Bill Text: TX HB3228 | 2019-2020 | 86th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to certain hearings concerning title insurance rates and other matters relating to regulating the business of title insurance.

Spectrum: Bipartisan Bill

Status: (Passed) 2019-06-10 - Effective on 9/1/19 [HB3228 Detail]

Download: Texas-2019-HB3228-Engrossed.html

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86R28101 SMT-F
By: Muñoz, Jr., Raymond, Hunter H.B. No. 3228

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