84R5358 PMO-F
	By: Eltife	S.B. No. 1548

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