Texas 2019 - 86th Regular

Texas Senate Bill SB614 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 614
	1	+	By: Nichols, et al. S.B. No. 614
	2	+	(Lambert)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the continuation and functions of the Finance
6	8		Commission of Texas, the Texas Department of Banking, and the
7	9		Department of Savings and Mortgage Lending, to the training
8	10		requirements applicable to the agencies overseen by the Finance
9	11		Commission of Texas, and to the regulation of certain financial
10	12		institutions and businesses.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. Section 11.108, Finance Code, is amended to read
13	15		as follows:
14	16		Sec. 11.108. SUNSET PROVISION. The finance commission is
15	17		subject to Chapter 325, Government Code (Texas Sunset Act). Unless
16	18		continued in existence as provided by that chapter, the commission
17	19		is abolished September 1, 2031 [2019].
18	20		SECTION 2. Section 11.110, Finance Code, is amended by
19	21		adding Subsections (d) and (e) to read as follows:
20	22		(d) The commissioner of each finance agency shall create a
21	23		training manual that includes the information required by
22	24		Subsection (b) applicable to that commissioner's agency. The
23	25		commissioner of each finance agency shall distribute a copy of the
24	26		training manual created under this subsection annually to each
25	27		member of the finance commission. Each member of the finance
26	28		commission shall sign and submit to the appropriate commissioner a
27	29		statement acknowledging that the member received and has reviewed
28	30		the training manual.
29	31		(e) Notwithstanding Subsection (d), the commissioner of
30	32		each finance agency may collaborate and jointly create one training
31	33		manual that includes the information required by Subsection (b)
32	34		applicable to each finance agency.
33	35		SECTION 3. Subchapter B, Chapter 11, Finance Code, is
34	36		amended by adding Section 11.113 to read as follows:
35	37		Sec. 11.113. ADVISORY COMMITTEES. (a) The finance
36	38		commission may appoint advisory committees to assist the finance
37	39		commission in performing its duties.
38	40		(b) The finance commission shall specify each committee's
39	41		purpose, powers, and duties and shall require each committee to
40	42		report to the finance commission in the manner specified by the
41	43		finance commission concerning the committee's activities and the
42	44		results of its work.
43	45		SECTION 4. Section 11.202(b), Finance Code, is amended to
44	46		read as follows:
45	47		(b) The Texas Department of Banking may employ a hearings
46	48		officer to serve the finance agencies as determined by interagency
47	49		agreement. For the purposes of Section 2003.021, Government Code,
48	50		a hearings officer employed under this section is considered to be
49	51		an employee of each agency for which hearing services are provided.
50	52		The hearings officer's only duty is to preside over matters related
51	53		to contested cases before a finance agency [or the finance
52	54		commission].
53	55		SECTION 5. Section 12.108, Finance Code, is amended to read
54	56		as follows:
55	57		Sec. 12.108. CONSUMER INFORMATION AND COMPLAINTS. (a) The
56	58		department [banking commissioner] shall maintain a system to
57	59		promptly and efficiently act on complaints filed with the
58	60		department. The department shall maintain information about
59	61		parties to the complaint, the subject matter of the complaint, a
60	62		summary of the results of the review or investigation of the
61	63		complaint, and its disposition[:
62	64		[(1) prepare information of consumer interest
63	65		describing:
64	66		[(A) the regulatory functions of the department;
65	67		and
66	68		[(B) the department's procedures by which
67	69		consumer complaints are filed with and resolved by the department;
68	70		and
69	71		[(2) make the information available to the public and
70	72		appropriate state agencies].
71	73		(b) The department shall make information available
72	74		describing its procedures for complaint investigation and
73	75		resolution [maintain a file on each written complaint filed with
74	76		the department. The file must include:
75	77		[(1) the name of the person who filed the complaint;
76	78		[(2) the date the complaint is received by the
77	79		department;
78	80		[(3) the subject matter of the complaint;
79	81		[(4) the name of each person contacted in relation to
80	82		the complaint;
81	83		[(5) a summary of the results of the review or
82	84		investigation of the complaint; and
83	85		[(6) an explanation of the reason the file was
84	86		closed].
85	87		(c) The department shall periodically notify the complaint
86	88		parties of the status of the complaint until final disposition
87	89		[provide to the person filing the complaint and to each person who
88	90		is a subject of the complaint a written summary of the department's
89	91		policies and procedures relating to complaint investigation and
90	92		resolution].
91	93		SECTION 6. Section 12.109, Finance Code, is amended to read
92	94		as follows:
93	95		Sec. 12.109. SUNSET PROVISION. The office of banking
94	96		commissioner is subject to Chapter 325, Government Code (Texas
95	97		Sunset Act). Unless continued in existence as provided by that
96	98		chapter, the office is abolished September 1, 2031 [2019].
