HB 2127 preemption of local regulation
Director of Regulatory Affairs
Between November 14, 2022, when prefiling of bills opened through March 10, 2023, when bill filing closed, 8,344 bills and joint resolutions were filed. We identified 68 bills worthy of tracking for potential impact on the mortgage industry. Fortunately, this has been a relatively quiet session for financial services both in terms of total volume and regarding defending against bad legislation. With less than two weeks remaining in this session, only 20 of our originally tracked bills have any chance of passage and many of those will not clear the challenges of the coming days.
The knives are already out between the Senate and House, killing bills and threatening a special session. Each chamber is trying to maintain their vision for slowing property tax costs, and expressing if school vouchers are a good idea. It is these types of arguments that frequently cause unintended consequences to innocent bills. The process of “chubbing” has also been initiated. Chubbing is the purposely slow walking of procedures which slows the calendar os certain bills don’t get a chance to be heard for a vote.
• HB 2127 Burrows, Dustin – The legislature finds that in recent years many municipalities have sought to establish their own regulations of commerce. Job creators need a baseline of regulatory consistency across the state. HB 2127 seeks to provide relief from the pressure to duplicate regulatory and enforcement efforts. This bill amends both the Finance Code, and Property Code, as well as seven other code sections, to preempt municipal and county regulation when a provision of those codes exists at the State level. The bill establishes an exception to its preemption provisions in the Finance Code for municipality or county ordinance, order, or rule related to regulating credit services organizations, or a credit access business, that was adopted before January 1, 2023. Where this type of local regulatory activity has been most prevalent for financial services has been in the pay day lending area.
To read the full text of any of these bills you can go to Texas Legislature Online.
Bills on the Move
Bills headed to the Governor
• HB 4 Capriglione, Giovanni – Relating to the regulation of the collection, use, processing, and treatment of consumers’ personal data by certain business entities; imposing a civil penalty. (Companion HB1844) Passed the Senate May 10th, Passed the House April 5th.
• SB 768 Parker, Tan – Relating to the process for notifying the attorney general of a breach of security of computerized data by persons doing business in this state. (Companion HB1660) Passed the House May 12th., Passed the Senate April 3rd.
• SB 801 Hughes, Brian – Relating to an instrument that names a trust as a party. (Companion HB4281) Passed the House May 12th., Passed the Senate March 16th
• SB 1222 Zaffirini, Judith – Relating to regulation of appraisers and the duties of the Texas Appraiser Licensing and Certification Board. Sent to the Governor May 8th, Passed the House May 3rd, Passed the Senate April 13th.
• SB 1780 Parker, Tan – Relating to online notarizations. (Companion HB 5004) Passed the House, May 12th. Passed the Senate May 1st.
Bills being considered in Second Chamber
Bills being considered in Second Chamber
• HB 92 Landgraf, Brooks – Relating to the authority of a municipality, county, or property owners’ association to prohibit or regulate certain activities on residence homestead property. Referred to Senate Local Government April 20th, Passed the House April 18th.
• HB 207 Murr, Andrew – Relating to the exclusion of certain conveyances from classification as sham or pretended sales. Recommended for Senate Local Uncontested Calendar May 12th, Passed the House April 20th.
• HB 219 Noble, Candy – (HB 219 was previously filed in 87th Session as HB 3278 but left pending in Committee without a vote.) Relating to the release of a deed of trust or other contract lien securing a home loan after payoff by mortgagor. Recommended for Senate Local Uncontested Calendar May 12th, Passed the House April 19th.
• HB 264 Toth, Steve – (HB 264 was previously filed in 87th Session as HB 2284 it was approved in Committee and sent to Calendars.) Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan. Received in the Senate May 3rd, Passed the House May 2nd .
• HB 697 Holland, Justin – Relating to seller’s disclosures regarding fuel gas piping in residential real property. Recommended for Senate Local Uncontested Calendar May 10th, Passed the House April 13th.
• HB 886 Shaheen, Matt – (HB 886 was previously filed in 87th Session as HB 3857 but left pending in Committee without a vote.) Relating to requirements to file a property owners’ association assessment lien. Referred to Senate Local Government May 9th, Passed the House May 6th.
• HB 1195 Holland, Justin – Relating to the authority of a county to require photo Identification to file certain documents with the county clerk. This bill strikes the existing population threshold of 800,000 citizens and extends the existing authority to all Texas counties. (Companion to SB 319) Recommended for Senate Local Uncontested Calendar May 11th, Passed the House April 20th.
• HB 1704 Walle, Armando – Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state; authorizing a fee. (Companion SB 2528) Referred to Senate Local Government April 20th, Passed the House April 19th.
• HB 2127 Burrows, Dustin – Relating to state preemption of certain municipal and county regulation. (Companion to SB 814) Placed on Senate Intent Calendar May 9th, postponed to May 15th, Passed the House April 19th.
• HB 4277 Longoria, Oscar – Relating to the right of a purchaser to terminate a contract of purchase and sale of real property for failure to provide notice that the property is located in a public improvement district. (Companion to SB 1374) Heard in Senate Business and Commerce May 11th, left pending. Passed the House May 6th.
• HB 4301 Schofield, Mike – Relating to deadlines and time of inception for mechanic’s and materialman’s liens. Passed the House May 12th.
• HJR 20 Toth, Steve – (HJR 20 was previously filed in 87th Session as HJR 104 it was approved in Committee and sent to Calendars.) Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company . Received in the Senate May 1st. Passed the House April 27th.
• SB 62 Zaffirini, Judith – Relating to posting certain documents and information related to certain real property sales on a county’s Internet website. Set on House Calendar May 15th, Passed the Senate April 12th
• SB 147 Kolkhorst, Lois – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. Referred to House State Affairs May 4th. Passed the Senate April 26th.
• SB 1568 Campbell, Donna – Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion to HB 2565) Heard in House Business and Industry May 8th, left pending. Passed the Senate April 12th.
To see the full list of bills of interest that we are tracking: 88th Texas Legislature – Polunsky Beitel Green (mortgagelaw.com)
If you have questions about these specific bills or the Texas legislative process in general, please reach out to Doug Foster or one of our firm’s attorneys or representatives at: https://www.mortgagelaw.com/our-team/