Texas 2019 - 86th Regular

Texas House Bill HB1569 Compare Versions

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

Old	New	Differences
1	1	86R2055 TSR-D
2	2	By: Lambert H.B. No. 1569
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 Finance
8	8	Commission of Texas, the Texas Department of Banking, and the
9	9	Department of Savings and Mortgage Lending and to the regulation of
10	10	certain financial institutions and businesses.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.108, Finance Code, is amended to read
13	13	as follows:
14	14	Sec. 11.108. SUNSET PROVISION. The finance commission is
15	15	subject to Chapter 325, Government Code (Texas Sunset Act). Unless
16	16	continued in existence as provided by that chapter, the commission
17	17	is abolished September 1, 2031 [2019].
18	18	SECTION 2. Section 11.110, Finance Code, is amended by
19	19	adding Subsection (d) to read as follows:
20	20	(d) The commissioner of each finance agency shall create a
21	21	training manual that includes the information required by
22	22	Subsection (b) applicable to that commissioner's agency. The
23	23	commissioner of each finance agency shall distribute a copy of the
24	24	training manual created under this subsection annually to each
25	25	member of the finance commission. Each member of the finance
26	26	commission shall sign and submit to the appropriate commissioner a
27	27	statement acknowledging that the member received and has reviewed
28	28	the training manual.
29	29	SECTION 3. Subchapter B, Chapter 11, Finance Code, is
30	30	amended by adding Section 11.113 to read as follows:
31	31	Sec. 11.113. ADVISORY COMMITTEES. (a) The finance
32	32	commission may appoint advisory committees to assist the finance
33	33	commission in performing its duties.
34	34	(b) The finance commission shall specify each committee's
35	35	purpose, powers, and duties and shall require each committee to
36	36	report to the finance commission in the manner specified by the
37	37	finance commission concerning the committee's activities and the
38	38	results of its work.
39	39	SECTION 4. Section 11.202(b), Finance Code, is amended to
40	40	read as follows:
41	41	(b) The Texas Department of Banking may employ a hearings
42	42	officer to serve the finance agencies as determined by interagency
43	43	agreement. For the purposes of Section 2003.021, Government Code,
44	44	a hearings officer employed under this section is considered to be
45	45	an employee of each agency for which hearing services are provided.
46	46	The hearings officer's only duty is to preside over matters related
47	47	to contested cases before a finance agency [or the finance
48	48	commission].
49	49	SECTION 5. Section 12.108, Finance Code, is amended to read
50	50	as follows:
51	51	Sec. 12.108. CONSUMER INFORMATION AND COMPLAINTS. (a) The
52	52	department [banking commissioner] shall maintain a system to
53	53	promptly and efficiently act on complaints filed with the
54	54	department. The department shall maintain information about
55	55	parties to the complaint, the subject matter of the complaint, a
56	56	summary of the results of the review or investigation of the
57	57	complaint, and its disposition[:
58	58	[(1) prepare information of consumer interest
59	59	describing:
60	60	[(A) the regulatory functions of the department;
61	61	and
62	62	[(B) the department's procedures by which
63	63	consumer complaints are filed with and resolved by the department;
64	64	and
65	65	[(2) make the information available to the public and
66	66	appropriate state agencies].
67	67	(b) The department shall make information available
68	68	describing its procedures for complaint investigation and
69	69	resolution [maintain a file on each written complaint filed with
70	70	the department. The file must include:
71	71	[(1) the name of the person who filed the complaint;
72	72	[(2) the date the complaint is received by the
73	73	department;
74	74	[(3) the subject matter of the complaint;
75	75	[(4) the name of each person contacted in relation to
76	76	the complaint;
77	77	[(5) a summary of the results of the review or
78	78	investigation of the complaint; and
79	79	[(6) an explanation of the reason the file was
80	80	closed].
81	81	(c) The department shall periodically notify the complaint
82	82	parties of the status of the complaint until final disposition
83	83	[provide to the person filing the complaint and to each person who
84	84	is a subject of the complaint a written summary of the department's
85	85	policies and procedures relating to complaint investigation and
86	86	resolution].
87	87	SECTION 6. Section 12.109, Finance Code, is amended to read
88	88	as follows:
89	89	Sec. 12.109. SUNSET PROVISION. The office of banking
90	90	commissioner is subject to Chapter 325, Government Code (Texas
91	91	Sunset Act). Unless continued in existence as provided by that
92	92	chapter, the office is abolished September 1, 2031 [2019].
93	93	SECTION 7. Subchapter B, Chapter 12, Finance Code, is
94	94	amended by adding Sections 12.113 and 12.114 to read as follows:
95	95	Sec. 12.113. ALTERNATIVE RULEMAKING AND DISPUTE
96	96	RESOLUTION. (a) The finance commission by rule shall develop a
97	97	policy to encourage the use of:
98	98	(1) negotiated rulemaking procedures under Chapter
99	99	2008, Government Code, for the adoption of rules by the finance
100	100	commission applicable to the department; and
101	101	(2) appropriate alternative dispute resolution
102	102	procedures under Chapter 2009, Government Code, to assist in the
103	103	resolution of internal and external disputes under the department's
104	104	jurisdiction.
