Texas 2009 - 81st Regular

Texas House Bill HR2900 Compare Versions

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1	1	H.R. No. 2900
2	2
3	3
4	4	R E S O L U T I O N
5	5	BE IT RESOLVED by the House of Representatives of the State of
6	6	Texas, 81st Legislature, Regular Session, 2009, That House Rule 13,
7	7	Section 9(a), be suspended in part as provided by House Rule 13,
8	8	Section 9(f), to enable the conference committee appointed to
9	9	resolve the differences on House Bill 2774 (self-directed and
10	10	semi-independent status of state financial regulatory agencies and
11	11	the licensing and regulation of certain persons involved in
12	12	residential mortgage lending; making an appropriation; providing a
13	13	penalty) to consider and take action on the following matters:
14	14	(1) House Rule 13, Section 9(a)(1), is suspended to permit
15	15	the committee to change text not in disagreement in proposed
16	16	SECTION 2 of the bill, in added Section 156.102(b-1), Finance Code,
17	17	so that it reads as follows:
18	18	(b-1) The finance commission on the commissioner's
19	19	recommendation may adopt rules to promote a fair and orderly
20	20	administration of the fund consistent with the purposes of
21	21	Subchapter F.
22	22	Explanation: The change is necessary to correct an error in a
23	23	cross-reference.
24	24	(2) House Rule 13, Section 9(a)(4), is suspended to permit
25	25	the committee to add text not included in either the house or senate
26	26	version of the bill by adding the following SECTION to the bill:
27	27	SECTION 28. (a) Title 2, Finance Code, is amended by adding
28	28	Chapter 16 to read as follows:
29	29	CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND
30	30	SEMI-INDEPENDENT
31	31	Sec. 16.001. DEFINITIONS. In this chapter:
32	32	(1) "Financial regulatory agency" means:
33	33	(A) the Texas Department of Banking;
34	34	(B) the Department of Savings and Mortgage
35	35	Lending;
36	36	(C) the Office of Consumer Credit Commissioner;
37	37	and
38	38	(D) the Credit Union Department.
39	39	(2) "Policy-making body" means:
40	40	(A) the Finance Commission of Texas for:
41	41	(i) the Texas Department of Banking;
42	42	(ii) the Department of Savings and Mortgage
43	43	Lending; and
44	44	(iii) the Office of Consumer Credit
45	45	Commissioner; and
46	46	(B) the Credit Union Commission for the Credit
47	47	Union Department.
48	48	Sec. 16.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF
49	49	FINANCIAL REGULATORY AGENCIES. Notwithstanding any other
50	50	provision of law, a financial regulatory agency is self-directed
51	51	and semi-independent as specified by this chapter. Any Act of the
52	52	81st Legislature that relates to a financial regulatory agency and
53	53	that is inconsistent with the agency being self-directed and
54	54	semi-independent may be implemented by the financial regulatory
55	55	agency only on authorization by the policy-making body of the
56	56	financial regulatory agency.
57	57	Sec. 16.003. BUDGET, REVENUES, AND EXPENSES. (a) A
58	58	financial regulatory agency shall submit to the policy-making body
59	59	of the financial regulatory agency a budget annually using
60	60	generally accepted accounting principles. Notwithstanding any
61	61	other provision of law, including the General Appropriations Act,
62	62	the budget shall be adopted and approved only by the policy-making
63	63	body of the financial regulatory agency.
64	64	(b) A financial regulatory agency shall be responsible for
65	65	all direct and indirect costs of the agency's existence and
66	66	operation. The financial regulatory agency may not directly or
67	67	indirectly cause the general revenue fund to incur any cost.
68	68	(c) Subject to any limitations in a financial regulatory
69	69	agency's enabling legislation, a financial regulatory agency may
70	70	set the amounts of fees, penalties, charges, and revenues required
71	71	or permitted by statute or rule as necessary for the purpose of
72	72	carrying out the functions of the financial regulatory agency and
73	73	funding the budget adopted and approved under Subsection (a).
