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SENATE RESOLUTION
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BE IT RESOLVED by the Senate of the State of Texas, 81st |
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Legislature, Regular Session, 2009, That Senate Rule 12.03 be |
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suspended in part as provided by Senate Rule 12.08 to enable the |
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conference committee appointed to resolve the differences on |
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House Bill No. 2774 (self-directed and semi-independent status |
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of state financial regulatory agencies and the licensing and |
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regulation of certain persons involved in residential mortgage |
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lending; making an appropriation; providing a penalty) to |
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consider and take action on the following matters: |
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(1) Senate Rule 12.03(1) is suspended to permit the |
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committee to change text not in disagreement in proposed SECTION |
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2 of the bill, in added Subsection (b-1), Section 156.102, |
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Finance Code, so that it reads as follows: |
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(b-1) The finance commission on the commissioner's |
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recommendation may adopt rules to promote a fair and orderly |
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administration of the fund consistent with the purposes of |
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Subchapter F. |
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Explanation: The change is necessary to correct an error |
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in a cross-reference. |
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(2) Senate Rule 12.03(4) is suspended to permit the |
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committee to add text not included in either the house or senate |
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version of the bill by adding the following SECTION to the bill: |
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SECTION 28. (a) Title 2, Finance Code, is amended by |
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adding Chapter 16 to read as follows: |
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CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND |
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SEMI-INDEPENDENT |
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Sec. 16.001. DEFINITIONS. In this chapter: |
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(1) "Financial regulatory agency" means: |
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(A) the Texas Department of Banking; |
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(B) the Department of Savings and Mortgage |
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Lending; |
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(C) the Office of Consumer Credit |
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Commissioner; and |
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(D) the Credit Union Department. |
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(2) "Policy-making body" means: |
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(A) the Finance Commission of Texas for: |
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(i) the Texas Department of Banking; |
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(ii) the Department of Savings and |
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Mortgage Lending; and |
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(iii) the Office of Consumer Credit |
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Commissioner; and |
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(B) the Credit Union Commission for the Credit |
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Union Department. |
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Sec. 16.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS |
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OF FINANCIAL REGULATORY AGENCIES. Notwithstanding any other |
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provision of law, a financial regulatory agency is self-directed |
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and semi-independent as specified by this chapter. Any Act of |
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the 81st Legislature that relates to a financial regulatory |
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agency and that is inconsistent with the agency being |
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self-directed and semi-independent may be implemented by the |
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financial regulatory agency only on authorization by the |
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policy-making body of the financial regulatory agency. |
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Sec. 16.003. BUDGET, REVENUES, AND EXPENSES. (a) A |
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financial regulatory agency shall submit to the policy-making |
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body of the financial regulatory agency a budget annually using |
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generally accepted accounting principles. Notwithstanding any |
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other provision of law, including the General Appropriations |
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Act, the budget shall be adopted and approved only by the |
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policy-making body of the financial regulatory agency. |
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(b) A financial regulatory agency shall be responsible |
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for all direct and indirect costs of the agency's existence and |
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operation. The financial regulatory agency may not directly or |
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indirectly cause the general revenue fund to incur any cost. |
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(c) Subject to any limitations in a financial regulatory |
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agency's enabling legislation, a financial regulatory agency may |
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set the amounts of fees, penalties, charges, and revenues |
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required or permitted by statute or rule as necessary for the |
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purpose of carrying out the functions of the financial regulatory |
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agency and funding the budget adopted and approved under |
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Subsection (a). |
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(d) All fees and funds collected by a financial |
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regulatory agency and any funds appropriated to the financial |
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regulatory agency shall be deposited in interest-bearing deposit |
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accounts in the Texas Treasury Safekeeping Trust Company. The |
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comptroller shall contract with the financial regulatory agency |
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for the maintenance of the deposit accounts under terms |
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comparable to a contract between a commercial banking |
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institution and the institution's customers. |
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(e) Periodically, each financial regulatory agency shall |
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submit to the agency's policy-making body, as directed by the |
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policy-making body, a report of the receipts and expenditures of |
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the financial regulatory agency. |
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(f) The fiscal year for a financial regulatory agency |
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begins on September 1 and ends on August 31. |
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Sec. 16.004. AUDITS. This chapter does not affect the |
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duty of the state auditor to audit a financial regulatory agency. |
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The state auditor shall enter into a contract and schedule with |
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each financial regulatory agency to conduct audits, including |
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financial reports and performance audits. The financial |
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regulatory agency shall reimburse the state auditor for all costs |
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incurred in performing the audits and shall provide to the |
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governor a copy of any audit performed. |
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Sec. 16.005. RECORDS; REPORTING REQUIREMENTS. (a) A |
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financial regulatory agency shall keep financial and statistical |
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information as necessary to disclose completely and accurately |
