78R7208 DWS-F

By:  Carona                                                       S.B. No. 1067



A BILL TO BE ENTITLED

AN ACT

relating to administrative interpretation of home equity lending 
law.       
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 11, Finance Code, is 
amended by adding Section 11.308 to read as follows:
	Sec.  11.308.  INTERPRETATION OF HOME EQUITY LENDING 
LAW.  The finance commission may, on request of an interested 
person or on its own motion, issue interpretations of Sections 
50(a)(5)-(7), (e)-(p), (t), and (u), Article XVI, Texas 
Constitution.  An interpretation under this section is subject to 
Chapter 2001, Government Code, and is applicable to all lenders 
authorized to make extensions of credit under Section 50(a)(6), 
Article XVI, Texas Constitution, except lenders regulated by the 
Credit Union Commission.  The finance commission and the Credit 
Union Commission shall attempt to adopt interpretations that are as 
consistent as feasible or shall state justification for any 
inconsistency.
	SECTION 2.  Subchapter E, Chapter 15, Finance Code, is 
amended by adding Section 15.413 to read as follows:
	Sec. 15.413.  INTERPRETATION OF HOME EQUITY LENDING 
LAW.  The commission may, on request of an interested person or on 
its own motion, issue interpretations of Sections 50(a)(5)-(7), 
(e)-(p), (t), and (u), Article XVI, Texas Constitution.  An 
interpretation under this section is subject to Chapter 2001, 
Government Code, and is applicable to lenders regulated by the 
commission.  The Finance Commission of Texas and the commission 
shall attempt to adopt interpretations that are as consistent as 
feasible or shall state justification for any inconsistency.
	SECTION 3.  This Act takes effect on the date on which the 
constitutional amendment proposed by the 78th Legislature, Regular 
Session, 2003, authorizing a home equity line of credit, providing 
for administrative interpretation of home equity lending law, and 
otherwise relating to the making, refinancing, repayment, and 
enforcement of home equity loans takes effect.  If that amendment is 
not approved by the voters, this Act has no effect.