By McCall, Averitt, Bosse, Chisum, Gallego H.B. No. 1763
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Finance
1-3 Commission of Texas and the regulation of certain financial
1-4 institutions and businesses.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 11.001, Finance Code, is amended to read
1-7 as follows:
1-8 Sec. 11.001. DEFINITIONS. (a) The definitions provided by
1-9 Section 31.002 apply to this chapter.
1-10 (b) In this chapter, "finance agency" means:
1-11 (1) the Texas Department of Banking;
1-12 (2) the Savings and Loan Department; or
1-13 (3) the Office of Consumer Credit Commissioner.
1-14 SECTION 2. Subchapter A, Chapter 11, Finance Code, is amended
1-15 by adding Section 11.002 to read as follows:
1-16 Sec. 11.002. PURPOSE OF COMMISSION; STRATEGIC PLAN. (a) The
1-17 finance commission is responsible for overseeing and coordinating
1-18 the Texas Department of Banking, the Savings and Loan Department,
1-19 and the Office of Consumer Credit Commissioner and serves as the
1-20 primary point of accountability for ensuring that state depository
1-21 and lending institutions function as a system, considering the
1-22 broad scope of the financial services industry. The finance
1-23 commission is the policy-making body for those finance agencies and
1-24 is not a separate state agency. The finance commission shall carry
2-1 out its functions in a manner that protects consumer interests,
2-2 maintains a safe and sound banking system, and increases the
2-3 economic prosperity of the state.
2-4 (b) The finance commission shall prepare and periodically
2-5 update a strategic plan for coordination of the state financial
2-6 system. Each finance agency shall cooperate in preparation of the
2-7 plan.
2-8 SECTION 3. Sections 11.102(b), (c), (d), and (e), Finance
2-9 Code, are amended to read as follows:
2-10 (b) One member [Two members] of the finance commission must
2-11 be a banking executive, one member [executives and two members] of
2-12 the finance commission must be a savings executive, one member of
2-13 the finance commission must be a consumer credit executive, and one
2-14 member of the finance commission must be a mortgage broker
2-15 [executives].
2-16 (c) Five members of the finance commission must be
2-17 representatives of the general public [may not be banking
2-18 executives, savings executives, or controlling shareholders in a
2-19 bank, savings association, or savings bank but must be selected by
2-20 the governor on the basis of recognized business ability]. At
2-21 least one of those members must be a certified public accountant.
2-22 (d) A person may not be a public member of the finance
2-23 commission if the person or the person's spouse:
2-24 (1) is registered, certified, or licensed by a
2-25 regulatory agency in an industry regulated by a finance agency;
2-26 (2) is employed by or participates in the management
2-27 of a business entity or other organization regulated by or
3-1 receiving money from a finance agency;
3-2 (3) owns or controls, directly or indirectly, more
3-3 than a 10 percent interest in a business entity or other
3-4 organization regulated by or receiving money from a finance agency;
3-5 or
3-6 (4) uses or receives a substantial amount of tangible
3-7 goods, services, or money from a finance agency other than
3-8 compensation or reimbursement authorized by law for finance
3-9 commission membership, attendance, or expenses. [A member or
3-10 employee of the finance commission may not be:]
3-11 [(1) an officer, employee, or paid consultant of a
3-12 trade association representing an industry regulated by the finance
3-13 commission, the banking commissioner, the savings and loan
3-14 commissioner, or the consumer credit commissioner;]
3-15 [(2) a person required to register as a lobbyist under
3-16 Chapter 305, Government Code, because of activities for a member of
3-17 an industry described by Subdivision (1); or]
3-18 [(3) related within the second degree by affinity or
3-19 consanguinity, as determined under Chapter 573, Government Code, to
3-20 a person who is an officer, employee, or paid consultant of a trade
3-21 association representing an industry described by Subdivision (1).]
3-22 (e) For the purposes of this section:
3-23 (1) "Banking executive" means a person who:
3-24 (A) has had five years' or more executive
3-25 experience in a bank during the seven-year period preceding the
3-26 person's appointment; and
3-27 (B) [at the time of the person's appointment] is
4-1 an officer of a state bank.
4-2 (2) "Savings executive" means a person who:
4-3 (A) has had five years' or more executive
4-4 experience in a savings association or savings bank during the
4-5 seven-year period preceding the person's appointment; and
4-6 (B) [at the time of the person's appointment] is
4-7 an officer of a state savings association or savings bank.
4-8 (3) "Consumer credit executive" means a person who:
4-9 (A) has had five years' or more executive
4-10 experience in an entity regulated by the consumer credit
4-11 commissioner during the seven-year period preceding the person's
4-12 appointment; and
4-13 (B) is an officer of an entity regulated by the
4-14 consumer credit commissioner.
4-15 (4) "Mortgage broker" means a person who:
4-16 (A) has had five years' or more experience as a
4-17 mortgage broker, as defined by Section 156.002, during the
4-18 seven-year period preceding the person's appointment; and
4-19 (B) is a mortgage broker, as defined by Section
4-20 156.002.
4-21 SECTION 4. Subchapter B, Chapter 11, Finance Code, is amended
4-22 by adding Section 11.1021 to read as follows:
4-23 Sec. 11.1021. CONFLICT OF INTEREST. (a) In this section,
4-24 "Texas trade association" means a cooperative and voluntarily
4-25 joined association of business or professional competitors in this
4-26 state designed to assist its members and its industry or profession
4-27 in dealing with mutual business or professional problems and in
5-1 promoting their common interest.
5-2 (b) A person may not be a member of the finance commission
5-3 if:
5-4 (1) the person is an officer, employee, or paid
5-5 consultant of a Texas trade association in an industry regulated by
5-6 a finance agency; or
5-7 (2) the person's spouse is an officer, manager, or
5-8 paid consultant of a Texas trade association in an industry
5-9 regulated by a finance agency.
5-10 (c) A person may not be a member of the finance commission
5-11 if the person is required to register as a lobbyist under Chapter
5-12 305, Government Code, because of the person's activities for
5-13 compensation on behalf of a profession related to the operation of
5-14 a finance agency.
5-15 SECTION 5. Section 11.103, Finance Code, is amended to read
5-16 as follows:
5-17 Sec. 11.103. REMOVAL OF MEMBERS[; VACANCIES]. (a) It is a
5-18 ground for removal from the finance commission that a member:
5-19 (1) does not have at the time of taking office the
5-20 qualifications required by Section 11.102;
5-21 (2) does not maintain during service on the finance
5-22 commission the qualifications required by Section 11.102;
5-23 (3) is ineligible for membership under Section 11.102
5-24 or 11.1021;
5-25 (4) cannot, because of illness or disability,
5-26 discharge the member's duties for a substantial part of the
5-27 member's term; or
6-1 (5) is absent from more than half of the regularly
6-2 scheduled finance commission meetings that the member is eligible
6-3 to attend during a calendar year without an excuse approved by a
6-4 majority vote of the finance commission.
6-5 (b) If the banking commissioner, savings and loan
6-6 commissioner, or consumer credit commissioner has knowledge that a
6-7 potential ground for removal exists, the banking commissioner,
6-8 savings and loan commissioner, or consumer credit commissioner
6-9 shall notify the presiding officer of the finance commission of the
6-10 potential ground. The presiding officer shall then notify the
6-11 governor and the attorney general that a potential ground for
6-12 removal exists. If the potential ground for removal involves the
6-13 presiding officer, the banking commissioner, savings and loan
6-14 commissioner, or consumer credit commissioner shall notify the next
6-15 highest ranking officer of the finance commission, who shall then
6-16 notify the governor and the attorney general that a potential
6-17 ground for removal exists.
6-18 (c) [(a) A ground for removal from the finance commission
6-19 exists if a member:]
6-20 [(1) did not have at the time of appointment the
6-21 qualifications required by Section 11.102 for appointment to the
6-22 finance commission;]
6-23 [(2) does not maintain the qualifications required by
6-24 Section 11.102 during service on the finance commission;]
6-25 [(3) violates a prohibition established by Section
6-26 11.105;]
6-27 [(4) cannot discharge the member's duties for a
7-1 substantial part of the term for which the member is appointed
7-2 because of illness or disability; or]
7-3 [(5) is absent from more than half of the regularly
7-4 scheduled finance commission meetings that the member is eligible
7-5 to attend during a calendar year unless the absence is excused by
7-6 majority vote of the finance commission.]
7-7 [(b) The governor shall appoint a qualified person to fill
7-8 any vacancy that occurs on the finance commission for the unexpired
7-9 term.]
7-10 [(c) The executive director of the finance commission shall
7-11 notify the presiding officer of the finance commission of any
7-12 potential ground for removal of which the executive director has
7-13 knowledge. The presiding officer then shall notify the governor
7-14 that a potential ground for removal exists.]
7-15 [(d)] The validity of an action of the finance commission is
7-16 not affected by the fact that it was taken when a ground for
7-17 removal of a member of the finance commission existed.
7-18 SECTION 6. Section 11.108, Finance Code, is amended to read
7-19 as follows:
7-20 Sec. 11.108. SUNSET PROVISION. The finance commission is
7-21 subject to Chapter 325, Government Code (Texas Sunset Act). Unless
7-22 continued in existence as provided by that chapter, the commission
7-23 is abolished September 1, 2013 [2001].
7-24 SECTION 7. Subchapter B, Chapter 11, Finance Code, is amended
7-25 by adding Sections 11.109-11.112 to read as follows:
7-26 Sec. 11.109. STANDARDS OF CONDUCT. The presiding officer of
7-27 the finance commission or the presiding officer's designee shall
8-1 provide to members of the finance commission, as often as
8-2 necessary, information regarding the requirements for office under
8-3 this title, including information regarding a person's
8-4 responsibilities under applicable laws relating to standards of
8-5 conduct for state officers.
8-6 Sec. 11.110. TRAINING. (a) A person who is appointed to and
8-7 qualifies for office as a member of the finance commission may not
8-8 vote, deliberate, or be counted as a member in attendance at a
8-9 meeting of the finance commission until the person completes a
8-10 training program that complies with this section.
