Texas 2009 - 81st Regular

Texas Senate Bill SR1075 Compare Versions

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1	1	81R38349 CLG-D
2	2	By: Wentworth S.R. No. 1075
3	3
4	4
5	5	R E S O L U T I O N
6	6	BE IT RESOLVED by the Senate of the State of Texas, 81st
7	7	Legislature, Regular Session, 2009, That Senate Rule 12.03 be
8	8	suspended in part as provided by Senate Rule 12.08 to enable the
9	9	conference committee appointed to resolve the differences on House
10	10	Bill 2774 (self-directed and semi-independent status of state
11	11	financial regulatory agencies and the licensing and regulation of
12	12	certain persons involved in residential mortgage lending; making an
13	13	appropriation; providing a penalty) to consider and take action on
14	14	the following matters:
15	15	(1) Senate Rule 12.03(1) is suspended to permit the
16	16	committee to change text not in disagreement in proposed SECTION 2
17	17	of the bill, in added Section 156.102(b-1), Finance Code, so that it
18	18	reads as follows:
19	19	(b-1) The finance commission on the commissioner's
20	20	recommendation may adopt rules to promote a fair and orderly
21	21	administration of the fund consistent with the purposes of
22	22	Subchapter F.
23	23	Explanation: The change is necessary to correct an error in a
24	24	cross-reference.
25	25	(2) Senate Rule 12.03(4) is suspended to permit the
26	26	committee to add text not included in either the house or senate
27	27	version of the bill by adding the following SECTION to the bill:
28	28	SECTION 28. (a) Title 2, Finance Code, is amended by adding
29	29	Chapter 16 to read as follows:
30	30	CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND
31	31	SEMI-INDEPENDENT
32	32	Sec. 16.001. DEFINITIONS. In this chapter:
33	33	(1) "Financial regulatory agency" means:
34	34	(A) the Texas Department of Banking;
35	35	(B) the Department of Savings and Mortgage
36	36	Lending;
37	37	(C) the Office of Consumer Credit Commissioner;
38	38	and
39	39	(D) the Credit Union Department.
40	40	(2) "Policy-making body" means:
41	41	(A) the Finance Commission of Texas for:
42	42	(i) the Texas Department of Banking;
43	43	(ii) the Department of Savings and Mortgage
44	44	Lending; and
45	45	(iii) the Office of Consumer Credit
46	46	Commissioner; and
47	47	(B) the Credit Union Commission for the Credit
48	48	Union Department.
49	49	Sec. 16.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF
50	50	FINANCIAL REGULATORY AGENCIES. Notwithstanding any other
51	51	provision of law, a financial regulatory agency is self-directed
52	52	and semi-independent as specified by this chapter. Any Act of the
53	53	81st Legislature that relates to a financial regulatory agency and
54	54	that is inconsistent with the agency being self-directed and
55	55	semi-independent may be implemented by the financial regulatory
56	56	agency only on authorization by the policy-making body of the
57	57	financial regulatory agency.
58	58	Sec. 16.003. BUDGET, REVENUES, AND EXPENSES. (a) A
59	59	financial regulatory agency shall submit to the policy-making body
60	60	of the financial regulatory agency a budget annually using
61	61	generally accepted accounting principles. Notwithstanding any
62	62	other provision of law, including the General Appropriations Act,
63	63	the budget shall be adopted and approved only by the policy-making
64	64	body of the financial regulatory agency.
65	65	(b) A financial regulatory agency shall be responsible for
66	66	all direct and indirect costs of the agency's existence and
67	67	operation. The financial regulatory agency may not directly or
68	68	indirectly cause the general revenue fund to incur any cost.
69	69	(c) Subject to any limitations in a financial regulatory
70	70	agency's enabling legislation, a financial regulatory agency may
71	71	set the amounts of fees, penalties, charges, and revenues required
72	72	or permitted by statute or rule as necessary for the purpose of
73	73	carrying out the functions of the financial regulatory agency and
74	74	funding the budget adopted and approved under Subsection (a).
