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Capitol Report - 05.25.07
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We started this session with a speaker’s race and we may be ending it with one. As a result, days have been packed with jockeying, posturing and a healthy amount of arm-twisting on the House side. Tuesday night at midnight was the last opportunity for Senate bills to be passed out of the House on second reading . . . the last of the third readings occurred on Wednesday. The Senate spent two very long days on Tuesday and Wednesday debating House bills, and adding numerous amendments in an attempt to revive multiple pet bills from their death beds. A very significant number of bills died as time ran out. Of course, this isn’t necessarily a bad thing!
PROACTIVE AGENDA
Done (see the last Capitol Report for additional information) . . . except for the pesky little detail of the Governor signing them. However, we have no reason to believe that any are in danger, and indeed have already met with senior staff in the Governor’s office to head off any potential veto threats on our legislative initiatives.
The Senate amendments to HJR 72 (the home equity legislation addressing the ACORN suit and other matters) were concurred with by Chairman Solomons. Of course, as a constitutional amendment, it still must face voter scrutiny in the fall. Meanwhile, the ag lien issue (whether borrower can restore ag use valuation and defeat the lien) has also been addressed through attachment to a bill amending the Tax Code. If the constitutional amendment doesn’t pass for some reason, at least we will have clear rules for the future. Basically, the Tax Code approach is that once a person has a home equity loan on ag use property, they can’t restore the ag use valuation to that parcel.
MARGIN TAX CHANGES
The very important technical corrections bill, HB 3928, is in conference committee. “Inside” information indicates that everything will be just fine with this bill, but we will all feel substantially better when this critical legislation is through the entire process. The only issue outstanding at the moment – the differing language in the House and Senate versions regarding the ability of a commercial entity (in this case, Sprint Wireless) to effectively levy a surcharge and directly bill a consumer for the payment of this new tax.
TAX LIEN FINANCING
SB 1520 by Wentworth is in conference committee. The Senator did not agree with the House changes (bless his little heart!), and so we hope that the provisions we thought were agreed upon (like notices from the tax lien financer to the first lien holder) will be in place. Also, an innocuous elimination of the word “and” would permit these tax lien finance companies to finance nondelinquent taxes. We believe that will be fixed as well. Meanwhile, HB 2138, the regulatory bill, passed with the House concurring with Senate amendments.
MORTGAGE FRAUD
HB 716 by Chairman Solomons/Senator Wentworth has been completed as the House concurred with Senate amendments. It is now on its way to the Governor.
AG CO-OPS
HB 2671 by Swinford would create a new type of ag cooperative with rather broad powers, making it look pretty much like a bank. This bill died before getting through the Senate. We thought we had correcting language early in the process, but something went awry along the way. This language was indeed fixed for a Senate Committee Substitute, but the bill never made it that far. We appreciate the efforts of Representative Swinford and Senator Hegar in addressing our concerns.
POSSUM KINGDOM LAND PURCHASES
SB 1326 by Estes would permit lessees of property at Possum Kingdom to acquire title from the Brazos River Valley Authority. IBAT worked on clean up language to protect existing lien holders who financed lease improvements. The bill did not make it out as a stand alone one. However, it (like scores of others!) was added to the massive water bill, HB 3, which was a “must pass” item.
FINANCIAL ADVISORS
HB 3282 would make sure that certain financial advisors to public entities would be regulated by the State Securities Board. We worked with the promoters of this bill to amend it to make sure that a financial advisor is not required for a public entity seeking traditional bank loans and deposits. As a stand-alone bill, this one did not make it through the process either. However, it was added to SB 1332 (debt management policies of bond review!) on third reading in the House . . . the very last bill to go through the process.
CHILD SUPPORT LIEN
Several bills that deal with child support liens have expanded the lien to accounts as to which the obligor has a beneficial or community property interest. How would a bank know that? (Short answer: it doesn’t.) We are working to try to strip out this language. The AG Child Support Division assures us that the amendments are not coming from them. Our fingers are crossed.
Remember that IBAT will be publishing a White Paper at the end of the session and will be conducting a FREE webinar/telephone seminar on June 12 to review the highlights of the session and how you and your bank will be impacted. While free of charge, we do need you to register! You may do so HERE.
As this is being written, we are 4 days, 5 hours and 42 minutes from “Sine Die”, which is Latin for “Without another day”. More importantly, it means this is over for awhile! Thanks to all of you who have responded to our calls to action, who have developed relationships with your elected officials and who have supported the IBAT PACs over the years. You have indeed made a difference!
Karen Neeley
General Counsel
Independent Bankers Association of Texas
Cox Smith Matthews Incorporated
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This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in the rendering of legal, accounting or other professional service or advice for specific companies or financial institutions. If legal advice or other expert assistance is required, the services of a competent professional person should be sought - from a Declaration of Principals adopted by the American Bar Association and a Committee of Publishers and Associations.
Comments & Questions
If you would like
to comment on legislative topics or if you have questions about this
information please call our public affairs expert, Mae Beth Palone at
(800) 749-4228 or E-mail mbpalone@ibat.org.
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