82R12603 T
	By: Darby	H.B. No. 2408

	A BILL TO BE ENTITLED
	AN ACT
	relating to administrative procedures for title insurance
	hearings, licensing, and enforcement.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2502.055, Insurance Code, is amended by
	amending Subsection (a), (1) as follows:
	(1)  engaging in legal promotional and educational
	activities that are not conditioned on the referral of title
	insurance business;
	SECTION 2.  Section 2651.007, Insurance Code, is amended by
	adding Subsections (d) and (e) to read as follows:
	(d)  The department may not delay or deny a license renewal
	application due to a pending enforcement action against the
	applicant.
	(e)  If the department does not provide the applicant with a
	ground for denying the application under Section 2651.30 before the
	61st day after the date the department receives the completed
	application, the application is considered approved.
	SECTION 3.  Subchapter G, Chapter 2651, Insurance Code, is
	amended by adding Sections 2651.303 and 2651.304 to read as
	follows:
	Sec. 2651.303  NOTICE OF DISCIPLINARY ACTION. The
	department shall notify a license holder or applicant for a license
	of a disciplinary action against the license holder or applicant
	not later than the 20th day after the date the action is initiated.
	If the department does not pursue the action on or before the 60th
	day after the date the department receives a response from the
	license holder or applicant, the action is considered dismissed.
	Sec. 2651.304.  DENIAL OF LICENSE APPLICATION ON
	DISCIPLINARY GROUNDS. (a)  The department may not delay or deny a
	license approval due to a pending enforcement action against the
	applicant.
	(b)  If the department does not provide the applicant with a
	ground for denying the application under Section 2651.301 before
	the 61st day after the date the department receives the completed
	application, the application is considered approved.
	SECTION 4.  Subchapter E, Chapter 2652, Insurance Code, is
	amended by adding Sections 2652.203 and 2652.204 to read as
	follows:
	Sec. 2652.203.  NOTICE OF DISCIPLINARY ACTION. The
	department shall notify a license holder or applicant for a license
	of a disciplinary action against the license holder or applicant
	not later than the 20th day after the date the action is initiated.
	If the department does not pursue the action on or before the 60th
	date after the date the department receives a response from the
	license holder or applicant, the action is considered dismissed.
	Sec. 2652.204.  DENIAL OF LICENSE APPLICATION ON
	DISCIPLINARY GROUNDS. (a) The department may not delay or deny a
	license approval due to a pending enforcement action against the
	applicant.
	(b)  If the department does not provide the applicant with a
	ground for denying the application under Section 2652.201 before
	the 61st day after the date the department receives the completed
	application, the application is considered approved.
	SECTION 5.  Section 2703.153, Insurance Code, is amended by
	adding Subsections (h) to read as follows:
	(h) The Department shall promulgate the contents of the
	statistical report in a hearing conducted by the commissioner as a
	rulemaking hearing under Subchapter B, Chapter 2001, Government
	Code. The commissioner shall implement any new amendments to the
	statistical report no earlier than the second anniversary of the
	adoption of the amendment. A change to the statistical report shall
	not be retroactive.
	SECTION 6.  Section 2703.202, Insurance Code, is amended by
	amending Subsection (b) and adding Subsections (g)-(m) to read as
	follows:
	(b)  At the written request of a title insurance company, an
	association composed of at least 50 percent of the title insurance
	agents and title insurance companies licensed or authorized by the
	department, an association composed of at least 20% of title
	insurance agents licensed or authorized by the department or the
	office of public insurance counsel, the commissioner shall order a
	public hearing to consider changing a premium rate.
	(g)  The commissioner shall issue a notice of call for items
	for consideration that is not later than the 31st day after the date
	the request was sent to the commissioner. The commissioner shall
	not require responses to the notice of call for items for
	consideration before the 61st day after the issue of the notice of
	call for items for consideration.
	(h)  The commissioner shall issue a notice of public hearing
	requested under this section that is no earlier than the 91st day
	after the date the notice of call for items for consideration.
	(i)  The commissioner shall conclude a public hearing under
	this section no later than the 121st day after issuing a notice of
	public hearing under this section.
	(j)  The commissioner shall issue a ruling not later than the
	60th day after the date of a public hearing held under this section.
	(k)  A party's presentation of relevant, admissible oral
	testimony may not be limited.
	(l)  Each matter in each phase of the hearing shall be
	considered by the commissioner and decisions on the matters made in
	an open meeting.
	(m)  If the commissioner fails to meet the requirements in
	sections (g), (i) or (j) of this section, then a party listed in
	section (b) of this section may petition the district court to adopt
	a rate. A district court may appoint a magistrate to adopt a rate
	under this section.
	SECTION 7.  Section 2703.203, Insurance Code, is amended to
	read as follows:
	Sec. 2703.203.  BIENNIAL HEARING. After July 1 of the 5th
	year following the last hearing held under Section 2703.202 T the
	commissioner shall hold a biennial public hearing to consider
	adoption of premium rates and other matters relating to regulating
	the business of title insurance that an association, title
	insurance company, title insurance agent, or 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 8.  Section 2703.204, Insurance Code, is amended by
	amending Subsection (a) to read as follows:
	Sec. 2703.204.  ADMISSION AS PARTY TO BIENNIAL HEARING. (a)
	Subject to this section, an individual or association or other
	entity recommending adoption of a premium rate or another matter
	relating to regulating the business of title insurance a trade
	association representing 20% of the members of the industry or
	groups represented, an association under Chapter 2401, Insurance
	Code, department staff, or any entity under 2703.202 (b), Insurance
	Code, shall be admitted as a party to the biennial a hearing under
	section 2703.202, Insurance Code.
	SECTION 9.  Section 2703.205, Insurance Code is repealed.
	SECTION 10.  Section 2703.207, Insurance Code is amended to
	read as follows:
	Sec. 2703.207.  NOTICE OF CERTAIN HEARINGS. Not later than
	the 60th day before the date of a hearing under Section 2703.202,
	2703.203, or 2703.206, notice of the hearing and of each item to be
	considered at the hearing shall be:
	(1)  sent directly to all title insurance companies and
	title insurance agents the parties to the last hearing conducted
	under Sections 2703.202, 2703.203, or 2703.206 if the hearing was
	conducted as a contested case hearing and
	(2)  provided to the public in a manner that gives fair
	notice concerning the hearing. published in the Texas Register and
	on the department's website.
	SECTION 11.  This Act takes effect immediately if it
	received as vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2010.