Update on Tax Reform Bill
With only 4 weeks left in the79th Legislative Session there is still much to be done. As we reported to you last month, the House passed its version of the Tax Reform/Property Tax reduction bill. The Senate will soon begin holding hearings on its version of the bill. Although we have not seen a draft, we are told that the Senate is attempting to get closer to the House in terms of the size of the tax bill they will propose. The reduction in the size of the tax bill would be matched by a reduction in the amount of property tax relief offered. Lt. Governor Dewhurst has indicated that he is willing to entertain the concept of providing businesses with a choice of tax bases, but he remains skeptical that a “tax choice” plan can be made to work in a way that is equitable for all concerned. We will continue to support Title Companies’ current tax structure; paying the premium tax in lieu of the franchise tax.

TLTA’s Legislative Agenda
We continue to push TLTA’s legislative agenda and hope to pass several of our proposed bills. A couple of bills were met with strong opposition but we continue to work on changes that both parties can agree to. Bills that do not pass this time around will be revisited by the Legislative Committee during the interim. See below for a synopsis of each bill. For more information on these bills go to www.capitol.state.tx.us.

HB 1368 by Rep. Ray Allen (R-Grand Prairie)/SB 461 by Sen. Frank Madla (D-San Antonio) relating to confidentiality of and access to certain personal information in instruments recorded with a county clerk. This bill makes a few technical changes to the bill passed last session. Status: Both bills are currently moving and we expect final passage.

HB 2220 by Rep. Ken Paxton (R-McKinney) relating to the sale of ad valorem tax liens and contracts for foreclosure of ad valorem tax liens. This bill makes constructive changes to the tax lien transfer process and includes notice and redemption provisions. Status: After several meetings with interested parties and many draft revisions, the bill was heard and reported favorably out of the House Financial Institutions Committee.

SB 1768 by Sen. Chris Harris (R-Arlington) relating to the attachment of a judgment lien to homestead property. This bill clarifies when a judgment lien can attach to a homestead. Status: Voted favorably out of Senate Committee on Jurisprudence.

HB 1072 by Rep. Carter Casteel (R-New Braunfels) relating to the requirements for recording property owners' association management certificates in the county records. Status: This bill continues to be met with opposition from the Community Homeowners Association. Even though we have worked through several revisions, we continue to have differences on certain aspects of the bill. We will work with the opposition during the interim.

HB 999 by Rep. Bryan Hughes (R-Marshall) relating to the duration of a lien for the enforcement of child support arrearages. This bill changes the duration of a child support lien to 20 years. Status: Reported favorably from Committee on Juvenile Justice and Family Issues.

Privacy/Social Security Legislation
There have been numerous bills filed this session in attempt to deter identity theft and protect consumer’s sensitive information. Although TLTA supports legislation that would protect the consumer, we must protect our access to public records. Since title insurance companies are already required under federal privacy regulations to implement privacy protections and policies, we feel we should be exempt from certain state regulations. We are monitoring the following bills very closely. Some of the bills have been amended to address our concerns while others pose a great threat to the industry. For more information on these bills, please go to www.capitol.state.tx.us

HB698 by Rep. Brian McCall (R-Plano) Relating to the disposal of certain business records that contain personal identifying information. Status: Passed by the House.

HB1130 by Rep. Byron Cook (R-Corsicana) Relating to the adoption of a privacy policy by a person who required the disclosure of an individual’s social security number. Status: Passed by the House and referred to the Senate Business and Commerce Committee.

HB1952 by Rep. Toby Goodman (R- Arlington) Relating to providing that an individual’s social security number is generally considered to be confidential under the public information law. Status: Committee Substitute voted favorably out of the House Business and Industry Committee.

HB2191 by Rep. Martha Wong (R-Houston) Relating to providing that the social security number of a living person is excepted from required disclosure under the public information law. Status: Passed the House and meeting has been scheduled in the Senate State Affairs Committee.

HB3278 by Rep. Carl Isett (R- Lubbock) Relating to the management, security, and protection of personal information and governmental records. Status: House State Affairs Committee action pending.

SB674 by Rep. Royce West (D- Dallas) Relating to limiting the use of customers’ social security numbers by persons. Status: Placed on Senate Intent Calendar.

HB971 by Rep. Robert Talton (R- Pasadena) Relating to the availability under the public information law of certain documents filed with a county clerk or a district clerk. Status: House State Affairs committee action pending.