74	74	(d) All fees and funds collected by a financial regulatory
75	75	agency and any funds appropriated to the financial regulatory
76	76	agency shall be deposited in interest-bearing deposit accounts in
77	77	the Texas Treasury Safekeeping Trust Company. The comptroller
78	78	shall contract with the financial regulatory agency for the
79	79	maintenance of the deposit accounts under terms comparable to a
80	80	contract between a commercial banking institution and the
81	81	institution's customers.
82	82	(e) Periodically, each financial regulatory agency shall
83	83	submit to the agency's policy-making body, as directed by the
84	84	policy-making body, a report of the receipts and expenditures of
85	85	the financial regulatory agency.
86	86	(f) The fiscal year for a financial regulatory agency begins
87	87	on September 1 and ends on August 31.
88	88	Sec. 16.004. AUDITS. This chapter does not affect the duty
89	89	of the state auditor to audit a financial regulatory agency. The
90	90	state auditor shall enter into a contract and schedule with each
91	91	financial regulatory agency to conduct audits, including financial
92	92	reports and performance audits. The financial regulatory agency
93	93	shall reimburse the state auditor for all costs incurred in
94	94	performing the audits and shall provide to the governor a copy of
95	95	any audit performed.
96	96	Sec. 16.005. RECORDS; REPORTING REQUIREMENTS. (a) A
97	97	financial regulatory agency shall keep financial and statistical
98	98	information as necessary to disclose completely and accurately the
99	99	financial condition and results of operations of the agency.
100	100	(b) Before the beginning of each regular session of the
101	101	legislature, each financial regulatory agency shall submit to the
102	102	legislature and the governor a report describing all of the
103	103	agency's activities in the previous biennium. The report must
104	104	include:
105	105	(1) an audit as required by Section 16.004;
106	106	(2) a financial report of the previous fiscal year,
107	107	including reports on financial condition and results of operations;
108	108	(3) a description of all changes in fees imposed on
109	109	regulated industries;
110	110	(4) a report on changes in the regulatory jurisdiction
111	111	of the agency, including the number of chartered financial
112	112	institutions, license holders, and registrants subject to the
113	113	agency's jurisdiction and any changes in those figures; and
114	114	(5) a list of all new rules adopted or repealed.
115	115	(c) In addition to the reporting requirements of Subsection
116	116	(b), not later than November 1 of each year, each financial
117	117	regulatory agency shall submit to the governor, the committee of
118	118	each house of the legislature that has jurisdiction over
119	119	appropriations, and the Legislative Budget Board a report that
120	120	contains:
121	121	(1) the salary for all financial regulatory agency
122	122	personnel and the total amount of per diem expenses and travel
123	123	expenses paid for all agency employees;
124	124	(2) the total amount of per diem expenses and travel
125	125	expenses paid for each member of the agency's policy-making body,
126	126	provided that only one report must be submitted regarding the
127	127	Finance Commission of Texas;
128	128	(3) the agency's operating plan and annual budget; and
129	129	(4) a detailed report of all revenue received and all
130	130	expenses incurred by the financial regulatory agency in the
131	131	previous 12 months.
132	132	Sec. 16.006. ABILITY TO CONTRACT. (a) To carry out and
133	133	promote the objectives of this chapter, a financial regulatory
134	134	agency may enter into contracts and do all other acts incidental to
135	135	those contracts that are necessary for the administration of the
136	136	agency's affairs and for the attainment of the agency's purposes,
137	137	except as limited by Subsection (b).
138	138	(b) Any indebtedness, liability, or obligation of the
139	139	financial regulatory agency incurred under this section may not:
140	140	(1) create a debt or other liability of this state or
141	141	another entity other than the financial regulatory agency; or
142	142	(2) create any personal liability on the part of the
143	143	members of the policy-making body or the body's or agency's
144	144	employees.