8-11 (b) The training program must provide the person with
8-12 information regarding:
8-13 (1) the legislation that created the finance agencies
8-14 and the finance commission;
8-15 (2) the programs operated by the finance agencies;
8-16 (3) the role and functions of the finance agencies;
8-17 (4) the rules of the finance commission with an
8-18 emphasis on the rules that relate to disciplinary and investigatory
8-19 authority;
8-20 (5) the current budget for the finance agencies;
8-21 (6) the results of the most recent formal audit of the
8-22 finance agencies;
8-23 (7) the requirements of:
8-24 (A) the open meetings law, Chapter 551,
8-25 Government Code;
8-26 (B) the public information law, Chapter 552,
8-27 Government Code;
9-1 (C) the administrative procedure law, Chapter
9-2 2001, Government Code; and
9-3 (D) other laws relating to public officials,
9-4 including conflict-of-interest laws; and
9-5 (8) any applicable ethics policies adopted by the
9-6 finance commission or the Texas Ethics Commission.
9-7 (c) A person appointed to the finance commission is entitled
9-8 to reimbursement, as provided by the General Appropriations Act,
9-9 for the travel expenses incurred in attending the training program
9-10 regardless of whether the attendance at the program occurs before
9-11 or after the person qualifies for office.
9-12 Sec. 11.111. SEPARATION OF FUNCTIONS. The finance commission
9-13 shall develop and implement policies that clearly separate the
9-14 policymaking responsibilities of the finance commission and the
9-15 management responsibilities of the banking commissioner, savings
9-16 and loan commissioner, and consumer credit commissioner and staff
9-17 of the finance agencies.
9-18 Sec. 11.112. PUBLIC TESTIMONY. The finance commission shall
9-19 develop and implement policies that provide the public with a
9-20 reasonable opportunity to appear before the finance commission and
9-21 to speak on any issue under the jurisdiction of the finance
9-22 agencies.
9-23 SECTION 8. Section 11.202, Finance Code, is amended to read
9-24 as follows:
9-25 Sec. 11.202. HEARINGS OFFICER AND AUDITOR. (a) The finance
9-26 commission shall direct a finance agency to [may] employ [a
9-27 hearings officer and] an internal auditor to provide services to
10-1 and facilitate commission oversight and control over the finance
10-2 agencies [Texas Department of Banking, Savings and Loan Department,
10-3 and Office of Consumer Credit Commissioner].
10-4 (b) The Texas Department of Banking may employ a hearings
10-5 officer to serve the finance agencies as determined by interagency
10-6 agreement. For the purposes of Section 2003.021, Government Code, a
10-7 hearings officer employed under this section is considered to be an
10-8 employee of each agency for which hearing services are provided.
10-9 The hearings officer's only duty is to preside over matters related
10-10 to contested cases before a finance [the] agency or the finance
10-11 commission.
10-12 SECTION 9. Section 11.203, Finance Code, is amended to read
10-13 as follows:
10-14 Sec. 11.203. LIMITATION ON DIRECTION OF AUDITOR [STAFF]. The
10-15 [executive director, hearings officer,] internal auditor reports to
10-16 the finance commission and is[, and any other staff employed under
10-17 this subchapter are] not subject to direction by the employing
10-18 finance agency [Texas Department of Banking, Savings and Loan
10-19 Department, or Office of Consumer Credit Commissioner].
10-20 SECTION 10. Section 11.204, Finance Code, is amended to read
10-21 as follows:
10-22 Sec. 11.204. SHARING OF STAFF, EQUIPMENT, AND FACILITIES;
10-23 ALLOCATION OF COSTS. (a) The finance commission shall use the
10-24 [reduce administrative costs by sharing of support] staff,
10-25 equipment, and facilities of [among] the finance agencies [Texas
10-26 Department of Banking, Savings and Loan Department, and Office of
10-27 Consumer Credit Commissioner] to the extent necessary to carry out
11-1 the finance commission's duties. To reduce administrative costs,
11-2 the finance agencies shall share staff, equipment, and facilities
11-3 to the extent that the sharing contributes to cost efficiency
11-4 without detracting from the staff expertise needed for individual
11-5 areas of agency responsibility. [The finance commission may employ
11-6 staff and purchase equipment and facilities to meet these
11-7 objectives and pay for its activities from appropriations or as
11-8 provided by Chapter 771, Government Code.]
11-9 (b) An interagency agreement [regarding shared staff] must
11-10 provide that the cost of staff used by the finance commission,
11-11 including the internal auditor, [each member of shared staff other
11-12 than the executive director] is to be charged to the finance
11-13 agencies [Texas Department of Banking, Savings and Loan Department,
11-14 or Office of Consumer Credit Commissioner] in proportion to the
11-15 amount of time devoted to each agency's business. All other costs
11-16 of operation of the finance commission are [The cost of the
11-17 executive director and the unallocated cost of operation of the
11-18 finance commission is] to be shared by and included in the budgets
11-19 of the finance agencies [department, Savings and Loan Department,
11-20 and Office of Consumer Credit Commissioner] in proportion to the
11-21 amount of cash receipts of each of those agencies.
11-22 SECTION 11. Section 11.305, Finance Code, is amended by
11-23 amending Subsections (a) and (b) and adding Subsection (d) to read
11-24 as follows:
11-25 (a) The finance commission shall assign the banking
11-26 commissioner, savings and loan commissioner, or consumer credit
11-27 commissioner to conduct research on:
12-1 (1) the availability, quality, and prices of financial
12-2 services, including lending and depository services, offered in
12-3 this state to agricultural businesses, small businesses, and
12-4 individual consumers in this state; and
12-5 (2) the practices of business entities in this state
12-6 that provide financial services to agricultural businesses, small
12-7 businesses, and individual consumers in this state.
12-8 (b) The banking commissioner, savings and loan commissioner,
12-9 or consumer credit commissioner [finance commission] may:
12-10 (1) apply for and receive public and private grants
12-11 and gifts to conduct the research authorized by this section; and
12-12 (2) contract with public and private entities to carry
12-13 out studies and analyses under this section.
12-14 (d) The Texas Department of Banking and the Savings and Loan
12-15 Department shall jointly conduct a continuing review of the
12-16 condition of the state banking system. The review must include a
12-17 review of all available national and state economic forecasts and
12-18 an analysis of changing banking practices and new banking
12-19 legislation. Periodically the departments shall submit a report to
12-20 the finance commission on the results of the review, including
12-21 information relating to the condition of the state banking system
12-22 at the time of the report and the predicted condition of that
12-23 system in the future.
12-24 SECTION 12. Section 11.306, Finance Code, is amended to read
12-25 as follows:
12-26 Sec. 11.306. MORTGAGE BROKER RULES [BROKERS]. The finance
12-27 commission may adopt mortgage broker rules as provided by[:]
13-1 [(1) review any action or rule adopted by the savings
13-2 and loan commissioner under Chapter 156; and]
13-3 [(2) direct the savings and loan commissioner to
13-4 adopt, repeal, or amend any rule or other action the savings and
13-5 loan commissioner may undertake under] Chapter 156.
13-6 SECTION 13. Subchapter D, Chapter 11, Finance Code, is
13-7 amended by adding Section 11.307 to read as follows:
13-8 Sec. 11.307. RULES RELATING TO CONSUMER COMPLAINTS. (a) The
13-9 finance commission shall adopt rules applicable to each entity
13-10 regulated by the Texas Department of Banking or the Savings and
13-11 Loan Department specifying the manner in which the entity provides
13-12 consumers with information on how to file complaints with the
13-13 appropriate agency.
13-14 (b) The finance commission shall adopt rules applicable to
13-15 each entity regulated by a finance agency requiring the entity to
13-16 include information on how to file complaints with the appropriate
13-17 agency in each privacy notice that the entity is required to
13-18 provide consumers under law, including Pub. L. No. 106-102.
13-19 SECTION 14. Section 12.101(a), Finance Code, is amended to
13-20 read as follows:
13-21 (a) The banking commissioner is the chief executive officer
13-22 of the Texas Department of Banking. The finance commission, by at
13-23 least five affirmative votes, shall appoint the banking
13-24 commissioner. The banking commissioner serves at the will of the
13-25 finance commission[, is an employee of the finance commission,] and
13-26 is subject to the finance commission's orders and directions.
13-27 SECTION 15. Section 13.002(a), Finance Code, is amended to
14-1 read as follows:
14-2 (a) The savings and loan commissioner is the chief executive
14-3 officer of the Savings and Loan Department. The finance
14-4 commission, by at least five affirmative votes, shall appoint the
14-5 savings and loan commissioner. The savings and loan commissioner
14-6 serves at the will of the finance commission[, is an employee of
14-7 the finance commission,] and is subject to the finance commission's
14-8 orders and direction.
14-9 SECTION 16. Section 13.008(a), Finance Code, is amended to
14-10 read as follows:
14-11 (a) The [savings and loan commissioner and the] finance
14-12 commission shall establish reasonable and necessary fees for the
14-13 administration of Subtitles B and C, Title 3, and for the support
14-14 of the finance commission as provided by Subchapter C, Chapter 11.
14-15 SECTION 17. Section 14.051(b), Finance Code, is amended to
14-16 read as follows:
14-17 (b) The commissioner:
14-18 (1) [is an employee of the finance commission;]
14-19 [(2)] serves at the will of the commission; and
14-20 (2) [(3)] is subject to orders and directions of the
14-21 commission.
14-22 SECTION 18. Section 14.107, Finance Code, is amended to read
14-23 as follows:
14-24 Sec. 14.107. FEES. The finance commission [commissioner]
14-25 shall establish reasonable and necessary fees for carrying out the
14-26 commissioner's powers and duties under this chapter, Title 4, and
14-27 Chapters 392 and 394 and under Chapters 38-41, Business & Commerce
15-1 Code.
15-2 SECTION 19. Section 14.157, Finance Code, is amended to read
15-3 as follows:
15-4 Sec. 14.157. RULES. The finance commission [commissioner]
15-5 shall adopt rules governing the custody and use of information
15-6 obtained under this subchapter.
15-7 SECTION 20. Section 14.206(b), Finance Code, is amended to
15-8 read as follows:
15-9 (b) A witness required to attend a hearing before the
15-10 commissioner shall receive for each day's attendance a fee and a
15-11 travel and transportation allowance as authorized by law or a rule
15-12 adopted by the finance commission [commissioner].
15-13 SECTION 21. Section 33.007(a), Finance Code, is amended to
15-14 read as follows:
15-15 (a) If the banking commissioner believes that a person has
15-16 violated or is about to violate this subchapter or a rule of the
15-17 finance commission or order of the banking commissioner pertaining
15-18 to this subchapter, the attorney general on behalf of the banking
15-19 commissioner may apply to a district court of Travis County for an
15-20 order enjoining the violation and for other equitable relief the
15-21 nature of the case requires.
15-22 SECTION 22. Section 61.007, Finance Code, is amended to read
15-23 as follows:
15-24 Sec. 61.007. FEES. The [commissioner and] finance commission
15-25 by rule shall:
15-26 (1) set the amount of fees the commissioner charges
15-27 for:
16-1 (A) supervision and examination of associations;
16-2 (B) filing an application or other documents;
16-3 and
16-4 (C) other services the commissioner performs;
16-5 and
16-6 (2) specify the time and manner of payment of the
16-7 fees.
16-8 SECTION 23. Section 62.001(b), Finance Code, is amended to
16-9 read as follows:
16-10 (b) An application must contain:
16-11 (1) two copies of the association's articles of
16-12 incorporation identifying:
16-13 (A) the name of the association;
16-14 (B) the location of the principal office; and
16-15 (C) the names and addresses of the initial
16-16 directors;
16-17 (2) two copies of the association's bylaws;
16-18 (3) data sufficiently detailed and comprehensive to
16-19 enable the commissioner to make a determination under Section
16-20 62.007, including statements, exhibits, and maps;
16-21 (4) other information relating to the association and
16-22 its operation that the [commissioner and the] finance commission by
16-23 rule requires [require]; and
16-24 (5) financial information about each applicant,
16-25 incorporator, director, or shareholder that the finance commission
16-26 by rule requires.
16-27 SECTION 24. Section 62.052(b), Finance Code, is amended to
17-1 read as follows:
17-2 (b) The application must include information required by
17-3 [the commissioner or by] rule of the [commissioner and the] finance
17-4 commission.
17-5 SECTION 25. Section 62.152, Finance Code, is amended to read
17-6 as follows:
17-7 Sec. 62.152. MINIMUM NET WORTH REQUIREMENT. An association
17-8 shall meet minimum net worth requirements prescribed by rule of the
17-9 [commissioner and the] finance commission.
17-10 SECTION 26. Section 62.553(c), Finance Code, is amended to
17-11 read as follows:
17-12 (c) Unless the commissioner expressly waives a requirement
17-13 of this subsection, the application must contain:
17-14 (1) the identity, personal history, business
17-15 background and experience, and financial condition of each person
17-16 by whom or on whose behalf the acquisition is to be made, including
17-17 a description of:
17-18 (A) the managerial resources and future
17-19 prospects of each acquiring party; and
17-20 (B) any material pending legal or administrative
17-21 proceedings to which the person is a party;
17-22 (2) the terms of any proposed acquisition and the
17-23 manner in which the acquisition is to be made;
17-24 (3) the identity, source, and amount of the money or
17-25 other consideration used or to be used in making the acquisition
17-26 and, if any part of the money or other consideration has been or
17-27 will be borrowed or otherwise obtained for the purpose of making
18-1 the acquisition, a description of the transaction, the names of the
18-2 parties, and arrangements, agreements, or understandings with the
18-3 parties;
18-4 (4) any plan or proposal of an acquiring party to
18-5 liquidate the association, sell the association's assets, merge the
18-6 association with another company, or make other major changes in
18-7 the association's business or corporate structure or management;
18-8 (5) the terms of any offer, invitation, agreement, or
18-9 arrangement under which a voting security will be acquired and any
18-10 contract affecting that security or its financing after it is
18-11 acquired;
18-12 (6) information establishing that the requirements
18-13 under Section 62.555(b) are satisfied; and
18-14 (7) other information [the commissioner]:
18-15 (A) the finance commission by rule requires to
18-16 be furnished in an application; or
18-17 (B) the commissioner orders to be included in a
18-18 particular application.
18-19 SECTION 27. Section 62.560(a), Finance Code, is amended to
18-20 read as follows:
18-21 (a) The attorney general on behalf of the commissioner may
18-22 apply for equitable relief, including an order enjoining a
18-23 violation, if the commissioner believes a person has violated or is
18-24 about to violate this subchapter or a rule of the finance
18-25 commission or order of the commissioner adopted under this
18-26 subchapter.
18-27 SECTION 28. Section 64.001(a), Finance Code, is amended to
19-1 read as follows:
19-2 (a) The [commissioner and the] finance commission shall
19-3 adopt rules relating to the power of associations operating under
19-4 this subtitle to make loans and investments.
19-5 SECTION 29. Section 64.083, Finance Code, is amended to read
19-6 as follows:
19-7 Sec. 64.083. RULES. The [commissioner and the] finance
19-8 commission shall adopt rules to implement this subchapter,
19-9 including rules that define the categories of loans and investments
19-10 described by Section 64.081.
19-11 SECTION 30. Section 65.009(c), Finance Code, is amended to
19-12 read as follows:
19-13 (c) An association shall compute and pay interest and
19-14 dividends according to rules of the [commissioner and the] finance
19-15 commission.
19-16 SECTION 31. Section 66.002, Finance Code, is amended to read
19-17 as follows:
19-18 Sec. 66.002. ADOPTION OF RULES. The [commissioner and the]
19-19 finance commission may adopt rules relating to:
19-20 (1) the minimum amounts of capital stock and paid-in
19-21 surplus required for incorporation as a capital stock association;
19-22 (2) the minimum amounts of savings liability and
19-23 expense funds required for incorporation as a mutual association;
19-24 (3) the fees and procedures for processing, hearing,
19-25 and deciding applications filed with the commissioner or the
19-26 Savings and Loan Department under this subtitle;
19-27 (4) the books and records that an association is
20-1 required to keep and the location at which the books and records
20-2 are required to be maintained;
20-3 (5) the accounting principles and practices that an
20-4 association is required to observe;
20-5 (6) the conditions under which records may be copied
20-6 or reproduced for permanent storage before the original records are
20-7 destroyed;
20-8 (7) the form, contents, and time of publication of
20-9 statements of condition;
20-10 (8) the form and contents of annual reports and other
20-11 reports that an association is required to prepare and publish or
20-12 file;
20-13 (9) the manner in which assets, liabilities, and
20-14 transactions in general are to be described when entered in the
20-15 books of an association, so that the entry accurately describes the
20-16 subject matter of the entry; and
20-17 (10) the conditions under which the commissioner may
20-18 require an asset to be charged off or reserves established by
20-19 transfer from surplus or paid-in capital because of the
20-20 depreciation of or overstated value of the asset.
20-21 SECTION 32. Section 89.004, Finance Code, is amended to read
20-22 as follows:
20-23 Sec. 89.004. INITIATION OF RULEMAKING BY ASSOCIATIONS. The
20-24 finance commission [commissioner] shall initiate rulemaking
20-25 proceedings if at least 20 percent of the associations petition the
20-26 finance commission [commissioner] in writing requesting the
20-27 adoption, amendment, or repeal of a rule.
21-1 SECTION 33. Section 91.002(20), Finance Code, is amended to
21-2 read as follows:
21-3 (20) "Regulatory capital" means a common stockholders'
21-4 equity, including retained earnings, noncumulative perpetual
21-5 preferred stock and related earnings, minority interests in the
21-6 equity accounts of fully consolidated subsidiaries, and other
21-7 elements established by rules of the [commissioner and the] finance
21-8 commission.
21-9 SECTION 34. Section 91.007, Finance Code, is amended to read
21-10 as follows:
21-11 Sec. 91.007. FEES. The [commissioner and the] finance
21-12 commission by rule shall:
21-13 (1) set the amount of fees the commissioner charges
21-14 for:
21-15 (A) supervision and examination of savings
21-16 banks;
21-17 (B) filing an application or other documents;
21-18 (C) conducting a hearing; and
21-19 (D) other services the commissioner performs;
21-20 and
21-21 (2) specify the time and manner of payment of the
21-22 fees.
21-23 SECTION 35. Section 92.051(b), Finance Code, is amended to
21-24 read as follows:
21-25 (b) An application must contain:
21-26 (1) two copies of the savings bank's articles of
21-27 incorporation identifying:
22-1 (A) the name of the savings bank;
22-2 (B) the location of the principal office; and
22-3 (C) the names and addresses of the initial
22-4 directors;
22-5 (2) two copies of the savings bank's bylaws;
22-6 (3) data sufficiently detailed and comprehensive to
22-7 enable the commissioner to make findings under Section 92.058,
22-8 including statements, exhibits, and maps;
22-9 (4) other information relating to the savings bank and
22-10 its operation that the [commissioner and the] finance commission by
22-11 rule requires [require]; and
22-12 (5) financial information about each applicant,
22-13 incorporator, director, officer, or shareholder that the
22-14 [commissioner and the] finance commission by rule requires
22-15 [require].
22-16 SECTION 36. Section 92.052(b), Finance Code, is amended to
22-17 read as follows:
22-18 (b) Before approving the application of a capital stock
22-19 savings bank, the commissioner shall require the savings bank to
22-20 have an aggregate amount of capital in the form of stock and
22-21 paid-in surplus the [commissioner and the] finance commission by
22-22 rule specifies [specify].
22-23 SECTION 37. Section 92.053(b), Finance Code, is amended to
22-24 read as follows:
22-25 (b) Before approving the articles of incorporation of a
22-26 mutual savings bank, the commissioner shall require the savings
22-27 bank to have subscriptions for an aggregate amount of deposit
23-1 accounts and an expense fund in an aggregate amount the
23-2 [commissioner and the] finance commission by rule establishes
23-3 [establish] as necessary for the successful operation of a mutual
23-4 savings bank.
23-5 SECTION 38. Section 92.054(a), Finance Code, is amended to
23-6 read as follows:
23-7 (a) The [commissioner and the] finance commission by rule
23-8 shall set the minimum initial capital of a savings bank in an
23-9 amount not less than the greater of:
23-10 (1) the amount required to obtain insurance of deposit
23-11 accounts by the Federal Deposit Insurance Corporation; or
23-12 (2) the amount required of a national bank.
23-13 SECTION 39. Section 92.057(a), Finance Code, is amended to
23-14 read as follows:
23-15 (a) On the filing of a complete application to incorporate,
23-16 as defined by rules adopted by the [commissioner and the] finance
23-17 commission, the commissioner shall:
23-18 (1) issue public notice of the application; and
23-19 (2) give any interested person an opportunity to
23-20 appear, present evidence, and be heard for or against the
23-21 application.
23-22 SECTION 40. Sections 92.063(a) and (b), Finance Code, are
23-23 amended to read as follows:
23-24 (a) Only with the prior approval of the commissioner given
23-25 in accordance with rules of the [commissioner and the] finance
23-26 commission may a savings bank:
23-27 (1) establish an office other than the principal
24-1 office stated in the savings bank's articles of incorporation;
24-2 (2) move an office from its immediate vicinity; or
24-3 (3) change the savings bank's name.
24-4 (b) The commissioner may permit a savings bank to establish
24-5 additional offices in this state or another state in accordance
24-6 with rules of the [commissioner and the] finance commission.
24-7 SECTION 41. Section 92.102(b), Finance Code, is amended to
24-8 read as follows:
24-9 (b) The application must include information required by the
24-10 commissioner or by rule of the [commissioner and the] finance
24-11 commission.
24-12 SECTION 42. Sections 92.155(a) and (b), Finance Code, are
24-13 amended to read as follows:
24-14 (a) Except as the [commissioner and the] finance commission
24-15 by rule provides [provide], a director or officer may not:
24-16 (1) receive directly or indirectly a commission on or
24-17 benefit from a loan made by the savings bank;
24-18 (2) pay for services rendered to a borrower from the
24-19 savings bank in connection with a loan;
24-20 (3) direct or require a borrower on a mortgage to
24-21 negotiate an insurance policy on the mortgage property through a
24-22 particular insurance company;
24-23 (4) attempt to divert to a particular insurance broker
24-24 the business of borrowers from the savings bank;
24-25 (5) refuse to accept an insurance policy on the
24-26 mortgaged property because the policy was not negotiated through a
24-27 particular insurance broker;
25-1 (6) become an obligor, including an endorser, surety,
25-2 or guarantor, on a loan made by the savings bank;
25-3 (7) borrow or use, individually or as agent or partner
25-4 of another, directly or indirectly, money of the savings bank;
25-5 (8) become the owner of real property on which the
25-6 savings bank holds a mortgage unless the loan is fully secured by:
25-7 (A) a first-lien mortgage on property that:
25-8 (i) is to be occupied as the director's or
25-9 officer's primary residence; and
25-10 (ii) is specifically approved in writing
25-11 by the board; or
25-12 (B) a deposit maintained by the officer or
25-13 director with the savings bank; or
25-14 (9) engage in any other activity [the commissioner
25-15 and] the finance commission by rule prohibits [prohibit].
25-16 (b) Except as the [commissioner and the] finance commission
25-17 by rule provides [provide], a savings bank may not make a loan to a
25-18 corporation in which:
25-19 (1) a director or officer of the savings bank holds
25-20 stock, options, or warrants to purchase stock in the amount of five
25-21 percent or more of the outstanding stock; or
25-22 (2) the directors of the savings bank together hold
25-23 stock, options, or warrants to purchase stock in the amount of five
25-24 percent or more of the outstanding stock.
25-25 SECTION 43. Section 92.201, Finance Code, is amended to read
25-26 as follows:
25-27 Sec. 92.201. BOOKS AND RECORDS. A savings bank shall
26-1 maintain its books and records according to generally accepted
26-2 accounting principles and to rules adopted by the [commissioner and
26-3 the] finance commission.
26-4 SECTION 44. Section 92.202, Finance Code, is amended to read
26-5 as follows:
26-6 Sec. 92.202. LIQUIDITY. Unless approved in advance by the
26-7 commissioner, a savings bank shall maintain an amount equal to at
26-8 least 10 percent of its average daily deposits for the most
26-9 recently completed calendar quarter in:
26-10 (1) cash;
26-11 (2) balances in a federal reserve bank or passed
26-12 through a federal home loan bank or another depository institution
26-13 to a federal reserve bank under the Federal Reserve Act (12 U.S.C.
26-14 Section 221 et seq.); or
26-15 (3) other readily marketable investments, including
26-16 unencumbered federal government sponsored enterprises securities,
26-17 as allowed by rules adopted by the [commissioner and the] finance
26-18 commission.
26-19 SECTION 45. Section 92.203, Finance Code, is amended to read
26-20 as follows:
26-21 Sec. 92.203. REGULATORY CAPITAL. A savings bank shall
26-22 maintain regulatory capital in the amount prescribed by rule of the
26-23 [commissioner and the] finance commission. The amount may not be
26-24 less than the amount of regulatory capital required for a
26-25 corresponding national bank.
26-26 SECTION 46. Section 92.209(d), Finance Code, is amended to
26-27 read as follows:
27-1 (d) The extent to which preferred stock may be included as
27-2 regulatory capital of a savings bank is subject to the rules
27-3 adopted by the [commissioner and the] finance commission.
27-4 SECTION 47. Section 92.303(b), Finance Code, is amended to
27-5 read as follows:
27-6 (b) After the examination, the commissioner shall approve
27-7 the conversion without a hearing if the commissioner determines
27-8 that the converting financial institution is in sound condition and
27-9 meets all requirements of Subchapter B and relevant rules of the
27-10 [commissioner and the] finance commission.
27-11 SECTION 48. Section 92.553(c), Finance Code, is amended to
27-12 read as follows:
27-13 (c) Unless the commissioner expressly waives a requirement
27-14 of this subsection, the application must contain:
27-15 (1) the identity, history, business background and
27-16 experience, and financial condition of each person by whom or on
27-17 whose behalf the acquisition is to be made, including a description
27-18 of:
27-19 (A) the managerial resources and future
27-20 prospects of each acquiring party; and
27-21 (B) any material pending legal or administrative
27-22 proceedings to which the applicant is a party;
27-23 (2) the terms of any proposed acquisition and the
27-24 manner in which the acquisition is to be made;
27-25 (3) the identity, source, and amount of the money or
27-26 other consideration used or to be used in making the acquisition
27-27 and, if any part of the money or other consideration was or is to
28-1 be borrowed or otherwise obtained for the purpose of making the
28-2 acquisition, a description of the transaction, the names of the
28-3 parties, and arrangements, agreements, or understandings with those
28-4 parties;
28-5 (4) any plan or proposal of an acquiring party to
28-6 liquidate the savings bank, sell the savings bank's assets, merge
28-7 the savings bank with another company, or make other major changes
28-8 in the savings bank's business, corporate structure, or management;
28-9 (5) the terms of any offer, invitation, agreement, or
28-10 arrangement under which a voting security of the savings bank will
28-11 be acquired and any contract affecting that security or its
28-12 financing after it is acquired;
28-13 (6) information establishing that the requirements
28-14 under Section 92.556(a) are satisfied; and
28-15 (7) other information that [the commissioner]:
28-16 (A) the finance commission by rule requires; or
28-17 (B) the commissioner orders to be included in a
28-18 particular application.
28-19 SECTION 49. Section 92.560(a), Finance Code, is amended to
28-20 read as follows:
28-21 (a) The attorney general on behalf of the commissioner may
28-22 apply for equitable relief as the case may require, including an
28-23 order prohibiting the violation, if it appears to the commissioner
28-24 that a person has violated or is about to violate this subchapter
28-25 or a rule of the finance commission or order of the commissioner
28-26 adopted under this subchapter.
28-27 SECTION 50. Section 93.001(c), Finance Code, is amended to
29-1 read as follows:
29-2 (c) A savings bank may:
29-3 (1) sue and be sued in its corporate name;
29-4 (2) adopt and operate a reasonable bonus plan,
29-5 profit-sharing plan, stock bonus plan, stock option plan, pension
29-6 plan, or similar incentive plan for its directors, officers, or
29-7 employees, subject to any limitations under this subtitle or rules
29-8 adopted under this subtitle;
29-9 (3) make reasonable donations for the public welfare
29-10 or for a charitable, scientific, religious, or educational purpose;
29-11 (4) pledge its assets to secure deposits of public
29-12 money of the United States, if required by the United States,
29-13 including revenue and money the deposit of which is subject to
29-14 control or regulation of the United States;
29-15 (5) pledge its assets to secure deposits of public
29-16 money of any state or of a political corporation or political
29-17 subdivision of any state;
29-18 (6) become a member of or deal with any corporation or
29-19 agency of the United States or this state, to the extent that the
29-20 corporation or agency assists in furthering the purposes or powers
29-21 of savings banks, and for that purpose may purchase stock or
29-22 securities of the corporation or agency or deposit money with the
29-23 corporation or agency and may comply with any other condition of
29-24 membership credit;
29-25 (7) become a member of a federal home loan bank or the
29-26 Federal Reserve System;
29-27 (8) hold title to any assets acquired because of the
30-1 collection or liquidation of a loan, investment, or discount and
30-2 may administer those assets as necessary;
30-3 (9) receive and repay any deposit or account in
30-4 accordance with this subtitle and rules of the finance commission
30-5 [and the commissioner]; and
30-6 (10) lend and invest its money as authorized by this
30-7 subtitle and rules of the finance commission [and the
30-8 commissioner].
