Bill Text: TX SB614 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the continuation and functions of the Finance Commission of Texas, the Texas Department of Banking, and the Department of Savings and Mortgage Lending, to the training requirements applicable to the agencies overseen by the Finance Commission of Texas, and to the regulation of certain financial institutions and businesses.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Passed) 2019-05-07 - Effective on 9/1/19 [SB614 Detail]

Download: Texas-2019-SB614-Enrolled.html

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S.B. No. 614

AN ACT
relating to the continuation and functions of the Finance
Commission of Texas, the Texas Department of Banking, and the
Department of Savings and Mortgage Lending, to the training
requirements applicable to the agencies overseen by the Finance
Commission of Texas, and to the regulation of certain financial
institutions and businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.108, Finance Code, is amended to read
as follows:
Sec. 11.108. SUNSET PROVISION. The finance commission is
subject to Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the commission
is abolished September 1, 2031 [2019].
SECTION 2. Section 11.110, Finance Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) The commissioner of each finance agency shall create a
training manual that includes the information required by
Subsection (b) applicable to that commissioner's agency. The
commissioner of each finance agency shall distribute a copy of the
training manual created under this subsection annually to each
member of the finance commission. Each member of the finance
commission shall sign and submit to the appropriate commissioner a
statement acknowledging that the member received and has reviewed
the training manual.
(e) Notwithstanding Subsection (d), the commissioner of
each finance agency may collaborate and jointly create one training
manual that includes the information required by Subsection (b)
applicable to each finance agency.
SECTION 3. Subchapter B, Chapter 11, Finance Code, is
amended by adding Section 11.113 to read as follows:
Sec. 11.113. ADVISORY COMMITTEES. (a) The finance
commission may appoint advisory committees to assist the finance
commission in performing its duties.
(b) The finance commission shall specify each committee's
purpose, powers, and duties and shall require each committee to
report to the finance commission in the manner specified by the
finance commission concerning the committee's activities and the
results of its work.
SECTION 4. Section 11.202(b), Finance Code, is amended to
read as follows:
(b) The Texas Department of Banking may employ a hearings
officer to serve the finance agencies as determined by interagency
agreement. For the purposes of Section 2003.021, Government Code,
a hearings officer employed under this section is considered to be
an employee of each agency for which hearing services are provided.
The hearings officer's only duty is to preside over matters related
to contested cases before a finance agency [or the finance
commission].
SECTION 5. Section 12.108, Finance Code, is amended to read
as follows:
Sec. 12.108. CONSUMER INFORMATION AND COMPLAINTS. (a) The
department [banking commissioner] shall maintain a system to
promptly and efficiently act on complaints filed with the
department. The department shall maintain information about
parties to the complaint, the subject matter of the complaint, a
summary of the results of the review or investigation of the
complaint, and its disposition[:
[(1) prepare information of consumer interest
describing:
[(A) the regulatory functions of the department;
and
[(B) the department's procedures by which
consumer complaints are filed with and resolved by the department;
and
[(2) make the information available to the public and
appropriate state agencies].
(b) The department shall make information available
describing its procedures for complaint investigation and
resolution [maintain a file on each written complaint filed with
the department. The file must include:
[(1) the name of the person who filed the complaint;
[(2) the date the complaint is received by the
department;
[(3) the subject matter of the complaint;
[(4) the name of each person contacted in relation to
the complaint;
[(5) a summary of the results of the review or
investigation of the complaint; and
[(6) an explanation of the reason the file was
closed].
(c) The department shall periodically notify the complaint
parties of the status of the complaint until final disposition
[provide to the person filing the complaint and to each person who
is a subject of the complaint a written summary of the department's
policies and procedures relating to complaint investigation and
resolution].
SECTION 6. Section 12.109, Finance Code, is amended to read
as follows:
Sec. 12.109. SUNSET PROVISION. The office of banking
commissioner is subject to Chapter 325, Government Code (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the office is abolished September 1, 2031 [2019].
