Texas 2009 - 81st Regular

Texas House Bill HB1650 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3362 JAM-D
2	2	By: McClendon H.B. No. 1650
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Texas State
8	8	Affordable Housing Corporation; providing penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2306.5521, Government Code, is amended
11	11	to read as follows:
12	12	Sec. 2306.5521. SUNSET PROVISION. The Texas State
13	13	Affordable Housing Corporation is subject to Chapter 325 (Texas
14	14	Sunset Act). Unless continued in existence as provided by that
15	15	chapter, the corporation is abolished and this subchapter expires
16	16	September 1, 2015 [2009].
17	17	SECTION 2. Sections 2306.554(a) and (b), Government Code,
18	18	are amended to read as follows:
19	19	(a) The board of directors of the corporation consists of
20	20	seven [five] members appointed by the governor. One member must
21	21	represent the interests of individuals and families served by the
22	22	corporation's single-family mortgage loan programs, one member
23	23	must represent nonprofit housing organizations, and the remaining
24	24	five members must [who] represent one or more [any] of the following
25	25	areas:
26	26	(1) state or federal savings banks or savings and loan
27	27	associations;
28	28	(2) community banks with assets of $200 million or
29	29	less;
30	30	(3) large metropolitan banks with assets of more than
31	31	$1 billion;
32	32	(4) asset management companies;
33	33	(5) mortgage servicing companies;
34	34	(6) builders;
35	35	(7) real estate developers;
36	36	(8) real estate brokers;
37	37	(9) community or economic development organizations;
38	38	(10) private mortgage companies;
39	39	(11) nonprofit housing development companies;
40	40	(12) attorneys;
41	41	(13) investment bankers;
42	42	(14) underwriters;
43	43	(15) private mortgage insurance companies;
44	44	(16) appraisers;
45	45	(17) property management companies;
46	46	(18) financial advisors;
47	47	(19) nonprofit foundations;
48	48	(20) financial advisors; or
49	49	(21) any other area of expertise that the governor
50	50	finds necessary for the successful operation of the corporation.
51	51	(b) The governor shall designate a member of the
52	52	corporation's board of directors as the presiding officer of the
53	53	[corporation's] board of directors to serve in that capacity at the
54	54	pleasure of the governor [from the members].
55	55	SECTION 3. Section 2306.5541, Government Code, is amended
56	56	to read as follows:
57	57	Sec. 2306.5541. TERMS OF MEMBERS. The members of the board
58	58	of directors of the corporation serve staggered six-year terms,
59	59	with the terms of [one or] two or three members expiring on February
60	60	1 of each odd-numbered year.
61	61	SECTION 4. Sections 2306.5543(b) and (c), Government Code,
62	62	are amended to read as follows:
63	63	(b) The training program must provide the person with
64	64	information regarding:
65	65	(1) the legislation that created the corporation [and
66	66	the corporation's board of directors];
67	67	(2) the programs, functions, rules, and budget of the
68	68	corporation [the programs operated by the corporation];
69	69	(3) [the role and functions of the corporation;
70	70	[(4) the rules of the corporation with an emphasis on
71	71	the rules that relate to disciplinary and investigatory authority;
72	72	[(5) the current budget for the corporation;
73	73	[(6)] the results of the most recent formal audit of the
74	74	corporation;
75	75	(4) [(7)] the requirements of laws relating to[:
76	76	[(A) the] open meetings, [law, Chapter 551;
77	77	[(B) the] public information, [law, Chapter 552;
78	78	[(C) the] administrative procedure, and
79	79	conflicts of interest [law, Chapter 2001; and
80	80	[(D) other laws relating to public officials,
81	81	including conflict-of-interest laws]; and
82	82	(5) [(8)] any applicable ethics policies adopted by
83	83	the corporation or the Texas Ethics Commission.
84	84	(c) A person appointed to the corporation's board of
85	85	directors is entitled to reimbursement, as [to the same extent]
86	86	provided by the General Appropriations Act [for a member of a state
87	87	board], for the travel expenses incurred in attending the training
88	88	program regardless of whether the attendance at the program occurs
89	89	before or after the person qualifies for office.
90	90	SECTION 5. Section 2306.5545(b), Government Code, is
91	91	amended to read as follows:
92	92	(b) A person may not be a member of the corporation's board
93	93	of directors and may not be a corporation employee employed in a
94	94	"bona fide executive, administrative, or professional capacity,"
95	95	as that phrase is used for purposes of establishing an exemption to
96	96	the overtime provisions of the federal Fair Labor Standards Act of
97	97	1938 (29 U.S.C. Section 201 et seq.), and its subsequent
98	98	amendments, if:
99	99	(1) the person is an officer, employee, or paid
100	100	consultant of a Texas trade association in the field of banking,
101	101	mortgage lending, real estate, housing development, or housing
102	102	construction; or
103	103	(2) the person's spouse is an officer, manager, or paid
104	104	consultant of a Texas trade association in the field of banking,
105	105	mortgage lending, real estate, housing development, or housing
106	106	construction.
