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


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
 
 
  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
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