By: Morrison (Senate Sponsor - Carona) H.B. No. 3106
         (In the Senate - Received from the House May 3, 2013;
  May 6, 2013, read first time and referred to Committee on Business
  and Commerce; May 14, 2013, reported favorably by the following
  vote:  Yeas 9, Nays 0; May 14, 2013, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to compensatory payments made in connection with the
  issuance of certain title insurance policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 2502, Insurance Code, is
  amended by adding Section 2502.057 to read as follows:
         Sec. 2502.057.  CERTAIN COMPENSATORY PAYMENTS RELATED TO
  CERTAIN ELECTRIC ENERGY PROJECTS PERMITTED. (a) This section
  applies with respect to a utility project that is:
               (1)  designed to produce, generate, transmit,
  distribute, sell, or furnish electric energy; and
               (2)  valued on completion at more than $25 million.
         (b)  A payment for furnishing title evidence for the issuance
  of a title insurance policy related to a project described by
  Subsection (a) may be:
               (1)  a flat fee or fee calculated on an hourly basis
  that:
                     (A)  is payable on the date the title evidence is
  furnished; and
                     (B)  does not exceed $25,000; or
               (2)  a portion of the title insurance premium:
                     (A)  based on the percentage established by the
  commissioner for payment by a title insurance company, title
  insurance agent, or direct operation for services performed by
  another title insurance company, title insurance agent, or direct
  operation; and
                     (B)  payable on the date of the issuance of the
  policy for which the evidence is furnished.
         (c)  The payment must be:
               (1)  made by the proposed insured to the title
  insurance company, title insurance agent, or direct operation that
  furnishes the title evidence; and
               (2)  credited against the title insurance premium
  charged for the issuance of the title insurance policy for which the
  evidence is furnished.
         (d)  Nothing in this section may be construed to allow the
  payment of an amount in violation of the premium rates promulgated
  or the division of premium established by the commissioner.
         SECTION 2.  This Act applies only to a payment for title
  evidence furnished on or after the effective date of this Act. A
  payment for title evidence furnished before the effective date of
  this Act is governed by the law as it existed immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 3.  This Act takes effect September 1, 2013.
 
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