97	99		SECTION 7. Subchapter B, Chapter 12, Finance Code, is
98	100		amended by adding Sections 12.113 and 12.114 to read as follows:
99	101		Sec. 12.113. ALTERNATIVE RULEMAKING AND DISPUTE
100	102		RESOLUTION. (a) The finance commission by rule shall develop a
101	103		policy to encourage the use of:
102	104		(1) negotiated rulemaking procedures under Chapter
103	105		2008, Government Code, for the adoption of rules by the finance
104	106		commission applicable to the department; and
105	107		(2) appropriate alternative dispute resolution
106	108		procedures under Chapter 2009, Government Code, to assist in the
107	109		resolution of internal and external disputes under the department's
108	110		jurisdiction.
109	111		(b) The procedures applicable to the department relating to
110	112		alternative dispute resolution must conform, to the extent
111	113		possible, to any model guidelines issued by the State Office of
112	114		Administrative Hearings for the use of alternative dispute
113	115		resolution by state agencies.
114	116		(c) The department shall:
115	117		(1) coordinate the implementation of the policy
116	118		adopted under Subsection (a);
117	119		(2) provide training as needed to implement the
118	120		procedures for negotiated rulemaking or alternative dispute
119	121		resolution; and
120	122		(3) collect data concerning the effectiveness of those
121	123		procedures.
122	124		Sec. 12.114. ADVISORY COMMITTEES. (a) The banking
123	125		commissioner may appoint advisory committees to assist the
124	126		department and banking commissioner in performing their duties.
125	127		(b) The banking commissioner shall specify each committee's
126	128		purpose, powers, and duties and shall require each committee to
127	129		report to the banking commissioner or department in the manner
128	130		specified by the banking commissioner concerning the committee's
129	131		activities and the results of its work.
130	132		SECTION 8. Sections 13.011(a), (b), and (c), Finance Code,
131	133		are amended to read as follows:
132	134		(a) The Department of Savings and Mortgage Lending [savings
133	135		and mortgage lending commissioner] shall maintain a system to
134	136		promptly and efficiently act on complaints filed with that
135	137		department. The Department of Savings and Mortgage Lending shall
136	138		maintain information about parties to the complaint, the subject
137	139		matter of the complaint, a summary of the results of the review or
138	140		investigation of the complaint, and its disposition [prepare
139	141		information of consumer interest describing:
140	142		[(1) the regulatory functions of the Department of
141	143		Savings and Mortgage Lending; and
142	144		[(2) the procedures by which consumer complaints are
143	145		filed with and resolved by the Department of Savings and Mortgage
144	146		Lending].
145	147		(b) The Department of Savings and Mortgage Lending shall
146	148		make information [under Subsection (a) must be made] available
147	149		describing its procedures for complaint investigation and
148	150		resolution [to the public and appropriate state agencies].
149	151		(c) The Department of Savings and Mortgage Lending shall
150	152		periodically notify the complaint parties of the status of the
151	153		complaint until final disposition [maintain a file on each written
152	154		complaint filed with the Department of Savings and Mortgage
153	155		Lending. The file must include:
154	156		[(1) the name of the person who filed the complaint;
155	157		[(2) the date the complaint is received by the
156	158		Department of Savings and Mortgage Lending;
157	159		[(3) the subject matter of the complaint;
158	160		[(4) the name of each person contacted in relation to
159	161		the complaint;
160	162		[(5) a summary of the results of the review or
161	163		investigation of the complaint; and
162	164		[(6) an explanation of the reason the file was closed,
163	165		if the agency closed the file without taking action other than to
164	166		investigate the complaint].
165	167		SECTION 9. Section 13.012, Finance Code, is amended to read
166	168		as follows:
167	169		Sec. 13.012. SUNSET PROVISION. The office of savings and
168	170		mortgage lending commissioner and the Department of Savings and
169	171		Mortgage Lending are subject to Chapter 325, Government Code (Texas
170	172		Sunset Act). Unless continued in existence as provided by that
171	173		chapter, the office and department are abolished September 1, 2031
172	174		[2019].
173	175		SECTION 10. Chapter 13, Finance Code, is amended by adding
174	176		Sections 13.017 and 13.018 to read as follows:
175	177		Sec. 13.017. ALTERNATIVE RULEMAKING AND DISPUTE
176	178		RESOLUTION. (a) The finance commission by rule shall develop a
177	179		policy to encourage the use of:
178	180		(1) negotiated rulemaking procedures under Chapter
179	181		2008, Government Code, for the adoption of rules by the finance
180	182		commission applicable to the Department of Savings and Mortgage
181	183		Lending; and
182	184		(2) appropriate alternative dispute resolution
183	185		procedures under Chapter 2009, Government Code, to assist in the
184	186		resolution of internal and external disputes under the Department
185	187		of Savings and Mortgage Lending's jurisdiction.
186	188		(b) The procedures applicable to the Department of Savings
187	189		and Mortgage Lending relating to alternative dispute resolution
188	190		must conform, to the extent possible, to any model guidelines
189	191		issued by the State Office of Administrative Hearings for the use of
190	192		alternative dispute resolution by state agencies.
191	193		(c) The Department of Savings and Mortgage Lending shall:
192	194		(1) coordinate the implementation of the policy
193	195		adopted under Subsection (a);
194	196		(2) provide training as needed to implement the
195	197		procedures for negotiated rulemaking or alternative dispute
196	198		resolution; and
197	199		(3) collect data concerning the effectiveness of those
198	200		procedures.