105	105	(b) The procedures applicable to the department relating to
106	106	alternative dispute resolution must conform, to the extent
107	107	possible, to any model guidelines issued by the State Office of
108	108	Administrative Hearings for the use of alternative dispute
109	109	resolution by state agencies.
110	110	(c) The department shall:
111	111	(1) coordinate the implementation of the policy
112	112	adopted under Subsection (a);
113	113	(2) provide training as needed to implement the
114	114	procedures for negotiated rulemaking or alternative dispute
115	115	resolution; and
116	116	(3) collect data concerning the effectiveness of those
117	117	procedures.
118	118	Sec. 12.114. ADVISORY COMMITTEES. (a) The banking
119	119	commissioner may appoint advisory committees to assist the
120	120	department and banking commissioner in performing their duties.
121	121	(b) The banking commissioner shall specify each committee's
122	122	purpose, powers, and duties and shall require each committee to
123	123	report to the banking commissioner or department in the manner
124	124	specified by the banking commissioner concerning the committee's
125	125	activities and the results of its work.
126	126	SECTION 8. Sections 13.011(a), (b), and (c), Finance Code,
127	127	are amended to read as follows:
128	128	(a) The Department of Savings and Mortgage Lending [savings
129	129	and mortgage lending commissioner] shall maintain a system to
130	130	promptly and efficiently act on complaints filed with that
131	131	department. The Department of Savings and Mortgage Lending shall
132	132	maintain information about parties to the complaint, the subject
133	133	matter of the complaint, a summary of the results of the review or
134	134	investigation of the complaint, and its disposition [prepare
135	135	information of consumer interest describing:
136	136	[(1) the regulatory functions of the Department of
137	137	Savings and Mortgage Lending; and
138	138	[(2) the procedures by which consumer complaints are
139	139	filed with and resolved by the Department of Savings and Mortgage
140	140	Lending].
141	141	(b) The Department of Savings and Mortgage Lending shall
142	142	make information [under Subsection (a) must be made] available
143	143	describing its procedures for complaint investigation and
144	144	resolution [to the public and appropriate state agencies].
145	145	(c) The Department of Savings and Mortgage Lending shall
146	146	periodically notify the complaint parties of the status of the
147	147	complaint until final disposition [maintain a file on each written
148	148	complaint filed with the Department of Savings and Mortgage
149	149	Lending. The file must include:
150	150	[(1) the name of the person who filed the complaint;
151	151	[(2) the date the complaint is received by the
152	152	Department of Savings and Mortgage Lending;
153	153	[(3) the subject matter of the complaint;
154	154	[(4) the name of each person contacted in relation to
155	155	the complaint;
156	156	[(5) a summary of the results of the review or
157	157	investigation of the complaint; and
158	158	[(6) an explanation of the reason the file was closed,
159	159	if the agency closed the file without taking action other than to
160	160	investigate the complaint].
161	161	SECTION 9. Section 13.012, Finance Code, is amended to read
162	162	as follows:
163	163	Sec. 13.012. SUNSET PROVISION. The office of savings and
164	164	mortgage lending commissioner and the Department of Savings and
165	165	Mortgage Lending are subject to Chapter 325, Government Code (Texas
166	166	Sunset Act). Unless continued in existence as provided by that
167	167	chapter, the office and department are abolished September 1, 2031
168	168	[2019].
169	169	SECTION 10. Chapter 13, Finance Code, is amended by adding
170	170	Sections 13.017 and 13.018 to read as follows:
171	171	Sec. 13.017. ALTERNATIVE RULEMAKING AND DISPUTE
172	172	RESOLUTION. (a) The finance commission by rule shall develop a
173	173	policy to encourage the use of:
174	174	(1) negotiated rulemaking procedures under Chapter
175	175	2008, Government Code, for the adoption of rules by the finance
176	176	commission applicable to the Department of Savings and Mortgage
177	177	Lending; and
178	178	(2) appropriate alternative dispute resolution
179	179	procedures under Chapter 2009, Government Code, to assist in the
180	180	resolution of internal and external disputes under the Department
181	181	of Savings and Mortgage Lending's jurisdiction.
182	182	(b) The procedures applicable to the Department of Savings
183	183	and Mortgage Lending relating to alternative dispute resolution
184	184	must conform, to the extent possible, to any model guidelines
185	185	issued by the State Office of Administrative Hearings for the use of
186	186	alternative dispute resolution by state agencies.