75	75	(d) All fees and funds collected by a financial regulatory
76	76	agency and any funds appropriated to the financial regulatory
77	77	agency shall be deposited in interest-bearing deposit accounts in
78	78	the Texas Treasury Safekeeping Trust Company. The comptroller
79	79	shall contract with the financial regulatory agency for the
80	80	maintenance of the deposit accounts under terms comparable to a
81	81	contract between a commercial banking institution and the
82	82	institution's customers.
83	83	(e) Periodically, each financial regulatory agency shall
84	84	submit to the agency's policy-making body, as directed by the
85	85	policy-making body, a report of the receipts and expenditures of
86	86	the financial regulatory agency.
87	87	(f) The fiscal year for a financial regulatory agency begins
88	88	on September 1 and ends on August 31.
89	89	Sec. 16.004. AUDITS. This chapter does not affect the duty
90	90	of the state auditor to audit a financial regulatory agency. The
91	91	state auditor shall enter into a contract and schedule with each
92	92	financial regulatory agency to conduct audits, including financial
93	93	reports and performance audits. The financial regulatory agency
94	94	shall reimburse the state auditor for all costs incurred in
95	95	performing the audits and shall provide to the governor a copy of
96	96	any audit performed.
97	97	Sec. 16.005. RECORDS; REPORTING REQUIREMENTS. (a) A
98	98	financial regulatory agency shall keep financial and statistical
99	99	information as necessary to disclose completely and accurately the
100	100	financial condition and results of operations of the agency.
101	101	(b) Before the beginning of each regular session of the
102	102	legislature, each financial regulatory agency shall submit to the
103	103	legislature and the governor a report describing all of the
104	104	agency's activities in the previous biennium. The report must
105	105	include:
106	106	(1) an audit as required by Section 16.004;
107	107	(2) a financial report of the previous fiscal year,
108	108	including reports on financial condition and results of operations;
109	109	(3) a description of all changes in fees imposed on
110	110	regulated industries;
111	111	(4) a report on changes in the regulatory jurisdiction
112	112	of the agency, including the number of chartered financial
113	113	institutions, license holders, and registrants subject to the
114	114	agency's jurisdiction and any changes in those figures; and
115	115	(5) a list of all new rules adopted or repealed.
116	116	(c) In addition to the reporting requirements of Subsection
117	117	(b), not later than November 1 of each year, each financial
118	118	regulatory agency shall submit to the governor, the committee of
119	119	each house of the legislature that has jurisdiction over
120	120	appropriations, and the Legislative Budget Board a report that
121	121	contains:
122	122	(1) the salary for all financial regulatory agency
123	123	personnel and the total amount of per diem expenses and travel
124	124	expenses paid for all agency employees;
125	125	(2) the total amount of per diem expenses and travel
126	126	expenses paid for each member of the agency's policy-making body,
127	127	provided that only one report must be submitted regarding the
128	128	Finance Commission of Texas;
129	129	(3) the agency's operating plan and annual budget; and
130	130	(4) a detailed report of all revenue received and all
131	131	expenses incurred by the financial regulatory agency in the
132	132	previous 12 months.
133	133	Sec. 16.006. ABILITY TO CONTRACT. (a) To carry out and
134	134	promote the objectives of this chapter, a financial regulatory
135	135	agency may enter into contracts and do all other acts incidental to
136	136	those contracts that are necessary for the administration of the
137	137	agency's affairs and for the attainment of the agency's purposes,
138	138	except as limited by Subsection (b).
139	139	(b) Any indebtedness, liability, or obligation of the
140	140	financial regulatory agency incurred under this section may not:
141	141	(1) create a debt or other liability of this state or
142	142	another entity other than the financial regulatory agency; or
143	143	(2) create any personal liability on the part of the
144	144	members of the policy-making body or the body's or agency's
145	145	employees.