SECTION 7. Subchapter B, Chapter 12, Finance Code, is
amended by adding Sections 12.113 and 12.114 to read as follows:
Sec. 12.113. ALTERNATIVE RULEMAKING AND DISPUTE
RESOLUTION. (a) The finance commission by rule shall develop a
policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of rules by the finance
commission applicable to the department; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the department's
jurisdiction.
(b) The procedures applicable to the department relating to
alternative dispute resolution must conform, to the extent
possible, to any model guidelines issued by the State Office of
Administrative Hearings for the use of alternative dispute
resolution by state agencies.
(c) The department shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
Sec. 12.114. ADVISORY COMMITTEES. (a) The banking
commissioner may appoint advisory committees to assist the
department and banking commissioner in performing their duties.
(b) The banking commissioner shall specify each committee's
purpose, powers, and duties and shall require each committee to
report to the banking commissioner or department in the manner
specified by the banking commissioner concerning the committee's
activities and the results of its work.
SECTION 8. Sections 13.011(a), (b), and (c), Finance Code,
are amended to read as follows:
(a) The Department of Savings and Mortgage Lending [savings
and mortgage lending commissioner] shall maintain a system to
promptly and efficiently act on complaints filed with that
department. The Department of Savings and Mortgage Lending shall
maintain information about parties to the complaint, the subject
matter of the complaint, a summary of the results of the review or
investigation of the complaint, and its disposition [prepare
information of consumer interest describing:
[(1) the regulatory functions of the Department of
Savings and Mortgage Lending; and
[(2) the procedures by which consumer complaints are
filed with and resolved by the Department of Savings and Mortgage
Lending].
(b) The Department of Savings and Mortgage Lending shall
make information [under Subsection (a) must be made] available
describing its procedures for complaint investigation and
resolution [to the public and appropriate state agencies].
(c) The Department of Savings and Mortgage Lending shall
periodically notify the complaint parties of the status of the
complaint until final disposition [maintain a file on each written
complaint filed with the Department of Savings and Mortgage
Lending. The file must include:
[(1) the name of the person who filed the complaint;
[(2) the date the complaint is received by the
Department of Savings and Mortgage Lending;
[(3) the subject matter of the complaint;
[(4) the name of each person contacted in relation to
the complaint;
[(5) a summary of the results of the review or
investigation of the complaint; and
[(6) an explanation of the reason the file was closed,
if the agency closed the file without taking action other than to
investigate the complaint].
SECTION 9. Section 13.012, Finance Code, is amended to read
as follows:
Sec. 13.012. SUNSET PROVISION. The office of savings and
mortgage lending commissioner and the Department of Savings and
Mortgage Lending are subject to Chapter 325, Government Code (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the office and department are abolished September 1, 2031
[2019].
SECTION 10. Chapter 13, Finance Code, is amended by adding
Sections 13.017 and 13.018 to read as follows:
Sec. 13.017. ALTERNATIVE RULEMAKING AND DISPUTE
RESOLUTION. (a) The finance commission by rule shall develop a
policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of rules by the finance
commission applicable to the Department of Savings and Mortgage
Lending; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the Department
of Savings and Mortgage Lending's jurisdiction.
(b) The procedures applicable to the Department of Savings
and Mortgage Lending relating to alternative dispute resolution
must conform, to the extent possible, to any model guidelines
issued by the State Office of Administrative Hearings for the use of
alternative dispute resolution by state agencies.
(c) The Department of Savings and Mortgage Lending shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
Sec. 13.018. ADVISORY COMMITTEES. (a) The savings and
mortgage lending commissioner may appoint advisory committees to
assist the Department of Savings and Mortgage Lending and savings
and mortgage lending commissioner in performing their duties.
(b) The savings and mortgage lending commissioner shall
specify each committee's purpose, powers, and duties and shall
require each committee to report to the savings and mortgage
lending commissioner or Department of Savings and Mortgage Lending
in the manner specified by the savings and mortgage lending
commissioner concerning the committee's activities and the results
of its work.