199	201		Sec. 13.018. ADVISORY COMMITTEES. (a) The savings and
200	202		mortgage lending commissioner may appoint advisory committees to
201	203		assist the Department of Savings and Mortgage Lending and savings
202	204		and mortgage lending commissioner in performing their duties.
203	205		(b) The savings and mortgage lending commissioner shall
204	206		specify each committee's purpose, powers, and duties and shall
205	207		require each committee to report to the savings and mortgage
206	208		lending commissioner or Department of Savings and Mortgage Lending
207	209		in the manner specified by the savings and mortgage lending
208	210		commissioner concerning the committee's activities and the results
209	211		of its work.
210	212		SECTION 11. Sections 31.202 and 31.204, Finance Code, are
211	213		amended to read as follows:
212	214		Sec. 31.202. APPEAL OF BANKING COMMISSIONER DECISION OR
213	215		ORDER. Except as expressly provided otherwise by this subtitle, an
214	216		appellant may appeal a decision or order of the banking
215	217		commissioner made under this subtitle or Chapter 12 after a hearing
216	218		[directly] to a district court in [the District Court of] Travis
217	219		County as provided by Section 31.204 [or, at the option of the
218	220		appellant, to the finance commission for review].
219	221		Sec. 31.204. [DIRECT] APPEAL TO DISTRICT COURT [OR APPEAL
220	222		OF FINANCE COMMISSION ORDER]. A person affected by a final order of
221	223		the banking commissioner [who elects to appeal directly to district
222	224		court, or a person affected by a final order of the finance
223	225		commission under this chapter,] may appeal the final order by
224	226		filing a petition for judicial review in a district court in [the
225	227		District Court of] Travis County as provided by Chapter 2001,
226	228		Government Code. A petition for judicial review filed in the
227	229		district court does not stay or vacate the appealed order unless the
228	230		court, after notice and hearing, expressly stays or vacates the
229	231		order.
230	232		SECTION 12. Section 32.009(d), Finance Code, is amended to
231	233		read as follows:
232	234		(d) A state bank that is denied the requested right or
233	235		privilege to engage in an activity by the banking commissioner
234	236		under this section may appeal as provided by Sections 31.202[,
235	237		31.203,] and 31.204 or may resubmit a letter under this subsection
236	238		with additional information or authority relevant to the banking
237	239		commissioner's determination. A denial is immediately final for
238	240		purposes of appeal.
239	241		SECTION 13. Section 32.010(d), Finance Code, is amended to
240	242		read as follows:
241	243		(d) A state bank that is denied the requested power by the
242	244		banking commissioner under this section may appeal as provided by
243	245		Sections 31.202[, 31.203,] and 31.204 or may resubmit a letter
244	246		under this section with additional information or authority
245	247		relevant to the banking commissioner's determination. A denial is
246	248		immediately final for purposes of appeal.
247	249		SECTION 14. Section 35.0035(g), Finance Code, is amended to
248	250		read as follows:
249	251		(g) After the hearing, the banking commissioner may affirm,
250	252		modify, or set aside, in whole or in part, the order. An order
251	253		affirming or modifying the order is immediately final for purposes
252	254		of enforcement and appeal. The order may be appealed as provided by
253	255		Sections 31.202[, 31.203,] and 31.204.
254	256		SECTION 15. Section 35.004(c), Finance Code, is amended to
255	257		read as follows:
256	258		(c) An order issued under this section is immediately final
257	259		for purposes of enforcement and appeal. The order may be appealed
258	260		as provided by Sections 31.202[, 31.203,] and 31.204.
259	261		SECTION 16. Section 35.005(e), Finance Code, is amended to
260	262		read as follows:
261	263		(e) After the hearing, the banking commissioner may affirm,
262	264		modify, or set aside in whole or part the emergency order. An order
263	265		affirming or modifying the emergency order is immediately final for
264	266		purposes of enforcement and appeal. The order may be appealed as
265	267		provided by Sections 31.202[, 31.203,] and 31.204.
266	268		SECTION 17. Section 35.104(c), Finance Code, is amended to
267	269		read as follows:
268	270		(c) An order issued under Subsection (b) is immediately
269	271		final for purposes of appeal. The order may be appealed as provided
270	272		by Sections 31.202[, 31.203,] and 31.204.
271	273		SECTION 18. Section 35.110(d), Finance Code, is amended to
272	274		read as follows:
273	275		(d) After the hearing, the banking commissioner may affirm,
274	276		modify, or set aside in whole or part the prior ruling. An order
275	277		supporting the action contested by the board is immediately final
276	278		for purposes of appeal. The order may be appealed as provided by
277	279		Sections 31.202[, 31.203,] and 31.204. [If the order is appealed to
278	280		the finance commission, the finance commission may:
279	281		[(1) affirm, terminate, or modify the order;
280	282		[(2) continue or end supervision or conservatorship;
281	283		and
282	284		[(3) order further relief as justice, equity, and
283	285		protection of depositors, creditors, and the public require.]
