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AN ACT
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relating to licensing of escrow officers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2652.051, Insurance Code, is amended by |
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amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) The completed application must state that: |
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(1) the proposed escrow officer is an individual who |
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is a bona fide resident of: |
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(A) this state; or |
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(B) a state adjacent to this state; |
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(2) the proposed escrow officer is an attorney or is a |
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bona fide employee of: |
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(A) an attorney licensed as an escrow officer; or |
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(B) a title insurance agent or direct operation; |
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(3) the proposed escrow officer has reasonable |
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experience or instruction in the field of title insurance; [and] |
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(4) the title insurance agent or direct operation does |
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not know of any fact or condition that disqualifies the proposed |
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escrow officer from receiving a license; and |
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(5) the proposed 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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(d) Notwithstanding Sections 406.004 and 406.020, |
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Government Code, a person qualified under this section as an escrow |
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officer may hold a license and operate as a notary public under |
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Chapter 406, Government Code. |
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SECTION 2. Section 2652.103, Insurance Code, is amended to |
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read as follows: |
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Sec. 2652.103. AMOUNT OF BOND OR DEPOSIT. (a) The amount |
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of the bond or deposit required under this subchapter is determined |
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by multiplying the number of escrow officers employed by the title |
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insurance agent or direct operation by: |
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(1) $5,000 for an application of an individual who is a |
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bona fide resident of this state; or |
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(2) $10,000 for an application of an individual who is |
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a bona fide resident of a state adjacent to this state. |
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(b) Notwithstanding Subsection (a), [except that] the |
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maximum amount of the bond or deposit required under this |
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subchapter is $50,000. |
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SECTION 3. Section 2652.201, Insurance Code, is amended to |
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read as follows: |
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Sec. 2652.201. GROUNDS FOR LICENSE DENIAL OR DISCIPLINARY |
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ACTION. (a) The department may deny an application for a license |
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or discipline an escrow officer under Sections 4005.102, 4005.103, |
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and 4005.104 if the department determines that the applicant or |
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license holder has: |
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(1) wilfully violated this title; |
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(2) intentionally made a material misstatement in the |
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license application; |
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(3) obtained or attempted to obtain the license by |
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fraud or misrepresentation; |
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(4) misappropriated or converted to the escrow |
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officer's own use or illegally withheld money belonging to a title |
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insurance agent, direct operation, or another person; |
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(5) been guilty of fraudulent or dishonest practices; |
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(6) materially misrepresented the terms and |
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conditions of a title insurance policy or contract; or |
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(7) failed to complete all educational requirements. |
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(b) The department may not deny an application for a license |
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or discipline an escrow officer under Section 4005.102, 4005.103, |
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or 4005.104 solely because the individual resides in an adjacent |
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state and acts as an escrow officer in this state as a bona fide |
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employee of a title insurance agent or direct operation in this |
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state. |
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SECTION 4. This Act applies to an application to act as an |
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escrow officer that is filed with the Texas Department of Insurance |
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on or after the effective date of this Act. An application filed |
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before that date is governed by the law in effect on the date the |
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application was filed, and the former law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 652 was passed by the House on April |
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9, 2009, by the following vote: Yeas 148, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 652 was passed by the Senate on May |
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13, 2009, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |