Finance Commission Meeting - October 18, 2019

 
Packet
 
 
Minutes
 
 
Economic Report
 
 
Audio

Location:
Finance Commission Building | William F. Aldridge Hearing Room,
2601 N. Lamar Blvd. | Austin, Texas 78705

Time:
9:00 a.m.

Section A.3 will take up agenda items A1, B2 – B9, C5 – C7 and D2 – D5 with NO DISCUSSION as notated in bold and italicized

Public comment on any agenda item or issue under the jurisdiction of the Finance Commission agencies is allowed unless the comment is in reference to a rule proposal for which the public comment period has ended. However, upon majority vote of the Commission, public comment may be allowed related to final rule adoption.

A. Finance Commission Matters

  1. 1. Review and Approval of the Minutes of the August 15-16, 2019 Finance Commission Meetings
     
  2. General Public Comment
     
  3. Consent Agenda
     
  4. Finance Commission Operations
     
  5. Audit Committee Report
    1. Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agencies’ August 31, 2019 Investment Officer Reports
      1. Texas Department of Banking
      2. Department of Savings and Mortgage Lending
      3. Office of Consumer Credit Commissioner
         
    2. Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agencies’ 2019 Fourth Quarter Financial Statements
      1. Texas Department of Banking
      2. Department of Savings and Mortgage Lending
      3. Office of Consumer Credit Commissioner
         
    3. Discussion and Possible Vote to Recommend that the Finance Commission Take Action on the Selection of an Internal Auditor for the Finance Commission Agencies for Fiscal Year 2020
       
  6. Discussion of and Possible Vote to Accept the Report on the Financial Condition of the State Banking System (Note: Report provided separately)
     
  7. Discussion of and Possible Vote to Take Action on the Accomplishment Reports for Fiscal Year 2019 for the Commissioners of the Texas Department of Banking, Department of Savings and Mortgage Lending and the Office of Consumer Credit Commissioner
     
  8. Discussion of and Possible Vote to Recommend that the Finance Commission Take Action on the Agencies’ Management Response to the Efficiency Audit Regarding Sunset Recommendation 2.6 – “Direct the Finance Commission to minimize duplication of agency functions and promote more cost efficient administration of the finance agencies.”
     
  9. Discussion of and Possible Vote to Take Action on the Proposal and Publication for Comment of New Rules and Amendments in 7 TAC, Chapter 5, Concerning Administration of Finance Agencies, and a New Rule, Amendments, and Repeals in 7 TAC, Chapter 9 Concerning Rules of Procedure for Contested Case Hearings, Appeals, and Rulemakings
     
  10. Discussion of and Possible Vote to Take Action Regarding Personnel Matters Pursuant to   §551.074, Texas Government Code: Deliberations with Respect to the Duties and Compensation of a Person Holding the Position of Executive Director of the Finance Commission, Deliberations with Respect to the Duties and Compensation of Persons Holding the Position of Agency Commissioner Positions, and Other Staff
     
  11. Discussion of and Possible Vote to Take Action Regarding Facility Planning and Real Property Matters Pursuant to §551.072, Texas Government Code: Deliberations Regarding the Purchase, Exchange, Lease or Value of Real Property
     
  12. Discussion and Consultation with Attorney and Possible Vote to Take Action Pursuant to §551.071, Texas Government Code, for the Purpose of Seeking the Advice or Attorney-client Privileged Communications from our Attorneys, Including Matters Related to the Potential Financial Exposure of the Finance Commission Agencies and Their Officers and the Finance Commission and its Officers and Including Matters of Pending and Contemplated Litigation
     
  13. Discussion of and Consultation on Security Audit, Possible Issue Related to Confidential or Sensitive Information, Security Breach Audit and Assessment, or Security Assessments or Deployment Related to Information Resources Technology as Authorized by Tex. Govt. Code Secs. 551.076 and 551.089

