAIN ELECTRIC ENERGY PROJECTS PERMITTED. (a) This section |
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applies with respect to a utility project that is: |
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(1) designed to produce, generate, transmit, |
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distribute, sell, or furnish electric energy; and |
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(2) valued on completion at more than $25 million. |
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(b) A payment for furnishing title evidence for the issuance |
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of a title insurance policy related to a project described by |
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Subsection (a) may be: |
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(1) a flat fee or fee calculated on an hourly basis |
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that: |
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(A) is payable on the date the title evidence is |
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furnished; and |
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(B) does not exceed $25,000; or |
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(2) a portion of the title insurance premium: |
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(A) based on the percentage established by the |
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commissioner for payment by a title insurance company, title |
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insurance agent, or direct operation for services performed by |
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another title insurance company, title insurance agent, or direct |
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operation; and |
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(B) payable on the date of the issuance of the |
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policy for which the evidence is furnished. |
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(c) The payment must be: |
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(1) made by the proposed insured to the title |
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insurance company, title insurance agent, or direct operation that |
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furnishes the title evidence; and |
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(2) credited against the title insurance premium |
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charged for the issuance of the title insurance policy for which the |
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evidence is furnished. |
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(d) Nothing in this section may be construed to allow the |
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payment of an amount in violation of the premium rates promulgated |
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or the division of premium established by the commissioner. |
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SECTION 2. This Act applies only to a payment for title |
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evidence furnished on or after the effective date of this Act. A |
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payment for title evidence furnished before the effective date of |
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this Act is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |