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A BILL TO BE ENTITLED
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AN ACT
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relating to certain hearings concerning title insurance rates and |
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other matters relating to regulating the business of title |
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insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2703.202, Insurance Code, is amended by |
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adding Subsections (b-1), (b-2), (d-1), and (d-2) and amending |
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Subsections (d), (g), (h), (k), and (l) to read as follows: |
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(b-1) An interested person by a written request to the |
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commissioner may request a public hearing to consider changing a |
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premium rate, including fixing a new premium rate. For the purposes |
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of this subsection, "interested person" means: |
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(1) a resident of this state; |
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(2) a business entity doing business in this state; |
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(3) a political subdivision located in this state; or |
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(4) a public or private organization, other than a |
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state agency, that is located in this state. |
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(b-2) Not later than the 60th day after the date of |
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submission of a request under Subsection (b-1), the commissioner |
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shall: |
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(1) deny the request in writing, stating the reasons |
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for the denial; or |
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(2) initiate a hearing under Subsection (a). |
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(d) Notwithstanding Subsection (c), a person or entity |
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described by Subsection (b) or an interested person described by, |
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and subject to, Subsection (b-1) may petition the commissioner in |
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writing that a public hearing held under Subsection (a) or under |
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Section 2703.206 [must] be conducted by the commissioner as a |
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contested case hearing under Subchapters C through H and Subchapter |
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Z, Chapter 2001, Government Code. The petition must state the |
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grounds for the petitioner's request[, at the request of:
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[(1) a title insurance company;
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[(2)
an association composed of at least 50 percent of
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the number of title insurance agents and title insurance companies
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licensed or authorized by the department;
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[(3)
an association composed of at least 20 percent of
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the number of title insurance agents licensed or authorized by the
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department; or
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[(4) the office of public insurance counsel]. |
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(d-1) Not later than the 30th day after the date the |
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commissioner receives a petition under Subsection (d), the |
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commissioner shall hold a public hearing on the petition to |
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determine whether: |
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(1) the petition is made in good faith; and |
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(2) the grounds stated in the petition otherwise |
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justify conducting the proceeding as a contested case hearing. |
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(d-2) Not later than the 60th day after the date a petition |
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under Subsection (d) is submitted, the commissioner shall: |
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(1) deny the petition in writing, stating the reasons |
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for the denial; or |
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(2) grant the petition to initiate a hearing under |
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Subsections (a) and (h) as a contested hearing. |
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(g) If a hearing held under Subsection (a) is not conducted |
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as a contested case hearing, the commissioner shall render a |
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decision and issue a final order not later than the 120th day after |
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the date the commissioner receives a written request under |
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Subsection (b) or (b-1). |
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(h) If a hearing held under Subsection (a) is conducted as a |
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contested case hearing: |
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(1) not later than the 30th day after the date the |
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commissioner rules on a petition [receives a request] for a public |
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hearing under Subsection (d-2) [(b)], the commissioner shall issue |
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a notice of call for items to be considered at the hearing; |
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(2) the commissioner may not require responses to the |
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notice of call before the 60th day after the date the commissioner |
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issues the notice of call; |
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(3) the commissioner shall issue a notice of the |
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public hearing [requested under Subsection (d)] not later than the |
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30th day after the date responses to the notice of call are required |
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under Subdivision (2); |
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(4) the commissioner shall commence the public hearing |
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not earlier than the 120th day after the date the commissioner |
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issues a notice of hearing under Subdivision (3); |
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(5) the commissioner shall close the public hearing |
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not later than the 150th day after the date the commissioner issues |
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the notice of hearing under Subdivision (3); and |
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(6) the commissioner shall render a decision and issue |
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a final order not later than the 60th day after the record made in |
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the public hearing is closed under Subdivision (5). |
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(k) A party described by Subsection (b) or (b-1) may |
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petition a district court in Travis County to enter an order |
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requiring the commissioner to comply with the deadlines described |
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by this section if the commissioner fails to meet a requirement in |
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Subsection (g) or (h). |
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(l) Subject to Subsection (m), if the commissioner fails to |
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comply with the requirements under Subsection (g) or (h)(6), a |
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combination of at least three associations, persons, or entities |
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listed in Subsection (b) or (b-1) may jointly petition a district |
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court of Travis County to adopt a rate based on the record made in |
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the hearing before the commissioner under this section. |
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SECTION 2. Section 2703.203, Insurance Code, is amended to |
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read as follows: |
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Sec. 2703.203. PERIODIC HEARING. The commissioner shall |
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hold a public hearing not earlier than July 1 after the fifth |
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anniversary of the closing of a hearing held under this chapter to |
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consider adoption of premium rates and other matters relating to |
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regulating the business of title insurance that an interested |
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person, association, title insurance company, title insurance |
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agent, or entity [member of the public admitted as a party] under |
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Section 2703.204 requests to be considered or that the commissioner |
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determines necessary to consider. |
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SECTION 3. Section 2703.204, Insurance Code, is amended to |
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read as follows: |
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Sec. 2703.204. ADMISSION AS PARTY TO [PERIODIC] HEARING. |
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(a) Subject to this section, the following persons, associations, |
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and entities shall be admitted as parties to a contested case |
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hearing under Section 2703.202, the periodic hearing under Section |
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2703.203, or a hearing under Section 2703.206: |
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(1) a trade association whose membership is composed |
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of at least 20 percent of the members of an industry or group |
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represented by the trade association; |
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(2) [,] an association, [a] person, or entity |
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described by Section 2703.202(b); |
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(3) an interested person described by Section |
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2703.202(b-1);[,] or |
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(4) department staff [shall be admitted as a party to
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the periodic hearing under Section 2703.203]. |
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(b) A party to any portion of the periodic hearing relating |
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to ratemaking may request that the commissioner remove any other |
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party to that portion of the hearing on the grounds that the other |
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party does not have a substantial interest in the subject matter of |
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the hearing [title insurance]. A decision of the commission to deny |
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or grant the request is final and subject to appeal in accordance |
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with Section 36.202. |
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SECTION 4. This Act takes effect September 1, 2019. |