B. Texas Department of Banking

  1. Industry Status and Departmental Operations: a) Current Issues Affecting Department’s Regulated Entities; b) Bank and Trust Division Activities; c) Corporate Division Activities; d) Special Audits Division Activities; e) Administrative, Staffing and Fiscal Division Activities; f) Strategic Support Division Activities including Consumer Complaint Data; g) Legal Division Activities including Enforcement Activity and Gift Reporting; and h) Legislative Activities
     
  2. Discussion of and Possible Vote to Take Action on the Re-adoption of 7 TAC, Part 1, Chapter 6 Concerning Banking Development Districts, Resulting from Rule Review
     
  3. Discussion of and Possible Vote to Take Action on the Re-adoption of 7 TAC, Part 2, Chapter 15 Concerning Corporate Activities, Resulting from Rule Review
     
  4. Discussion of and Possible Vote to Take Action on the Re-adoption of 7 TAC, Part 2, Chapter 17 Concerning Trust Company Regulation, Resulting from Rule Review
     
  5. Discussion of and Possible Vote to Take Action on the Re-adoption of 7 TAC, Part 2, Chapter 19 Concerning Trust Company Loans and Investments, Resulting from Rule Review
     
  6. Discussion of and Possible Vote to Take Action on the Re-adoption of 7 TAC, Part 2, Chapter 21 Concerning Trust Company Corporate Activities, Resulting from Rule Review
     
  7. Discussion of and Possible Vote to Take Action on the Adoption of Repeal of 7 TAC, Part 2, Chapter 31, §§31.1 – 31.115 Concerning Private Child Support Enforcement Agencies
     
  8. Discussion of and Possible Vote to Take Action on the Adoption of Repeal of 7 TAC, Part 2, Chapter 33, §§33.71 – 33.75 Concerning Bullion Depository Agents
     
  9. Discussion of and Possible Vote to Take Action on the Adoption of Amendments to 7 TAC, Part 2, Chapter 33, §§33.3, 33.13, 33.15, 33.27, 33.51 Concerning Bullion Depository Agents
     
  10. Discussion of and Possible Vote to Take Action on the Proposal and Publication for Comment of Amendment to 7 TAC, Part 1, Chapter 6, §6.1 Concerning Banking Development Districts
     
  11. Discussion of and Possible Vote to Take Action on the Proposal and Publication for Comment of Amendments to 7 TAC, Part 2, Chapter 15, §§15.1, 15.2, 15.7, 15.23, 15.41, 15.42, 15.81, 15.103 - 15.106, 15.108, 15.111, 15.115, 15.122 Concerning Corporate Activities
     
  12. Discussion of and Possible Vote to Take Action on the Proposal and Publication for Comment of Amendments to 7 TAC, Part 2, Chapter 21, §§21.2, 21.6, 21.7, 21.42, 21.43, 21.61, 21.74 Concerning Trust Company Corporate Activities
     
  13. Discussion of and Possible Vote to Take Action on the Proposal and Publication for Comment of New 7 TAC, Part 2, Chapter 33, §33.54 Concerning Exemption for Registered Securities Dealers and Agents
     
  14. Discussion of and Possible Vote to Take Action on Anticipated and Pending Litigation

    E. Mex. Financial Services, Inc. v. Charles G. Cooper, Texas Banking Commissioner; Cause No. D-1-GN-19-003237, in the 200th District Court of Travis County, Texas

C. Department of Savings and Mortgage Lending

  1. Industry Status and Departmental Operations – State Savings Bank Activity: a) Industry Status; and b) State Savings Bank Charter and Application Activity
     
  2. Industry Status and Departmental Operations – Mortgage Lending Activity: a) Residential Mortgage Loan Originators; b) Mortgage Examination; and c) Consumer Complaints
     
  3. Fiscal and Departmental Operations: a) Funding Status/Audits/Financial Reporting; and b) Staffing
     
  4. Legal Activity: a) Enforcement; b) Gift Reporting; and c) Legislative Activities
     
  5. Discussion of and Possible Vote to Take Action on the Adoption of Amendments to 7 TAC, Part 4, Chapter 79, §79.20, Concerning Hearings Officer Investigations and §79.30, Concerning Hearings and Appeals
     
