Legal Counsel Report
Texas Society of Professional Surveyors
ACTIVITY REPORT
(1) Title Insurance – On July 23, 2004, the Texas Department of Insurance issued its Notice of Call requesting a detailed description of any subjects and matters that any association, title insurance company, title insurance agent, or any member of the public would like for the Commissioner to consider at the 2004 Title Insurance Biennial Hearing. All requests were required to be submitted no later than September 7, 2004. On December 15, 2004, the Commissioner of Insurance held a hearing to consider all rulemaking proposals, which included the consideration of rules, forms, endorsements, and related matters not having rate implications. There were no requests which proposed changes to Rule P-2 regarding the exception to area and boundaries. However, the Texas Land Title Association did propose a new procedural rule/survey endorsement to insure that the surveyed land is the same as the insured property. To date, the Commissioner has not rendered a decision on the rulemaking proposals. The ratemaking phase of the 2004 Title Insurance Biennial Hearing will be held after the conclusion of the 79th Session of the Texas Legislature. TSPS filed a motion for admission as a party for the ratemaking phase of the hearing on October 26, 2004, and was admitted as a party via Prehearing Order No. 1 dated November 16, 2004.
(2) Title Plants – Over recent years the marketplace has produced a variety of new techniques for posting title plants. Several of these techniques involve the assembly of title plants from electronic copies of name indices (commonly referred to as a “grantor/grantee index”) acquired from county clerks. The developers of these plants run the grantor/grantee indices through computer programs in an attempt to convert them to geographic indices. The result is electronically assembled title records which largely rely on the work product of a county clerk. Plants produced using these techniques are commonly referred to in the industry as “thin” plans. Current TDI regulations governing title plants were developed before the widespread use of computerized title plants. Accordingly, on August 31, 2004, the Commissioner of Insurance announced that he would assemble an informal working group to study issues raised by the emergence of so-called “thin” title plants. TSPS was invited to participate as a member of the informal working group. The first meeting was held on October 26, 2004. Additional meetings will be held in the future, but have not been scheduled.
(3) House Committee on Government Reform – The Committee met on September 30, 2004, to consider the agency consolidation issue and other interim charges. However, as of January 13, 2005, no Interim Report had been published.
(4) House Licensing & Administrative Procedures Committee – The Committee met on April 6, 2004, to consider Interim Study Charge No. 5:
“Identify licenses and duties that could be handled more efficiently at the Texas Department of Licensing and Regulation. Estimate cost savings and policy implications associated with such moves.”
TSPS testified in opposition to consolidating the TBPLS with TDLR. The Interim Report issued by the Committee concluded that the committee could find no evidence on how and why consolidation of 8 agencies (including TBPLS) as proposed during the 2003 Session would make state government more efficient.
(5) Senate Government Organization Committee – On May 6, 2004, the Committee met to consider the agency consolidation issue. TDLR, the Department of Health, Land Commissioner Patterson, and Agricultural Commissioner Combs testified as invited witnesses. Other agencies participating were Building & Procurement Commission, TxDOT, and TDCJ. The Interim Report issued by the Committee recommended that the Legislature consider the abolition of state licensing agencies that consistently demonstrate poor performance in licensing, regulation, and enforcement and transfer their duties to the Texas Department of Licensing and Regulation.
(6) Meeting with GLO – On November 30, 2004, representatives from TSPS met with Land Commissioner Jerry Patterson to discuss the concept of attaching TBPLS administratively to the GLO. Commissioner Patterson and his staff were supportive and draft legislation has been submitted for their consideration.
(7) 79th Legislative Session – The 79th Session of the Texas Legislature convened on January 11, 2005. It is anticipated that TSPS will propose four bills relating to (1) design surveys, (2) the elimination of the sales tax on surveying services, (3) civil actions for negligence against surveyors, and (4) consolidation of TBPLS with the GLO. These bills have been drafted and submitted to the Governmental Affairs Committee for approval.
(8) Chapter 16 Meeting – On January 27, 2005, President Kuehlem and I will attend the Chapter 16 Meeting in Amarillo to report on items of interest and respond to questions from those in attendance.
(9) Building Trades Council – TSPS has been invited to participate as a member of the Texas Building Trades Council. Other members include associations representing realtors, bankers, title companies, homebuilders, mortgage brokers/ bankers, apartment owners, etc. The next meeting of the Building Trades Council will be held on January 14, 2005, to discuss legislative issues.
(10) City of Dallas Request for Bids – In January, 2005, the City of Dallas published a request for bids for professional surveying services. On January 14, 2005, TSPS notified the City of Dallas that the Texas Professional Services Procurement Act provides that a governmental entity may not select a provider of land surveying services, or award a contract for those services, on the basis of competitive bids, but instead must utilize the “two-step” selection process required by the Act.
Respectfully submitted,
/ S /
Mark J. Hanna
TSPS Legal Counsel