Bill Text: TX SB1548 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to licensing and appointment of title insurance escrow officers; changing the limit applicable to a fee; authorizing a fee.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Business & Commerce [SB1548 Detail]
Download: Texas-2015-SB1548-Introduced.html
84R5358 PMO-F | ||
By: Eltife | S.B. No. 1548 |
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relating to licensing and appointment of title insurance escrow | ||
officers; changing the limit applicable to a fee; authorizing a | ||
fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 2652.001, 2652.002, and 2652.006, | ||
Insurance Code, are amended to read as follows: | ||
Sec. 2652.001. LICENSE AND BOND OR DEPOSIT REQUIRED. An | ||
individual may not act as an escrow officer unless the individual: | ||
(1) holds a license issued by the department; [ |
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(2) is covered by [ |
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required under Subchapter C; and | ||
(3) is appointed under Section 2652.1511 as an escrow | ||
officer by a title insurance agent or direct operation. | ||
Sec. 2652.002. EMPLOYMENT OF ESCROW OFFICER. (a) A title | ||
insurance agent or direct operation may not employ an individual as | ||
an escrow officer unless the individual: | ||
(1) holds a license issued by the department; | ||
(2) is covered by [ |
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deposit as required under Subchapter C; and | ||
(3) is appointed under Section 2652.1511 as an escrow | ||
officer by the title insurance agent or direct operation [ |
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(b) A title insurance agent or direct operation may not | ||
permit an individual to act as an escrow officer in this state | ||
before the agent or direct operation has complied with Sections | ||
2652.151 and 2652.1511 [ |
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Sec. 2652.006. RECORD OF ESCROW OFFICERS. The department | ||
shall maintain a record of the name and address of each escrow | ||
officer licensed by the department in a manner that ensures that the | ||
escrow officers employed and appointed under Section 2652.1511 by | ||
any title insurance agent or direct operation in this state may be | ||
conveniently determined. | ||
SECTION 2. Section 2652.051(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) Before an initial license is issued to an individual to | ||
act as an escrow officer in this state for a title insurance agent | ||
or direct operation, the title insurance agent or direct operation | ||
must file an application for an escrow officer's license and | ||
appointment under Section 2652.1511 with the department on forms | ||
provided by the department. | ||
SECTION 3. Section 2652.052(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) License fees, appointment fees, and renewal fees | ||
collected under this chapter [ |
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to the credit of the Texas Department of Insurance operating | ||
account to be used by the department to enforce this chapter and any | ||
other law of this state that regulates escrow officers for title | ||
insurance agents or direct operations. | ||
SECTION 4. Sections 2652.055 and 2652.056, Insurance Code, | ||
are amended to read as follows: | ||
Sec. 2652.055. LICENSE TERM. Unless a system of staggered | ||
license renewal is adopted or required under Chapter 4003 [ |
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the date of issuance. | ||
Sec. 2652.056. PROCEDURE FOR LICENSE RENEWAL. An | ||
individual may renew an unexpired escrow officer license by: | ||
(1) submitting to the department on a form provided by | ||
the department a completed application, signed and sworn by the | ||
individual, stating that the applicant is an individual who is a | ||
bona fide resident of this state or a state adjacent to this state; | ||
and | ||
(2) paying to the department a renewal fee in an amount | ||
set by the department [ |
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SECTION 5. Section 2652.101(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) A title insurance agent or direct operation shall | ||
obtain, at its own expense, a bond for its escrow officers appointed | ||
under Section 2652.1511 payable to the department. The bond shall | ||
obligate the principal and surety to pay for any pecuniary loss | ||
sustained by the title insurance agent or direct operation through | ||
an act of fraud, dishonesty, forgery, theft, embezzlement, or | ||
wilful misapplication by an escrow officer, either directly and | ||
alone or in conspiracy with another person. | ||
SECTION 6. Section 2652.151(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) A title insurance agent or direct operation shall | ||
certify to the department, not later than the expiration date of the | ||
title insurance agent's or direct operation's license, the name and | ||
address of each individual employed and appointed under Section | ||
2652.1511 by the title insurance agent or direct operation to serve | ||
as an escrow officer in this state. | ||
SECTION 7. Subchapter D, Chapter 2652, Insurance Code, is | ||
amended by adding Section 2652.1511 to read as follows: | ||
Sec. 2652.1511. APPOINTMENT OF ESCROW OFFICER. (a) An | ||
escrow officer may be employed and appointed by more than one title | ||
insurance agent or direct operation. | ||
(b) Before an escrow officer may act in that capacity for a | ||
title insurance agent or direct operation, the title insurance | ||
agent or direct operation must appoint the escrow officer and file | ||
the escrow officer's appointment with the department on a form | ||
provided by the department. | ||
(c) The appointment form must: | ||
(1) be accompanied by a nonrefundable appointment fee; | ||
(2) certify that the escrow officer is a bona fide | ||
employee of a title insurance agent or direct operation with an | ||
office in this state; | ||
(3) be signed and sworn to by the title insurance agent | ||
or direct operation and by the escrow officer; and | ||
(4) demonstrate that the escrow officer is covered by | ||
a surety bond or deposit required under Subchapter C. | ||
(d) The appointment of the escrow officer expires on the | ||
revocation, termination, or nonrenewal of the escrow officer's | ||
license or termination of the escrow officer's employment with the | ||
title insurance agent or direct operation that made the | ||
appointment. | ||
SECTION 8. Section 2652.153, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2652.153. NOTICE OF TERMINATION. A title insurance | ||
agent or direct operation that terminates the employment of a | ||
licensed escrow officer shall: | ||
(1) immediately notify the department in writing of | ||
the termination and request cancellation of the appointment under | ||
Section 2652.1511 [ |
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(2) notify the escrow officer of the action by the | ||
title insurance agent or direct operation. | ||
SECTION 9. Sections 2652.203(a) and (d), Insurance Code, | ||
are amended to read as follows: | ||
(a) The department shall notify a license holder of a | ||
disciplinary action or enforcement action against the license | ||
holder not later than the 30th business day after the date the | ||
department assigns a file number to the action, except that this | ||
subsection does not apply to a file or action: | ||
(1) that is the subject of a pending criminal | ||
investigation or prosecution; or | ||
(2) about which the [ |
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there is a credible suspicion that there are ongoing or continuing | ||
acts of fraud by a person who is the subject of the action. | ||
(d) The department may provide information about an | ||
enforcement action, including a copy of a notice issued under this | ||
section, to each title insurance agent or direct operation with | ||
which an escrow officer has, or proposes to obtain, an appointment | ||
under Section 2652.1511 [ |
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SECTION 10. Sections 2652.057(b) and 2652.152, Insurance | ||
Code, are repealed. | ||
SECTION 11. The changes in law made by this Act apply only | ||
to the issuance or renewal of the license of an escrow officer on or | ||
after January 1, 2016. The issuance or renewal of a license before | ||
January 1, 2016, 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 12. This Act takes effect September 1, 2015. |