HB1123 by Rep. Carlos Uresti (D- San Antonio) Relating to military discharge records that are recorded with or otherwise in the possession of a governmental body. Status: House Defense Affairs committee action pending

Kudos go to . . .
Roland Love, Winstead Sechrest & Minick, Tommy Bastian, Barrett Burke, John Updegraff, Jr., LANDAM, John DeLoach, Sierra Title, Jim Gosdin, Stewart Title, Jay Sibley, Title Data, Greg Smith, National TaxNet, Craig Zinda and Tim Perser, First American. These TLTA members have taken time out of their very busy schedules to help draft legislation, testify on bills, participate in work sessions, and answer questions to support our legislative efforts!

Special Thanks to Terry Grantham, West Texas Title Company, Dan Hassen, Old Republic Title, and Joey Prohaska, Southern Title, for being the first to recruit members to donate to the PAC for our Cruise Giveaway.

President Bush signs bankruptcy bill
President Bush has signed the Bankruptcy bill into law restoring integrity to the bankruptcy process making the system fairer for creditors and debtors and helping to ensure that more Americans can get access to affordable credit. Under the new law, certain filers will be required to pay back at least a portion of their debts under a Chapter 13 debt repayment plan. The law will not affect those who make less than their state's median income. Another reform aimed at repeat filers requires an eight year waiting period before a person may file for bankruptcy again.

What does the new Bankruptcy Law mean to you and your business? ALTA has scheduled a telephone seminar, May 24, from 3:00 -  4:30 p.m., EDT, for an in-depth analysis of the new bankruptcy law. There are several changes in the legislation affecting real estate, including new provisions for single asset bankruptcy, an exemption from the automatic stay to reflect McConville, and revised homestead exemptions. Whether you have a commercial practice and need to know what’s new, or just need a refresher in the basic title underwriting requirements, you need to be up to date on the new law. ALTA is inviting real estate bankruptcy and title underwriting experts to discuss the implications of the altered requirements for the title insurance industry.

This telephone seminar will include a call-in segment to answer questions about the new law. Join  bankruptcy experts John A. Gose, Washington Special Assistant Attorney General and Janice E. Carpi of LandAmerica to learn how the new law will affect your business. The seminar will be moderated by Ann vom Eigen, ALTA’s Legislative/Regulatory Counsel. Click here to register: https://www.krm.com/regonline/altvcregs.nsf/alt9198-0 or log on to the ALTA website at www.alta.org.

Don’t Miss the Boat!
This is your chance to win a Royal Caribbean Cruise and support the TLTA PAC. The winning name will be drawn during the Presidents Dinner at the 2005 Annual Conference. Winner does not need to be present to win. Ticket Donation: $100
Thanks to our 2005 Dream Vacation Giveaway sponsor Ameripoint Title
Click here to enter the drawing online using your personal credit card.

TLTA PAC Silent Auction rescheduled for the fall
Coming this Fall! tlta-bay   We are pleased to announce that the annual TLTA PAC Silent Auction will be held online this fall. This online event will give all TLTA members a chance to bid on the incredible array of items available. We are currently accepting items for the auction. Please contact Andrea at the TLTA office for further details.  PLEASE NOTE: This event will be held in lieu of the PAC Silent Auction previously scheduled to be held in conjunction with the TLTA Annual Conference.

TLTAPAC  Golf Tournament will be held June 9 in Grapevine!
The 2005 TLTAPAC golf tournament will be held at the world’s first NFL-themed golf course, the Cowboys Golf Club, in Grapevine. The tournament will be played on Thursday, June 9, 2005. We are on par to sell-out this year so if you haven’t already registered to play do so today! 

REGISTER NOW- and receive a $30 gift certificate off a future round of golf!  Click here to register to play in the PAC golf tournament.

Sign up to be a Golf Tournament Sponsor


2005 Texas Title Insurance Agent Statistical Call for Information
It's that time of year again.  The Texas Department of Insurance (TDI) has issued a bulletin requesting information for the year ending on December 31, 2004.

TDI encourages you to submit your experience electronically using the TACS. Use of this program significantly reduces errors. Agents who have used the system in prior years have provided very positive feedback about the quality of the program. As an added incentive, you have an extra 2 weeks to complete the call if you use the program. Copies of the TACS program and manual are being mailed to newly licensed title agents only. If you need help in completing the TDI statistical report using TACS, register today for the TLTA Statistical Teleconference, May 11^th. To view the Commissioner's Bulletin, click here.

Revision of Escrow Officer License Application
The Texas Department of Insurance (TDI) has revised the Texas Escrow Officer License Application. After May 1, 2005 TDI will only accept the revised form. Click here for the new application.

