A slow-moving legislative session
For those of you who are familiar with the phrase, "It's a lot harder to pass a bill than to kill a bill", it definitely holds true for the 78th Legislative Session. The House of Representatives has already spent hundreds of hours debating bills relating to controversial subjects such as tort reform, school finance, public vouchers, abortion, ethics reform and more. With only 17 days left in the session, TLTA 's Legislative agenda looks good. Here is an update on some of the key bills we are tracking:

Privacy/Identity Theft
HB 545 by Rep. Arlene Wohlgemuth (R-Burleson)
This bill requires that any DD-214 or other discharge record filed after Sept. 1, 2003, would remain confidential for 75 years from the date it was first recorded with the governmental body. The bill also allows a veteran to request that the county clerk destroy all public copies of discharge papers recorded before September 1, 2003. The bill has passed the House and more than likely will receive favorable attention in the Senate. TLTA Position: Support

HB 2930 by Rep. Lewis (D-Ft. Worth)
Relates to the confidentiality of certain personal information in real property records filed with the county clerk. This bill along with SB 1388 by Sen. Ken Armbrister (D-Victoria) and SB 1559 by Sen. Frank Madla (D-San Antonio) will help secure the title insurance industry's prompt and continued access to real property records filed with the county clerk. These TLTA proposed bills are moving and have a good chance of receiving final passage. TLTA Position: Support

SB 405 by Sen. Chuy Hinojosa (D-McAllen)
Relates to the prevention of, prosecution of, and punishment of identify theft. This bill would prohibit the disclosure of certain personal information including social security numbers. TLTA has been working with the sponsors to amend the bill to exempt real property records. TLTA Position: Oppose

Insurance/Regulatory
HB 3532 by Rep. Laubenberg (R-Rockwall)
The bill contains a number of changes relating to the title insurance industry. Includes changes to Article 9.30 of the Insurance Code, changes the definition of title insurance, requires interest be paid from escrow and trust accounts, repeals Article 9.09A which prohibits unmarketability of title insurance coverage, and prevents the Commissioner from authorizing a rate for an owner's policy different from a rate for a lender's policy containing area and boundary coverage. TLTA, with help from our members from the Representative's district, have worked very hard to ensure that this bill does not pass. TLTA Position: Oppose

SB 14 by Sen. Mike Jackson
This bill regulates the rates of personal automobile and homeowners insurance under a prior approval system with a 30-day review period by the Texas Department of Insurance (TDI) and one 30-day extension. If the rate has not been approved or disapproved during the first 30-day review period, and TDI does not request an extension, the rate is deemed approved. If the rate has not been approved or disapproved during either the first 30-day review period or the 30-day extension, the rate is deemed approved. This is an insurance reform bill that probably will continue to change through the process. TLTA has worked hard on ALL of these insurance bills to make sure the title insurance industry is not affected. The bill will be heard on the House floor in the next week. TLTA Position: Neutral

Business & Industry
HB 739 by Rep. Ritter (R-Beaumont)
The bill would establish the Texas Residential Construction Commission
and would require home builders to register with the commission; establish a state-sponsored inspection and dispute-resolution process to resolve homeowner and builder disputes over construction defects; require the commission to adopt limited statutory warranties and building performance standards for new homes; and amend the RCLA. Previous concerns we had with this bill were removed. TLTA Position: Oppose

SB 521 by Sen. Staples (R-Palestine)/HB 1009 by Rep. Rick Hardcastle (R-Vernon)
This bill restores the availability of chattel loans to finance the purchase of a manufactured home and enhances the consumer protections added by the legislature last session. The bill protects local governments by requiring the mandatory escrow of ad valorem taxes on manufactured homes financed by chattel loans. The bill also raises the level of expertise of industry professionals by requiring certification and continuing education for anyone involved in the sale of manufactured homes. Title insurance and manufactured housing industry members have been working hard to craft legislation satisfactory to both groups. The bill has been passed by both chambers and will probably go to a conference committee to work out the differences. TLTA Position: Support

County Administration
HB 1377 by Rep. Farabee (D-Wichita Falls)/SB 1731 by Sen. Mario Gallegos (D-Houston)
This bill provides for a fee not to exceed $5 to be imposed for filing public documents in county clerk offices for the purpose of preserving, restoring, and managing certain county records. Currently it applies to only border counties. Both bills have had hearings and are moving at a slow pace. TLTA will continue to oppose these bills and hope that we can address this issue during the interim. TLTA Position: Oppose

HB 1667 by Rep. Jones (D-Dallas)
This bill authorizes a $4 per instrument filing fee to be used for housing repair for the elderly. The bill was left pending in committee. TLTA Position: Oppose