187	187	(c) The Department of Savings and Mortgage Lending shall:
188	188	(1) coordinate the implementation of the policy
189	189	adopted under Subsection (a);
190	190	(2) provide training as needed to implement the
191	191	procedures for negotiated rulemaking or alternative dispute
192	192	resolution; and
193	193	(3) collect data concerning the effectiveness of those
194	194	procedures.
195	195	Sec. 13.018. ADVISORY COMMITTEES. (a) The savings and
196	196	mortgage lending commissioner may appoint advisory committees to
197	197	assist the Department of Savings and Mortgage Lending and savings
198	198	and mortgage lending commissioner in performing their duties.
199	199	(b) The savings and mortgage lending commissioner shall
200	200	specify each committee's purpose, powers, and duties and shall
201	201	require each committee to report to the savings and mortgage
202	202	lending commissioner or Department of Savings and Mortgage Lending
203	203	in the manner specified by the savings and mortgage lending
204	204	commissioner concerning the committee's activities and the results
205	205	of its work.
206	206	SECTION 11. Sections 31.202 and 31.204, Finance Code, are
207	207	amended to read as follows:
208	208	Sec. 31.202. APPEAL OF BANKING COMMISSIONER DECISION OR
209	209	ORDER. Except as expressly provided otherwise by this subtitle, an
210	210	appellant may appeal a decision or order of the banking
211	211	commissioner made under this subtitle or Chapter 12 after a hearing
212	212	[directly] to a district court in [the District Court of] Travis
213	213	County as provided by Section 31.204 [or, at the option of the
214	214	appellant, to the finance commission for review].
215	215	Sec. 31.204. [DIRECT] APPEAL TO DISTRICT COURT [OR APPEAL
216	216	OF FINANCE COMMISSION ORDER]. A person affected by a final order of
217	217	the banking commissioner [who elects to appeal directly to district
218	218	court, or a person affected by a final order of the finance
219	219	commission under this chapter,] may appeal the final order by
220	220	filing a petition for judicial review in a district court in [the
221	221	District Court of] Travis County as provided by Chapter 2001,
222	222	Government Code. A petition for judicial review filed in the
223	223	district court does not stay or vacate the appealed order unless the
224	224	court, after notice and hearing, expressly stays or vacates the
225	225	order.
226	226	SECTION 12. Section 32.009(d), Finance Code, is amended to
227	227	read as follows:
228	228	(d) A state bank that is denied the requested right or
229	229	privilege to engage in an activity by the banking commissioner
230	230	under this section may appeal as provided by Sections 31.202 [,
231	231	31.203,] and 31.204 or may resubmit a letter under this subsection
232	232	with additional information or authority relevant to the banking
233	233	commissioner's determination. A denial is immediately final for
234	234	purposes of appeal.
235	235	SECTION 13. Section 32.010(d), Finance Code, is amended to
236	236	read as follows:
237	237	(d) A state bank that is denied the requested power by the
238	238	banking commissioner under this section may appeal as provided by
239	239	Sections 31.202 [, 31.203,] and 31.204 or may resubmit a letter
240	240	under this section with additional information or authority
241	241	relevant to the banking commissioner's determination. A denial is
242	242	immediately final for purposes of appeal.
243	243	SECTION 14. Section 35.0035(g), Finance Code, is amended to
244	244	read as follows:
245	245	(g) After the hearing, the banking commissioner may affirm,
246	246	modify, or set aside, in whole or in part, the order. An order
247	247	affirming or modifying the order is immediately final for purposes
248	248	of enforcement and appeal. The order may be appealed as provided by
249	249	Sections 31.202 [, 31.203,] and 31.204.
250	250	SECTION 15. Section 35.004(c), Finance Code, is amended to
251	251	read as follows:
252	252	(c) An order issued under this section is immediately final
253	253	for purposes of enforcement and appeal. The order may be appealed
254	254	as provided by Sections 31.202 [, 31.203,] and 31.204.
255	255	SECTION 16. Section 35.005(e), Finance Code, is amended to
256	256	read as follows:
257	257	(e) After the hearing, the banking commissioner may affirm,
258	258	modify, or set aside in whole or part the emergency order. An order
259	259	affirming or modifying the emergency order is immediately final for
260	260	purposes of enforcement and appeal. The order may be appealed as
261	261	provided by Sections 31.202 [, 31.203,] and 31.204.
262	262	SECTION 17. Section 35.104(c), Finance Code, is amended to
263	263	read as follows:
264	264	(c) An order issued under Subsection (b) is immediately
265	265	final for purposes of appeal. The order may be appealed as provided
266	266	by Sections 31.202 [, 31.203,] and 31.204.