146	146	Sec. 16.007. PROPERTY. A financial regulatory agency may:
147	147	(1) acquire by purchase, lease, gift, or any other
148	148	manner provided by law and maintain, use, and operate any real,
149	149	personal, or mixed property, or any interest in property, necessary
150	150	or convenient to the exercise of the powers, rights, privileges, or
151	151	functions of the financial regulatory agency;
152	152	(2) sell or otherwise dispose of any real, personal,
153	153	or mixed property, or any interest in property, that the financial
154	154	regulatory agency determines is not necessary or convenient to the
155	155	exercise of the agency's powers, rights, privileges, or functions;
156	156	(3) construct, extend, improve, maintain, and
157	157	reconstruct, or cause to construct, extend, improve, maintain, and
158	158	reconstruct, and use and operate all facilities necessary or
159	159	convenient to the exercise of the powers, rights, privileges, or
160	160	functions of the financial regulatory agency; and
161	161	(4) borrow money, as may be authorized from time to
162	162	time by an affirmative vote of a two-thirds majority of the
163	163	policy-making body of the financial regulatory agency, for a period
164	164	not to exceed five years if necessary or convenient to the exercise
165	165	of the financial regulatory agency's powers, rights, privileges, or
166	166	functions.
167	167	Sec. 16.008. SUITS. The office of the attorney general
168	168	shall represent a financial regulatory agency in any litigation.
169	169	The attorney general may assess and collect from the financial
170	170	regulatory agency reasonable attorney's fees associated with any
171	171	litigation under this section.
172	172	Sec. 16.009. POST-PARTICIPATION LIABILITY. (a) If a
173	173	financial regulatory agency no longer has status under this chapter
174	174	as a self-directed semi-independent financial regulatory agency
175	175	for any reason, the agency shall be liable for any expenses or debts
176	176	incurred by the agency during the time the agency was a
177	177	self-directed semi-independent financial regulatory agency. The
178	178	agency's liability under this section includes liability for any
179	179	lease entered into by the agency. This state is not liable for any
180	180	expense or debt covered by this subsection, and money from the
181	181	general revenue fund may not be used to repay the expense or debt.
182	182	(b) If a financial regulatory agency no longer has status
183	183	under this chapter as a self-directed semi-independent financial
184	184	regulatory agency for any reason, ownership of any property or
185	185	other asset acquired by the agency during the time the agency was a
186	186	self-directed semi-independent financial regulatory agency,
187	187	including unexpended fees in a deposit account in the Texas
188	188	Treasury Safekeeping Trust Company, shall be transferred to this
189	189	state.
190	190	Sec. 16.010. DUE PROCESS; OPEN GOVERNMENT. A financial
191	191	regulatory agency is:
192	192	(1) a governmental body for purposes of Chapters 551
193	193	and 552, Government Code; and
194	194	(2) a state agency for purposes of Chapters 2001 and
195	195	2005, Government Code.
196	196	Sec. 16.011. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
197	197	Employees of the financial regulatory agencies are members of the
198	198	Employees Retirement System of Texas under Chapter 812, Government
199	199	Code, and the agencies' transition to independent status as
200	200	provided by this chapter has no effect on their membership or any
201	201	benefits under that system.
202	202	Sec. 16.012. GIFTS. (a) Notwithstanding any other law, a
203	203	financial regulatory agency may not accept a gift, grant, or
204	204	donation:
205	205	(1) from a party to an enforcement action; or
206	206	(2) to pursue a specific investigation or enforcement
207	207	action.
208	208	(b) A financial regulatory agency must:
209	209	(1) report each gift, grant, or donation that the
210	210	agency receives as a separate item in the agency's report required
211	211	under Section 16.005(b); and
212	212	(2) include with the report a statement indicating the
213	213	purpose for which each gift, grant, or donation was donated and
214	214	used.
215	215	(b) Section 11.104, Finance Code, is amended to read as
216	216	follows:
217	217	Sec. 11.104. EXPENSES AND COMPENSATION OF MEMBERS. A
218	218	member of the finance commission is entitled to:
219	219	(1) the reimbursement for reasonable and necessary
220	220	expenses incidental to travel incurred in connection with the
221	221	performance of official duties; and
222	222	(2) a per diem [as set by legislative appropriation]
223	223	for each day that the member engages in the business of the finance
224	224	commission.
