Texas 2011 - 82nd Regular

Texas Senate Bill SB649 Compare Versions

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1	1	By: Hinojosa, Hegar S.B. No. 649
2	2	(Harper-Brown)
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, 2023 [2011].
17	17	SECTION 2. Subsections (a) and (b), Section 2306.554,
18	18	Government Code, are amended to read as follows:
19	19	(a) The board of directors of the corporation consists of
20	20	five members appointed by the governor. One member must represent
21	21	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	three members must [who] represent one or more [any] of the
25	25	following 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. Subsection (b), Section 2306.5543, Government
56	56	Code, is amended to read as follows:
57	57	(b) The training program must provide the person with
58	58	information regarding:
59	59	(1) the legislation that created the corporation [and
60	60	the corporation's board of directors];
61	61	(2) the programs, functions, rules, and budget of
62	62	[operated by] the corporation;
63	63	(3) [the role and functions of the corporation;
64	64	[(4) the rules of the corporation with an emphasis on
65	65	the rules that relate to disciplinary and investigatory authority;
66	66	[(5) the current budget for the corporation;
67	67	[(6)] the results of the most recent formal audit of the
68	68	corporation;
69	69	(4) [(7)] the requirements of laws relating to[:
70	70	[(A) the] open meetings, [law, Chapter 551;
71	71	[(B) the] public information, [law, Chapter 552;
72	72	[(C) the] administrative procedure, and
73	73	conflicts of interest [law, Chapter 2001; and
74	74	[(D) other laws relating to public officials,
75	75	including conflict-of-interest laws]; and
76	76	(5) [(8)] any applicable ethics policies adopted by
77	77	the corporation or the Texas Ethics Commission.
78	78	SECTION 4. Subsection (b), Section 2306.5545, Government
79	79	Code, is amended to read as follows:
80	80	(b) A person may not be a member of the corporation's board
81	81	of directors and may not be a corporation employee employed in a
82	82	"bona fide executive, administrative, or professional capacity,"
83	83	as that phrase is used for purposes of establishing an exemption to
84	84	the overtime provisions of the federal Fair Labor Standards Act of
85	85	1938 (29 U.S.C. Section 201 et seq.), and its subsequent
86	86	amendments, if:
87	87	(1) the person is an officer, employee, or paid
88	88	consultant of a Texas trade association in the field of banking,
89	89	mortgage lending, real estate, housing development, or housing
90	90	construction; or
91	91	(2) the person's spouse is an officer, manager, or paid
92	92	consultant of a Texas trade association in the field of banking,
93	93	mortgage lending, real estate, housing development, or housing
94	94	construction.
95	95	SECTION 5. Subsection (d), Section 2306.559, Government
96	96	Code, is amended to read as follows:
97	97	(d) The report must include:
98	98	(1) a statement of support, revenue, and expenses and
99	99	change in fund balances;
100	100	(2) a statement of functional expenses; [and]
101	101	(3) balance sheets for all funds;
102	102	(4) the number, amount, and purpose of private gifts,
103	103	grants, donations, or other funds applied for and received;
104	104	(5) the number, amount, and purpose of loans provided
105	105	to affordable housing developers, regardless of whether the
106	106	corporation provides those loans directly to the developers or
107	107	administers the loans from another source;
108	108	(6) the amount and source of funds deposited into any
109	109	fund created by the corporation for the purpose of providing grants
110	110	and the number, amount, and purpose of any grants provided; and
111	111	(7) the total amount of annual revenue generated by
112	112	the corporation in excess of its expenditures.
113	113	SECTION 6. Subchapter Y, Chapter 2306, Government Code, is
114	114	amended by adding Section 2306.5671 to read as follows:
115	115	Sec. 2306.5671. COMPLIANCE WITH TERMS OF CERTAIN CONTRACTS
116	116	OR AGREEMENTS. A compliance contract or agreement between the
117	117	corporation and a housing sponsor that receives bond financing by
118	118	or through the corporation for the purpose of providing affordable
119	119	multifamily housing must contain a provision stating that if the
120	120	housing sponsor fails to comply with the terms of the contract or
121	121	agreement, the corporation may, at a minimum and as appropriate:
122	122	(1) assess penalties;
123	123	(2) remove the manager of the affected property and
124	124	select a new manager;
125	125	(3) withdraw reserve funds to make needed repairs and
126	126	replacements to the property; or
127	127	(4) appoint the corporation as a receiver to protect
128	128	and operate the property.
129	129	SECTION 7. Section 2306.568, Government Code, is amended to
130	130	read as follows:
131	131	Sec. 2306.568. RECORD OF COMPLAINTS. (a) The corporation
132	132	shall maintain a system to promptly and efficiently act on
133	133	complaints [file on each written complaint] filed with the
134	134	corporation. The corporation shall maintain information about
135	135	parties to the complaint, [file must include:
136	136	[(1) the name of the person who filed the complaint;
137	137	[(2) the date the complaint is received by the
138	138	corporation;
139	139	[(3)] the subject matter of the complaint,[;
140	140	[(4) the name of each person contacted in relation to
141	141	the complaint;
142	142	[(5)] a summary of the results of the review or
143	143	investigation of the complaint, and its disposition[; and
144	144	[(6) an explanation of the reason the file was closed,
145	145	if the corporation closed the file without taking action other than
146	146	to investigate the complaint].
147	147	(b) The corporation shall make information available
148	148	describing its [provide to the person filing the complaint and to
149	149	each person who is a subject of the complaint a copy of the
150	150	corporation's policies and] procedures for [relating to] complaint
151	151	investigation and resolution.
152	152	(c) The corporation[, at least quarterly until final
153	153	disposition of the complaint,] shall periodically notify the
154	154	[person filing the] complaint parties [and each person who is a
155	155	subject of the complaint] of the status of the complaint until final
156	156	disposition [investigation unless the notice would jeopardize an
157	157	undercover investigation].
158	158	SECTION 8. Section 2306.5671, Government Code, as added by
159	159	this Act, does not affect the terms of a compliance contract or
160	160	agreement entered into before the effective date of this Act,
161	161	except that if the contract or agreement is renewed, modified, or
162	162	extended on or after the effective date of this Act, Section
163	163	2306.5671 applies to the contract or agreement beginning on the
164	164	date of renewal, modification, or extension.
165	165	SECTION 9. The change in law made by this Act relating to
166	166	the qualifications for membership on the board of directors of the
167	167	Texas State Affordable Housing Corporation does not affect the
168	168	eligibility of a member of the board serving immediately before the
169	169	effective date of this Act to continue to serve on the board for the
170	170	term to which the member was appointed. Not later than February 1,
171	171	2015, the governor shall appoint members of the board as necessary
172	172	to ensure that the composition of the board complies with
173	173	Subsection (a), Section 2306.554, Government Code, as amended by
174	174	this Act.
175	175	SECTION 10. This Act takes effect September 1, 2011.