284	286		SECTION 19. Sections 154.104(a) and (b), Finance Code, are
285	287		amended to read as follows:
286	288		(a) The commission by rule shall prescribe the term of a [A]
287	289		permit [is] issued under this subchapter [for a one-year term].
288	290		(b) If the commission prescribes the term of a permit issued
289	291		under this subchapter for a period other than one year, the [The]
290	292		commission shall prorate the fee required under this subchapter as
291	293		necessary to reflect the term of the permit [by rule may adopt a
292	294		system under which permits expire on various dates during the
293	295		year].
294	296		SECTION 20. Section 154.415(f), Finance Code, is amended to
295	297		read as follows:
296	298		(f) An order issued under Subsection (e) is immediately
297	299		final for purposes of enforcement and appeal. The order may be
298	300		appealed as provided by Sections 31.202[, 31.203,] and 31.204.
299	301		SECTION 21. Section 157.012(c), Finance Code, is amended to
300	302		read as follows:
301	303		(c) To be eligible to be licensed as a residential mortgage
302	304		loan originator, the individual, in addition to meeting the
303	305		requirements of Subsection (a), must:
304	306		(1) satisfy the commissioner as to [the individual's
305	307		good moral character, including] the individual's honesty,
306	308		trustworthiness, and integrity;
307	309		(2) not be in violation of this chapter, Chapter 180,
308	310		or any rules adopted under this chapter or Chapter 180;
309	311		(3) provide the commissioner with satisfactory
310	312		evidence that the individual meets the qualifications provided by
311	313		Chapter 180; and
312	314		(4) be a citizen of the United States or a lawfully
313	315		admitted alien.
314	316		SECTION 22. Sections 181.202 and 181.204, Finance Code, are
315	317		amended to read as follows:
316	318		Sec. 181.202. APPEAL OF BANKING COMMISSIONER DECISION OR
317	319		ORDER. Except as expressly provided otherwise by this subtitle, a
318	320		person affected by a decision or order of the banking commissioner
319	321		made under this subtitle after a hearing may appeal the decision or
320	322		order[:
321	323		[(1) to the finance commission; or
322	324		[(2) directly] to a district court in Travis County as
323	325		provided by Section 181.204.
324	326		Sec. 181.204. [DIRECT] APPEAL TO DISTRICT COURT [OR APPEAL
325	327		OF FINANCE COMMISSION ORDER]. A person affected by a final order of
326	328		the banking commissioner [who elects to appeal directly to district
327	329		court, or a person affected by a final order of the finance
328	330		commission under this subchapter,] may appeal the final order by
329	331		filing a petition for judicial review as provided by Chapter 2001,
330	332		Government Code. A petition for judicial review filed in the
331	333		district court does not stay or vacate the appealed order unless the
332	334		court, after notice and hearing, expressly stays or vacates the
333	335		order.
334	336		SECTION 23. Section 182.010(d), Finance Code, is amended to
335	337		read as follows:
336	338		(d) A state trust company that is denied the requested right
337	339		or privilege to engage in an activity by the banking commissioner
338	340		under this section may appeal as provided by Sections 181.202 and
339	341		181.204 [Sections 181.202-181.204] or may resubmit a letter under
340	342		this section with additional information or authority relevant to
341	343		the banking commissioner's determination. A denial is immediately
342	344		final for purposes of appeal.
343	345		SECTION 24. Section 185.0035(g), Finance Code, is amended
344	346		to read as follows:
345	347		(g) After the hearing, the banking commissioner may affirm,
346	348		modify, or set aside, in whole or in part, the order. An order
347	349		affirming or modifying the order is immediately final for purposes
348	350		of enforcement and appeal. The order may be appealed as provided by
349	351		Sections 181.202[, 181.203,] and 181.204.
350	352		SECTION 25. Section 185.004(c), Finance Code, is amended to
351	353		read as follows:
352	354		(c) An order issued under this section is immediately final
353	355		for purposes of enforcement and appeal. The order may be appealed
354	356		as provided by Sections 181.202 and 181.204 [Sections
355	357		181.202-181.204].
356	358		SECTION 26. Section 185.005(e), Finance Code, is amended to
357	359		read as follows:
358	360		(e) After the hearing, the banking commissioner may affirm,
359	361		modify, or set aside in whole or part the emergency order. An order
360	362		affirming or modifying the order is immediately final for purposes
361	363		of enforcement and appeal. The order may be appealed as provided by
362	364		Sections 181.202 and 181.204 [Sections 181.202-181.204].
363	365		SECTION 27. Section 185.104(c), Finance Code, is amended to
364	366		read as follows:
365	367		(c) An order issued under Subsection (b) is immediately
366	368		final for purposes of appeal. The order may be appealed as provided
367	369		by Sections 181.202 and 181.204 [Sections 181.202-181.204].