267	267	SECTION 18. Section 35.110(d), Finance Code, is amended to
268	268	read as follows:
269	269	(d) After the hearing, the banking commissioner may affirm,
270	270	modify, or set aside in whole or part the prior ruling. An order
271	271	supporting the action contested by the board is immediately final
272	272	for purposes of appeal. The order may be appealed as provided by
273	273	Sections 31.202 [, 31.203,] and 31.204. [If the order is appealed
274	274	to the finance commission, the finance commission may:
275	275	[(1) affirm, terminate, or modify the order;
276	276	[(2) continue or end supervision or conservatorship;
277	277	and
278	278	[(3) order further relief as justice, equity, and
279	279	protection of depositors, creditors, and the public require.]
280	280	SECTION 19. Sections 154.104(a) and (b), Finance Code, are
281	281	amended to read as follows:
282	282	(a) The commission by rule shall prescribe the term of a [A]
283	283	permit [is] issued under this subchapter [for a one-year term].
284	284	(b) If the commission prescribes the term of a permit issued
285	285	under this subchapter for a period other than one year, the [The]
286	286	commission shall prorate the fee required under this subchapter as
287	287	necessary to reflect the term of the permit [by rule may adopt a
288	288	system under which permits expire on various dates during the
289	289	year].
290	290	SECTION 20. Section 154.415(f), Finance Code, is amended to
291	291	read as follows:
292	292	(f) An order issued under Subsection (e) is immediately
293	293	final for purposes of enforcement and appeal. The order may be
294	294	appealed as provided by Sections 31.202 [, 31.203,] and 31.204.
295	295	SECTION 21. Section 157.012(c), Finance Code, is amended to
296	296	read as follows:
297	297	(c) To be eligible to be licensed as a residential mortgage
298	298	loan originator, the individual, in addition to meeting the
299	299	requirements of Subsection (a), must:
300	300	(1) satisfy the commissioner as to [the individual's
301	301	good moral character, including] the individual's honesty,
302	302	trustworthiness, and integrity;
303	303	(2) not be in violation of this chapter, Chapter 180,
304	304	or any rules adopted under this chapter or Chapter 180;
305	305	(3) provide the commissioner with satisfactory
306	306	evidence that the individual meets the qualifications provided by
307	307	Chapter 180; and
308	308	(4) be a citizen of the United States or a lawfully
309	309	admitted alien.
310	310	SECTION 22. Sections 181.202 and 181.204, Finance Code, are
311	311	amended to read as follows:
312	312	Sec. 181.202. APPEAL OF BANKING COMMISSIONER DECISION OR
313	313	ORDER. Except as expressly provided otherwise by this subtitle, a
314	314	person affected by a decision or order of the banking commissioner
315	315	made under this subtitle after a hearing may appeal the decision or
316	316	order[:
317	317	[(1) to the finance commission; or
318	318	[(2) directly] to a district court in Travis County as
319	319	provided by Section 181.204.
320	320	Sec. 181.204. [DIRECT] APPEAL TO DISTRICT COURT [OR APPEAL
321	321	OF FINANCE COMMISSION ORDER]. A person affected by a final order of
322	322	the banking commissioner [who elects to appeal directly to district
323	323	court, or a person affected by a final order of the finance
324	324	commission under this subchapter,] may appeal the final order by
325	325	filing a petition for judicial review as provided by Chapter 2001,
326	326	Government Code. A petition for judicial review filed in the
327	327	district court does not stay or vacate the appealed order unless the
328	328	court, after notice and hearing, expressly stays or vacates the
329	329	order.
330	330	SECTION 23. Section 182.010(d), Finance Code, is amended to
331	331	read as follows:
332	332	(d) A state trust company that is denied the requested right
333	333	or privilege to engage in an activity by the banking commissioner
334	334	under this section may appeal as provided by Sections 181.202 and
335	335	181.204 [Sections 181.202-181.204] or may resubmit a letter under
336	336	this section with additional information or authority relevant to
337	337	the banking commissioner's determination. A denial is immediately
338	338	final for purposes of appeal.
339	339	SECTION 24. Section 185.0035(g), Finance Code, is amended
340	340	to read as follows:
341	341	(g) After the hearing, the banking commissioner may affirm,
342	342	modify, or set aside, in whole or in part, the order. An order
343	343	affirming or modifying the order is immediately final for purposes
344	344	of enforcement and appeal. The order may be appealed as provided by
345	345	Sections 181.202 [, 181.203,] and 181.204.
346	346	SECTION 25. Section 185.004(c), Finance Code, is amended to
347	347	read as follows:
348	348	(c) An order issued under this section is immediately final
349	349	for purposes of enforcement and appeal. The order may be appealed
350	350	as provided by Sections 181.202 and 181.204 [Sections
351	351	181.202-181.204].
352	352	SECTION 26. Section 185.005(e), Finance Code, is amended to
353	353	read as follows:
354	354	(e) After the hearing, the banking commissioner may affirm,
355	355	modify, or set aside in whole or part the emergency order. An order
356	356	affirming or modifying the order is immediately final for purposes
357	357	of enforcement and appeal. The order may be appealed as provided by
358	358	Sections 181.202 and 181.204 [Sections 181.202-181.204].
