By: Carona S.B. No. 1067
(In the Senate - Filed March 10, 2003; March 17, 2003, read
first time and referred to Committee on Business and Commerce;
May 7, 2003, reported favorably by the following vote: Yeas 6,
Nays 0; May 7, 2003, sent to printer.)
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.
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