The 80th Legislative Session is over the half-way mark!  It has been a bumpy ride so far, with the governor’s HPV vaccine executive order, the TYC abuse allegations, a contested speaker’s race, and other distractions taking time and energy from the legislators.  Here is where we stand on banking issues at this time.

 

 

HB 944 by Solomons has been favorably reported by the House Financial Institutions Committee and was voted favorably (and quickly) on second reading Wednesday on the House floor.  If all goes as it should, it will be finally passed and on to the Senate by the time you read this.  The bill was tweaked to assure that it doesn’t inadvertently prevent branching by savings banks that is currently permitted.  Even though Wal-Mart has pulled its ILC application, there are other retailers (like Home Depot) pushing for banking powers.  Thus, this is an important initiative for banking.

 

HB 2219 by Solomons was heard on Monday in House Financial Institutions.  IBAT’s General Counsel testified in support and clarified the bill for the committee members.  While this bill does NOT require banks to have a registered agent, if they do, then that is the correct person to serve with process.  The purpose is to prevent service on tellers at remote branches, resulting in a default judgment!

 

Two bills from the DOB accomplish important technical corrections in the Finance Code.  HB 1962 by Orr corrects the citations in the law from Texas Business Corporations Act to the Business Organizations Code.  Technical, but important clean up.  HB 2006 by Solomons sets up a financial literacy program through the DOB, permits a limited passive investment in mineral interests, provides for emergency temporary branches, and eliminates “certified” surplus, which results in higher lending limits for state charters.  Both bills were heard in the House Financial Institutions Committee on Monday and left pending.  IBAT supported both.

 

HB 1795 by Veasey was reported out of the House Financial Institutions Committee after being amended.  Originally the bill provided “reverse PIN” entry as a measure for customers to contact law enforcement when being held up at an ATM.  As amended, the bill would provide for Finance Commission rules on security measures resulting from emerging technology.

 

Another bill coming out of House FI Committee is HB 716 by Solomons.  This amended bill more clearly criminalizes mortgage fraud activity.  To help prosecutors get convictions, it requires a statement at closing by the borrower, verifying their income and employment data.

 

HB 285 by Herrero was favorably reported by the Defense Affairs Committee of the House.  It was significantly amended so that a guardsman or reservist who is activated for 180 days (not 30) and who can’t pay an obligation incurred prior to activation due to a 10% or more drop in income can defer the obligation for the full period of activation plus 91 days (not 181).  Unfortunately, the deferred obligation may not accrue interest.  We do not wish to appear unpatriotic, but this aspect causes significant concern.

 

We continue to work on refining the home equity amendments to the constitution in a way that will accomplish significant objectives for lending while still providing appropriate protections for consumers.  A tight rope walker has an easier job than this!

 

Also, work continues within the lending community on amendments to rein in the tax lien financers.  Read the joint letter submitted to Senator Carona and Representative Orr, each of whom have important bills on the subject.