359	359	SECTION 27. Section 185.104(c), Finance Code, is amended to
360	360	read as follows:
361	361	(c) An order issued under Subsection (b) is immediately
362	362	final for purposes of appeal. The order may be appealed as provided
363	363	by Sections 181.202 and 181.204 [Sections 181.202-181.204].
364	364	SECTION 28. Section 185.110(d), Finance Code, is amended to
365	365	read as follows:
366	366	(d) After the hearing, the banking commissioner may affirm,
367	367	modify, or set aside in whole or part the prior ruling. An order
368	368	supporting the action contested by the board is immediately final
369	369	for purposes of appeal. The order may be appealed as provided by
370	370	Sections 181.202 and 181.204 [Sections 181.202-181.204]. [If the
371	371	order is appealed to the finance commission, the finance commission
372	372	may:
373	373	[(1) affirm, terminate, or modify the order;
374	374	[(2) continue or end supervision or conservatorship;
375	375	and
376	376	[(3) order further relief as justice, equity, and
377	377	protection of clients, creditors, and the public require.]
378	378	SECTION 29. Section 187.305(a), Finance Code, is amended to
379	379	read as follows:
380	380	(a) If the banking commissioner determines that an
381	381	out-of-state trust company has violated this subtitle or other
382	382	applicable law of this state, the banking commissioner may take all
383	383	enforcement actions the banking commissioner would be empowered to
384	384	take if the out-of-state trust company were a state trust company,
385	385	except that the banking commissioner shall promptly give notice to
386	386	the home state regulator of each enforcement action to be taken
387	387	against an out-of-state trust company and, to the extent
388	388	practicable, shall consult and cooperate with the home state
389	389	regulator in pursuing and resolving the enforcement action. An
390	390	out-of-state trust company may appeal a final order or other
391	391	decision of the banking commissioner under this subtitle as
392	392	provided by Sections 181.202 and 181.204 [Sections
393	393	181.202-181.204].
394	394	SECTION 30. Section 201.009, Finance Code, is amended to
395	395	read as follows:
396	396	Sec. 201.009. ENFORCEMENT; APPEALS. (a) If the
397	397	commissioner determines that a bank holding company or a foreign
398	398	bank has violated this subtitle or other applicable law of this
399	399	state, the commissioner may take any enforcement action the
400	400	commissioner would be empowered to take if the bank holding company
401	401	or foreign bank were a Texas state bank, except that the
402	402	commissioner shall promptly give notice to the home state regulator
403	403	of each enforcement action taken against an out-of-state bank
404	404	holding company or foreign bank and, to the extent practicable,
405	405	shall consult and cooperate with the home state regulator in
406	406	pursuing and resolving the enforcement action. A bank holding
407	407	company or foreign bank may appeal a final order or other decision
408	408	of the commissioner under this subtitle as provided by Sections
409	409	31.202 [, 31.203,] and 31.204.
410	410	(b) If the commissioner determines that an interstate
411	411	branch maintained by an out-of-state state bank in this state is
412	412	being operated in violation of a law of this state that is
413	413	applicable to the branch under Section 24(j), Federal Deposit
414	414	Insurance Act (12 U.S.C. Section 1831a(j)), including a law that
415	415	governs community reinvestment, fair lending, or consumer
416	416	protection, the commissioner, with written notice to the home state
417	417	regulator and subject to the terms of any applicable cooperative
418	418	agreement with the home state regulator, may take any enforcement
419	419	action the commissioner would be empowered to take if the branch
420	420	were a Texas state bank or state savings bank, as the case may be.
421	421	An out-of-state state bank may appeal a final order or other
422	422	decision of the commissioner under this subtitle as provided by
423	423	Sections 31.202[, 31.203,] and 31.204, or as provided under
424	424	Subtitle C with respect to a state savings bank.
425	425	SECTION 31. Section 204.119, Finance Code, is amended to
426	426	read as follows:
427	427	Sec. 204.119. STATUS OF REVOKED LICENSE. Unless stayed by
428	428	the [finance commission or] district court that has jurisdiction
429	429	over an appeal, a final order of the commissioner revoking a license
430	430	is effective immediately and the foreign bank shall immediately
431	431	cease all activity in this state requiring a license. Subject to
432	432	Section 204.120, all functions requiring a license must be
433	433	immediately transferred to a branch, affiliate, or agency of the
434	434	foreign bank that is located outside of this state and that has the
435	435	power to perform those functions under governing law. Continued
436	436	activity in this state of an unlicensed foreign bank is subject to
437	437	Subchapter C, Chapter 35.