368	370		SECTION 28. Section 185.110(d), Finance Code, is amended to
369	371		read as follows:
370	372		(d) After the hearing, the banking commissioner may affirm,
371	373		modify, or set aside in whole or part the prior ruling. An order
372	374		supporting the action contested by the board is immediately final
373	375		for purposes of appeal. The order may be appealed as provided by
374	376		Sections 181.202 and 181.204 [Sections 181.202-181.204]. [If the
375	377		order is appealed to the finance commission, the finance commission
376	378		may:
377	379		[(1) affirm, terminate, or modify the order;
378	380		[(2) continue or end supervision or conservatorship;
379	381		and
380	382		[(3) order further relief as justice, equity, and
381	383		protection of clients, creditors, and the public require.]
382	384		SECTION 29. Section 187.305(a), Finance Code, is amended to
383	385		read as follows:
384	386		(a) If the banking commissioner determines that an
385	387		out-of-state trust company has violated this subtitle or other
386	388		applicable law of this state, the banking commissioner may take all
387	389		enforcement actions the banking commissioner would be empowered to
388	390		take if the out-of-state trust company were a state trust company,
389	391		except that the banking commissioner shall promptly give notice to
390	392		the home state regulator of each enforcement action to be taken
391	393		against an out-of-state trust company and, to the extent
392	394		practicable, shall consult and cooperate with the home state
393	395		regulator in pursuing and resolving the enforcement action. An
394	396		out-of-state trust company may appeal a final order or other
395	397		decision of the banking commissioner under this subtitle as
396	398		provided by Sections 181.202 and 181.204 [Sections
397	399		181.202-181.204].
398	400		SECTION 30. Section 201.009, Finance Code, is amended to
399	401		read as follows:
400	402		Sec. 201.009. ENFORCEMENT; APPEALS. (a) If the
401	403		commissioner determines that a bank holding company or a foreign
402	404		bank has violated this subtitle or other applicable law of this
403	405		state, the commissioner may take any enforcement action the
404	406		commissioner would be empowered to take if the bank holding company
405	407		or foreign bank were a Texas state bank, except that the
406	408		commissioner shall promptly give notice to the home state regulator
407	409		of each enforcement action taken against an out-of-state bank
408	410		holding company or foreign bank and, to the extent practicable,
409	411		shall consult and cooperate with the home state regulator in
410	412		pursuing and resolving the enforcement action. A bank holding
411	413		company or foreign bank may appeal a final order or other decision
412	414		of the commissioner under this subtitle as provided by Sections
413	415		31.202[, 31.203,] and 31.204.
414	416		(b) If the commissioner determines that an interstate
415	417		branch maintained by an out-of-state state bank in this state is
416	418		being operated in violation of a law of this state that is
417	419		applicable to the branch under Section 24(j), Federal Deposit
418	420		Insurance Act (12 U.S.C. Section 1831a(j)), including a law that
419	421		governs community reinvestment, fair lending, or consumer
420	422		protection, the commissioner, with written notice to the home state
421	423		regulator and subject to the terms of any applicable cooperative
422	424		agreement with the home state regulator, may take any enforcement
423	425		action the commissioner would be empowered to take if the branch
424	426		were a Texas state bank or state savings bank, as the case may be.
425	427		An out-of-state state bank may appeal a final order or other
426	428		decision of the commissioner under this subtitle as provided by
427	429		Sections 31.202[, 31.203,] and 31.204, or as provided under
428	430		Subtitle C with respect to a state savings bank.
429	431		SECTION 31. Section 204.119, Finance Code, is amended to
430	432		read as follows:
431	433		Sec. 204.119. STATUS OF REVOKED LICENSE. Unless stayed by
432	434		the [finance commission or] district court that has jurisdiction
433	435		over an appeal, a final order of the commissioner revoking a license
434	436		is effective immediately and the foreign bank shall immediately
435	437		cease all activity in this state requiring a license. Subject to
436	438		Section 204.120, all functions requiring a license must be
437	439		immediately transferred to a branch, affiliate, or agency of the
438	440		foreign bank that is located outside of this state and that has the
439	441		power to perform those functions under governing law. Continued
440	442		activity in this state of an unlicensed foreign bank is subject to
441	443		Subchapter C, Chapter 35.
442	444		SECTION 32. Section 396.001(7), Finance Code, is amended to
443	445		read as follows:
444	446		(7) "Private child support enforcement agency" means
445	447		an individual or nongovernmental entity who engages in the
446	448		enforcement of child support ordered by a court or other tribunal
447	449		for a fee or other consideration. The term includes a foreign
448	450		agency. The term does not include:
449	451		(A) an attorney enforcing a child support
450	452		obligation on behalf of, and in the name of, a client unless the
451	453		attorney has an employee who is not an attorney and who on behalf of
452	454		the attorney:
453	455		(i) regularly solicits for child support
454	456		enforcement; or
455	457		(ii) regularly contacts child support
456	458		obligees or obligors for the purpose of child support enforcement;
457	459		(B) a state agency designated to serve as the
458	460		state's Title IV-D agency in accordance with Part D, Title IV,
459	461		Social Security Act (42 U.S.C. Section 651 et seq.), as amended; or
460	462		(C) a contractor awarded a contract to engage in
461	463		child support enforcement on behalf of a governmental agency,
462	464		including a contractor awarded a contract[:
463	465		[(i) under Chapter 236, Family Code; or
464	466		[(ii)] by a political subdivision of this
465	467		or another state that is authorized by law to enforce a child
466	468		support obligation.
