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A BILL TO BE ENTITLED
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AN ACT
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relating to the business of title insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2702.051, Insurance Code, is amended to |
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read as follows: |
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Sec. 2702.051. APPLICABILITY. This subchapter does not |
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apply to the closing or settlement of: |
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(1) a residential real property transaction regulated |
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by the Real Estate Settlement Procedures Act of 1974 (Pub. L. |
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No. 93-533) except as provided by Section 2702.054(b); or |
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(2) a real property transaction if the closing or |
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settlement is not actually handled by: |
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(A) a title insurance company, a title insurance |
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agent, or an attorney for a title insurance company or title |
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insurance agent; or |
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(B) a representative of a title insurance |
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company, a title insurance agent, or an attorney for a title |
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insurance company or title insurance agent. |
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SECTION 2. Section 2702.054, Insurance Code, is amended to |
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read as follows: |
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Sec. 2702.054. USE OF ALTERNATE SETTLEMENT STATEMENT FORM |
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PERMITTED. (a) A title insurance company or title insurance agent |
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may use the uniform settlement statement form prepared under the |
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Real Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533) |
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instead of the uniform closing and settlement statement form |
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prescribed by the department under this subchapter. |
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(b) A title insurance company or title insurance agent that |
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uses the uniform settlement statement form permitted by Subsection |
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(a) in a residential real estate transaction regulated by the Real |
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Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533) as |
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the closing and settlement statement for the transaction shall |
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disclose on a form promulgated by the commissioner under Subsection |
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(c) the following information: |
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(1) an accurate statement of: |
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(A) the title insurance premium; and |
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(B) the amount of each portion of that premium |
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paid to a third party; and |
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(2) an itemization of all other fees and charges paid |
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to the settlement agent. |
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(c) The commissioner shall promulgate the form required by |
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Subsection (b). |
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SECTION 3. Section 2703.153(h), Insurance Code, is amended |
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to read as follows: |
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(h) The contents of the statistical report, including any |
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amendments to the statistical report, must be established in a |
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rulemaking hearing under Subchapter B, Chapter 2001, Government |
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Code. The requirements for reporting of income and expenses on the |
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statistical report shall conform to the manner in which accounting |
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records are normally kept in the ordinary course of business of a |
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title insurance company or title insurance agent. |
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SECTION 4. Section 2702.054, Insurance Code, as amended by |
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this Act, applies only to a residential real estate transaction |
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that closes on or after January 1, 2018. A residential real estate |
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transaction that closes before January 1, 2018, is governed by the |
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law as it existed immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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SECTION 5. Section 2703.153(h), Insurance Code, as amended |
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by this Act, applies only to an annual statistical report issued on |
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or after January 1, 2018. An annual statistical report issued |
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before January 1, 2018, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2017. |