438	438	SECTION 32. Section 396.001(7), Finance Code, is amended to
439	439	read as follows:
440	440	(7) "Private child support enforcement agency" means
441	441	an individual or nongovernmental entity who engages in the
442	442	enforcement of child support ordered by a court or other tribunal
443	443	for a fee or other consideration. The term includes a foreign
444	444	agency. The term does not include:
445	445	(A) an attorney enforcing a child support
446	446	obligation on behalf of, and in the name of, a client unless the
447	447	attorney has an employee who is not an attorney and who on behalf of
448	448	the attorney:
449	449	(i) regularly solicits for child support
450	450	enforcement; or
451	451	(ii) regularly contacts child support
452	452	obligees or obligors for the purpose of child support enforcement;
453	453	(B) a state agency designated to serve as the
454	454	state's Title IV-D agency in accordance with Part D, Title IV,
455	455	Social Security Act (42 U.S.C. Section 651 et seq.), as amended; or
456	456	(C) a contractor awarded a contract to engage in
457	457	child support enforcement on behalf of a governmental agency,
458	458	including a contractor awarded a contract[:
459	459	[(i) under Chapter 236, Family Code; or
460	460	[(ii)] by a political subdivision of this
461	461	or another state that is authorized by law to enforce a child
462	462	support obligation.
463	463	SECTION 33. The heading to Subchapter B, Chapter 396,
464	464	Finance Code, is amended to read as follows:
465	465	SUBCHAPTER B. [POWERS AND] DUTIES OF DEPARTMENT
466	466	SECTION 34. Sections 396.202(a) and (b), Finance Code, are
467	467	amended to read as follows:
468	468	(a) A private child support enforcement [registered] agency
469	469	shall maintain records of all child support collections made on
470	470	behalf of, and disbursed to, a client who is an obligee, including:
471	471	(1) the name of any obligor who made child support
472	472	payments collected by the agency;
473	473	(2) the amount of support collected by the agency for
474	474	each client, including:
475	475	(A) the date on which the amount was collected;
476	476	and
477	477	(B) the date on which each amount due the client
478	478	by the obligor was paid to the client;
479	479	(3) a copy of the order establishing the child support
480	480	obligation under which a collection was made by the agency; and
481	481	(4) any other pertinent information relating to the
482	482	child support obligation, including any case, cause, or docket
483	483	number of the court having jurisdiction over the matter.
484	484	(b) The records required under this section must be updated
485	485	at least monthly and must be maintained by the private child support
486	486	enforcement [registered] agency for a period of four years from the
487	487	date of the last support payment collected by the agency on behalf
488	488	of an obligee.
489	489	SECTION 35. Section 396.203(a), Finance Code, is amended to
490	490	read as follows:
491	491	(a) A private child support enforcement [registered] agency
492	492	[and foreign agency authorized to engage in business under this
493	493	chapter] shall execute a written contract for the enforcement of
494	494	child support for each client of the agency that is residing in this
495	495	state.
496	496	SECTION 36. Sections 396.251(a) and (b), Finance Code, are
497	497	amended to read as follows:
498	498	(a) In enforcing a child support obligation, a private child
499	499	support enforcement [registered] agency may not use threats,
500	500	coercion, or attempts to coerce that employ any of the following
501	501	practices:
502	502	(1) using or threatening to use violence or other
503	503	criminal means to cause harm to an obligor or property of the
504	504	obligor;
505	505	(2) accusing falsely or threatening to accuse falsely
506	506	an obligor of a violation of state or federal child support laws;
507	507	(3) taking or threatening to take an enforcement
508	508	action against an obligor that is not authorized by law; or
509	509	(4) intentionally representing to a person that the
510	510	agency is a governmental agency authorized to enforce a child
511	511	support obligation.
512	512	(b) Subsection (a) does not prevent a private child support
513	513	enforcement [registered] agency from:
514	514	(1) informing an obligor that the obligor may be
515	515	subject to penalties prescribed by law for failure to pay a child
516	516	support obligation; or
517	517	(2) taking, or threatening to take, an action
518	518	authorized by law for the enforcement of a child support obligation
519	519	by the agency.
520	520	SECTION 37. Section 396.252, Finance Code, is amended to
521	521	read as follows:
522	522	Sec. 396.252. FRAUDULENT, DECEPTIVE, OR MISLEADING
523	523	REPRESENTATIONS. In enforcing a child support obligation, a
524	524	private child support enforcement [registered] agency or employee
525	525	of the agency may not:
526	526	(1) identify the [registered] agency by any name other
527	527	than one by which the agency is authorized to do business under the
528	528	laws of this state [registered with the department];
529	529	(2) falsely represent the nature of the child support
530	530	enforcement activities in which the agency is authorized by law to
531	531	engage; or
532	532	(3) falsely represent that an oral or written
533	533	communication is the communication of an attorney.
534	534	SECTION 38. Section 396.352(a), Finance Code, is amended to
535	535	read as follows:
536	536	(a) A private child support enforcement [registered] agency
537	537	that is located in another state or [a private child support
538	538	enforcement agency] that engages in the business of child support
539	539	enforcement in this state in violation of this chapter is
540	540	considered to have submitted to the jurisdiction of the courts of
541	541	this state with respect to an action brought under this chapter.