Chapter 9 Basic Manual Update (Now Title XI): ORDER NOW!
Chapter 9 of the Insurance Code regarding Title Insurance was rewritten by the Texas Legislature and adopted effective April 1, 2005. The section currently entitled Chapter 9, Section I in your Basic Manual will now be Title XI, Section I. As an added bonus your Title XI Basic Manual update includes a special supplement to assist you in finding all the familiar articles of Chapter 9 in the new Title XI. This essential tool will take the guess work out of referencing items in the new Title XI. NOTE: You must purchase this update for your Texas Title Insurance Basic Manual to be current.

Click here to order your Chapter 9/Title XI Update online.

RESPA Reform Update
The latest word from Washington D.C. is that HUD intends to turn its attention to RESPA Reform this fall. HUD Secretary Alphonso Jackson has told Chairman Richard Shelby (R- AL) of the Senate Banking Committee and Chairman Mike Oxley (R-OH) of the House Financial Services Committee that he would sit down with them this summer and get their input, as well as meet with representatives from the industry.  He indicated that the Department would then develop a proposed rule in the late fall that would be ready for publication by next spring.  He contends that the rule will be clear, concise, and “right for people." We have also been told by Congressman Randy Neugebauer (R-TX) that he is in the process of drafting a letter to Secretary Jackson asking to be consulted on this issue. We also had several other offices offer to write letters, including Congressman Hinojosa and Congressman Marchant. As discussed in the March 2005 Dateline Austin, several TLTA members traveled to D.C. in March to meet with members of Congress to discuss RESPA reform. Those participating in Hill visits were Terry Grantham, West Texas Title, Bruce Liesman, Alamo Title, Dave Ginger, Jack Rattikin, III, Rattikin Title, Sheri Asbell, United General, Celia Flowers, Arnold Abstract, Loren Montgomery, TitleTexas, Mindy Carr, TLTA and Jim Hyland, Greenberg Traurig. While in D.C. the Texas delegation met with the following Congressmen, Senators and/or their staff: Sen. John Cornyn, Sen. Kay Bailey Hutchinson, Rep. Kenny Marchant, Rep. John Carter, Rep. Pete Sessions, Rep. Randy Neugebauer, Rep. Mike Conway, Rep. Henry Bonilla, Rep. Jeb Hensarling and Rep. Ruben Hinojosa.  The purpose of the visit was to educate the newest congressional members from Texas and update the veterans about our concerns with HUD’s previous RESPA reform proposal and to ask for their support of the title insurance industry when a new proposal is brought forward. We also expressed our appreciation to Congressman Hinojosa for leading the effort to collect signatures for the Congressional letter  that was written last year concerning RESPA reform. We believe each of the visits was successful and look forward to working with each member of the Texas delegation. Click here to view pictures from our Capitol Hill visits.

TLTA’s D. C. Lobbyist changes firms
TLTA’s D.C. lobbyist Jim Hyland, formerly with DLA Piper Rudnick, has moved to Greenberg Traurig.  Greenberg Traurig, ranked fourth in number of U.S - based attorneys among firms in the National Law Journal’s NLJ250. Hyland, as shareholder in the firm’s Governmental Affairs practice, will continue to lobby on behalf of TLTA as approved by the TLTA Board of Directors at the April Board meeting.  

Hyland joins Greenberg Traurig from DLA Piper Rudnick after spending more than 18 years on Capitol Hill, including service as a legislative director to Senator Kay Bailey Hutchison (R-TX). In that position, he served as senior advisor, and legislative strategist on many major policy issues, particularly appropriations, tax, judicial, commerce, banking, and energy issues.

Hyland has extensive experience with the Senate and House Banking Committees. He served as staff director of the Financial Institutions Subcommittee of the Senate Banking Committee. He also served as legislative director to Senate Banking Committee member, Senator Lauch Faircloth (R-NC). North Carolina, being home to many major financial institutions, including Bank of America, and Wachovia, facilitated Hyland's extensive contact with financial industry representatives. For eight years, Hyland was senior counsel and assistant staff director of the House Banking Committee.

Montgomery to replace Weicher at HUD
Brian D. Montgomery, of Texas, has been nominated by the President to replace John Weicher as Assistant Secretary for the Department of Housing and Urban Development. Mr. Montgomery recently served as Deputy Assistant to the President and Cabinet Secretary. Prior to joining the Administration, Mr. Montgomery was Director of Advance for the Bush-Cheney 2000 campaign. Earlier in his career, he served as Communications Director for the Texas Department of Housing and Community Affairs and the Texas Department of Economic Development. Mr. Montgomery received his bachelor's degree from the University of Houston.