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.