SB 453 by Rep. Hinojosa (R-Corpus Christi)
This bill would require a county clerk to charge $1 per page for non-certified copies of documents whether such copies be in paper, electronic, or any other form. Senator Hinojosa decided to not move the bill this session but rather study this issue during the interim. TLTA Position: Oppose

Tax
SB 2 by Sen. Florence Shapiro (R-Plano) and HB 5 by Rep. Kent Grusendorf (R-Arlington)
These bills relate to public school finance, a state ad valorem tax, state general sales and use tax, state taxes on the sale or use of a motor vehicle, and property tax relief for residential tenants. This is the Lt. Governor's attempt to lower property taxes by swapping higher sales taxes for lower property taxes. It also extends the sales tax to all services except medical and dental. This would include all real estate transactions. HB 5 by Rep. Kent Grusendorf (R-Arlington) also includes the above measure. Speaker Craddick would rather study the issue during the interim and has already appointed a Blue-Ribbon committee. However, Lt. Governor Dewhurst would like to pass a bill this session in order to lower property taxes. At publication, the fate of both bills is unknown. TLTA Position: Neutral

Special elections making news
Lubbock real estate developer Randy Neugebauer will square off against fellow Republican Mike Conaway, a certified public accountant from Midland, in a runoff to answer the final question of who will represent the residents of Lubbock, Midland/Odessa and other surrounding areas. Congressman Larry Combest is retiring after serving Congressional District 19 since 1984.  Midland voters have wanted one of their own in Congress for many years. We will see on June 7, who wins the Lubbock/Midland shoot-out.

Democrat Juan Escobar will be the newest member of the Texas House. The former Border Patrol agent beat Republican James Matz in a run-off election to serve the rest of the term for the late Rep. Irma Rangel, who passed away from cancer several weeks into the legislative session. House District 43 stretches from Kingsville down to Harlingen. Rep. Escobar did not have the opportunity to file any bills but he still has time to vote on many important issues still being debated in the legislature.

Revised P-24 rule proposed to TDI by a group of industry members
The April 29 President's Message focused on the concerns and objections that have been expressed by a group of independent agents and a law firm located in the Dallas/Fort Worth area regarding the TLTA Board approved P-24 proposal.  After meeting with the TLTA leadership to voice their concerns, the group submitted to TDI a proposed amendment to the TLTA proposal. Click here to view a copy of the P-24 alternate version. We need your input on this matter and ask that you please review this proposed amendment to the TLTA Board approved proposal and provide us with your written comments. Comments can be e-mailed to leslie@tlta.com or mailed to the attention of Leslie Midgley at TLTA , 1717 W. 6th, #120, Austin, Texas, 78703.  The TLTA Board will schedule a meeting in June and all TLTA members will be invited to attend and make comments concerning the proposed amendment. We will continue to keep you informed and notify you when a Board meeting is scheduled to consider this matter.

TDI Withdraws Rule
 The Texas Department of Insurance has withdrawn from consideration at this time rules published in the February 21, Texas Register. The rule proposed a new §9.20 which concerns amendments to and adoption of procedural rules in the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (the Basic Manual). The new section is necessary to reflect amendments to the Basic Manual, which the section proposes for adoption by reference and to specify its purpose of amending and adding procedural rules for title insurance. The new Procedural Rule P-53 proposed to be added in the Basic Manual by the proposed new section addresses the payment and receiving or acceptance of rebates in the title insurance industry. Article 9.30 of the Insurance Code prohibits the giving and receiving of a rebate, discount, commission, or other thing of value directly or indirectly for solicitation or referral of title insurance business. TLTA will continue to work with the printing industry association regarding their concerns with the proposed rule. We are hopeful that TDI will take it up again at the conclusion of the legislative session. To view the proposed rule as posted in the February 21 Texas Register, click here  To view the withdrawn rule notice click here .

Motion Filed to Withdraw Agenda Items 
 Mr. Steve Hester, as counsel for and on behalf of his clients, Gary and Cathy Lancaster, admitted parties to the hearing, has withdrawn the following Rate hearing agenda items from consideration: 2002-49, 2002-50, 2002-52, 2002-53, 2002-54 and Rule hearing agenda items 2002-26, 2002-29, 2002-30 and 2002-31. The TLTA Board of Directors voted to support the Lancaster's agenda item 2002-27 Endorsement Form T-36, Environmental Protection Lien, and to file supporting amendments to the Lancaster's related, previously filed agenda items 2002-28 Procedural Rule P-9, Endorsement of Owner or Mortgagee Policies and 2002-51 Rate Rule R-11, Mortgagee Policy Endorsement. As reported in the December 17th Dateline, the Lancaster's had filed a Motion to Transfer the ratemaking phase of the hearing to the State Office of Administrative Hearings (SOAH). On April 10, the Lancasters withdrew the Request and filed a Motion to Transfer the hearing back to TDI. However, an objection has been filed by Mr. John Phipps, an admitted party to the hearing, requesting that SOAH conduct the ratemaking phase of the hearing. TLTA has filed a brief with SOAH on this objection urging the Administrative Law Judges of  SOAH to remand the ratemaking phase of the hearing back to the Commissioner of Insurance. At publication, SOAH has not yet ruled on Mr. Phipps request. Click here to view the above agenda items.