SECTION 11. Sections 31.202 and 31.204, Finance Code, are
amended to read as follows:
Sec. 31.202. APPEAL OF BANKING COMMISSIONER DECISION OR
ORDER. Except as expressly provided otherwise by this subtitle, an
appellant may appeal a decision or order of the banking
commissioner made under this subtitle or Chapter 12 after a hearing
[directly] to a district court in [the District Court of] Travis
County as provided by Section 31.204 [or, at the option of the
appellant, to the finance commission for review].
Sec. 31.204. [DIRECT] APPEAL TO DISTRICT COURT [OR APPEAL
OF FINANCE COMMISSION ORDER]. A person affected by a final order of
the banking commissioner [who elects to appeal directly to district
court, or a person affected by a final order of the finance
commission under this chapter,] may appeal the final order by
filing a petition for judicial review in a district court in [the
District Court of] Travis County as provided by Chapter 2001,
Government Code. A petition for judicial review filed in the
district court does not stay or vacate the appealed order unless the
court, after notice and hearing, expressly stays or vacates the
order.
SECTION 12. Section 32.009(d), Finance Code, is amended to
read as follows:
(d) A state bank that is denied the requested right or
privilege to engage in an activity by the banking commissioner
under this section may appeal as provided by Sections 31.202[,
31.203,] and 31.204 or may resubmit a letter under this subsection
with additional information or authority relevant to the banking
commissioner's determination. A denial is immediately final for
purposes of appeal.
SECTION 13. Section 32.010(d), Finance Code, is amended to
read as follows:
(d) A state bank that is denied the requested power by the
banking commissioner under this section may appeal as provided by
Sections 31.202[, 31.203,] and 31.204 or may resubmit a letter
under this section with additional information or authority
relevant to the banking commissioner's determination. A denial is
immediately final for purposes of appeal.
SECTION 14. Section 35.0035(g), Finance Code, is amended to
read as follows:
(g) After the hearing, the banking commissioner may affirm,
modify, or set aside, in whole or in part, the order. An order
affirming or modifying the order is immediately final for purposes
of enforcement and appeal. The order may be appealed as provided by
Sections 31.202[, 31.203,] and 31.204.
SECTION 15. Section 35.004(c), Finance Code, is amended to
read as follows:
(c) An order issued under this section is immediately final
for purposes of enforcement and appeal. The order may be appealed
as provided by Sections 31.202[, 31.203,] and 31.204.
SECTION 16. Section 35.005(e), Finance Code, is amended to
read as follows:
(e) After the hearing, the banking commissioner may affirm,
modify, or set aside in whole or part the emergency order. An order
affirming or modifying the emergency order is immediately final for
purposes of enforcement and appeal. The order may be appealed as
provided by Sections 31.202[, 31.203,] and 31.204.
SECTION 17. Section 35.104(c), Finance Code, is amended to
read as follows:
(c) An order issued under Subsection (b) is immediately
final for purposes of appeal. The order may be appealed as provided
by Sections 31.202[, 31.203,] and 31.204.
SECTION 18. Section 35.110(d), Finance Code, is amended to
read as follows:
(d) After the hearing, the banking commissioner may affirm,
modify, or set aside in whole or part the prior ruling. An order
supporting the action contested by the board is immediately final
for purposes of appeal. The order may be appealed as provided by
Sections 31.202[, 31.203,] and 31.204. [If the order is appealed to
the finance commission, the finance commission may:
[(1) affirm, terminate, or modify the order;
[(2) continue or end supervision or conservatorship;
and
[(3) order further relief as justice, equity, and
protection of depositors, creditors, and the public require.]
SECTION 19. Sections 154.104(a) and (b), Finance Code, are
amended to read as follows:
(a) The commission by rule shall prescribe the term of a [A]
permit [is] issued under this subchapter [for a one-year term].