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the financial condition and results of operations of the agency. |
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(b) Before the beginning of each regular session of the |
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legislature, each financial regulatory agency shall submit to |
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the legislature and the governor a report describing all of the |
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agency's activities in the previous biennium. The report must |
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include: |
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(1) an audit as required by Section 16.004; |
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(2) a financial report of the previous fiscal year, |
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including reports on financial condition and results of |
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operations; |
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(3) a description of all changes in fees imposed on |
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regulated industries; |
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(4) a report on changes in the regulatory |
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jurisdiction of the agency, including the number of chartered |
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financial institutions, license holders, and registrants subject |
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to the agency's jurisdiction and any changes in those figures; |
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and |
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(5) a list of all new rules adopted or repealed. |
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(c) In addition to the reporting requirements of |
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Subsection (b), not later than November 1 of each year, each |
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financial regulatory agency shall submit to the governor, the |
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committee of each house of the legislature that has jurisdiction |
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over appropriations, and the Legislative Budget Board a report |
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that contains: |
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(1) the salary for all financial regulatory agency |
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personnel and the total amount of per diem expenses and travel |
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expenses paid for all agency employees; |
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(2) the total amount of per diem expenses and travel |
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expenses paid for each member of the agency's policy-making body, |
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provided that only one report must be submitted regarding the |
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Finance Commission of Texas; |
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(3) the agency's operating plan and annual budget; |
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and |
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(4) a detailed report of all revenue received and |
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all expenses incurred by the financial regulatory agency in the |
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previous 12 months. |
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Sec. 16.006. ABILITY TO CONTRACT. (a) To carry out and |
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promote the objectives of this chapter, a financial regulatory |
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agency may enter into contracts and do all other acts incidental |
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to those contracts that are necessary for the administration of |
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the agency's affairs and for the attainment of the agency's |
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purposes, except as limited by Subsection (b). |
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(b) Any indebtedness, liability, or obligation of the |
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financial regulatory agency incurred under this section may not: |
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(1) create a debt or other liability of this state |
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or another entity other than the financial regulatory agency; or |
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(2) create any personal liability on the part of the |
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members of the policy-making body or the body's or agency's |
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employees. |
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Sec. 16.007. PROPERTY. A financial regulatory agency |
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may: |
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(1) acquire by purchase, lease, gift, or any other |
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manner provided by law and maintain, use, and operate any real, |
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personal, or mixed property, or any interest in property, |
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necessary or convenient to the exercise of the powers, rights, |
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privileges, or functions of the financial regulatory agency; |
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(2) sell or otherwise dispose of any real, personal, |
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or mixed property, or any interest in property, that the |
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financial regulatory agency determines is not necessary or |
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convenient to the exercise of the agency's powers, rights, |
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privileges, or functions; |
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(3) construct, extend, improve, maintain, and |
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reconstruct, or cause to construct, extend, improve, maintain, |
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and reconstruct, and use and operate all facilities necessary or |
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convenient to the exercise of the powers, rights, privileges, or |
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functions of the financial regulatory agency; and |
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(4) borrow money, as may be authorized from time to |
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time by an affirmative vote of a two-thirds majority of the |
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policy-making body of the financial regulatory agency, for a |
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period not to exceed five years if necessary or convenient to the |
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exercise of the financial regulatory agency's powers, rights, |
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privileges, or functions. |
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Sec. 16.008. SUITS. The office of the attorney general |
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shall represent a financial regulatory agency in any litigation. |
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The attorney general may assess and collect from the financial |
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regulatory agency reasonable attorney's fees associated with any |
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litigation under this section. |
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Sec. 16.009. POST-PARTICIPATION LIABILITY. (a) If a |
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financial regulatory agency no longer has status under this |
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chapter as a self-directed semi-independent financial regulatory |
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agency for any reason, the agency shall be liable for any |
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expenses or debts incurred by the agency during the time the |
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agency was a self-directed semi-independent financial regulatory |
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agency. The agency's liability under this section includes |
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liability for any lease entered into by the agency. This state is |
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not liable for any expense or debt covered by this subsection, |
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and money from the general revenue fund may not be used to repay |
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the expense or debt. |
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(b) If a financial regulatory agency no longer has status |
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under this chapter as a self-directed semi-independent financial |
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regulatory agency for any reason, ownership of any property or |
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other asset acquired by the agency during the time the agency was |
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a self-directed semi-independent financial regulatory agency, |
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including unexpended fees in a deposit account in the Texas |
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Treasury Safekeeping Trust Company, shall be transferred to this |