30-9 SECTION 51. Section 93.004, Finance Code, is amended to read
30-10 as follows:
30-11 Sec. 93.004. POWER TO BORROW. (a) A savings bank may borrow
30-12 and give security, subject to rules adopted by the finance
30-13 commission [and the commissioner].
30-14 (b) A savings bank at any time through action of its board
30-15 may issue a capital note, debenture, or other capital obligation
30-16 authorized by rules adopted by the finance commission [and the
30-17 commissioner].
30-18 SECTION 52. Section 93.008, Finance Code, is amended to read
30-19 as follows:
30-20 Sec. 93.008. POWERS RELATIVE TO OTHER FINANCIAL
30-21 INSTITUTIONS. Subject to limitations prescribed by rule of the
30-22 finance commission [and the commissioner], a savings bank may make
30-23 a loan or investment or engage in an activity permitted:
30-24 (1) under state law for a bank or savings and loan
30-25 association; or
30-26 (2) under federal law for a federal savings and loan
30-27 association, savings bank, or national bank if the financial
31-1 institution's principal office is located in this state.
31-2 SECTION 53. Section 94.001(a), Finance Code, is amended to
31-3 read as follows:
31-4 (a) The [commissioner and the] finance commission by rule
31-5 may limit loans to one borrower. Those limits may not be less
31-6 restrictive than the limits imposed on savings associations under
31-7 Section 5(u), Home Owners' Loan Act (12 U.S.C. Section 1464(u)).
31-8 SECTION 54. Section 94.002(a), Finance Code, is amended to
31-9 read as follows:
31-10 (a) Subject to rules adopted by the [commissioner and the]
31-11 finance commission, a savings bank may lend or invest not more than
31-12 40 percent of the savings bank's total assets in commercial loans.
31-13 SECTION 55. Section 94.203, Finance Code, is amended to read
31-14 as follows:
31-15 Sec. 94.203. RULES. The [commissioner and the] finance
31-16 commission shall adopt rules to implement this subchapter,
31-17 including rules that define the categories of loans and investments
31-18 described by Section 94.201.
31-19 SECTION 56. Section 94.251(a), Finance Code, is amended to
31-20 read as follows:
31-21 (a) A savings bank or a subsidiary may not invest in an
31-22 equity security unless the security qualifies as an investment
31-23 grade security under rules adopted by the [commissioner and the]
31-24 finance commission.
31-25 SECTION 57. Section 94.253, Finance Code, is amended to read
31-26 as follows:
31-27 Sec. 94.253. RULES. The [commissioner and the] finance
32-1 commission may adopt rules necessary to implement this subchapter,
32-2 including rules relating to eligible investment criteria,
32-3 investment diversification, and resource management requirements.
32-4 SECTION 58. Section 94.301, Finance Code, is amended to read
32-5 as follows:
32-6 Sec. 94.301. AUTHORIZATION. With the prior consent of the
32-7 commissioner and subject to rules adopted by the [commissioner and
32-8 the] finance commission, a savings bank may invest in a subsidiary
32-9 corporation created under general corporation law.
32-10 SECTION 59. Section 94.304, Finance Code, is amended to read
32-11 as follows:
32-12 Sec. 94.304. RULES. The [commissioner and the] finance
32-13 commission shall adopt rules on permitted activities of a
32-14 subsidiary corporation in which a savings bank invests under
32-15 Section 94.301.
32-16 SECTION 60. Section 95.007(b), Finance Code, is amended to
32-17 read as follows:
32-18 (b) A savings bank shall compute and pay interest and
32-19 dividends according to rules adopted by the [commissioner and the]
32-20 finance commission.
32-21 SECTION 61. Section 96.002(a), Finance Code, is amended to
32-22 read as follows:
32-23 (a) The [commissioner and the] finance commission may adopt
32-24 rules necessary to supervise and regulate savings banks and to
32-25 protect public investment in savings banks, including rules
32-26 relating to:
32-27 (1) the minimum amounts of capital required to
33-1 incorporate and operate as a savings bank, which may not be less
33-2 than the amounts required of corresponding national banks;
33-3 (2) the fees and procedures for processing, hearing,
33-4 and deciding applications filed with the commissioner or the
33-5 Savings and Loan Department under this subtitle;
33-6 (3) the books and records that a savings bank is
33-7 required to keep and the location at which the books and records
33-8 are required to be maintained;
33-9 (4) the accounting principles and practices that a
33-10 savings bank is required to observe;
33-11 (5) the conditions under which records may be copied
33-12 or reproduced for permanent storage before the originals are
33-13 destroyed;
33-14 (6) the form, content, and time of publication of
33-15 statements of condition;
33-16 (7) the form and content of annual reports and other
33-17 reports that a savings bank is required to prepare and publish or
33-18 file;
33-19 (8) the manner in which assets, liabilities, and
33-20 transactions in general are to be described when entered in the
33-21 books of a savings bank, so that the entry accurately describes the
33-22 subject matter of the entry;
33-23 (9) the conditions under which the commissioner may
33-24 require an asset to be charged off or reserves established by
33-25 transfer from surplus or paid-in capital because of depreciation of
33-26 or overstated value of the asset;
33-27 (10) the change of control of a savings bank;
34-1 (11) the conduct, management, and operation of a
34-2 savings bank;
34-3 (12) the withdrawable accounts, bonuses, plans, and
34-4 contracts for savings programs;
34-5 (13) the merger, consolidation, reorganization,
34-6 conversion, and liquidation of a savings bank;
34-7 (14) the establishment of an additional office or the
34-8 change of office location or name of a savings bank;
34-9 (15) the requirements for a savings bank's holding
34-10 companies, including those relating to:
34-11 (A) registration and periodic reporting of a
34-12 holding company with the commissioner; and
34-13 (B) transactions between a holding company, an
34-14 affiliate of a holding company, or a savings bank; and
34-15 (16) the powers of a savings bank to make loans and
34-16 investments that contain provisions reasonably necessary to ensure
34-17 that a loan made by a savings bank is consistent with sound lending
34-18 practices and that the savings bank's investment will promote the
34-19 purposes of this subtitle, including provisions governing:
34-20 (A) the type of loans and the conditions under
34-21 which a savings bank may originate, make, or sell loans;
34-22 (B) the conditions under which a savings bank
34-23 may purchase or participate in a loan made by another lender;
34-24 (C) the conditions for the servicing of a loan
34-25 for another lender;
34-26 (D) the conditions under which a savings bank
34-27 may lend money on the security of a loan made by another person;
35-1 (E) the conditions under which a savings bank
35-2 may pledge loans held by it as collateral for borrowing by the
35-3 savings bank;
35-4 (F) the conditions under which a savings bank
35-5 may invest in securities and debt instruments;
35-6 (G) the documentation that a savings bank must
35-7 have in its files at the time of funding or purchase of a loan, an
35-8 investment, or a participation in a loan;
35-9 (H) the form and content of statements of
35-10 expenses and fees and other charges that are paid by a borrower or
35-11 that a borrower is obligated to pay;
35-12 (I) the title information that must be
35-13 maintained;
35-14 (J) the borrower's insurance coverage of
35-15 property securing a loan;
35-16 (K) an appraisal report;
35-17 (L) the financial statement of a borrower;
35-18 (M) the fees or other compensation that may be
35-19 paid to a person in connection with obtaining a loan for a savings
35-20 bank, including an officer, director, employee, affiliated person,
35-21 consultant, or third party;
35-22 (N) the conditions under which the savings bank
35-23 may advance money to pay a tax, assessment, insurance premium, or
35-24 other similar charge for the protection of the savings bank's
35-25 interest in property securing the savings bank's loans;
35-26 (O) the terms under which a savings bank may
35-27 acquire and deal in real property;
36-1 (P) the valuation on a savings bank's books of
36-2 real property held by the savings bank;
36-3 (Q) the terms governing the investment by a
36-4 savings bank in a subsidiary, the powers that may be exercised by a
36-5 subsidiary, and the activities that may be engaged in by a
36-6 subsidiary; and
36-7 (R) any other matter considered necessary to
36-8 administer each type of transaction.
36-9 SECTION 62. Section 96.051(c), Finance Code, is amended to
36-10 read as follows:
36-11 (c) The [commissioner and the] finance commission may adopt
36-12 rules as necessary to implement this section.
36-13 SECTION 63. Section 97.001, Finance Code, is amended to read
36-14 as follows:
36-15 Sec. 97.001. RULES. (a) The [commissioner and the] finance
36-16 commission shall adopt rules:
36-17 (1) providing for the registration of and reporting by
36-18 holding companies;
36-19 (2) setting limitations on the activities and
36-20 investments of holding companies; and
36-21 (3) concerning other matters as appropriate under this
36-22 chapter.
36-23 (b) The [commissioner and the] finance commission may adopt
36-24 rules governing transactions between a subsidiary savings bank of a
36-25 holding company and an affiliate of the subsidiary.
36-26 SECTION 64. Section 119.006, Finance Code, is amended to
36-27 read as follows:
37-1 Sec. 119.006. INITIATION OF RULEMAKING BY SAVINGS BANKS.
37-2 The finance commission [commissioner] shall initiate rulemaking
37-3 proceedings under Chapter 2001, Government Code, if at least 20
37-4 percent of the savings banks petition the finance commission
37-5 [commissioner] in writing requesting the adoption, amendment, or
37-6 repeal of a rule.
37-7 SECTION 65. Section 152.102(b), Finance Code, is amended to
37-8 read as follows:
37-9 (b) The commission [commissioner] may adopt and enforce
37-10 reasonable rules to prevent unsafe and unsound practices with
37-11 respect to a permissible investment required by this chapter.