(b) If the commission prescribes the term of a permit issued
under this subchapter for a period other than one year, the [The]
commission shall prorate the fee required under this subchapter as
necessary to reflect the term of the permit [by rule may adopt a
system under which permits expire on various dates during the
year].
SECTION 20. Section 154.415(f), Finance Code, is amended to
read as follows:
(f) An order issued under Subsection (e) is immediately
final for purposes of enforcement and appeal. The order may be
appealed as provided by Sections 31.202[, 31.203,] and 31.204.
SECTION 21. Section 157.012(c), Finance Code, is amended to
read as follows:
(c) To be eligible to be licensed as a residential mortgage
loan originator, the individual, in addition to meeting the
requirements of Subsection (a), must:
(1) satisfy the commissioner as to [the individual's
good moral character, including] the individual's honesty,
trustworthiness, and integrity;
(2) not be in violation of this chapter, Chapter 180,
or any rules adopted under this chapter or Chapter 180;
(3) provide the commissioner with satisfactory
evidence that the individual meets the qualifications provided by
Chapter 180; and
(4) be a citizen of the United States or a lawfully
admitted alien.
SECTION 22. Sections 181.202 and 181.204, Finance Code, are
amended to read as follows:
Sec. 181.202. APPEAL OF BANKING COMMISSIONER DECISION OR
ORDER. Except as expressly provided otherwise by this subtitle, a
person affected by a decision or order of the banking commissioner
made under this subtitle after a hearing may appeal the decision or
order[:
[(1) to the finance commission; or
[(2) directly] to a district court in Travis County as
provided by Section 181.204.
Sec. 181.204. [DIRECT] APPEAL TO DISTRICT COURT [OR APPEAL
OF FINANCE COMMISSION ORDER]. A person affected by a final order of
the banking commissioner [who elects to appeal directly to district
court, or a person affected by a final order of the finance
commission under this subchapter,] may appeal the final order by
filing a petition for judicial review as provided by Chapter 2001,
Government Code. A petition for judicial review filed in the
district court does not stay or vacate the appealed order unless the
court, after notice and hearing, expressly stays or vacates the
order.
SECTION 23. Section 182.010(d), Finance Code, is amended to
read as follows:
(d) A state trust company that is denied the requested right
or privilege to engage in an activity by the banking commissioner
under this section may appeal as provided by Sections 181.202 and
181.204 [Sections 181.202-181.204] or may resubmit a letter under
this section with additional information or authority relevant to
the banking commissioner's determination. A denial is immediately
final for purposes of appeal.
SECTION 24. Section 185.0035(g), Finance Code, is amended
to read as follows:
(g) After the hearing, the banking commissioner may affirm,
modify, or set aside, in whole or in part, the order. An order
affirming or modifying the order is immediately final for purposes
of enforcement and appeal. The order may be appealed as provided by
Sections 181.202[, 181.203,] and 181.204.
SECTION 25. Section 185.004(c), Finance Code, is amended to
read as follows:
(c) An order issued under this section is immediately final
for purposes of enforcement and appeal. The order may be appealed
as provided by Sections 181.202 and 181.204 [Sections
181.202-181.204].
SECTION 26. Section 185.005(e), Finance Code, is amended to
read as follows:
(e) After the hearing, the banking commissioner may affirm,
modify, or set aside in whole or part the emergency order. An order
affirming or modifying the order is immediately final for purposes
of enforcement and appeal. The order may be appealed as provided by
Sections 181.202 and 181.204 [Sections 181.202-181.204].
SECTION 27. Section 185.104(c), Finance Code, is amended to
read as follows:
(c) An order issued under Subsection (b) is immediately
final for purposes of appeal. The order may be appealed as provided
by Sections 181.202 and 181.204 [Sections 181.202-181.204].
SECTION 28. Section 185.110(d), Finance Code, is amended to
read as follows:
(d) After the hearing, the banking commissioner may affirm,
modify, or set aside in whole or part the prior ruling. An order
supporting the action contested by the board is immediately final
for purposes of appeal. The order may be appealed as provided by
Sections 181.202 and 181.204 [Sections 181.202-181.204]. [If the
order is appealed to the finance commission, the finance commission
may:
[(1) affirm, terminate, or modify the order;
[(2) continue or end supervision or conservatorship;
and
[(3) order further relief as justice, equity, and
protection of clients, creditors, and the public require.]