145	145	Sec. 16.007. PROPERTY. A financial regulatory agency may:
146	146	(1) acquire by purchase, lease, gift, or any other
147	147	manner provided by law and maintain, use, and operate any real,
148	148	personal, or mixed property, or any interest in property, necessary
149	149	or convenient to the exercise of the powers, rights, privileges, or
150	150	functions of the financial regulatory agency;
151	151	(2) sell or otherwise dispose of any real, personal,
152	152	or mixed property, or any interest in property, that the financial
153	153	regulatory agency determines is not necessary or convenient to the
154	154	exercise of the agency's powers, rights, privileges, or functions;
155	155	(3) construct, extend, improve, maintain, and
156	156	reconstruct, or cause to construct, extend, improve, maintain, and
157	157	reconstruct, and use and operate all facilities necessary or
158	158	convenient to the exercise of the powers, rights, privileges, or
159	159	functions of the financial regulatory agency; and
160	160	(4) borrow money, as may be authorized from time to
161	161	time by an affirmative vote of a two-thirds majority of the
162	162	policy-making body of the financial regulatory agency, for a period
163	163	not to exceed five years if necessary or convenient to the exercise
164	164	of the financial regulatory agency's powers, rights, privileges, or
165	165	functions.
166	166	Sec. 16.008. SUITS. The office of the attorney general
167	167	shall represent a financial regulatory agency in any litigation.
168	168	The attorney general may assess and collect from the financial
169	169	regulatory agency reasonable attorney's fees associated with any
170	170	litigation under this section.
171	171	Sec. 16.009. POST-PARTICIPATION LIABILITY. (a) If a
172	172	financial regulatory agency no longer has status under this chapter
173	173	as a self-directed semi-independent financial regulatory agency
174	174	for any reason, the agency shall be liable for any expenses or debts
175	175	incurred by the agency during the time the agency was a
176	176	self-directed semi-independent financial regulatory agency. The
177	177	agency's liability under this section includes liability for any
178	178	lease entered into by the agency. This state is not liable for any
179	179	expense or debt covered by this subsection, and money from the
180	180	general revenue fund may not be used to repay the expense or debt.
181	181	(b) If a financial regulatory agency no longer has status
182	182	under this chapter as a self-directed semi-independent financial
183	183	regulatory agency for any reason, ownership of any property or
184	184	other asset acquired by the agency during the time the agency was a
185	185	self-directed semi-independent financial regulatory agency,
186	186	including unexpended fees in a deposit account in the Texas
187	187	Treasury Safekeeping Trust Company, shall be transferred to this
188	188	state.
189	189	Sec. 16.010. DUE PROCESS; OPEN GOVERNMENT. A financial
190	190	regulatory agency is:
191	191	(1) a governmental body for purposes of Chapters 551
192	192	and 552, Government Code; and
193	193	(2) a state agency for purposes of Chapters 2001 and
194	194	2005, Government Code.
195	195	Sec. 16.011. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
196	196	Employees of the financial regulatory agencies are members of the
197	197	Employees Retirement System of Texas under Chapter 812, Government
198	198	Code, and the agencies' transition to independent status as
199	199	provided by this chapter has no effect on their membership or any
200	200	benefits under that system.
201	201	Sec. 16.012. GIFTS. (a) Notwithstanding any other law, a
202	202	financial regulatory agency may not accept a gift, grant, or
203	203	donation:
204	204	(1) from a party to an enforcement action; or
205	205	(2) to pursue a specific investigation or enforcement
206	206	action.
207	207	(b) A financial regulatory agency must:
208	208	(1) report each gift, grant, or donation that the
209	209	agency receives as a separate item in the agency's report required
210	210	under Section 16.005(b); and
211	211	(2) include with the report a statement indicating the
212	212	purpose for which each gift, grant, or donation was donated and
213	213	used.
214	214	(b) Section 11.104, Finance Code, is amended to read as
215	215	follows:
216	216	Sec. 11.104. EXPENSES AND COMPENSATION OF MEMBERS. A
217	217	member of the finance commission is entitled to:
218	218	(1) the reimbursement for reasonable and necessary
219	219	expenses incidental to travel incurred in connection with the
220	220	performance of official duties; and
221	221	(2) a per diem [as set by legislative appropriation]
222	222	for each day that the member engages in the business of the finance
223	223	commission.