37-12 SECTION 66. Section 152.103, Finance Code, is amended to
37-13 read as follows:
37-14 Sec. 152.103. EXCEPTIONS TO REQUIREMENTS. The commission
37-15 [commissioner] by rule may exempt a person from this chapter or
37-16 reduce a requirement of Section 152.102(b), 152.104, 152.205,
37-17 152.206, 152.207, 152.208(a), 152.209, 152.304(b), 152.305,
37-18 152.403, 152.503, or 152.504 if:
37-19 (1) the person does not engage in the business of
37-20 selling checks to the public and the sale of checks by the person
37-21 is:
37-22 (A) ancillary to the person's business; and
37-23 (B) limited to commercial contracts in
37-24 interstate commerce; and
37-25 (2) the commission [commissioner] determines that the
37-26 exemption or reduced requirement is in the public interest.
37-27 SECTION 67. Section 152.202(b), Finance Code, is amended to
38-1 read as follows:
38-2 (b) Notwithstanding Subsection (a)(5), a person who meets
38-3 the requirements of that subsection is subject to:
38-4 (1) any other provision of this chapter to the extent
38-5 the person engages in the business of selling checks; and
38-6 (2) rules adopted by the commission [commissioner] to
38-7 administer and carry out that subsection, including rules to:
38-8 (A) define a term used in that subsection; and
38-9 (B) establish limits or requirements on the
38-10 bonding and net worth of the person and the person's activities
38-11 relating to the sale of checks other than those specified by that
38-12 subsection.
38-13 SECTION 68. Section 153.110(c), Finance Code, is amended to
38-14 read as follows:
38-15 (c) The commission [commissioner] may adopt rules to
38-16 implement this section.
38-17 SECTION 69. Section 153.117(a), Finance Code, as amended by
38-18 Chapters 62, 344, and 356, Acts of the 76th Legislature, Regular
38-19 Session, 1999, is reenacted and amended to read as follows:
38-20 (a) The following persons are not required to be licensed
38-21 under this chapter:
38-22 (1) a federally insured financial institution, as that
38-23 term is defined by Section 201.101 [as that term is defined by
38-24 state law governing bank holding companies and interstate bank
38-25 operations], that is organized under the laws of this state,
38-26 another state, or the United States;
38-27 (2) a foreign bank branch or agency in the United
39-1 States established under the federal International Banking Act of
39-2 1978 (12 U.S.C. Section 3101 et seq.), as amended;
39-3 (3) [(2)] a license holder under Chapter 152, except
39-4 that the license holder is required to comply with the other
39-5 provisions of this chapter to the extent the license holder engages
39-6 in currency exchange, transportation, or transmission transactions;
39-7 (4) a person registered as a securities dealer under
39-8 The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
39-9 Statutes);
39-10 (5) an attorney or title company that in connection
39-11 with a real property transaction receives and disburses only
39-12 domestic currency on behalf of a party to the transaction;
39-13 (6) a Federal Reserve bank;
39-14 (7) a clearinghouse exercising bank payment,
39-15 collection, and clearing functions; or
39-16 (8) another person that the commission [commissioner]
39-17 may exempt by rule if the commission [commissioner] finds that the
39-18 licensing of the person is not necessary or appropriate to achieve
39-19 the objectives of this chapter.
39-20 SECTION 70. Section 153.205(b), Finance Code, is amended to
39-21 read as follows:
39-22 (b) The commission [commissioner] by rule may establish
39-23 requirements regarding content and the size and type of lettering
39-24 used in an advertisement for prices or rates.
39-25 SECTION 71. Section 153.303(a), Finance Code, is amended to
39-26 read as follows:
39-27 (a) The commission [commissioner] shall set the license
40-1 application fees, license fees, license renewal fees, and
40-2 examination fees in amounts that are reasonable and necessary to
40-3 defray the cost of administering this chapter.
40-4 SECTION 72. Section 154.002, Finance Code, is amended to read
40-5 as follows:
40-6 Sec. 154.002. DEFINITIONS. In this chapter:
40-7 (1) "Commission" means the Finance Commission of
40-8 Texas.
40-9 (2) "Commissioner" means the banking commissioner of
40-10 Texas.
40-11 (3) [(2)] "Department" means the Texas Department of
40-12 Banking.
40-13 (4) [(3)] "Earnings" means the amount in an account in
40-14 excess of the amount paid by the purchaser of a prepaid funeral
40-15 benefits contract that is deposited in the account as provided by
40-16 Section 154.253, including accrued interest, accrued income, and
40-17 enhanced or increased value.
40-18 (5) [(4)] "Financial institution" has the meaning
40-19 assigned by Section 201.101.
40-20 (6) [(5)] "Funeral provider" means the funeral home
40-21 designated in a prepaid funeral benefits contract that has agreed
40-22 to provide the specified prepaid funeral benefits.
40-23 (7) [(6)] "Insurance policy" means a life insurance
40-24 policy or annuity contract.
40-25 (8) [(7)] "Person" means an individual, firm,
40-26 partnership, corporation, or association.
40-27 (9) [(8)] "Prepaid funeral benefits" means prearranged
41-1 or prepaid funeral or cemetery services or funeral merchandise,
41-2 including an alternative container, casket, or outer burial
41-3 container. The term does not include a grave, marker, monument,
41-4 tombstone, crypt, niche, plot, or lawn crypt unless it is sold in
41-5 contemplation of trade for a funeral service or funeral merchandise
41-6 to which this chapter applies.
41-7 (10) [(9)] "Seller" means a person selling, accepting
41-8 money or premiums for, or soliciting contracts for prepaid funeral
41-9 benefits or contracts or insurance policies to fund prepaid funeral
41-10 benefits in this state.
41-11 (11) [(10)] "Crypt," "grave," "lawn crypt," "niche,"
41-12 and "plot" have the meanings assigned by Section 711.001, Health
41-13 and Safety Code.
41-14 (12) [(11)] "Funeral merchandise" or "merchandise"
41-15 means goods sold or offered for sale on a preneed basis directly to
41-16 the public for use in connection with funeral services.
41-17 (13) [(12)] "Funeral service" or "service" means a
41-18 service sold or offered for sale on a preneed basis that may be
41-19 used to:
41-20 (A) care for and prepare a deceased human body
41-21 for burial, cremation, or other final disposition; and
41-22 (B) arrange, supervise, or conduct a funeral
41-23 ceremony or the final disposition of a deceased human body.
41-24 SECTION 73. Section 154.051(b), Finance Code, is amended to
41-25 read as follows:
41-26 (b) The commission [department] may adopt reasonable rules
41-27 concerning:
42-1 (1) fees to defray the cost of administering this
42-2 chapter;
42-3 (2) the keeping and inspection of records relating to
42-4 the sale of prepaid funeral benefits;
42-5 (3) the filing of contracts and reports;
42-6 (4) changes in the management or control of an
42-7 organization; and
42-8 (5) any other matter relating to the enforcement and
42-9 administration of this chapter.
42-10 SECTION 74. Section 154.054(a), Finance Code, is amended to
42-11 read as follows:
42-12 (a) For each examination conducted under Section 154.053,
42-13 the commissioner or the commissioner's agent shall impose on the
42-14 seller a fee in an amount set by the commission [department] under
42-15 Section 154.051 and based on the seller's total outstanding
42-16 contracts.
42-17 SECTION 75. Section 154.102, Finance Code, is amended to read
42-18 as follows:
42-19 Sec. 154.102. PERMIT APPLICATION; FEE. To obtain a permit to
42-20 sell or continue to sell prepaid funeral benefits, a person must:
42-21 (1) file an application for a permit with the
42-22 department on a form prescribed by the department;
42-23 (2) pay a filing fee in an amount set by the
42-24 commission [department] under Section 154.051; and
42-25 (3) if applicable, pay extraordinary expenses required
42-26 for out-of-state investigation of the person.
42-27 SECTION 76. Section 154.104(b), Finance Code, is amended to
43-1 read as follows:
43-2 (b) The commission [department] by rule may adopt a system
43-3 under which permits expire on various dates during the year.
43-4 SECTION 77. Section 154.108, Finance Code, is amended to read
43-5 as follows:
43-6 Sec. 154.108. RENEWAL FEE. The commission [department] shall
43-7 set the renewal fee under Section 154.051.
43-8 SECTION 78. Section 154.109(a), Finance Code, is amended to
43-9 read as follows:
43-10 (a) The commissioner by order may cancel or suspend a permit
43-11 if the commissioner finds, by examination or other credible
43-12 evidence, that the permit holder:
43-13 (1) violated this chapter or another law of this state
43-14 relating to the sale of prepaid funeral benefits, including a final
43-15 order of the commissioner or rule of the commission [commissioner
43-16 or department];
43-17 (2) misrepresented or concealed a material fact in the
43-18 permit application; or
43-19 (3) obtained, or attempted to obtain, the permit by
43-20 misrepresentation, concealment, or fraud.
43-21 SECTION 79. Section 154.111(a), Finance Code, is amended to
43-22 read as follows:
43-23 (a) The commission [department] shall adopt rules governing
43-24 the selection of a successor permit holder.
43-25 SECTION 80. Section 154.351, Finance Code, is amended to
43-26 read as follows:
43-27 Sec. 154.351. MAINTENANCE OF GUARANTY FUND. The commission
44-1 [department] by rule shall establish and the department shall
44-2 maintain a fund to guarantee performance by sellers of prepaid
44-3 funeral benefits contracts of their obligations to the purchasers
44-4 under the provisions of this chapter governing prepaid funeral
44-5 trusts.
44-6 SECTION 81. Section 154.356(b), Finance Code, is amended to
44-7 read as follows:
44-8 (b) The assessments shall be deposited in the fund and
44-9 administered by the department and the advisory council in
44-10 accordance with commission [department] rules.
44-11 SECTION 82. Section 154.406(a), Finance Code, is amended to
44-12 read as follows:
44-13 (a) After notice and opportunity for hearing, the
44-14 commissioner may impose an administrative penalty on a person who:
44-15 (1) violates this chapter or a final order of the
44-16 commissioner or rule of the commission [commissioner or
44-17 department]; and
44-18 (2) does not correct the violation before the 31st day
44-19 after the date the person receives written notice of the violation
44-20 from the department.