542	542	SECTION 39. Section 711.001(6), Health and Safety Code, is
543	543	amended to read as follows:
544	544	(6) "Cemetery broker" means a person who sells the
545	545	exclusive right of sepulture for another person. The term does not
546	546	include a person who:
547	547	(A) is an officer, agent, or employee of the
548	548	cemetery organization in which the plot is located, acting at the
549	549	direction or under the control of the cemetery organization [and
550	550	who is exempt from registration under Subchapter C-1]; or
551	551	(B) originally purchased the exclusive right of
552	552	sepulture for personal use.
553	553	SECTION 40. Section 711.012(a), Health and Safety Code, is
554	554	amended to read as follows:
555	555	(a) The Finance Commission of Texas may adopt rules to
556	556	enforce and administer [Subchapter C-1 and] Sections 711.003,
557	557	711.004, 711.007, 711.008, 711.0105, 711.021-711.024,
558	558	711.032-711.036, 711.038, 711.0381, 711.040-711.042, 711.052,
559	559	711.061, 711.063, and 711.064 relating to perpetual care
560	560	cemeteries.
561	561	SECTION 41. Section 711.038(e), Health and Safety Code, is
562	562	amended to read as follows:
563	563	(e) A person [who is an officer, agent, or employee of the
564	564	cemetery organization or its affiliate and who is exempt from
565	565	registration under Subchapter C-1] is not required to be licensed
566	566	or registered to sell a plot in a dedicated cemetery.
567	567	SECTION 42. Section 711.052(a), Health and Safety Code, is
568	568	amended to read as follows:
569	569	(a) A person who is an individual, firm, association,
570	570	corporation, or municipality, or an officer, agent, or employee of
571	571	an individual, firm, association, corporation, or municipality,
572	572	commits an offense if the person:
573	573	(1) engages in a business for cemetery purposes in
574	574	this state other than through a corporation organized for that
575	575	purpose, if a corporation is required by law;
576	576	(2) fails or refuses to keep records of interment as
577	577	required by Sections 711.003 and 711.004;
578	578	(3) sells, offers to sell, or advertises for sale a
579	579	plot or the exclusive right of sepulture in a plot for purposes of
580	580	speculation or investment;
581	581	(4) represents through advertising or printed
582	582	material that a retail department will be established for the
583	583	resale of the plots of plot purchasers, that specific improvements
584	584	will be made in the cemetery, or that specific merchandise or
585	585	services will be furnished to a plot owner, unless adequate funds or
586	586	reserves are created by the cemetery organization for the
587	587	represented purpose;
588	588	(5) makes more than one interment in a plot in a
589	589	cemetery operated by a cemetery organization other than as provided
590	590	by Section 711.0395;
591	591	(6) removes remains from a plot in a cemetery operated
592	592	by a cemetery organization without complying with Section 711.004;
593	593	(7) offers or receives monetary inducement to solicit
594	594	business for a cemetery broker; or
595	595	(8) fails or refuses to keep records of sales or
596	596	resales or to collect and remit fees as required by Section
597	597	711.0381[; or
598	598	[(9) fails or refuses to register as a cemetery broker
599	599	as required by Subchapter C-1].
600	600	SECTION 43. Section 711.056(a), Health and Safety Code, is
601	601	amended to read as follows:
602	602	(a) If after a hearing conducted as provided by Chapter
603	603	2001, Government Code, the trier of fact finds that a violation of
604	604	this chapter or a rule of the Finance Commission of Texas
605	605	establishes a pattern of wilful disregard for the requirements of
606	606	this chapter or rules of the finance commission, the trier of fact
607	607	may recommend to the commissioner that the maximum administrative
608	608	penalty permitted under Section 711.055 be imposed on the person
609	609	committing the violation or that the commissioner cancel or not
610	610	renew[:
611	611	[(1) the person's registration under Subchapter C-1,
612	612	if the person is registered under that subchapter; or
613	613	[(2)] the person's permit under Chapter 154, Finance
614	614	Code, if the person holds such a permit.
615	615	SECTION 44. Section 711.059(a), Health and Safety Code, is
616	616	amended to read as follows:
617	617	(a) The commissioner may issue an order to seize accounts in
618	618	which funds from the sale or resale of the exclusive right of
619	619	sepulture in a plot, including earnings, may be held and may issue
620	620	an order to seize the records that relate to the sale or resale of
621	621	the exclusive right of sepulture in a plot if the commissioner
622	622	finds, by examination or other credible evidence, that the person:
623	623	(1) failed to remit a fee in accordance with Section
624	624	711.0381;
625	625	(2) misappropriated, converted, or illegally withheld
626	626	or failed or refused to pay on demand money entrusted to the person
627	627	that belongs to a cemetery organization under an instrument of
628	628	conveyance; or
629	629	(3) refused to submit to examination by the
630	630	department[;
631	631	[(4) was the subject of an order to cancel, suspend, or
632	632	refuse a registration under Subchapter C-1; or
633	633	[(5) is required to register under Subchapter C-1 and
634	634	is not registered or has transferred the ownership of the business
635	635	that required registration to another person who is not
636	636	registered].