  6. Discussion of and Possible Vote to Take Action on the Adoption of Amendments to 7 TAC, Part 4, Chapter 80, §80.301, Concerning Investigations, Administrative Penalties, and Disciplinary and/or Enforcement Actions and §80.302, Concerning Hearings and Appeals
     
  7. Discussion of and Possible Vote to Take Action on the Adoption of New 7 TAC, Part 4, Chapter 81, §81.110 Concerning Licensing of Military Service Members, Military Veterans, and Military Spouses
     
  8. Discussion of and Possible Vote to Take Action on the Proposal and Publication for Comment of New 7 TAC, Part 4, Chapter 52 Concerning Hearings, Appeals and Informal Settlement Conferences
     
  9. Discussion and Possible Vote to Take Action on the Adoption of Amendments to 7 TAC, Part 4, Chapter 80, §80.201 Concerning Loan Status Forms
     
  10. Discussion and Possible Vote to Take Action on the Adoption of Amendments to 7 TAC, Part 4, Chapter 81, §81.201 Concerning Loan Status Forms
     
  11. Discussion of and Possible Vote to Take Action on Anticipated and Pending Litigation
     

D. Office of Consumer Credit Commissioner

  1. 1. Industry Status and Departmental Operations: a) Consumer Protection and Assistance Division Activities; b) Licensing Division Activities; c) Administration Division Activities; d) Financial Division Activities; e) Legal Division Activities; and f) Legislative Activities
     
  2. Discussion of and Possible Vote to Take Action on the Adoption of Amendments to §83.501 in 7 TAC, Part 5, Chapter 83, Subchapter A, Concerning Rules for Regulated Lenders, and to §90.203 in 7 TAC, Part 5, Chapter 90, Concerning Chapter 342, Plain Language Contract Provisions
     
  3. Discussion of and Possible Vote to Take Action on the Adoption of Amendments to §86.201 in 7 TAC, Part 5, Chapter 86, Concerning Retail Creditors
     
  4. Discussion of and Possible Vote to Take Action on the Adoption of New §2.108 in 7 TAC, Part 1, Chapter 2, Concerning Residential Mortgage Loan Originators
     
  5. Discussion of and Possible Vote to Take Action on the Adoption of New §85.309 in 7 TAC, Part 5, Chapter 85, Subchapter A, Concerning Rules of Operation for Pawnshops
     
  6. Discussion of and Possible Vote to Take Action on Request for an Attorney General Opinion RQ-0300-KP, Regarding the Authority of a Credit Services Organization Under Chapter 393 of the Texas Finance Code
     
  7. Discussion of and Possible Vote to Take Action on Request for an Attorney General Opinion RQ-0306-KP, Regarding the Authority of the City of College Station to Regulate Secondhand Dealer Transactions by Ordinance When Those Businesses Also Operate as a Pawnshop
     
  8. Discussion of and Possible Vote to Take Action on Anticipated and Pending Litigation

    Ernest Polk v. Texas Office of Consumer Credit Commissioner; Cause No. 2018-04375, in the 281st Judicial District Court of Harris County, Texas

    State of Texas v. Cash Auto Sales, Inc. f/k/a Larry Lake d/b/a Cash Auto Sales and VIP Finance of Texas, Inc. f/k/a Travis Lake d/b/a VIP Finance; Cause No. 05-18-00198-CV, in the Court of Appeals for the Fifth Judicial District, Dallas, Texas

Note: The Finance Commission may go into executive session (close its meeting to the public) on any agenda item if appropriate and authorized by the Open Meetings Act, Texas Government Code, Chapter 551.

Meeting Accessibility: Under the Americans with Disabilities Act, the Finance Commission will accommodate special needs. Those requesting auxiliary aids or services should notify the Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705, (512) 936-6222, as far in advance of the meeting as possible.