DATELINE AUSTIN

January 14, 2005
page 2
 

TDI Commissioner will step down.
Texas Department of Insurance Commissioner Jose Montemayor has announced that he will not seek re-appointment when his term ends February 1, 2005. Montemayor has worked for the Department since 1993 and has been Commissioner since 1999. When questioned about his decision he stated, “It’s just time to move on. I am incredibly proud of everybody that I've had to work with and the things we've been able to accomplish." Montemayor has offered to stay until Gov. Rick Perry appoints his replacement. Perry praised him, saying the Legislature "relied on his advice and counsel during a turbulent period of adjustment in the insurance market."

Please note that as of this writing the Commissioner has not rendered a decision on any of the items considered at the 2004 Texas Title Insurance Biennial Rule Hearing. TLTA will report any new developments regarding the 2004 Hearing or appointment of a new Commissioner as they become available.

PAC Board nomination deadline: January 28th
As part of the restructuring of the Political Action Committee (PAC), we will be increasing the number of Directors to include more member representation. In order to successfully participate in the political process, we need individuals who are committed to preserving the title insurance industry and increasing the visibility of the TLTAPAC. This is your opportunity to join an elite group of individuals who will be responsible for educating members on the importance of investing in the PAC, fundraising, setting goals for the future, building relationships with elected officials and ultimately, deciding on who will be the recipients. If you are a “true believer” in the long-term success of the title insurance industry: ACT NOW! All TLTA members are eligible, so please nominate yourself or encourage others who you feel would be good candidates.   
                   CLICK HERE TO PRINT THE NOMINATION FORM

PLEASE NOTE: THE TLTAPAC  NOMINATION PROCESS HAS BEEN CHANGED
Nomination forms will be reviewed by the current TLTAPAC Board, chaired by Bert Massey, and a slate of nominees will be selected for the available positions. Nominees will be notified in early February and will be presented to the PAC membership for approval and induction during the Annual TLTAPAC meeting in June.

Nominations will not be accepted during the Annual TLTAPAC meeting as in past years. Please contact Mindy Carr at 512.472.6593 or send an email to mindy@tlta.com if you have any questions regarding the TLTAPAC  restructuring process.

Represent TLTA for a Day!
The 2005 TLTA Day at the Capitol is March 2, 2005 at the Radisson Hotel & Suites in Austin. TLTA Day at the Capitol is an important opportunity to increase our industry impact! Attendees will meet face to face with their local representative or senator.

Don’t know who represents you? Don’t know the issues affecting our industry? Don’t worry! Legislative visits are scheduled by the TLTA staff and our program includes a comprehensive overview of the issues and helpful tips for visiting with your legislator. Don’t miss this opportunity! Register today to receive the official Texas Legislative Guide and earn an hour of Continuing Education credit (Application pending).

Click here for details and Registration Form              Click here to register online

Lt. Governor unveils new school finance plan
On Wednesday, Jan. 12, Lt. Governor David Dewhurst and all 31 state senators unveiled the basis of a school finance plan that they say puts more money into public schools but does not increase net taxes. The Senate plan calls for creating a statewide property tax of $1 per $100 of evaluated property, which would replace the current $1.50 that is collected locally. It also allows school districts to tax an additional 15 cents per $100 for local programs. Total property-tax reduction for homeowners and businesses would be $5.57 billion in fiscal year 2006, according to the plan. Texas voters would ultimately have to approve a statewide property tax. The plan also revises the franchise tax which would be applied to all business entities except sole proprietors and current loopholes would be closed. Dewhurst believes that more than 50 percent of the state's economy is services, which pay little or no business taxes. He also stated that the state's business tax should be broad-based, have a low rate and treat all businesses equally.  When the Senate plan was first circulated prior to the start of the session, it included a 1.5% real estate transfer fee. However, the plan unveiled yesterday does not include this fee.

A broad-based business tax would probably include all title companies. However, it is important to remember that “the Senate plan” is not a bill but rather a list of goals and all tax bills must originate in the House. At press time, the Speaker had not revealed the House plan or his position on the Lt. Governor’s concepts. You can be assured we will continue to monitor and keep you informed as this proposal moves through the process.

Issues for the 79th Legislature
The Texas Legislature will consider a variety of issues when it convenes in regular session on January 11, 2005. Revising the school finance system, as required by a state district court ruling, and granting property-tax relief are expected to top the legislative agenda. In addition, revising the state tax system, including business taxation and the possible expansion of legalized gambling, reforming the system of workers’ compensation insurance and reviewing the distribution of water resources are among the issues that likely will dominate the upcoming session. Also, 30 state agencies, including those dealing with utility regulation, teacher certification, and medical licensing, will be subject to review under the Sunset process.

Click here to read the House Research Organization Report highlighting the many issues to be debated this session.

Senate committee submits report on electronic document fees
The Senate Intergovernmental Relations Committee’s Interim Report on Interim Charge #1 has been submitted to the Lt. Governor. The committee was charged to (1)study and make recommendations on the need for statutory language relating to fees charged for copies of documents filed electronically or in paper format with a county clerk (2) to examine all state and local policies relating to document fees and analyze the impact of any recommended changes on local and state revenues. The committee is recommending that all county clerks attend a continuing education course on the calculation of charges for fulfilling requests for public information.  During the interim the committee met in a public hearing and heard testimony from representatives in the title insurance industry, County Clerks, and other interested groups. We also participated in working group meetings to discuss in detail the issues and concerns of the many proposals being considered. The TLTA Legislative Committee will make a recommendation to the Board at the February meeting on our position.

If you are interested in reading the recommendation in its entirety please click here.

Test your legislative lingo!
With the beginning of the 79th Legislative Session, it is time to brush up on your Legislative lexicon. Do you know the following terms and how they apply to the legislative process? Caption, emergency clause, engrossed, enrolled, second reading, gallery, intent calendar, local bill, markup, measure, override, omnibus bill, legislative intent, point of order, rider and sine die.

The Legislature, like most organizations, has a specialized vocabulary which may prove to be confusing to those unfamiliar with the legislative process. The ability to understand and clearly communicate within the halls of the Capitol, its chambers, and its committee rooms can be crucial in determining a participant’s success in the legislative realm. Click to here to download a copy of the Senate Research Center’s Legislative Lexicon, http://www.senate.state.tx.us/SRC/pdf/IB_Leg_LexiconOct2004.pdf

Congressman Neugebauer appointed to key committee
Congressman Randy Neugebauer (R-Lubbock) was selected to serve on the House Financial Services Committee. This committee oversees the entire financial services industry, including the securities, insurance, banking, and housing industries. The Committee also oversees the work of the HUD, Federal Reserve, the Treasury, the SEC, and other financial services regulators. During the last Congress, the committee heard testimony from representatives in the title insurance industry on HUD’s RESPA Reform proposal. TLTA congratulates Congressman Neugebauer and looks forward to working with him on issues affecting the industry.


Texas Land Title Association                1717 W. 6th St. Suite 120               Austin, Texas 78703

                       

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