224	224	(c) Section 11.110(c), Finance Code, is amended to read as
225	225	follows:
226	226	(c) A person appointed to the finance commission is entitled
227	227	to reimbursement under Section 11.104, as if the person were a
228	228	member of the finance commission, [as provided by the General
229	229	Appropriations Act,] for the travel expenses incurred in attending
230	230	the training program regardless of whether the attendance at the
231	231	program occurs before or after the person qualifies for office.
232	232	(d) Section 11.204, Finance Code, is amended by adding
233	233	Subsection (c) to read as follows:
234	234	(c) The finance commission shall have charge and control of
235	235	the property known as the Finance Commission Building and use of
236	236	staff, equipment, and facilities of the finance agencies. The
237	237	Finance Commission Building refers to the property located in the
238	238	city of Austin and titled in the name of the Banking Section of the
239	239	Finance Commission of Texas, as described by deed recorded in
240	240	Volume 5080, Page 1099, of the Deed Records of Travis County, Texas.
241	241	(e) Section 15.2041(c), Finance Code, is amended to read as
242	242	follows:
243	243	(c) A person appointed to the commission is entitled to
244	244	reimbursement under Section 15.207, as if the person were a member
245	245	of the commission, for travel expenses incurred in attending the
246	246	training program, regardless of whether the attendance at the
247	247	program occurs before or after the person qualifies for office[, as
248	248	provided by the General Appropriations Act and as if the person were
249	249	a member of the commission].
250	250	(f) Subchapter E, Chapter 15, Finance Code, is amended by
251	251	adding Section 15.4011 to read as follows:
252	252	Sec. 15.4011. CREDIT UNION DEPARTMENT BUILDING. The
253	253	commission shall have charge and control of the property known as
254	254	the Credit Union Department Building and use of staff, equipment,
255	255	and facilities of the department. The Credit Union Department
256	256	Building refers to the property located in the city of Austin and
257	257	titled in the name of the State of Texas for the use and benefit of
258	258	the Credit Union Department, as described by deed recorded in
259	259	Volume 6126, Page 27, of the Deed Records of Travis County, Texas.
260	260	(g) Section 156.101(a), Finance Code, is amended to read as
261	261	follows:
262	262	(a) The commissioner shall administer and enforce this
263	263	chapter.
264	264	(h) Section 2165.007(b), Government Code, is amended to
265	265	read as follows:
266	266	(b) Notwithstanding any other law, the commission shall
267	267	provide facilities management services in relation to all state
268	268	agency facilities in Travis County or a county adjacent to Travis
269	269	County. The commission's duty does not apply to:
270	270	(1) a facility owned or operated by an institution of
271	271	higher education;
272	272	(2) military facilities;
273	273	(3) facilities owned or operated by the Texas
274	274	Department of Criminal Justice;
275	275	(4) facilities owned or operated by the Texas Youth
276	276	Commission;
277	277	(5) facilities owned or operated by the Texas
278	278	Department of Transportation;
279	279	(6) the Capitol, including the Capitol Extension, the
280	280	General Land Office building, the Bob Bullock Texas State History
281	281	Museum, any museum located on the Capitol grounds, the Governor's
282	282	Mansion, and any property maintained by the Texas Historical
283	283	Commission under Sections 442.0072 and 442.0073;
284	284	(7) a facility determined by the commission to be
285	285	completely residential;
286	286	(8) a regional or field office of a state agency; [or]
287	287	(9) a facility located within or on state park
288	288	property;
289	289	(10) the property known as the Finance Commission
290	290	Building described by deed recorded in Volume 5080, Page 1099, of
291	291	the Deed Records of Travis County, Texas; or
292	292	(11) the property known as the Credit Union Department
293	293	Building described by deed recorded in Volume 6126, Page 27, of the
294	294	Deed Records of Travis County, Texas.
295	295	(i) Sections 12.103, 13.005, 13.008, 14.053, 14.060,
296	296	15.104, 15.207(c), 15.308, 15.408, and 156.101(b) and (c), Finance
297	297	Code, are repealed.
