MINUTES
SENATE COMMITTEE ON TITLE INSURANCE (INTERIM)
Wednesday, September 9, 1998
9:00 am
Capitol Extension, Room E1.028
*****
Pursuant to a notice posted in accordance with Senate Rule
11.11, a public hearing of the Senate Committee on Title
Insurance (Interim) was held on Wednesday, September 9, 1998
in the Capitol Extension, Room E1.028, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Chris Harris Senator Gonzalo
Barrientos
Senator J.E. Brown
*****
The Chair called the meeting to order at 9:05 am. The
following business was transacted.
The following members arrived after the roll was called:
none.
Senator Harris called Robert Carter, Deputy Commissioner of
the Title Division of the Texas Department of Insurance and
Merritt L. Hopson, Technical Advisor in the Title Division to
testify. Senator Harris stated that his understanding was
that the Insurance Department had addressed the main issues,
that the interim committee had been formed for, with their
proposed rules 12, 22 and 48. Mr. Carter confirmed that
assumption. Senator Harris stated that it had been brought to
his attention that there was probably an inherent conflict
between P12 and P 48 and was the Department of Insurance
prepared to go back and address that issue. Mr. Carter
responded by saying that the proposed rules were just
published in the Texas Register on August 21, 1998 and it had
only been in the last week or so that they had begun to
receive informal comments on those rules. The issues that
Senator Harris spoke of had been received via fax on Friday,
August 4th and they were in the process of digesting those.
Senator Harris stated that he would prefer the issues to be
addressed, settled and out of the way so there would not be a
Legislative hassle during the next session. He also did not
want to see a situation arise with the possibility of a
directed verdict against the Department. The Chair would be
more than happy and consider it basically a dead issue as
long as the Department of Insurance would pass the
regulations and enforce them.
Senator Harris felt there were several other areas of concern
that would lead to proposed legislation with one being the
disciplinary proceedings where someone can turn in their
license prior to the disciplinary action and circumvent the
proceedings and the other being in the auditing area. Mr.
Carter spoke to both of these and reminded the Senator that
these issues were brought to the Committee by the Insurance
Department to look at and also Merritt Hopson could speak more
on the controlled business rules if needed. Senator Harris
stated he didn't think that was necessary and thanked both Mr.
Carter and Mr. Hopson for coming to testify.
Stephen A. Hester, Jr., representing Chicago Title, stated
that Chicago Title would be providing evidence and data in
written form to the Texas Department of Insurance on P12 and
P22 and would send the Committee a copy.
Senator Harris thanked all those who testified and there being
no further business, at 9:14 am Senator Harris moved that the
Committee stand recessed subject to the call of the Chair.
Without objection, it was so ordered.
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Senator Chris Harris, Chair
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Myra J. Schmitt, Clerk