467	469		SECTION 33. Sections 396.202(a) and (b), Finance Code, are
468	470		amended to read as follows:
469	471		(a) A private child support enforcement [registered] agency
470	472		shall maintain records of all child support collections made on
471	473		behalf of, and disbursed to, a client who is an obligee, including:
472	474		(1) the name of any obligor who made child support
473	475		payments collected by the agency;
474	476		(2) the amount of support collected by the agency for
475	477		each client, including:
476	478		(A) the date on which the amount was collected;
477	479		and
478	480		(B) the date on which each amount due the client
479	481		by the obligor was paid to the client;
480	482		(3) a copy of the order establishing the child support
481	483		obligation under which a collection was made by the agency; and
482	484		(4) any other pertinent information relating to the
483	485		child support obligation, including any case, cause, or docket
484	486		number of the court having jurisdiction over the matter.
485	487		(b) The records required under this section must be updated
486	488		at least monthly and must be maintained by the private child support
487	489		enforcement [registered] agency for a period of four years from the
488	490		date of the last support payment collected by the agency on behalf
489	491		of an obligee.
490	492		SECTION 34. Section 396.203(a), Finance Code, is amended to
491	493		read as follows:
492	494		(a) A private child support enforcement [registered] agency
493	495		[and foreign agency authorized to engage in business under this
494	496		chapter] shall execute a written contract for the enforcement of
495	497		child support for each client of the agency that is residing in this
496	498		state.
497	499		SECTION 35. Sections 396.251(a) and (b), Finance Code, are
498	500		amended to read as follows:
499	501		(a) In enforcing a child support obligation, a private child
500	502		support enforcement [registered] agency may not use threats,
501	503		coercion, or attempts to coerce that employ any of the following
502	504		practices:
503	505		(1) using or threatening to use violence or other
504	506		criminal means to cause harm to an obligor or property of the
505	507		obligor;
506	508		(2) accusing falsely or threatening to accuse falsely
507	509		an obligor of a violation of state or federal child support laws;
508	510		(3) taking or threatening to take an enforcement
509	511		action against an obligor that is not authorized by law; or
510	512		(4) intentionally representing to a person that the
511	513		agency is a governmental agency authorized to enforce a child
512	514		support obligation.
513	515		(b) Subsection (a) does not prevent a private child support
514	516		enforcement [registered] agency from:
515	517		(1) informing an obligor that the obligor may be
516	518		subject to penalties prescribed by law for failure to pay a child
517	519		support obligation; or
518	520		(2) taking, or threatening to take, an action
519	521		authorized by law for the enforcement of a child support obligation
520	522		by the agency.
521	523		SECTION 36. Section 396.252, Finance Code, is amended to
522	524		read as follows:
523	525		Sec. 396.252. FRAUDULENT, DECEPTIVE, OR MISLEADING
524	526		REPRESENTATIONS. In enforcing a child support obligation, a
525	527		private child support enforcement [registered] agency or employee
526	528		of the agency may not:
527	529		(1) identify the [registered] agency by any name other
528	530		than one by which the agency is authorized to do business under the
529	531		laws of this state [registered with the department];
530	532		(2) falsely represent the nature of the child support
531	533		enforcement activities in which the agency is authorized by law to
532	534		engage; or
533	535		(3) falsely represent that an oral or written
534	536		communication is the communication of an attorney.
535	537		SECTION 37. Section 396.352(a), Finance Code, is amended to
536	538		read as follows:
537	539		(a) A private child support enforcement [registered] agency
538	540		that is located in another state or [a private child support
539	541		enforcement agency] that engages in the business of child support
540	542		enforcement in this state in violation of this chapter is
541	543		considered to have submitted to the jurisdiction of the courts of
542	544		this state with respect to an action brought under this chapter.
543	545		SECTION 38. Section 711.001(6), Health and Safety Code, is
544	546		amended to read as follows:
545	547		(6) "Cemetery broker" means a person who sells the
546	548		exclusive right of sepulture for another person. The term does not
547	549		include a person who:
548	550		(A) is an officer, agent, or employee of the
549	551		cemetery organization in which the plot is located, acting at the
550	552		direction or under the control of the cemetery organization [and
551	553		who is exempt from registration under Subchapter C-1]; or
552	554		(B) originally purchased the exclusive right of
553	555		sepulture for personal use.
554	556		SECTION 39. Section 711.012(a), Health and Safety Code, is
555	557		amended to read as follows:
556	558		(a) The Finance Commission of Texas may adopt rules to
557	559		enforce and administer [Subchapter C-1 and] Sections 711.003,
558	560		711.004, 711.007, 711.008, 711.0105, 711.021-711.024,
559	561		711.032-711.036, 711.038, 711.0381, 711.040-711.042, 711.052,
560	562		711.061, 711.063, and 711.064 relating to perpetual care
561	563		cemeteries.