298	298	(j)(1) To provide a reasonable period for each financial
299	299	regulatory agency, as defined by Section 16.001, Finance Code, as
300	300	added by this section, to establish itself as a self-directed and
301	301	semi-independent agency, the following amounts are appropriated
302	302	from the general revenue fund to each of those financial regulatory
303	303	agencies:
304	304	(A) for the state fiscal year ending August 31,
305	305	2010, an amount equal to 50 percent of the amount of general revenue
306	306	appropriated to the agency for the state fiscal year ending August
307	307	31, 2009; and
308	308	(B) for the state fiscal year ending August 31,
309	309	2011, an amount equal to 50 percent of the amount of general revenue
310	310	appropriated to the agency for the state fiscal year ending August
311	311	31, 2009.
312	312	(2) Subject to Section 16.003, Finance Code, as added
313	313	by this section, the appropriations made by Subdivision (1) of this
314	314	subsection may be spent by the financial regulatory agency to which
315	315	they are made as the financial regulatory agency directs. The
316	316	financial regulatory agency shall repay to the general revenue fund
317	317	the appropriation made to the agency for the state fiscal year
318	318	ending August 31, 2010, not later than that date and as funds become
319	319	available. The financial regulatory agency shall repay to the
320	320	general revenue fund the appropriation made to the agency for the
321	321	state fiscal year ending August 31, 2011, not later than that date
322	322	and as funds become available.
323	323	(k) The transfer of a financial regulatory agency, as
324	324	defined by Section 16.001, Finance Code, as added by this section,
325	325	to self-directed and semi-independent status under Chapter 16,
326	326	Finance Code, as added by this section, and the expiration of
327	327	self-directed and semi-independent status may not act to cancel,
328	328	suspend, or prevent:
329	329	(1) any debt owed to or by the financial regulatory
330	330	agency;
331	331	(2) any fine, tax, penalty, or obligation of any
332	332	party;
333	333	(3) any contract or other obligation of any party; or
334	334	(4) any action taken by the financial regulatory
335	335	agency in the administration or enforcement of the agency's duties.
336	336	(l) Each financial regulatory agency, as defined by Section
337	337	16.001, Finance Code, as added by this section, shall continue to
338	338	have and exercise the powers and duties allocated to the agency in
339	339	the agency's enabling legislation, except as specifically amended
340	340	by this section.
341	341	(m) Title to all supplies, materials, records, equipment,
342	342	books, papers, and facilities used by each financial regulatory
343	343	agency, as defined by Section 16.001, Finance Code, as added by this
344	344	section, is transferred to each respective financial regulatory
345	345	agency in fee simple. Nothing in this section shall have an effect
346	346	on property owned by a financial regulatory agency on or before the
347	347	effective date of this section.
348	348	(n) If a conflict exists between this section and another
349	349	Act of the 81st Legislature, Regular Session, 2009, that relates to
350	350	the self-directed and semi-independent status of a state financial
351	351	regulatory agency, this section controls without regard to the
352	352	relative dates of the enactment.
353	353	Explanation: The added language is necessary to improve the
354	354	operations of state financial regulatory agencies that are
355	355	self-directed and semi-independent.
356	356	(3) House Rule 13, Sections 9(a)(1) and (3), are suspended
357	357	to permit the committee to change the text of, and add text to,
358	358	proposed SECTION 30 of the bill, so that it reads as follows:
359	359	SECTION 30. The provisions of this Act or the applications
360	360	of those provisions are severable as provided by Section
361	361	311.032(c), Government Code. If the Secretary of Housing and Urban
362	362	Development determines that any provision of Sections 1-27 and 29
363	363	of this Act fails to meet the requirements of the federal Secure and
364	364	Fair Enforcement for Mortgage Licensing Act of 2008 (Pub. L. No.
365	365	110-289), that provision of this Act shall be held invalid;
366	366	however, the remainder of this Act or the application of the
367	367	provision to other persons or circumstances is not affected.
368	368	Explanation: The change is a conforming change to the bill
369	369	made necessary because of the addition of text to the bill under
370	370	Item (2) of this resolution.
371	371	Darby
372	372	______________________________
373	373	Speaker of the House
374	374	I certify that H.R. No. 2900 was adopted by the House on May
375	375	31, 2009, by the following vote: Yeas 143, Nays 0, 1 present, not
376	376	voting.
377	377	______________________________
378	378	Chief Clerk of the House