HBA-TYH S.B. 92 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 92 By: Harris Insurance 3/10/1999 Engrossed BACKGROUND AND PURPOSE Currently, the surrender or forfeiture of a title insurance, direct operation, escrow officer, or title attorney license before a disciplinary action occurs allows the license holder to avoid penalties that might be applied. S.B. 92 allows the commissioner of insurance to institute disciplinary proceedings against these license holders for conduct prior to voluntary surrender or automatic forfeiture of the licenses. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 9.37, Insurance Code, by adding Section F, as follows: F. Provides that the voluntary surrender or automatic forfeiture of a title insurance agent license or direct operation license to the Texas Department of Insurance (department) under Section A (Agent's Licenses: Surrender, Forfeiture; Grounds for Revocation; Notice, Hearing and Appeal) of this article does not affect the culpability of the license holder for conduct committed before the surrender or forfeiture. Authorizes the commissioner of insurance (commissioner) to institute a disciplinary proceeding against the license holder for conduct committed before the surrender or forfeiture. SECTION 2. Amends Article 9.44, Insurance Code, by adding Section 6, as follows: Sec. 6. Provides that the voluntary surrender or automatic forfeiture of an escrow officer license to the department under Section 1 of this article does not affect the culpability of the license holder for conduct committed before the surrender or forfeiture. Authorizes the commissioner to institute a disciplinary proceeding against the license holder for conduct committed before the surrender or forfeiture. SECTION 3. Amends Section 8, Article 9.56, Insurance Code, by amending Subsection (a) and adding Subsection (f), as follows: (a) Deletes text prohibiting the surrender of a title attorney's licence once a disciplinary action has commenced. Makes nonsubstantive changes. (f) Provides that the voluntary surrender or automatic forfeiture of a title attorney license to the department under Subsection (a) of this section does not affect the culpability of the license holder for conduct committed before the surrender or forfeiture. Authorizes the commissioner to institute a disciplinary proceeding against the license holder for conduct committed before the surrender or forfeiture. SECTION 4. Repealer: Articles 9.51(Title Insurance Agents Right to Surrender Licence) and 9.52 (Escrow Officer's Right to Surrender Licence), Insurance Code, prohibiting the surrender of a title insurance agent's or an escrow officer's license once a disciplinary action has commenced. SECTION 5. Effective date: September 1, 1999. SECTION 6. Emergency clause.