562	564		SECTION 40. Section 711.038(e), Health and Safety Code, is
563	565		amended to read as follows:
564	566		(e) A person [who is an officer, agent, or employee of the
565	567		cemetery organization or its affiliate and who is exempt from
566	568		registration under Subchapter C-1] is not required to be licensed
567	569		or registered to sell a plot in a dedicated cemetery.
568	570		SECTION 41. Section 711.052(a), Health and Safety Code, is
569	571		amended to read as follows:
570	572		(a) A person who is an individual, firm, association,
571	573		corporation, or municipality, or an officer, agent, or employee of
572	574		an individual, firm, association, corporation, or municipality,
573	575		commits an offense if the person:
574	576		(1) engages in a business for cemetery purposes in
575	577		this state other than through a corporation organized for that
576	578		purpose, if a corporation is required by law;
577	579		(2) fails or refuses to keep records of interment as
578	580		required by Sections 711.003 and 711.004;
579	581		(3) sells, offers to sell, or advertises for sale a
580	582		plot or the exclusive right of sepulture in a plot for purposes of
581	583		speculation or investment;
582	584		(4) represents through advertising or printed
583	585		material that a retail department will be established for the
584	586		resale of the plots of plot purchasers, that specific improvements
585	587		will be made in the cemetery, or that specific merchandise or
586	588		services will be furnished to a plot owner, unless adequate funds or
587	589		reserves are created by the cemetery organization for the
588	590		represented purpose;
589	591		(5) makes more than one interment in a plot in a
590	592		cemetery operated by a cemetery organization other than as provided
591	593		by Section 711.0395;
592	594		(6) removes remains from a plot in a cemetery operated
593	595		by a cemetery organization without complying with Section 711.004;
594	596		(7) offers or receives monetary inducement to solicit
595	597		business for a cemetery broker; or
596	598		(8) fails or refuses to keep records of sales or
597	599		resales or to collect and remit fees as required by Section
598	600		711.0381[; or
599	601		[(9) fails or refuses to register as a cemetery broker
600	602		as required by Subchapter C-1].
601	603		SECTION 42. Section 711.056(a), Health and Safety Code, is
602	604		amended to read as follows:
603	605		(a) If after a hearing conducted as provided by Chapter
604	606		2001, Government Code, the trier of fact finds that a violation of
605	607		this chapter or a rule of the Finance Commission of Texas
606	608		establishes a pattern of wilful disregard for the requirements of
607	609		this chapter or rules of the finance commission, the trier of fact
608	610		may recommend to the commissioner that the maximum administrative
609	611		penalty permitted under Section 711.055 be imposed on the person
610	612		committing the violation or that the commissioner cancel or not
611	613		renew[:
612	614		[(1) the person's registration under Subchapter C-1,
613	615		if the person is registered under that subchapter; or
614	616		[(2)] the person's permit under Chapter 154, Finance
615	617		Code, if the person holds such a permit.
616	618		SECTION 43. Section 711.059(a), Health and Safety Code, is
617	619		amended to read as follows:
618	620		(a) The commissioner may issue an order to seize accounts in
619	621		which funds from the sale or resale of the exclusive right of
620	622		sepulture in a plot, including earnings, may be held and may issue
621	623		an order to seize the records that relate to the sale or resale of
622	624		the exclusive right of sepulture in a plot if the commissioner
623	625		finds, by examination or other credible evidence, that the person:
624	626		(1) failed to remit a fee in accordance with Section
625	627		711.0381;
626	628		(2) misappropriated, converted, or illegally withheld
627	629		or failed or refused to pay on demand money entrusted to the person
628	630		that belongs to a cemetery organization under an instrument of
629	631		conveyance; or
630	632		(3) refused to submit to examination by the
631	633		department[;
632	634		[(4) was the subject of an order to cancel, suspend, or
633	635		refuse a registration under Subchapter C-1; or
634	636		[(5) is required to register under Subchapter C-1 and
635	637		is not registered or has transferred the ownership of the business
636	638		that required registration to another person who is not
637	639		registered].
638	640		SECTION 44. Sections 711.082(a) and (b), Health and Safety
639	641		Code, are amended to read as follows:
640	642		(a) The department shall administer Subchapter
641	643		[Subchapters] C [and C-1] relating to cemetery brokers.
642	644		(b) The commission may adopt reasonable rules concerning:
643	645		(1) fees to defray the cost of administering
644	646		Subchapter [Subchapters] C [and C-1];
645	647		(2) the retention and inspection of records relating
646	648		to the sale or resale of the exclusive right of sepulture in a plot;
647	649		(3) changes in the management or control of a cemetery
648	650		broker's business; and
649	651		(4) any other matter relating to the enforcement and
650	652		administration of Subchapter [Subchapters] C [and C-1].