225	225	(c) Section 11.110(c), Finance Code, is amended to read as
226	226	follows:
227	227	(c) A person appointed to the finance commission is entitled
228	228	to reimbursement under Section 11.104, as if the person were a
229	229	member of the finance commission, [as provided by the General
230	230	Appropriations Act,] for the travel expenses incurred in attending
231	231	the training program regardless of whether the attendance at the
232	232	program occurs before or after the person qualifies for office.
233	233	(d) Section 11.204, Finance Code, is amended by adding
234	234	Subsection (c) to read as follows:
235	235	(c) The finance commission shall have charge and control of
236	236	the property known as the Finance Commission Building and use of
237	237	staff, equipment, and facilities of the finance agencies. The
238	238	Finance Commission Building refers to the property located in the
239	239	city of Austin and titled in the name of the Banking Section of the
240	240	Finance Commission of Texas, as described by deed recorded in
241	241	Volume 5080, Page 1099, of the Deed Records of Travis County, Texas.
242	242	(e) Section 15.2041(c), Finance Code, is amended to read as
243	243	follows:
244	244	(c) A person appointed to the commission is entitled to
245	245	reimbursement under Section 15.207, as if the person were a member
246	246	of the commission, for travel expenses incurred in attending the
247	247	training program, regardless of whether the attendance at the
248	248	program occurs before or after the person qualifies for office[, as
249	249	provided by the General Appropriations Act and as if the person were
250	250	a member of the commission].
251	251	(f) Subchapter E, Chapter 15, Finance Code, is amended by
252	252	adding Section 15.4011 to read as follows:
253	253	Sec. 15.4011. CREDIT UNION DEPARTMENT BUILDING. The
254	254	commission shall have charge and control of the property known as
255	255	the Credit Union Department Building and use of staff, equipment,
256	256	and facilities of the department. The Credit Union Department
257	257	Building refers to the property located in the city of Austin and
258	258	titled in the name of the State of Texas for the use and benefit of
259	259	the Credit Union Department, as described by deed recorded in
260	260	Volume 6126, Page 27, of the Deed Records of Travis County, Texas.
261	261	(g) Section 156.101(a), Finance Code, is amended to read as
262	262	follows:
263	263	(a) The commissioner shall administer and enforce this
264	264	chapter.
265	265	(h) Section 2165.007(b), Government Code, is amended to
266	266	read as follows:
267	267	(b) Notwithstanding any other law, the commission shall
268	268	provide facilities management services in relation to all state
269	269	agency facilities in Travis County or a county adjacent to Travis
270	270	County. The commission's duty does not apply to:
271	271	(1) a facility owned or operated by an institution of
272	272	higher education;
273	273	(2) military facilities;
274	274	(3) facilities owned or operated by the Texas
275	275	Department of Criminal Justice;
276	276	(4) facilities owned or operated by the Texas Youth
277	277	Commission;
278	278	(5) facilities owned or operated by the Texas
279	279	Department of Transportation;
280	280	(6) the Capitol, including the Capitol Extension, the
281	281	General Land Office building, the Bob Bullock Texas State History
282	282	Museum, any museum located on the Capitol grounds, the Governor's
283	283	Mansion, and any property maintained by the Texas Historical
284	284	Commission under Sections 442.0072 and 442.0073;
285	285	(7) a facility determined by the commission to be
286	286	completely residential;
287	287	(8) a regional or field office of a state agency; [or]
288	288	(9) a facility located within or on state park
289	289	property;
290	290	(10) the property known as the Finance Commission
291	291	Building described by deed recorded in Volume 5080, Page 1099, of
292	292	the Deed Records of Travis County, Texas; or
293	293	(11) the property known as the Credit Union Department
294	294	Building described by deed recorded in Volume 6126, Page 27, of the
295	295	Deed Records of Travis County, Texas.
296	296	(i) Sections 12.103, 13.005, 13.008, 14.053, 14.060,
297	297	15.104, 15.207(c), 15.308, 15.408, and 156.101(b) and (c), Finance
298	298	Code, are repealed.