107	107	SECTION 6. Section 2306.559(d), Government Code, is amended
108	108	to read as follows:
109	109	(d) The report must include:
110	110	(1) a statement of support, revenue, and expenses and
111	111	change in fund balances;
112	112	(2) a statement of functional expenses; [and]
113	113	(3) balance sheets for all funds;
114	114	(4) the number, amount, and purpose of private gifts,
115	115	grants, donations, or other funds applied for and received;
116	116	(5) the number, amount, and purpose of loans provided
117	117	to affordable housing developers, regardless of whether the
118	118	corporation provides those loans directly to the developers or
119	119	administers the loans from another source;
120	120	(6) the amount and source of funds deposited into any
121	121	fund created by the corporation for the purpose of providing grants
122	122	and the number, amount, and purpose of any grants provided; and
123	123	(7) the total amount of annual revenue generated by
124	124	the corporation in excess of its expenditures.
125	125	SECTION 7. Subchapter Y, Chapter 2306, Government Code, is
126	126	amended by adding Section 2306.5671 to read as follows:
127	127	Sec. 2306.5671. COMPLIANCE WITH CONTRACT TERMS. A contract
128	128	or agreement between the corporation and a housing sponsor that
129	129	receives financing by or through the corporation for the purpose of
130	130	providing affordable multifamily housing must contain a provision
131	131	stating that if the housing sponsor fails to comply with the terms
132	132	of the contract or agreement, the corporation may, as appropriate:
133	133	(1) assess administrative penalties;
134	134	(2) remove the manager of the affected property and
135	135	select a new manager;
136	136	(3) withdraw reserve funds to make needed repairs and
137	137	replacements to the property; or
138	138	(4) appoint the corporation as a receiver to protect
139	139	and operate the property.
140	140	SECTION 8. Section 2306.568, Government Code, is amended to
141	141	read as follows:
142	142	Sec. 2306.568. RECORD OF COMPLAINTS. (a) The corporation
143	143	shall maintain a system to promptly and efficiently act on
144	144	complaints [file on each written complaint] filed with the
145	145	corporation. The corporation shall maintain information about
146	146	parties to the complaint, [file must include:
147	147	[(1) the name of the person who filed the complaint;
148	148	[(2) the date the complaint is received by the
149	149	corporation;
150	150	[(3)] the subject matter of the complaint,[;
151	151	[(4) the name of each person contacted in relation to
152	152	the complaint;
153	153	[(5)] a summary of the results of the review or
154	154	investigation of the complaint, and its disposition[; and
155	155	[(6) an explanation of the reason the file was closed,
156	156	if the corporation closed the file without taking action other than
157	157	to investigate the complaint].
158	158	(b) The corporation shall make information available
159	159	describing its [provide to the person filing the complaint and to
160	160	each person who is a subject of the complaint a copy of the
161	161	corporation's policies and] procedures for [relating to] complaint
162	162	investigation and resolution.
163	163	(c) The corporation[, at least quarterly until final
164	164	disposition of the complaint,] shall periodically notify the
165	165	[person filing the] complaint parties [and each person who is a
166	166	subject of the complaint] of the status of the complaint until final
167	167	disposition [investigation unless the notice would jeopardize an
168	168	undercover investigation].
169	169	SECTION 9. Section 2306.569, Government Code, is amended to
170	170	read as follows:
171	171	Sec. 2306.569. EFFECTIVE USE OF TECHNOLOGY. The
172	172	corporation's board of directors shall [develop and] implement a
173	173	policy requiring the [president of the] corporation [and
174	174	corporation employees] to use [research and propose] appropriate
175	175	technological solutions to improve the corporation's ability to
176	176	perform its functions. The policy [technological solutions] must[:
177	177	[(1)] ensure that the public is able to [easily find
178	178	information about the corporation on the Internet;
179	179	[(2) ensure that persons who want to use the
180	180	corporation's services are able to:
181	181	[(A)] interact with the corporation on [through]
182	182	the Internet[; and
183	183	[(B) access any service that can be provided
184	184	effectively through the Internet; and
185	185	[(3) be cost-effective and developed through the
186	186	corporation's planning processes].
187	187	SECTION 10. Section 2306.5671, Government Code, as added by
188	188	this Act, does not affect the terms of a contract or agreement
189	189	entered into before the effective date of this Act, except that if
190	190	the contract or agreement is renewed, modified, or extended on or
191	191	after the effective date of this Act, Section 2306.5671 applies to
192	192	the contract or agreement beginning on the date of renewal,
193	193	modification, or extension.
194	194	SECTION 11. (a) Promptly after this Act takes effect, the
195	195	governor shall appoint two additional members to the board of
196	196	directors of the Texas State Affordable Housing Corporation. In
197	197	appointing those members, the governor shall appoint one person to
198	198	a term expiring February 1, 2011, and one to a term expiring
199	199	February 1, 2013. As provided by Section 2306.554(a), Government
200	200	Code, as amended by this Act:
201	201	(1) one member appointed under this subsection must
202	202	represent the interests of individuals and families served by the
203	203	Texas State Affordable Housing Corporation's single-family
204	204	mortgage loan programs, unless the governor determines that a
205	205	current member of the board of directors represents those persons;
206	206	and
207	207	(2) one member appointed under this subsection must
208	208	represent nonprofit housing organizations, unless the governor
209	209	determines that a current member of the board of directors
210	210	represents those organizations.
211	211	(b) Until all appointees to the board of directors of the
212	212	Texas State Affordable Housing Corporation have taken office, a
213	213	quorum of the board is a majority of the number of members who are
214	214	qualified.
215	215	SECTION 12. This Act takes effect September 1, 2009.