SECTION 29. Section 187.305(a), Finance Code, is amended to
read as follows:
(a) If the banking commissioner determines that an
out-of-state trust company has violated this subtitle or other
applicable law of this state, the banking commissioner may take all
enforcement actions the banking commissioner would be empowered to
take if the out-of-state trust company were a state trust company,
except that the banking commissioner shall promptly give notice to
the home state regulator of each enforcement action to be taken
against an out-of-state trust company and, to the extent
practicable, shall consult and cooperate with the home state
regulator in pursuing and resolving the enforcement action. An
out-of-state trust company may appeal a final order or other
decision of the banking commissioner under this subtitle as
provided by Sections 181.202 and 181.204 [Sections
181.202-181.204].
SECTION 30. Section 201.009, Finance Code, is amended to
read as follows:
Sec. 201.009. ENFORCEMENT; APPEALS. (a) If the
commissioner determines that a bank holding company or a foreign
bank has violated this subtitle or other applicable law of this
state, the commissioner may take any enforcement action the
commissioner would be empowered to take if the bank holding company
or foreign bank were a Texas state bank, except that the
commissioner shall promptly give notice to the home state regulator
of each enforcement action taken against an out-of-state bank
holding company or foreign bank and, to the extent practicable,
shall consult and cooperate with the home state regulator in
pursuing and resolving the enforcement action. A bank holding
company or foreign bank may appeal a final order or other decision
of the commissioner under this subtitle as provided by Sections
31.202[, 31.203,] and 31.204.
(b) If the commissioner determines that an interstate
branch maintained by an out-of-state state bank in this state is
being operated in violation of a law of this state that is
applicable to the branch under Section 24(j), Federal Deposit
Insurance Act (12 U.S.C. Section 1831a(j)), including a law that
governs community reinvestment, fair lending, or consumer
protection, the commissioner, with written notice to the home state
regulator and subject to the terms of any applicable cooperative
agreement with the home state regulator, may take any enforcement
action the commissioner would be empowered to take if the branch
were a Texas state bank or state savings bank, as the case may be.
An out-of-state state bank may appeal a final order or other
decision of the commissioner under this subtitle as provided by
Sections 31.202[, 31.203,] and 31.204, or as provided under
Subtitle C with respect to a state savings bank.
SECTION 31. Section 204.119, Finance Code, is amended to
read as follows:
Sec. 204.119. STATUS OF REVOKED LICENSE. Unless stayed by
the [finance commission or] district court that has jurisdiction
over an appeal, a final order of the commissioner revoking a license
is effective immediately and the foreign bank shall immediately
cease all activity in this state requiring a license. Subject to
Section 204.120, all functions requiring a license must be
immediately transferred to a branch, affiliate, or agency of the
foreign bank that is located outside of this state and that has the
power to perform those functions under governing law. Continued
activity in this state of an unlicensed foreign bank is subject to
Subchapter C, Chapter 35.
SECTION 32. Section 396.001(7), Finance Code, is amended to
read as follows:
(7) "Private child support enforcement agency" means
an individual or nongovernmental entity who engages in the
enforcement of child support ordered by a court or other tribunal
for a fee or other consideration. The term includes a foreign
agency. The term does not include:
(A) an attorney enforcing a child support
obligation on behalf of, and in the name of, a client unless the
attorney has an employee who is not an attorney and who on behalf of
the attorney:
(i) regularly solicits for child support
enforcement; or
(ii) regularly contacts child support
obligees or obligors for the purpose of child support enforcement;
(B) a state agency designated to serve as the
state's Title IV-D agency in accordance with Part D, Title IV,
Social Security Act (42 U.S.C. Section 651 et seq.), as amended; or
(C) a contractor awarded a contract to engage in
child support enforcement on behalf of a governmental agency,
including a contractor awarded a contract[:
[(i) under Chapter 236, Family Code; or
[(ii)] by a political subdivision of this
or another state that is authorized by law to enforce a child
support obligation.