44-21 SECTION 83. Section 154.407, Finance Code, is amended to
44-22 read as follows:
44-23 Sec. 154.407. INJUNCTIVE RELIEF. The commissioner may sue
44-24 in a district court in Travis County to enjoin a violation or
44-25 threatened violation of:
44-26 (1) this chapter; or
44-27 (2) a final order of the commissioner or rule of the
45-1 commission [commissioner or the department].
45-2 SECTION 84. Section 154.408(a), Finance Code, is amended to
45-3 read as follows:
45-4 (a) The commissioner may issue a cease and desist order to a
45-5 person if the commissioner finds by examination or other credible
45-6 evidence that the person has violated a law of this state relating
45-7 to the sale of prepaid funeral benefits, including a violation of
45-8 this chapter or a final order of the commissioner or rule of the
45-9 commission [commissioner or the department].
45-10 SECTION 85. Section 156.004, Finance Code, is amended to
45-11 read as follows:
45-12 Sec. 156.004. DISCLOSURE TO APPLICANT. At the time an
45-13 applicant submits an application to a mortgage broker, the mortgage
45-14 broker shall provide to the applicant a disclosure that specifies
45-15 the nature of the relationship between applicant and broker, the
45-16 duties the broker has to the applicant, and how the mortgage broker
45-17 will be compensated. The finance commission [commissioner], by
45-18 rule, shall promulgate a standard disclosure form to be used by the
45-19 mortgage broker.
45-20 SECTION 86. Section 156.102, Finance Code, is amended to
45-21 read as follows:
45-22 Sec. 156.102. RULEMAKING AUTHORITY. (a) The finance
45-23 commission [Subject to review and compliance with the directives of
45-24 the finance commission as provided by Section 11.306, the
45-25 commissioner] may adopt and enforce rules necessary for the intent
45-26 of or to ensure compliance with this chapter.
45-27 (b) The finance commission [commissioner] may adopt rules to
46-1 prohibit false, misleading, or deceptive practices by mortgage
46-2 brokers and loan officers but may not adopt any other rules
46-3 restricting competitive bidding or advertising by mortgage brokers
46-4 or loan officers. When adopting rules under this subsection, the
46-5 finance commission [commissioner] may not restrict:
46-6 (1) the use of any medium for an advertisement;
46-7 (2) the personal appearance of or voice of a person in
46-8 an advertisement;
46-9 (3) the size or duration of an advertisement; or
46-10 (4) a mortgage broker's or loan officer's
46-11 advertisement under a trade name.
46-12 (c) The finance commission [commissioner] may adopt rules
46-13 regarding books and records that a person licensed under this
46-14 chapter is required to keep, including the location at which the
46-15 books and records must be kept.
46-16 (d) The finance commission [commissioner] shall consult with
46-17 the mortgage broker advisory committee when proposing and adopting
46-18 rules under this chapter.
46-19 SECTION 87. Section 156.104(h), Finance Code, is amended to
46-20 read as follows:
46-21 (h) In addition to other powers and duties delegated to it
46-22 by the commissioner, the advisory committee shall advise the
46-23 finance commission and commissioner with respect to:
46-24 (1) the proposal and adoption of rules relating to:
46-25 (A) the licensing of mortgage brokers and loan
46-26 officers;
46-27 (B) the education and experience requirements
47-1 for licensing mortgage brokers and loan officers;
47-2 (C) conduct and ethics of mortgage brokers and
47-3 loan officers;
47-4 (D) continuing education for licensed mortgage
47-5 brokers and loan officers and the types of courses acceptable as
47-6 continuing education courses under this chapter; and
47-7 (E) the granting or denying of an application or
47-8 request for renewal for a mortgage broker license or loan officer
47-9 license;
47-10 (2) the form of or format for any applications or
47-11 other documents under this chapter; and
47-12 (3) the interpretation, implementation, and
47-13 enforcement of this chapter.
47-14 SECTION 88. Section 156.206(b), Finance Code, is amended to
47-15 read as follows:
47-16 (b) The commissioner shall obtain criminal history record
47-17 information on an applicant that is maintained by the Department of
47-18 Public Safety. By rule, the finance commission [commissioner] may
47-19 require applicants to submit information and fingerprints necessary
47-20 for the commissioner to obtain criminal background information from
47-21 the Federal Bureau of Investigation. The commissioner may also
47-22 obtain criminal history record information from any court or any
47-23 local, state, or national governmental agency.
47-24 SECTION 89. Section 156.207(c), Finance Code, is amended to
47-25 read as follows:
47-26 (c) In accordance with any rules adopted by the finance
47-27 commission under this subsection, the commissioner may issue a
48-1 provisional license to an applicant if a significant delay is
48-2 necessary to process the application, review information related to
48-3 the application, or obtain information related to the application.
48-4 The commissioner may revoke a provisional license issued under this
48-5 subsection on a ground listed under Section 156.303 or on any
48-6 ground that the commissioner could have denied issuance of the
48-7 license on the application.
48-8 SECTION 90. Sections 156.208(a), (b), (f), and (g), Finance
48-9 Code, are amended to read as follows:
48-10 (a) A mortgage broker license issued under this chapter is
48-11 valid for two years and may be renewed on or before its expiration
48-12 date if the mortgage broker:
48-13 (1) pays to the commissioner a renewal fee in an
48-14 amount determined by the commissioner not to exceed $375 and a
48-15 recovery fund fee provided by Section 156.502;
48-16 (2) has not been convicted of a felony the
48-17 commissioner determines is directly related to the occupation of a
48-18 mortgage broker under Article 6252-13c, Revised Statutes; and
48-19 (3) provides the commissioner with satisfactory
48-20 evidence that the mortgage broker:
48-21 (A) has attended, during the term of the current
48-22 license, 15 hours of continuing education courses that the
48-23 commissioner, in accordance with the rules adopted by the finance
48-24 commission under this section, has approved as continuing education
48-25 courses; or
48-26 (B) maintains an active license in this state
48-27 as:
49-1 (i) a real estate broker;
49-2 (ii) a real estate salesperson;
49-3 (iii) an attorney; or
49-4 (iv) a local recording agent or insurance
49-5 solicitor or agent for a legal reserve life insurance company under
49-6 Chapter 21, Insurance Code, or an equivalent license under Chapter
49-7 21, Insurance Code.
49-8 (b) A loan officer license issued under this chapter is
49-9 valid for two years and may be renewed on or before its expiration
49-10 date if the loan officer:
49-11 (1) pays to the commissioner a renewal fee in an
49-12 amount determined by the commissioner not to exceed $175 and a
49-13 recovery fund fee provided by Section 156.502;
49-14 (2) has not been convicted of a felony the
49-15 commissioner determines is directly related to the occupation of a
49-16 loan officer under Article 6252-13c, Revised Statutes; and
49-17 (3) provides the commissioner with satisfactory
49-18 evidence that the loan officer:
49-19 (A) has attended, during the term of the current
49-20 license, 15 hours of continuing education courses that the
49-21 commissioner, in accordance with the rules adopted by the finance
49-22 commission under this section, has approved as continuing education
49-23 courses, including courses provided by or through the licensed
49-24 mortgage broker with whom the loan officer is associated after
49-25 submission to and approval by the commission; or
49-26 (B) maintains an active license in this state
49-27 as:
50-1 (i) a real estate broker;
50-2 (ii) a real estate salesperson;
50-3 (iii) an attorney; or
50-4 (iv) a local recording agent or insurance
50-5 solicitor or agent for a legal reserve life insurance company under
50-6 Chapter 21, Insurance Code, or an equivalent license under Chapter
50-7 21, Insurance Code.
50-8 (f) The finance commission [commissioner] by rule may adopt
50-9 a system under which licenses expire on a date or dates other than
50-10 December 31. If a system is adopted under this subsection, dates
50-11 relating to expiration and issuance of licenses shall be adjusted
50-12 accordingly. For the biennium in which the license expiration date
50-13 is changed, license fees shall be prorated on a monthly basis so
50-14 that each license holder pays only that portion of the license fee
50-15 that is allocable to the number of months during which the license
50-16 is valid. On renewal of the license on the new expiration date,
50-17 the total license renewal fee is payable.
50-18 (g) The finance commission [commissioner] shall adopt rules
50-19 related to the approval of courses for continuing education credit
50-20 under this section that provide for the acceptance of continuing
50-21 education courses that are related to finance, financial
50-22 consulting, lending, real estate contracts, discrimination laws,
50-23 deceptive trade practices, real property conveyances, and other
50-24 topics that are relevant to mortgage brokers and that are
50-25 acceptable as continuing education courses to other professional
50-26 licensing agencies.
50-27 SECTION 91. Section 156.210, Finance Code, is amended to
51-1 read as follows:
51-2 Sec. 156.210. PROBATIONARY LICENSE. The commissioner may
51-3 issue a probationary license. The finance commission
51-4 [commissioner] by rule shall adopt reasonable terms and conditions
51-5 for a probationary license.