299	299	(j)(1) To provide a reasonable period for each financial
300	300	regulatory agency, as defined by Section 16.001, Finance Code, as
301	301	added by this section, to establish itself as a self-directed and
302	302	semi-independent agency, the following amounts are appropriated
303	303	from the general revenue fund to each of those financial regulatory
304	304	agencies:
305	305	(A) for the state fiscal year ending August 31,
306	306	2010, an amount equal to 50 percent of the amount of general revenue
307	307	appropriated to the agency for the state fiscal year ending August
308	308	31, 2009; and
309	309	(B) for the state fiscal year ending August 31,
310	310	2011, an amount equal to 50 percent of the amount of general revenue
311	311	appropriated to the agency for the state fiscal year ending August
312	312	31, 2009.
313	313	(2) Subject to Section 16.003, Finance Code, as added
314	314	by this section, the appropriations made by Subdivision (1) of this
315	315	subsection may be spent by the financial regulatory agency to which
316	316	they are made as the financial regulatory agency directs. The
317	317	financial regulatory agency shall repay to the general revenue fund
318	318	the appropriation made to the agency for the state fiscal year
319	319	ending August 31, 2010, not later than that date and as funds become
320	320	available. The financial regulatory agency shall repay to the
321	321	general revenue fund the appropriation made to the agency for the
322	322	state fiscal year ending August 31, 2011, not later than that date
323	323	and as funds become available.
324	324	(k) The transfer of a financial regulatory agency, as
325	325	defined by Section 16.001, Finance Code, as added by this section,
326	326	to self-directed and semi-independent status under Chapter 16,
327	327	Finance Code, as added by this section, and the expiration of
328	328	self-directed and semi-independent status may not act to cancel,
329	329	suspend, or prevent:
330	330	(1) any debt owed to or by the financial regulatory
331	331	agency;
332	332	(2) any fine, tax, penalty, or obligation of any
333	333	party;
334	334	(3) any contract or other obligation of any party; or
335	335	(4) any action taken by the financial regulatory
336	336	agency in the administration or enforcement of the agency's duties.
337	337	(l) Each financial regulatory agency, as defined by Section
338	338	16.001, Finance Code, as added by this section, shall continue to
339	339	have and exercise the powers and duties allocated to the agency in
340	340	the agency's enabling legislation, except as specifically amended
341	341	by this section.
342	342	(m) Title to all supplies, materials, records, equipment,
343	343	books, papers, and facilities used by each financial regulatory
344	344	agency, as defined by Section 16.001, Finance Code, as added by this
345	345	section, is transferred to each respective financial regulatory
346	346	agency in fee simple. Nothing in this section shall have an effect
347	347	on property owned by a financial regulatory agency on or before the
348	348	effective date of this section.
349	349	(n) If a conflict exists between this section and another
350	350	Act of the 81st Legislature, Regular Session, 2009, that relates to
351	351	the self-directed and semi-independent status of a state financial
352	352	regulatory agency, this section controls without regard to the
353	353	relative dates of the enactment.
354	354	Explanation: The added language is necessary to improve the
355	355	operations of state financial regulatory agencies that are
356	356	self-directed and semi-independent.
357	357	(3) Senate Rules 12.03(1) and (3) are suspended to permit
358	358	the committee to change the text of, and add text to, proposed
359	359	SECTION 30 of the bill, so that it reads as follows:
360	360	SECTION 30. The provisions of this Act or the applications
361	361	of those provisions are severable as provided by Section
362	362	311.032(c), Government Code. If the Secretary of Housing and Urban
363	363	Development determines that any provision of Sections 1-27 and 29
364	364	of this Act fails to meet the requirements of the federal Secure and
365	365	Fair Enforcement for Mortgage Licensing Act of 2008 (Pub. L. No.
366	366	110-289), that provision of this Act shall be held invalid;
367	367	however, the remainder of this Act or the application of the
368	368	provision to other persons or circumstances is not affected.
369	369	Explanation: The change is a conforming change to the bill
370	370	made necessary because of the addition of text to the bill under
371	371	Item (2) of this resolution.