651	653		SECTION 45. Section 712.0036, Health and Safety Code, is
652	654		amended to read as follows:
653	655		Sec. 712.0036. TERM OF CERTIFICATE OF AUTHORITY. (a) The
654	656		Finance Commission of Texas by rule shall prescribe the term of and
655	657		renewal procedures for a [An initial] certificate of authority
656	658		[expires March 1 of the year after the year the certificate is]
657	659		issued under this chapter[. The certificate must be renewed at that
658	660		time and by March 1 of each following year].
659	661		(b) If the Finance Commission of Texas prescribes the term
660	662		of a certificate of authority issued under this chapter for a period
661	663		other than one year, the finance commission shall prorate any
662	664		applicable fees as necessary to reflect the term of the
663	665		certificate.
664	666		SECTION 46. Section 712.0037(a), Health and Safety Code, is
665	667		amended to read as follows:
666	668		(a) As a condition of renewal, a certificate holder must
667	669		meet the qualifications and satisfy the requirements that apply to
668	670		an applicant for a new certificate of authority. Additionally, not
669	671		later than the certificate's [annual] renewal date, a certificate
670	672		holder shall:
671	673		(1) pay a [an annual] renewal fee in an amount
672	674		established by Finance Commission of Texas rule; and
673	675		(2) submit a renewal report under oath and in the form
674	676		and medium required by the commissioner that demonstrates that the
675	677		certificate holder meets the qualifications and requirements for
676	678		holding a certificate.
677	679		SECTION 47. The following laws are repealed:
678	680		(1) Sections 13.011(d) and (e), Finance Code;
679	681		(2) Sections 31.203 and 181.203, Finance Code;
680	682		(3) Section 396.001(8), Finance Code;
681	683		(4) Subchapters B, C, and D, Chapter 396, Finance
682	684		Code;
683	685		(5) Section 396.201, Finance Code;
684	686		(6) Subchapter G, Chapter 396, Finance Code;
685	687		(7) Section 711.0381(a), Health and Safety Code; and
686	688		(8) Subchapter C-1, Chapter 711, Health and Safety
687	689		Code.
688	690		SECTION 48. (a) Except as provided by Subsection (b) of
689	691		this section, Section 11.110, Finance Code, as amended by this Act,
690	692		applies to a member of the Finance Commission of Texas appointed
691	693		before, on, or after the effective date of this Act.
692	694		(b) A member of the Finance Commission of Texas who, before
693	695		the effective date of this Act, completed the training program
694	696		required by Section 11.110, Finance Code, as that law existed
695	697		before the effective date of this Act, is required to acknowledge
696	698		that the member received and reviewed the training manual required
697	699		by Section 11.110, Finance Code, as amended by this Act. A member
698	700		of the finance commission described by this subsection may not
699	701		vote, deliberate, or be counted as a member in attendance at a
700	702		meeting of the finance commission held on or after December 1, 2019,
701	703		until the member of the finance commission acknowledges that the
702	704		member received and reviewed the training manual.
703	705		SECTION 49. Section 154.104, Finance Code, as amended by
704	706		this Act, and Sections 712.0036 and 712.0037, Health and Safety
705	707		Code, as amended by this Act, apply only to a permit or certificate
706	708		of authority issued or renewed on or after September 1, 2019. A
707	709		permit or certificate of authority issued or renewed before that
708	710		date is governed by the law in effect immediately before the
709	711		effective date of this Act, and the former law is continued in
710	712		effect for that purpose.
711	713		SECTION 50. (a) On the effective date of this Act, a
712	714		certificate of registration that was issued under Section 396.106,
713	715		Finance Code, a certificate that was issued to operate in this state
714	716		under Section 396.152, Finance Code, or a registration that was
715	717		issued under Subchapter C-1, Chapter 711, Health and Safety Code,
716	718		expires.
717	719		(b) The repeal of a law by this Act does not entitle a person
718	720		to a refund of an application, registration, or other fee paid by
719	721		the person before the effective date of this Act.
720	722		SECTION 51. The changes in law made by this Act do not
721	723		affect the validity of a disciplinary action or other proceeding
722	724		that was initiated before the effective date of this Act and that is
723	725		pending before a court or other governmental entity on that date.
724	726		SECTION 52. (a) A violation of a law that is repealed by
725	727		this Act is governed by the law in effect on the date the violation
726	728		was committed, and the former law is continued in effect for that
727	729		purpose.
728	730		(b) For purposes of this section, a violation was committed
729	731		before the effective date of this Act if any element of the
730	732		violation occurred before that date.
731	733		SECTION 53. This Act takes effect September 1, 2019.
732		-	______________________________ ______________________________
733		-	President of the Senate Speaker of the House
734		-	I hereby certify that S.B. No. 614 passed the Senate on
735		-	March 27, 2019, by the following vote: Yeas 31, Nays 0.
736		-	______________________________
737		-	Secretary of the Senate
738		-	I hereby certify that S.B. No. 614 passed the House on
739		-	April 26, 2019, by the following vote: Yeas 138, Nays 0, two
740		-	present not voting.
741		-	______________________________
742		-	Chief Clerk of the House
743		-	Approved:
744		-	______________________________
745		-	Date
746		-	______________________________
747		-	Governor