 RESPA Reform getting much attention
Where are we now on HUD's proposed rule on RESPA?
Secretary Mel Martinez has backed down on his timetable stating that HUD will not publish a rule this spring but rather late summer or fall. This is great news for Texas since it buys us more time to convince Congress the rule should not be adopted as written. Under pressure from Congress and real estate industry groups, he is considering whether or not they should issue a new proposed rule and redo their economic study.

TLTA attends ALTA Federal Conference in D.C.
TLTA President Jack Rattikin, III and Director of Government Affairs, Mindy Carr attended the 2003 ALTA Federal Conference in Washington D.C held in April. The three day meeting updated attendees on pressing issues in the title industry such as RESPA reform, enforcement and privacy issues, compliance with the USA PATRIOT Act, emergence of new federal markets for the title industry and the status of e-mortgages. While in D.C., Jack and Mindy, along with TLTA 's Washington lobbyist Jim Hyland, took the opportunity to visit with staff on the Hill regarding HUD's RESPA Reform proposal. They also visited with HUD's Assistant Secretary Housing/Federal Housing Commissioner, John C. Weicher. TLTA is planning to send a group of members to D.C in June to visit with more Members of Congress and other top officials at HUD and the White House to discuss this very important issue.

HUD vows to beef up enforcement of RESPA
HUD officials are planning to beef up its enforcement measures once the office has been fully staffed. They have hired three compliance specialists in 2002 and recently hired ten new compliance officers from the real estate, mortgage and enforcement sectors. The hires will effectively triple the RESPA enforcement staff. The department is authorized to spend $500,000 with the Technical Analysis Center which is the investigative outsourced vendor for HUD. To get the latest information regarding HUD Enforcement Division, click on http://www.hud.gov/offices/enforce/sidebar/decoverview.cfm.

TLTA Taking Advantage of Fundraising Opportunities
TLTA members have been actively working their U.S. Senators and Congressman by sending letters and making phone calls urging them to take a hard look at HUD's RESPA Reform proposal and how it would affect small business in Texas. They have also been expressing concern about the possible pre-emption of Texas' state laws and regulations.  In an all out effort to reach Members of Congress, TLTA has been attending fundraisers for Senators/Congressman who are not from Texas but play a very important role in the committee process. They are key members of committees that oversee changes to RESPA and/or issues affecting the title insurance industry. TLTA Board Member Dawn Moore, President of Allegiance Title Company in Dallas, attended a fundraiser for U.S. Speaker of the House, Dennis Hastert in April. TLTA 's attendance at this fundraiser was to help raise awareness of the title insurance industry and to express concerns we have in Texas regarding HUD's proposal. We will have another opportunity at the end of May to attend a fundraiser in Dallas for Financial Services Committee Chairman, Mike Oxley (R-Ohio). Other Texas Congressmen will be attending, giving us yet another incredible opportunity to express our concerns. We are also working on a fundraiser in Washington D.C. with TLTA 's lobby firm, Piper Rudnick, for Sen. Shelby (R-Alabama), Chairman of the powerful Senate Banking Committee. It is very important for you, as members of TLTA , to get the message to your Congressmen and U.S. Senators that we do not want HUD to pre-empt Texas' state law or regulations. It is very important to understand that HUD's changes will dramatically affect your business. We ask if you are interested in contributing to any of the fundraisers above, or helping in any other way with this effort, to please contact Mindy Carr at mindy@tlta.com or call 512.472.6593.

What really happened during the legislative session?
Be the first to hear the inside scoop on what really happened during the legislative session at the Annual  TLTA PAC Breakfast. Our guest speaker, Harvey Kronberg, is one of the capitol's most astute observers. Editor of the Quorum Report, Kronberg spends his days seeking out political insight and news, and his afternoons informing anxious legislators, lobbyists and political junkies throughout the state. Kronberg appears in the Austin-American Statesman, and serves as a political analyst for News 8 Austin. Kronberg is regularly quoted in such wide-ranging publications as the New York Times, Wall Street Journal, Congressional Quarterly, Dallas Morning News, Houston Chronicle and Texas Monthly. Click here to register for the PAC breakfast on June 7 at 8 a.m., held in conjunction with TLTA 's Annual Conference at The Woodlands Resort and Conference Center. Proceeds from the ticket sales go directly to the TLTA PAC.