DATELINE AUSTIN

October 27, 2004
page 2

What’s happening on school finance?
The legislature has been waiting all summer for the courts to decide on whether or not the Texas school funding system is constitutional.  Travis County Judge John Dietz ruled that the state's school finance system fails to provide an adequate, suitable education as required by the Texas Constitution.

The ruling reinforces hundreds of Texas school districts' claim that the state is not putting enough money into the system to produce the quality of education demanded in its own laws and constitution. The districts also argue it is forcing too many of them into a de facto state property tax, which is unconstitutional.

Judge Dietz did say that it would be possible to fix the constitutional problems in school finance with more state money and less local money. So what does this mean for the title insurance industry? Governor Perry has publicly said he would call the legislature back before the regular session begins in January if there was a consensus between the House and the Senate. More than likely, this battle will be fought in January. Since the courts ruled that the State needs to find more money to fund public schools, you can be assured the real estate industry will be a target!

TLTA’s 2005 Legislative Agenda
Legislative Committee Chair
Bruce Boyer proposed recommendations to the Board on possible legislation to be sponsored by TLTA. The board approved several items to be considered by the legislature when they convene in January. Proposals include making changes to the Confidentiality Notice that was passed last session – SB 1559. Our intent will be to only require the notice on those documents that contain social security and/or driver license numbers and clarify that the County Clerks cannot reject documents that do not comply. We also will be looking at changes to the probate code, manufactured housing, judgment liens and child support liens. We feel there are a number of issues that will be debated during the session that will affect the title insurance industry such as privacy, county clerk fees, transfer fee tax and mandatory sales price disclosure. Pre-filing for the 2005 Legislative Session begins November 8th. Watch for the November Dateline for a full report on TLTA’s Legislative Agenda. If you know of any potential legislation that may affect the industry, please contact Mindy Carr at mindy@tlta.com.  

Basic Manual Update Effective Nov. 1, 2004
The Texas Department of Insurance recently approved updates to the Texas Title Insurance Basic Manual effective Nov. 1, 2004.  These changes include updates to P-27 and T-37A. Many of you have already ordered your update, but if you have not sent in your order, please do so as soon as possible!

In order to get these changes to you quickly, we have developed a simple order form and procedure. Click here to download the order form.  Please complete and sign the form and fax it to the TLTA office at 512.472.5931.  The cost of this update is $2.50 each, but we’ll include this amount in the billing for the next update that we anticipate in the Spring of 2005.  There is no need to pay now, simply fill out the form, fax it to us and we’ll ship your order to you right away.

Political Kudos . . .
Austin Dishman
, Golden Triangle Title Services, Inc. attended Rep. Allan Ritter’s (D-Beaumont) fundraiser. Bruce Boyer, Ameripoint Title in New Braunfels, played in Rep. Edmund Kuempel’s (R-Seguin) annual golf fundraiser. Denise McCue, Crossroads Abstract & Title, attended a fundraiser for Sen. Ken Armbrister (D-Victoria).  

ON THE FRONTLINE
Mindy Carr
attended the House Ways and Means Committee meeting to hear presentations on sales tax and other tax related issues. TLTA CounselRobert Sneed and Mindy Carr met with Rep. Jim McReynolds (D-Lufkin) in Austin to discuss some of the issues affecting the real estate industry. He currently serves on the House Local Government Ways and Means Committee. Jack Rogers and Eric McNeese both with AmeriPoint Title along with TLTA Legislative Counsel Allen Place and Mindy Carr met with Senator Jeff Wentworth (R-San Antonio) to discuss issues related to electronic document charges. Mindy Carr also met with representatives from the Community Development Corporation to discuss possible legislation affecting the title insurance industry.  

Don’t Forget to VOTE on November 2
This is a very important election year and I encourage you to review the list of legislators the
TLTAPAC has contributed to in both the primary and general election. In addition, we would like to urge members to re-elect our friend Jan Patterson for the Texas 3rd Court of Appeals. The 3rd Court of Appeals is the primary appellate court for both civil and criminal cases in 24 Texas counties. Justice Patterson is active in bar organizations and currently serves on the Supreme Court Advisory Committee. If you would like to read more about Justice Patterson please click here. If you have a recommendation regarding PAC contributions, please contact Mindy Carr at mindy@tlta.com or call 800.472.1711. Also, if you have not yet contributed to the TLTAPAC  this cycle, please do so today.

Click here, for a TLTAPAC Contribution Form.

Click here, for a list of TLTAPAC Contributions to Legislators.

TLTA Board approves positions on 2004 Agenda Items
The TLTA Board of Directors recently adopted recommendations from the Rates, Rules and Forms Committee for the 2004 Texas Title Insurance Biennial Hearing. Chair Sheri Asbell presented the committee’s recommendations to the Board at their October meeting.  The rulemaking phase of the 2004 Texas Title Insurance Biennial Hearing will take place on December 15, 2004 at 10:00 a.m. in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin. The ratemaking phase is currently set for December 31, 2004 at 9:30 a.m. Additionally, agenda items relating to P-53 will be discussed at a special hearing on Tuesday, November 2, 2004, at 10:00 a.m. in Room 100 of the Texas Department of Insurance in Austin.

For a complete list of agenda items and TLTA’s positions, please click here.

RESPA: Update
Small Business Committee Chair, Donald Manzullo (R-IL) recently sent a strong message to HUD Secretary Alphonso Jackson. The letter warned Jackson that a repeat of last year’s release of a proposed RESPA rule while Congress was not in session would not be tolerated. Manzullo stated, “Failure to comply with this request will result in the Committee being forced to take whatever action it can to enforce the promise made in the letter of withdrawal.”

To view the full text of Manzullo’s letter, please click here.

Capitol Hill - Washington D. C.: Bills, Bills, Bills
EFFECTIVE:
Check Clearing for the 21st Century Act, or Check 21 Act - Sets forth a statutory framework under which a substitute check is the legal equivalent of an original check for all purposes, if the substitute check: (1) accurately represents all of the information on the front and back of the original check as of the time the original check was truncated; and (2) bears the legend: "This is a legal copy of your check. You can use it the same way you would use the original check."

To view the full text of H.R. 1474, click here.

INTRODUCED: Senator Dianne Feinstein (D-Calif.) has introduced legislation to reduce identity theft by restricting the sale and display of Social Security numbers used by government agencies and businesses and prohibiting companies from requiring consumers to provide their Social Security numbers.  To view the full text of S. 2801, click here.

PASSED: The House Financial Services Committee successfully moved three pieces of bipartisan legislation to: protect military personnel from unfair financial products and bad sales practices; extend the terrorism reinsurance program for two years; and implement the recommendations of the 9/11 Commission.

To view the full text of HR 4634, click here.             

To view the full text of HR 5011, click here.

 

 

 



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

                       

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