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A BILL TO BE ENTITLED
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AN ACT
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relating to licensing and appointment of title insurance escrow |
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officers; changing the limit applicable to a fee; authorizing a |
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fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2652.001, 2652.002, and 2652.006, |
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Insurance Code, are amended to read as follows: |
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Sec. 2652.001. LICENSE AND BOND OR DEPOSIT REQUIRED. An |
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individual may not act as an escrow officer unless the individual: |
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(1) holds a license issued by the department; [and] |
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(2) is covered by [maintains] a surety bond or deposit |
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required under Subchapter C; and |
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(3) is appointed under Section 2652.1511 as an escrow |
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officer by a title insurance agent or direct operation. |
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Sec. 2652.002. EMPLOYMENT OF ESCROW OFFICER. (a) A title |
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insurance agent or direct operation may not employ an individual as |
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an escrow officer unless the individual: |
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(1) holds a license issued by the department; |
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(2) is covered by [and maintains] a surety bond or |
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deposit as required under Subchapter C; and |
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(3) is appointed under Section 2652.1511 as an escrow |
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officer by the title insurance agent or direct operation [by this
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chapter]. |
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(b) A title insurance agent or direct operation may not |
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permit an individual to act as an escrow officer in this state |
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before the agent or direct operation has complied with Sections |
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2652.151 and 2652.1511 [2652.152] with respect to the individual. |
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Sec. 2652.006. RECORD OF ESCROW OFFICERS. The department |
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shall maintain a record of the name and address of each escrow |
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officer licensed by the department in a manner that ensures that the |
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escrow officers employed and appointed under Section 2652.1511 by |
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any title insurance agent or direct operation in this state may be |
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conveniently determined. |
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SECTION 2. Section 2652.051(a), Insurance Code, is amended |
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to read as follows: |
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(a) Before an initial license is issued to an individual to |
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act as an escrow officer in this state for a title insurance agent |
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or direct operation, the title insurance agent or direct operation |
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must file an application for an escrow officer's license and |
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appointment under Section 2652.1511 with the department on forms |
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provided by the department. |
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SECTION 3. Section 2652.052(b), Insurance Code, is amended |
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to read as follows: |
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(b) License fees, appointment fees, and renewal fees |
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collected under this chapter [Section 2652.152], shall be deposited |
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to the credit of the Texas Department of Insurance operating |
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account to be used by the department to enforce this chapter and any |
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other law of this state that regulates escrow officers for title |
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insurance agents or direct operations. |
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SECTION 4. Sections 2652.055 and 2652.056, Insurance Code, |
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are amended to read as follows: |
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Sec. 2652.055. LICENSE TERM. Unless a system of staggered |
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license renewal is adopted or required under Chapter 4003 [under
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Section 4003.002], a license expires on the second June 1 following |
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the date of issuance. |
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Sec. 2652.056. PROCEDURE FOR LICENSE RENEWAL. An |
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individual may renew an unexpired escrow officer license by: |
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(1) submitting to the department on a form provided by |
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the department a completed application, signed and sworn by the |
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individual, stating that the applicant is an individual who is a |
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bona fide resident of this state or a state adjacent to this state; |
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and |
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(2) paying to the department a renewal fee in an amount |
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set by the department [AUTOMATIC TERMINATION OF LICENSE. The
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license of each escrow officer employed by a title insurance agent
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or direct operation that surrenders its license or has its license
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revoked by the department is automatically terminated without
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notice]. |
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SECTION 5. Section 2652.101(a), Insurance Code, is amended |
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to read as follows: |
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(a) A title insurance agent or direct operation shall |
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obtain, at its own expense, a bond for its escrow officers appointed |
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under Section 2652.1511 payable to the department. The bond shall |
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obligate the principal and surety to pay for any pecuniary loss |
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sustained by the title insurance agent or direct operation through |
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an act of fraud, dishonesty, forgery, theft, embezzlement, or |
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wilful misapplication by an escrow officer, either directly and |
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alone or in conspiracy with another person. |
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SECTION 6. Section 2652.151(a), Insurance Code, is amended |
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to read as follows: |
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(a) A title insurance agent or direct operation shall |
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certify to the department, not later than the expiration date of the |
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title insurance agent's or direct operation's license, the name and |
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address of each individual employed and appointed under Section |
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2652.1511 by the title insurance agent or direct operation to serve |
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as an escrow officer in this state. |
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SECTION 7. Subchapter D, Chapter 2652, Insurance Code, is |
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amended by adding Section 2652.1511 to read as follows: |
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Sec. 2652.1511. APPOINTMENT OF ESCROW OFFICER. (a) An |
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escrow officer may be employed and appointed by more than one title |
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insurance agent or direct operation. |
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(b) Before an escrow officer may act in that capacity for a |
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title insurance agent or direct operation, the title insurance |
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agent or direct operation must appoint the escrow officer and file |
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the escrow officer's appointment with the department on a form |
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provided by the department. |
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(c) The appointment form must: |
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(1) be accompanied by a nonrefundable appointment fee; |
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(2) certify that the escrow officer is a bona fide |
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employee of a title insurance agent or direct operation with an |
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office in this state; |
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(3) be signed and sworn to by the title insurance agent |
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or direct operation and by the escrow officer; and |
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(4) demonstrate that the escrow officer is covered by |
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a surety bond or deposit required under Subchapter C. |
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(d) The appointment of the escrow officer expires on the |
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revocation, termination, or nonrenewal of the escrow officer's |
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license or termination of the escrow officer's employment with the |
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title insurance agent or direct operation that made the |
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appointment. |
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SECTION 8. Section 2652.153, Insurance Code, is amended to |
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read as follows: |
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Sec. 2652.153. NOTICE OF TERMINATION. A title insurance |
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agent or direct operation that terminates the employment of a |
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licensed escrow officer shall: |
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(1) immediately notify the department in writing of |
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the termination and request cancellation of the appointment under |
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Section 2652.1511 [license]; and |
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(2) notify the escrow officer of the action by the |
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title insurance agent or direct operation. |
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SECTION 9. Sections 2652.203(a) and (d), Insurance Code, |
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are amended to read as follows: |
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(a) The department shall notify a license holder of a |
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disciplinary action or enforcement action against the license |
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holder not later than the 30th business day after the date the |
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department assigns a file number to the action, except that this |
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subsection does not apply to a file or action: |
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(1) that is the subject of a pending criminal |
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investigation or prosecution; or |
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(2) about which the [deputy commissioner of the title
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division of the] department makes a good faith determination that |
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there is a credible suspicion that there are ongoing or continuing |
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acts of fraud by a person who is the subject of the action. |
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(d) The department may provide information about an |
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enforcement action, including a copy of a notice issued under this |
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section, to each title insurance agent or direct operation with |
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which an escrow officer has, or proposes to obtain, an appointment |
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under Section 2652.1511 [employment]. |
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SECTION 10. Sections 2652.057(b) and 2652.152, Insurance |
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Code, are repealed. |
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SECTION 11. The changes in law made by this Act apply only |
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to the issuance or renewal of the license of an escrow officer on or |
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after January 1, 2016. The issuance or renewal of a license before |
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January 1, 2016, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 12. This Act takes effect September 1, 2015. |