HOUSE DOCKET, NO. 2717        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1214

The Commonwealth of Massachusetts

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PRESENTED BY:

Antonio F. D. Cabral

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to improve title insurance.

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PETITION OF:

HOUSE DOCKET, NO. 2717        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1214

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act to improve title insurance.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1:

              (a) There shall be a commission to study the feasibility of establishing a title insurer owned by the commonwealth or by a public authority constituted by the commonwealth.

              (b) The commission shall consist of the attorney general and the secretary of housing and economic development or their respective designees, who shall serve as co-chairs of the commission; the state treasurer or the treasurer’s designee; the state comptroller or the comptroller’s designee; 2 persons to be appointed by the president of the senate, 1 of whom shall be a member of the senate; 1 person to be appointed by the minority leader of the senate; 2 persons to be appointed by the speaker of the house of representatives; 1 of whom shall be a member of the house of representatives; 1 person to be appointed by the minority leader of the house; the executive directors of the Massachusetts Development Financing Agency and the Massachusetts Housing Finance Agency or their designees; president of the Massachusetts Bar Association or the president’s designee; and 6 persons to be appointed by the governor who shall not be employees of the executive branch, 1 of whom shall be drawn from a list of 3 names submitted by the Associated Industries of Massachusetts, 1 of whom shall be drawn from a list of 3 names submitted by the Small Business Association of New England and 2 of whom shall be a professor of law at an institution of higher education in the commonwealth who has researched and published articles on insurance or real property law. Of the governor’s remaining appointments, not more than 2 may be a representative of a financial services firm located in the commonwealth. The governor shall ensure geographic diversity in the governor’s appointments to the commission. The members of the commission shall be appointed not later 90 days after the effective date of this act.

              (c) The commission shall examine the technical, legal and financial feasibility of establishing a commonwealth-owned title insurer. The commission shall evaluate the experience of Iowa with state-owned title insurance, identifying the advantages and disadvantages presented to purchasers of title insurance for residential property in Iowa as compared with such purchasers in Massachusetts. The commission shall also examine the existing structure and dynamics of the title insurance market as it currently operates in Massachusetts and shall include in its examination a review of how title risk is determined and title policies are priced. The commission shall also examine the proceeds generated by the sale of title insurance in Massachusetts and shall identify the parties that receive or make payments as a result of underwriting and issuing a typical title insurance policy. The commission shall make recommendations based on its examination as to the extent to which it believes the conduct of the business of title insurance in Massachusetts requires new legislation in order to protect consumers, reduce the price of title insurance or improve the regulation of the conveyance of real property.

              (d) The commission shall hold at least 3 public hearings in distinct geographic regions of the commonwealth.

              (e) The commission shall publish its findings and recommendations, together with drafts of legislation, if any, necessary to carry those recommendations into effect, in a written report not later than 1 year after the effective date of this act. The report shall be published on the official website of the commonwealth, and shall be contemporaneously filed with the house and senate committees on ways and means and the house and senate chairs of the joint committee on financial services.