SECTION 33. Sections 396.202(a) and (b), Finance Code, are
amended to read as follows:
(a) A private child support enforcement [registered] agency
shall maintain records of all child support collections made on
behalf of, and disbursed to, a client who is an obligee, including:
(1) the name of any obligor who made child support
payments collected by the agency;
(2) the amount of support collected by the agency for
each client, including:
(A) the date on which the amount was collected;
and
(B) the date on which each amount due the client
by the obligor was paid to the client;
(3) a copy of the order establishing the child support
obligation under which a collection was made by the agency; and
(4) any other pertinent information relating to the
child support obligation, including any case, cause, or docket
number of the court having jurisdiction over the matter.
(b) The records required under this section must be updated
at least monthly and must be maintained by the private child support
enforcement [registered] agency for a period of four years from the
date of the last support payment collected by the agency on behalf
of an obligee.
SECTION 34. Section 396.203(a), Finance Code, is amended to
read as follows:
(a) A private child support enforcement [registered] agency
[and foreign agency authorized to engage in business under this
chapter] shall execute a written contract for the enforcement of
child support for each client of the agency that is residing in this
state.
SECTION 35. Sections 396.251(a) and (b), Finance Code, are
amended to read as follows:
(a) In enforcing a child support obligation, a private child
support enforcement [registered] agency may not use threats,
coercion, or attempts to coerce that employ any of the following
practices:
(1) using or threatening to use violence or other
criminal means to cause harm to an obligor or property of the
obligor;
(2) accusing falsely or threatening to accuse falsely
an obligor of a violation of state or federal child support laws;
(3) taking or threatening to take an enforcement
action against an obligor that is not authorized by law; or
(4) intentionally representing to a person that the
agency is a governmental agency authorized to enforce a child
support obligation.
(b) Subsection (a) does not prevent a private child support
enforcement [registered] agency from:
(1) informing an obligor that the obligor may be
subject to penalties prescribed by law for failure to pay a child
support obligation; or
(2) taking, or threatening to take, an action
authorized by law for the enforcement of a child support obligation
by the agency.
SECTION 36. Section 396.252, Finance Code, is amended to
read as follows:
Sec. 396.252. FRAUDULENT, DECEPTIVE, OR MISLEADING
REPRESENTATIONS. In enforcing a child support obligation, a
private child support enforcement [registered] agency or employee
of the agency may not:
(1) identify the [registered] agency by any name other
than one by which the agency is authorized to do business under the
laws of this state [registered with the department];
(2) falsely represent the nature of the child support
enforcement activities in which the agency is authorized by law to
engage; or
(3) falsely represent that an oral or written
communication is the communication of an attorney.
SECTION 37. Section 396.352(a), Finance Code, is amended to
read as follows:
(a) A private child support enforcement [registered] agency
that is located in another state or [a private child support
enforcement agency] that engages in the business of child support
enforcement in this state in violation of this chapter is
considered to have submitted to the jurisdiction of the courts of
this state with respect to an action brought under this chapter.
SECTION 38. Section 711.001(6), Health and Safety Code, is
amended to read as follows:
(6) "Cemetery broker" means a person who sells the
exclusive right of sepulture for another person. The term does not
include a person who:
(A) is an officer, agent, or employee of the
cemetery organization in which the plot is located, acting at the
direction or under the control of the cemetery organization [and
who is exempt from registration under Subchapter C-1]; or
(B) originally purchased the exclusive right of
sepulture for personal use.
SECTION 39. Section 711.012(a), Health and Safety Code, is
amended to read as follows:
(a) The Finance Commission of Texas may adopt rules to
enforce and administer [Subchapter C-1 and] Sections 711.003,
711.004, 711.007, 711.008, 711.0105, 711.021-711.024,
711.032-711.036, 711.038, 711.0381, 711.040-711.042, 711.052,
711.061, 711.063, and 711.064 relating to perpetual care
cemeteries.