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state. |
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Sec. 16.010. DUE PROCESS; OPEN GOVERNMENT. A financial |
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regulatory agency is: |
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(1) a governmental body for purposes of Chapters 551 |
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and 552, Government Code; and |
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(2) a state agency for purposes of Chapters 2001 and |
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2005, Government Code. |
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Sec. 16.011. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM. |
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Employees of the financial regulatory agencies are members of the |
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Employees Retirement System of Texas under Chapter 812, |
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Government Code, and the agencies' transition to independent |
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status as provided by this chapter has no effect on their |
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membership or any benefits under that system. |
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Sec. 16.012. GIFTS. (a) Notwithstanding any other law, |
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a financial regulatory agency may not accept a gift, grant, or |
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donation: |
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(1) from a party to an enforcement action; or |
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(2) to pursue a specific investigation or |
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enforcement action. |
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(b) A financial regulatory agency must: |
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(1) report each gift, grant, or donation that the |
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agency receives as a separate item in the agency's report |
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required under Section 16.005(b); and |
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(2) include with the report a statement indicating |
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the purpose for which each gift, grant, or donation was donated |
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and used. |
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(b) Section 11.104, Finance Code, is amended to read as |
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follows: |
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Sec. 11.104. EXPENSES AND COMPENSATION OF MEMBERS. A |
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member of the finance commission is entitled to: |
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(1) the reimbursement for reasonable and necessary |
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expenses incidental to travel incurred in connection with the |
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performance of official duties; and |
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(2) a per diem [as set by legislative appropriation] |
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for each day that the member engages in the business of the |
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finance commission. |
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(c) Section 11.110(c), Finance Code, is amended to read |
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as follows: |
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(c) A person appointed to the finance commission is |
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entitled to reimbursement under Section 11.104, as if the person |
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were a member of the finance commission, [as provided by the
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General Appropriations Act,] for the travel expenses incurred in |
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attending the training program regardless of whether the |
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attendance at the program occurs before or after the person |
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qualifies for office. |
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(d) Section 11.204, Finance Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) The finance commission shall have charge and control |
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of the property known as the Finance Commission Building and use |
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of staff, equipment, and facilities of the finance agencies. The |
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Finance Commission Building refers to the property located in the |
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city of Austin and titled in the name of the Banking Section of |
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the Finance Commission of Texas, as described by deed recorded in |
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Volume 5080, Page 1099, of the Deed Records of Travis County, |
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Texas. |
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(e) Section 15.2041(c), Finance Code, is amended to read |
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as follows: |
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(c) A person appointed to the commission is entitled to |
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reimbursement under Section 15.207, as if the person were a |
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member of the commission, for travel expenses incurred in |
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attending the training program, regardless of whether the |
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attendance at the program occurs before or after the person |
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qualifies for office[, as provided by the General Appropriations
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Act and as if the person were a member of the commission]. |
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(f) Subchapter E, Chapter 15, Finance Code, is amended by |
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adding Section 15.4011 to read as follows: |
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Sec. 15.4011. CREDIT UNION DEPARTMENT BUILDING. The |
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commission shall have charge and control of the property known as |
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the Credit Union Department Building and use of staff, equipment, |
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and facilities of the department. The Credit Union Department |
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Building refers to the property located in the city of Austin and |
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titled in the name of the State of Texas for the use and benefit |
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of the Credit Union Department, as described by deed recorded in |
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Volume 6126, Page 27, of the Deed Records of Travis County, |
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Texas. |
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(g) Section 156.101(a), Finance Code, is amended to read |
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as follows: |
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(a) The commissioner shall administer and enforce this |
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chapter. |
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(h) Section 2165.007(b), Government Code, is amended to |
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read as follows: |
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(b) Notwithstanding any other law, the commission shall |
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provide facilities management services in relation to all state |
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agency facilities in Travis County or a county adjacent to Travis |
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County. The commission's duty does not apply to: |
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(1) a facility owned or operated by an institution |
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of higher education; |
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(2) military facilities; |
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(3) facilities owned or operated by the Texas |
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Department of Criminal Justice; |
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(4) facilities owned or operated by the Texas Youth |
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Commission; |
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(5) facilities owned or operated by the Texas |
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Department of Transportation; |
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(6) the Capitol, including the Capitol Extension, |
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the General Land Office building, the Bob Bullock Texas State |
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History Museum, any museum located on the Capitol grounds, the |
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Governor's Mansion, and any property maintained by the Texas |
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Historical Commission under Sections 442.0072 and 442.0073; |
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(7) a facility determined by the commission to be |