637	637	SECTION 45. Sections 711.082(a) and (b), Health and Safety
638	638	Code, are amended to read as follows:
639	639	(a) The department shall administer Subchapter
640	640	[Subchapters] C [and C-1] relating to cemetery brokers.
641	641	(b) The commission may adopt reasonable rules concerning:
642	642	(1) fees to defray the cost of administering
643	643	Subchapter [Subchapters] C [and C-1];
644	644	(2) the retention and inspection of records relating
645	645	to the sale or resale of the exclusive right of sepulture in a plot;
646	646	(3) changes in the management or control of a cemetery
647	647	broker's business; and
648	648	(4) any other matter relating to the enforcement and
649	649	administration of Subchapter [Subchapters] C [and C-1].
650	650	SECTION 46. Section 712.0036, Health and Safety Code, is
651	651	amended to read as follows:
652	652	Sec. 712.0036. TERM OF CERTIFICATE OF AUTHORITY. (a) The
653	653	Finance Commission of Texas by rule shall prescribe the term of and
654	654	renewal procedures for a [An initial] certificate of authority
655	655	[expires March 1 of the year after the year the certificate is]
656	656	issued under this chapter[. The certificate must be renewed at
657	657	that time and by March 1 of each following year].
658	658	(b) If the Finance Commission of Texas prescribes the term
659	659	of a certificate of authority issued under this chapter for a period
660	660	other than one year, the finance commission shall prorate any
661	661	applicable fees as necessary to reflect the term of the
662	662	certificate.
663	663	SECTION 47. Section 712.0037(a), Health and Safety Code, is
664	664	amended to read as follows:
665	665	(a) As a condition of renewal, a certificate holder must
666	666	meet the qualifications and satisfy the requirements that apply to
667	667	an applicant for a new certificate of authority. Additionally, not
668	668	later than the certificate's [annual] renewal date, a certificate
669	669	holder shall:
670	670	(1) pay a [an annual] renewal fee in an amount
671	671	established by Finance Commission of Texas rule; and
672	672	(2) submit a renewal report under oath and in the form
673	673	and medium required by the commissioner that demonstrates that the
674	674	certificate holder meets the qualifications and requirements for
675	675	holding a certificate.
676	676	SECTION 48. The following laws are repealed:
677	677	(1) Sections 13.011(d) and (e), Finance Code;
678	678	(2) Sections 31.203 and 181.203, Finance Code;
679	679	(3) Section 396.001(8), Finance Code;
680	680	(4) Sections 396.052 and 396.053, Finance Code;
681	681	(5) Subchapters C and D, Chapter 396, Finance Code;
682	682	(6) Section 396.201, Finance Code;
683	683	(7) Subchapter G, Chapter 396, Finance Code;
684	684	(8) Section 711.0381(a), Health and Safety Code; and
685	685	(9) Subchapter C-1, Chapter 711, Health and Safety
686	686	Code.
687	687	SECTION 49. Section 154.104, Finance Code, as amended by
688	688	this Act, and Sections 712.0036 and 712.0037, Health and Safety
689	689	Code, as amended by this Act, apply only to a permit or certificate
690	690	of authority issued or renewed on or after September 1, 2019. A
691	691	permit or certificate of authority issued or renewed before that
692	692	date is governed by the law in effect immediately before the
693	693	effective date of this Act, and the former law is continued in
694	694	effect for that purpose.
695	695	SECTION 50. (a) On the effective date of this Act, a
696	696	certificate of registration that was issued under Section 396.106,
697	697	Finance Code, a certificate that was issued to operate in this state
698	698	under Section 396.152, Finance Code, or a registration that was
699	699	issued under Subchapter C-1, Chapter 711, Health and Safety Code,
700	700	expires.
701	701	(b) The repeal of a law by this Act does not entitle a person
702	702	to a refund of an application, registration, or other fee paid by
703	703	the person before the effective date of this Act.
704	704	SECTION 51. The changes in law made by this Act do not
705	705	affect the validity of a disciplinary action or other proceeding
706	706	that was initiated before the effective date of this Act and that is
707	707	pending before a court or other governmental entity on that date.
708	708	SECTION 52. (a) A violation of a law that is repealed by
709	709	this Act is governed by the law in effect on the date the violation
710	710	was committed, and the former law is continued in effect for that
711	711	purpose.
712	712	(b) For purposes of this section, a violation was committed
713	713	before the effective date of this Act if any element of the
714	714	violation occurred before that date.
715	715	SECTION 53. This Act takes effect September 1, 2019.