SECTION 40. Section 711.038(e), Health and Safety Code, is
amended to read as follows:
(e) A person [who is an officer, agent, or employee of the
cemetery organization or its affiliate and who is exempt from
registration under Subchapter C-1] is not required to be licensed
or registered to sell a plot in a dedicated cemetery.
SECTION 41. Section 711.052(a), Health and Safety Code, is
amended to read as follows:
(a) A person who is an individual, firm, association,
corporation, or municipality, or an officer, agent, or employee of
an individual, firm, association, corporation, or municipality,
commits an offense if the person:
(1) engages in a business for cemetery purposes in
this state other than through a corporation organized for that
purpose, if a corporation is required by law;
(2) fails or refuses to keep records of interment as
required by Sections 711.003 and 711.004;
(3) sells, offers to sell, or advertises for sale a
plot or the exclusive right of sepulture in a plot for purposes of
speculation or investment;
(4) represents through advertising or printed
material that a retail department will be established for the
resale of the plots of plot purchasers, that specific improvements
will be made in the cemetery, or that specific merchandise or
services will be furnished to a plot owner, unless adequate funds or
reserves are created by the cemetery organization for the
represented purpose;
(5) makes more than one interment in a plot in a
cemetery operated by a cemetery organization other than as provided
by Section 711.0395;
(6) removes remains from a plot in a cemetery operated
by a cemetery organization without complying with Section 711.004;
(7) offers or receives monetary inducement to solicit
business for a cemetery broker; or
(8) fails or refuses to keep records of sales or
resales or to collect and remit fees as required by Section
711.0381[; or
[(9) fails or refuses to register as a cemetery broker
as required by Subchapter C-1].
SECTION 42. Section 711.056(a), Health and Safety Code, is
amended to read as follows:
(a) If after a hearing conducted as provided by Chapter
2001, Government Code, the trier of fact finds that a violation of
this chapter or a rule of the Finance Commission of Texas
establishes a pattern of wilful disregard for the requirements of
this chapter or rules of the finance commission, the trier of fact
may recommend to the commissioner that the maximum administrative
penalty permitted under Section 711.055 be imposed on the person
committing the violation or that the commissioner cancel or not
renew[:
[(1) the person's registration under Subchapter C-1,
if the person is registered under that subchapter; or
[(2)] the person's permit under Chapter 154, Finance
Code, if the person holds such a permit.
SECTION 43. Section 711.059(a), Health and Safety Code, is
amended to read as follows:
(a) The commissioner may issue an order to seize accounts in
which funds from the sale or resale of the exclusive right of
sepulture in a plot, including earnings, may be held and may issue
an order to seize the records that relate to the sale or resale of
the exclusive right of sepulture in a plot if the commissioner
finds, by examination or other credible evidence, that the person:
(1) failed to remit a fee in accordance with Section
711.0381;
(2) misappropriated, converted, or illegally withheld
or failed or refused to pay on demand money entrusted to the person
that belongs to a cemetery organization under an instrument of
conveyance; or
(3) refused to submit to examination by the
department[;
[(4) was the subject of an order to cancel, suspend, or
refuse a registration under Subchapter C-1; or
[(5) is required to register under Subchapter C-1 and
is not registered or has transferred the ownership of the business
that required registration to another person who is not
registered].
SECTION 44. Sections 711.082(a) and (b), Health and Safety
Code, are amended to read as follows:
(a) The department shall administer Subchapter
[Subchapters] C [and C-1] relating to cemetery brokers.
(b) The commission may adopt reasonable rules concerning:
(1) fees to defray the cost of administering
Subchapter [Subchapters] C [and C-1];
(2) the retention and inspection of records relating
to the sale or resale of the exclusive right of sepulture in a plot;
(3) changes in the management or control of a cemetery
broker's business; and
(4) any other matter relating to the enforcement and
administration of Subchapter [Subchapters] C [and C-1].