51-6 SECTION 92. Section 156.303(a), Finance Code, is amended to
51-7 read as follows:
51-8 (a) The commissioner may order disciplinary action against a
51-9 licensed mortgage broker or a licensed loan officer when the
51-10 commissioner, after a hearing, has determined that the person:
51-11 (1) obtained a license under this chapter through a
51-12 false or fraudulent representation or made a material
51-13 misrepresentation in an application for a license under this
51-14 chapter;
51-15 (2) published or caused to be published an
51-16 advertisement related to the business of a mortgage broker or loan
51-17 officer that:
51-18 (A) is misleading;
51-19 (B) is likely to deceive the public;
51-20 (C) in any manner tends to create a misleading
51-21 impression;
51-22 (D) fails to identify as a mortgage broker or
51-23 loan officer the person causing the advertisement to be published;
51-24 or
51-25 (E) violates federal or state law;
51-26 (3) while performing an act for which a license under
51-27 this chapter is required, engaged in conduct that constitutes
52-1 improper, fraudulent, or dishonest dealings;
52-2 (4) failed to notify the commissioner not later than
52-3 the 30th day after the date of the final conviction if the person,
52-4 in a court of this or another state or in a federal court, has been
52-5 convicted of or entered a plea of guilty or nolo contendere to a
52-6 felony or a criminal offense involving fraud;
52-7 (5) failed to use a fee collected in advance of
52-8 closing of a mortgage loan for a purpose for which the fee was
52-9 paid;
52-10 (6) charged or received, directly or indirectly, a fee
52-11 for assisting a mortgage applicant in obtaining a mortgage loan
52-12 before all of the services that the person agreed to perform for
52-13 the mortgage applicant are completed, and the proceeds of the
52-14 mortgage loan have been disbursed to or on behalf of the mortgage
52-15 applicant, except as provided by Section 156.304;
52-16 (7) failed within a reasonable time to honor a check
52-17 issued to the commissioner after the commissioner has mailed a
52-18 request for payment by certified mail to the person's last known
52-19 business address as reflected by the commissioner's records;
52-20 (8) paid compensation to a person who is not licensed
52-21 or exempt under this chapter for acts for which a license under
52-22 this chapter is required;
52-23 (9) induced or attempted to induce a party to a
52-24 contract to breach the contract so the person may make a mortgage
52-25 loan;
52-26 (10) published or circulated an unjustified or
52-27 unwarranted threat of legal proceedings in matters related to the
53-1 person's actions or services as a mortgage broker or loan officer,
53-2 as applicable;
53-3 (11) established an association, by employment or
53-4 otherwise, with a person not licensed or exempt under this chapter
53-5 who was expected or required to act as a mortgage broker or loan
53-6 officer;
53-7 (12) aided, abetted, or conspired with a person to
53-8 circumvent the requirements of this chapter;
53-9 (13) acted in the dual capacity of a mortgage broker
53-10 or loan officer and real estate broker, salesperson, or attorney in
53-11 a transaction without the knowledge and written consent of the
53-12 mortgage applicant or in violation of applicable requirements under
53-13 federal law;
53-14 (14) discriminated against a prospective borrower on
53-15 the basis of race, color, religion, sex, national origin, ancestry,
53-16 familial status, or a disability;
53-17 (15) failed or refused on demand to:
53-18 (A) produce a document, book, or record
53-19 concerning a mortgage loan transaction conducted by the mortgage
53-20 broker or loan officer for inspection by the commissioner or the
53-21 commissioner's authorized personnel or representative;
53-22 (B) give the commissioner or the commissioner's
53-23 authorized personnel or representative free access to the books or
53-24 records relating to the person's business kept by an officer,
53-25 agent, or employee of the person or any business entity through
53-26 which the person conducts mortgage brokerage activities, including
53-27 a subsidiary or holding company affiliate; or
54-1 (C) provide information requested by the
54-2 commissioner as a result of a formal or informal complaint made to
54-3 the commissioner;
54-4 (16) failed without just cause to surrender, on
54-5 demand, a copy of a document or other instrument coming into the
54-6 person's possession that was provided to the person by another
54-7 person making the demand or that the person making the demand is
54-8 under law entitled to receive; or
54-9 (17) disregarded or violated this chapter or a rule
54-10 adopted by the finance commission [commissioner] under this
54-11 chapter.
54-12 SECTION 93. Section 156.506(d), Finance Code, is amended to
54-13 read as follows:
54-14 (d) This section does not limit the authority of the
54-15 commissioner to take disciplinary action against a mortgage broker
54-16 or loan officer for a violation of this chapter or the rules
54-17 adopted by the finance commission [commissioner] under this
54-18 chapter. The repayment in full to the fund of all obligations of a
54-19 mortgage broker or loan officer does not nullify or modify the
54-20 effect of any other disciplinary proceeding brought under this
54-21 chapter.
54-22 SECTION 94. Section 202.005(a), Finance Code, is amended to
54-23 read as follows:
54-24 (a) The commissioner may:
54-25 (1) examine a bank holding company that controls a
54-26 Texas bank to the same extent as if the bank holding company were a
54-27 Texas state bank; and
55-1 (2) bring an enforcement proceeding under Chapter 35
55-2 against a bank holding company that violates or participates in a
55-3 violation of this subtitle, an agreement filed with the
55-4 commissioner under this chapter, or a rule adopted by the finance
55-5 commission or order issued by the commissioner [or the finance
55-6 commission] under this subtitle, as if the bank holding company
55-7 were a Texas state bank.
55-8 SECTION 95. Section 273.204, Finance Code, is amended to
55-9 read as follows:
55-10 Sec. 273.204. CONDITIONS UNDER WHICH CORPORATION MAY
55-11 EXERCISE POWERS AND DUTIES. The corporation may not exercise a
55-12 power or perform a duty under Section 273.203 or 273.205 or
55-13 Subchapter E until the Office of Thrift Supervision and the Federal
55-14 Deposit Insurance Corporation have:
55-15 (1) officially recognized that the corporation in
55-16 exercising that power or performing that duty will reduce and
55-17 minimize the liability of the Federal Deposit Insurance
55-18 Corporation; and
55-19 (2) taken any necessary action to permit member
55-20 associations to use without restraint all of the operational power
55-21 the member associations have under the laws of this state,
55-22 including rules of the Finance Commission of Texas [Savings and
55-23 Loan Department].
55-24 SECTION 96. Section 345.351(b), Finance Code, is amended to
55-25 read as follows:
55-26 (b) The finance commission [commissioner] by rule may
55-27 establish procedures to facilitate the registration and collection
56-1 of fees under this section, including rules staggering throughout
56-2 the year the dates on which fees are due.
56-3 SECTION 97. Section 347.451(b), Finance Code, is amended to
56-4 read as follows:
56-5 (b) The finance commission [commissioner] by rule may
56-6 establish procedures to facilitate the registration and collection
56-7 of fees under this section, including rules staggering the due
56-8 dates of the fees throughout the year.
56-9 SECTION 98. Section 348.401(b), Finance Code, is amended to
56-10 read as follows:
56-11 (b) The finance commission [commissioner] by rule may
56-12 establish procedures to facilitate the registration and collection
56-13 of fees under this section, including rules staggering throughout
56-14 the year the dates on which fees are due.
56-15 SECTION 99. Sections 371.006(a) and (d), Finance Code, are
56-16 amended to read as follows:
56-17 (a) The Finance Commission of Texas [commissioner] may adopt
56-18 rules to enforce this chapter.
56-19 (d) On application by any person and on payment of any
56-20 associated cost, the commissioner shall furnish the person a
56-21 certified copy of a rule adopted by the Finance Commission of Texas
56-22 [commissioner].
56-23 SECTION 100. Section 371.007(a), Finance Code, is amended to
56-24 read as follows:
56-25 (a) The Finance Commission of Texas [commissioner] by rule
56-26 may adopt a system under which licenses issued under this chapter
56-27 expire on various dates during the year.
57-1 SECTION 101. Section 371.181(b), Finance Code, is amended to
57-2 read as follows:
57-3 (b) The Finance Commission of Texas [commissioner] shall
57-4 adopt rules that allow:
57-5 (1) a consumer who has filed an offense report with a
57-6 local law enforcement agency to request that a pawnbroker search
57-7 the records of the pawnshop; and
57-8 (2) the pawnbroker to assist the consumer and the
57-9 local law enforcement agency in locating and recovering stolen
57-10 property.
57-11 SECTION 102. Section 371.183, Finance Code, is amended to
57-12 read as follows:
57-13 Sec. 371.183. CONSUMER INFORMATION. The Finance Commission
57-14 of Texas [commissioner] by rule may require a pawnshop to display,
57-15 in an area in the pawnshop accessible to a consumer, materials
57-16 provided by the commissioner that are designed to:
57-17 (1) inform a consumer of the duties, rights, and
57-18 responsibilities of parties to a transaction regulated by the
57-19 commissioner; and
57-20 (2) inform and assist a robbery, burglary, or theft
57-21 victim.
57-22 SECTION 103. Section 11.201, Finance Code, is repealed.
57-23 SECTION 104. (a) The Finance Commission of Texas and the
57-24 Department of Information Resources shall create and direct a
57-25 committee consisting of representatives of the pawnbroker industry,
57-26 law enforcement, and the computer software industry to devise one
57-27 or more standard formats for pawnbrokers to electronically provide
58-1 reportable data to law enforcement agencies.
58-2 (b) The committee shall review and recommend to the Finance
58-3 Commission of Texas, not later than June 30, 2002, formats to be
58-4 designated by the commission that law enforcement agencies may
58-5 adopt as the required format for pawnbrokers to use for
58-6 electronically transmitting reportable data.
58-7 SECTION 105. A rule adopted by the Texas Department of
58-8 Banking, the Banking Commissioner of Texas, the Savings and Loan
58-9 Commissioner, or the Consumer Credit Commissioner that is in effect
58-10 on the effective date of this Act and that is not inconsistent
58-11 with this Act remains in effect as a rule or regulation of the
58-12 Finance Commission of Texas until superseded by action of the
58-13 finance commission.
58-14 SECTION 106. The changes made by this Act in the prohibitions
58-15 and qualifications applying to members of the Finance Commission of
58-16 Texas do not affect the entitlement of a member serving on the
58-17 commission immediately before the effective date of this Act to
58-18 continue to serve and function as a member of the finance
58-19 commission for the remainder of the member's term. The changes in
58-20 law apply only to a member appointed on or after the effective date
58-21 of this Act. This Act does not prohibit a person who is a member
58-22 of the finance commission on the effective date of this Act from
58-23 being reappointed to the finance commission if the person has the
58-24 qualifications required for a member under Chapter 11, Finance
58-25 Code, as amended by this Act.
58-26 SECTION 107. This Act takes effect September 1, 2001.