BILL ANALYSIS

H.B. 1901

By: Smithee

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law requires title insurance agents, direct operations, and title insurance companies to submit annual trust fund account audit reports to the Texas Department of Insurance (TDI) through certified mail. This requirement results in TDI having to scan and manage the paper filings for processing and retention purposes, which is inefficient and costly for both TDI and the entities submitting the reports. H.B. 1901 seeks to address this issue and allow for electronic filing by removing the specified method by which these reports must be filed.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1901 amends the Insurance Code to remove the requirement for a title insurance agent, direct operation, or title insurance company to send a copy of the annual audit of applicable trust fund accounts prepared for the agent, operation, or company to the Texas Department of Insurance (TDI) by certified mail, postage prepaid. The bill requires those entities instead to file with TDI one copy of each such audit report, without specifying the manner of filing.

EFFECTIVE DATE

September 1, 2023.