Texas 2021 - 87th Regular

Texas Senate Bill SB1900 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1900
	1	+	87R20288 JES-F
	2	+	By: Zaffirini S.B. No. 1900
	3	+	(Anchia)
	4	+	Substitute the following for S.B. No. 1900: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to the regulatory authority of the savings and mortgage
6	10		lending commissioner; authorizing fees.
7	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	12		SECTION 1. Section 92.554(a), Finance Code, is amended to
9	13		read as follows:
10	14		(a) On receipt of an application, the commissioner shall
11	15		submit to the Texas Register for publication in the next issue after
12	16		the date the application is received or publish in a newspaper of
13	17		general circulation that is printed in English in the county in
14	18		which the savings bank is to have the savings bank's principal
15	19		office:
16	20		(1) notice of the application;
17	21		(2) the date the application was filed; and
18	22		(3) the identity of each party to the application.
19	23		SECTION 2. Subchapter B, Chapter 96, Finance Code, is
20	24		amended by adding Section 96.0551 to read as follows:
21	25		Sec. 96.0551. REGULATION AND EXAMINATION OF CERTAIN RELATED
22	26		ENTITIES. (a) In this section, "state savings bank" has the
23	27		meaning assigned by Section 31.002.
24	28		(b) The commissioner may regulate and examine, to the same
25	29		extent as if the services or activities were performed by a state
26	30		savings bank on its own premises:
27	31		(1) the activities of a state savings bank affiliate;
28	32		and
29	33		(2) the services or activities of a third-party
30	34		service provider that a state savings bank or state savings bank
31	35		affiliate has contracted for or otherwise arranged to be performed
32	36		on behalf of the state savings bank or state savings bank affiliate.
33	37		(c) The commissioner may collect a fee from an examined
34	38		third-party service provider or affiliate in connection with each
35	39		examination to cover the cost of the examination or may collect that
36	40		fee from the state savings banks that use the examined third-party
37	41		service provider.
38	42		(d) For purposes of this section, a third-party service
39	43		provider or state savings bank affiliate does not include a company
40	44		or firm in which ownership or membership is limited to individuals
41	45		and conditioned by law on the existence and maintenance of
42	46		professional licensing.
43	47		(e) To promote regulatory efficiency, if, in the preceding
44	48		24 months, a third-party service provider or affiliate has been
45	49		examined by a federal or state financial services regulatory agency
46	50		or by a member agency of the Federal Financial Institutions
47	51		Examination Council, or its successor agency, the commissioner may
48	52		accept the results of that examination instead of conducting the
49	53		commissioner's own examination of the third-party service provider
50	54		or affiliate. Nothing in this subsection shall be construed as
51	55		limiting or restricting the commissioner from participating in an
52	56		examination of a third-party service provider or affiliate
53	57		conducted by a federal or state financial services regulatory
54	58		agency or by a member agency of the Federal Financial Institutions
55	59		Examination Council, or its successor agency.
56	60		(f) A third-party service provider that refuses to submit to
57	61		examination or to pay an assessed fee for examination under this
58	62		section is subject to an enforcement action under Chapter 96. With
59	63		respect to a third-party service provider's refusal to submit to
60	64		examination, the commissioner may notify all state savings banks of
61	65		the refusal and warn that continued use of the third-party service
62	66		provider may constitute an unsafe and unsound banking practice.
63	67		SECTION 3. Section 97.006, Finance Code, is amended by
64	68		adding Subsections (f), (g), and (h) to read as follows:
65	69		(f) The commissioner may:
66	70		(1) examine a holding company that controls a state
67	71		savings bank to the same extent as if the holding company were a
68	72		state savings bank; and
69	73		(2) bring an enforcement action under Chapter 96
70	74		against a holding company described by Subdivision (1) or other
71	75		person that violates or participates in a violation of this
72	76		subtitle, an agreement filed with the commissioner under this
73	77		chapter, or a rule adopted by the finance commission or order issued
74	78		by the commissioner under this subtitle, as if the holding company
75	79		were a state savings bank.
76	80		(g) The grounds, procedures, and effects of an enforcement
77	81		action brought under Subsection (f) apply to a holding company, an
78	82		officer, director, or employee of a holding company, or a
79	83		controlling shareholder or other person participating in the
80	84		affairs of a holding company in the same manner as the grounds,
81	85		procedures, and effects apply to a state savings bank, an officer,
82	86		director, or employee of a state savings bank, or a controlling
83	87		shareholder or other person participating in the affairs of a state
84	88		savings bank.
85	89		(h) A state savings bank that is controlled by a holding
86	90		company that is not a Texas holding company shall be subject to all
87	91		laws of this state that are applicable to state savings banks that
88	92		are controlled by Texas holding companies.
89	93		SECTION 4. Section 156.2041(a), Finance Code, is amended to
90	94		read as follows:
91	95		(a) To be issued a mortgage company license, an applicant
92	96		must:
93	97		(1) submit a completed application together with the
94	98		payment of applicable fees through the Nationwide Mortgage
95	99		Licensing System and Registry;
96	100		(2) designate control persons for the mortgage company
97	101		through the Nationwide Mortgage Licensing System and Registry;
98	102		(3) designate an individual licensed as a residential
99	103		mortgage loan originator under Chapter 157 as the company's
100	104		qualifying individual;
101	105		(4) submit a completed branch application through the
102	106		Nationwide Mortgage Licensing System and Registry for each branch
103	107		office that engages in residential mortgage loan activity on
104	108		residential real estate located in this state;
105	109		(5) not be in violation of this chapter, a rule adopted
106	110		under this chapter, or any order previously issued by the
107	111		commissioner to the applicant;
108	112		(6) have the company name or assumed name properly
109	113		filed with either the secretary of state or with the appropriate
110	114		county clerk's office; and
111	115		(7) [maintain a physical office in this state; and
112	116		[(8)] provide financial statements and any other
113	117		information required by the commissioner.
114	118		SECTION 5. Section 156.2042(a), Finance Code, is amended to
115	119		read as follows:
116	120		(a) To be issued a credit union subsidiary organization
117	121		license, an applicant must:
118	122		(1) submit a completed application together with the
119	123		payment of applicable fees through the Nationwide Mortgage
120	124		Licensing System and Registry;
121	125		(2) designate control persons for the organization
122	126		through the Nationwide Mortgage Licensing System and Registry;
123	127		(3) designate an individual licensed as a residential
124	128		mortgage loan originator under Chapter 157 as the company's
125	129		qualifying individual;
126	130		(4) submit a completed branch application through the
127	131		Nationwide Mortgage Licensing System and Registry for each branch
128	132		office that engages in residential mortgage loan activity on
129	133		residential real estate located in this state; and
130	134		(5) not be in violation of this chapter, a rule adopted
131	135		under this chapter, or any order previously issued by the
132	136		commissioner to the applicant[; and
133	137		[(6) maintain a physical office in this state].
134	138		SECTION 6. Section 156.501(c), Finance Code, is amended to
135	139		read as follows:
136	140		(c) Amounts in the recovery fund may be invested and
137	141		reinvested in accordance with Chapter 2256, Government Code, and
138	142		under the prudent person standard described by Section 11b, Article
139	143		VII, Texas Constitution [in the same manner as funds of the
140	144		Employees Retirement System of Texas], and the interest from these
141	145		investments shall be deposited to the credit of the fund. An
142	146		investment may not be made under this subsection if the investment
143	147		will impair the necessary liquidity required to satisfy judgment
144	148		payments awarded under this subchapter.
145	149		SECTION 7. The following provisions of the Finance Code are
146	150		repealed:
147	151		(1) Sections 156.212(a) and (a-1);
148	152		(2) Sections 156.501(d) and (f); and
149	153		(3) Section 156.502(b).
150	154		SECTION 8. Section 92.554(a), Finance Code, as amended by
151	155		this Act, applies only to an application filed on or after the
152	156		effective date of this Act. An application filed before the
153	157		effective date of this Act is governed by the law in effect on the
154	158		date the application was filed, and the former law is continued in
155	159		effect for that purpose.
156	160		SECTION 9. Section 156.501(c), Finance Code, as amended by
157	161		this Act, applies only to an investment made on or after the
158	162		effective date of this Act. An investment made before the effective
159	163		date of this Act is governed by the law in effect on the date the
160	164		investment was made, and the former law is continued in effect for
161	165		that purpose.
162	166		SECTION 10. This Act takes effect September 1, 2021.
163		-	______________________________ ______________________________
164		-	President of the Senate Speaker of the House
165		-	I hereby certify that S.B. No. 1900 passed the Senate on
166		-	April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
167		-	the Senate concurred in House amendment on May 27, 2021, by the
168		-	following vote: Yeas 31, Nays 0.
169		-	______________________________
170		-	Secretary of the Senate
171		-	I hereby certify that S.B. No. 1900 passed the House, with
172		-	amendment, on May 18, 2021, by the following vote: Yeas 114,
173		-	Nays 23, two present not voting.
174		-	______________________________
175		-	Chief Clerk of the House
176		-	Approved:
177		-	______________________________
178		-	Date
179		-	______________________________
180		-	Governor