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completely residential; |
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(8) a regional or field office of a state agency; |
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[or] |
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(9) a facility located within or on state park |
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property; |
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(10) the property known as the Finance Commission |
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Building described by deed recorded in Volume 5080, Page 1099, of |
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the Deed Records of Travis County, Texas; or |
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(11) the property known as the Credit Union |
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Department Building described by deed recorded in Volume 6126, |
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Page 27, of the Deed Records of Travis County, Texas. |
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(i) Sections 12.103, 13.005, 13.008, 14.053, 14.060, |
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15.104, 15.207(c), 15.308, 15.408, and 156.101(b) and (c), |
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Finance Code, are repealed. |
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(j)(1) To provide a reasonable period for each financial |
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regulatory agency, as defined by Section 16.001, Finance Code, as |
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added by this section, to establish itself as a self-directed and |
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semi-independent agency, the following amounts are appropriated |
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from the general revenue fund to each of those financial |
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regulatory agencies: |
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(A) for the state fiscal year ending August |
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31, 2010, an amount equal to 50 percent of the amount of general |
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revenue appropriated to the agency for the state fiscal year |
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ending August 31, 2009; and |
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(B) for the state fiscal year ending August |
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31, 2011, an amount equal to 50 percent of the amount of general |
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revenue appropriated to the agency for the state fiscal year |
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ending August 31, 2009. |
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(2) Subject to Section 16.003, Finance Code, as |
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added by this section, the appropriations made by Subdivision (1) |
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of this subsection may be spent by the financial regulatory |
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agency to which they are made as the financial regulatory agency |
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directs. The financial regulatory agency shall repay to the |
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general revenue fund the appropriation made to the agency for the |
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state fiscal year ending August 31, 2010, not later than that |
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date and as funds become available. The financial regulatory |
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agency shall repay to the general revenue fund the appropriation |
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made to the agency for the state fiscal year ending August 31, |
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2011, not later than that date and as funds become available. |
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(k) The transfer of a financial regulatory agency, as |
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defined by Section 16.001, Finance Code, as added by this |
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section, to self-directed and semi-independent status under |
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Chapter 16, Finance Code, as added by this section, and the |
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expiration of self-directed and semi-independent status may not |
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act to cancel, suspend, or prevent: |
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(1) any debt owed to or by the financial regulatory |
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agency; |
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(2) any fine, tax, penalty, or obligation of any |
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party; |
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(3) any contract or other obligation of any party; |
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or |
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(4) any action taken by the financial regulatory |
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agency in the administration or enforcement of the agency's |
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duties. |
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(l) Each financial regulatory agency, as defined by |
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Section 16.001, Finance Code, as added by this section, shall |
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continue to have and exercise the powers and duties allocated to |
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the agency in the agency's enabling legislation, except as |
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specifically amended by this section. |
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(m) Title to all supplies, materials, records, |
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equipment, books, papers, and facilities used by each financial |
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regulatory agency, as defined by Section 16.001, Finance Code, as |
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added by this section, is transferred to each respective |
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financial regulatory agency in fee simple. Nothing in this |
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section shall have an effect on property owned by a financial |
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regulatory agency on or before the effective date of this |
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section. |
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(n) If a conflict exists between this section and another |
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Act of the 81st Legislature, Regular Session, 2009, that relates |
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to the self-directed and semi-independent status of a state |
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financial regulatory agency, this section controls without |
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regard to the relative dates of the enactment. |
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Explanation: The added language is necessary to improve |
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the operations of state financial regulatory agencies that are |
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self-directed and semi-independent. |
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(3) Senate Rules 12.03(1) and (3) are suspended to permit |
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the committee to change the text of, and add text to, proposed |
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SECTION 30 of the bill, so that it reads as follows: |
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SECTION 30. The provisions of this Act or the |
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applications of those provisions are severable as provided by |
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Section 311.032(c), Government Code. If the Secretary of Housing |
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and Urban Development determines that any provision of Sections |
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1-27 and 29 of this Act fails to meet the requirements of the |
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federal Secure and Fair Enforcement for Mortgage Licensing Act of |
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2008 (Pub. L. No. 110-289), that provision of this Act shall be |
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held invalid; however, the remainder of this Act or the |
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application of the provision to other persons or circumstances is |
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not affected. |
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Explanation: The change is a conforming change to the bill |
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made necessary because of the addition of text to the bill under |
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Item (2) of this resolution. |
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_______________________________ |
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President of the Senate |
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I hereby certify that the |
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above Resolution was adopted by |
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the Senate on June 1, 2009. |
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_______________________________ |
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Secretary of the Senate |