SECTION 45. Section 712.0036, Health and Safety Code, is
amended to read as follows:
Sec. 712.0036. TERM OF CERTIFICATE OF AUTHORITY. (a) The
Finance Commission of Texas by rule shall prescribe the term of and
renewal procedures for a [An initial] certificate of authority
[expires March 1 of the year after the year the certificate is]
issued under this chapter[. The certificate must be renewed at that
time and by March 1 of each following year].
(b) If the Finance Commission of Texas prescribes the term
of a certificate of authority issued under this chapter for a period
other than one year, the finance commission shall prorate any
applicable fees as necessary to reflect the term of the
certificate.
SECTION 46. Section 712.0037(a), Health and Safety Code, is
amended to read as follows:
(a) As a condition of renewal, a certificate holder must
meet the qualifications and satisfy the requirements that apply to
an applicant for a new certificate of authority. Additionally, not
later than the certificate's [annual] renewal date, a certificate
holder shall:
(1) pay a [an annual] renewal fee in an amount
established by Finance Commission of Texas rule; and
(2) submit a renewal report under oath and in the form
and medium required by the commissioner that demonstrates that the
certificate holder meets the qualifications and requirements for
holding a certificate.
SECTION 47. The following laws are repealed:
(1) Sections 13.011(d) and (e), Finance Code;
(2) Sections 31.203 and 181.203, Finance Code;
(3) Section 396.001(8), Finance Code;
(4) Subchapters B, C, and D, Chapter 396, Finance
Code;
(5) Section 396.201, Finance Code;
(6) Subchapter G, Chapter 396, Finance Code;
(7) Section 711.0381(a), Health and Safety Code; and
(8) Subchapter C-1, Chapter 711, Health and Safety
Code.
SECTION 48. (a) Except as provided by Subsection (b) of
this section, Section 11.110, Finance Code, as amended by this Act,
applies to a member of the Finance Commission of Texas appointed
before, on, or after the effective date of this Act.
(b) A member of the Finance Commission of Texas who, before
the effective date of this Act, completed the training program
required by Section 11.110, Finance Code, as that law existed
before the effective date of this Act, is required to acknowledge
that the member received and reviewed the training manual required
by Section 11.110, Finance Code, as amended by this Act. A member
of the finance commission described by this subsection may not
vote, deliberate, or be counted as a member in attendance at a
meeting of the finance commission held on or after December 1, 2019,
until the member of the finance commission acknowledges that the
member received and reviewed the training manual.
SECTION 49. Section 154.104, Finance Code, as amended by
this Act, and Sections 712.0036 and 712.0037, Health and Safety
Code, as amended by this Act, apply only to a permit or certificate
of authority issued or renewed on or after September 1, 2019. A
permit or certificate of authority issued or renewed before that
date is governed by the law in effect immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 50. (a) On the effective date of this Act, a
certificate of registration that was issued under Section 396.106,
Finance Code, a certificate that was issued to operate in this state
under Section 396.152, Finance Code, or a registration that was
issued under Subchapter C-1, Chapter 711, Health and Safety Code,
expires.
(b) The repeal of a law by this Act does not entitle a person
to a refund of an application, registration, or other fee paid by
the person before the effective date of this Act.
SECTION 51. The changes in law made by this Act do not
affect the validity of a disciplinary action or other proceeding
that was initiated before the effective date of this Act and that is
pending before a court or other governmental entity on that date.
SECTION 52. (a) A violation of a law that is repealed by
this Act is governed by the law in effect on the date the violation
was committed, and the former law is continued in effect for that
purpose.
(b) For purposes of this section, a violation was committed
before the effective date of this Act if any element of the
violation occurred before that date.
SECTION 53. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 614 passed the Senate on
March 27, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 614 passed the House on
April 26, 2019, by the following vote: Yeas 138, Nays 0, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor