Issue 89.7
Texas House Committee assignments both reward loyalty and offer an olive branch
Director of Regulatory Affairs
Last Thursday Speaker Burrows announced committee assignments as well as naming the 30 republican Chairs and 30 democratic Vice Chairs. Baseball Hall of Famer Tommy Lasorda once said, “You give loyalty, you’ll get it back.” Newly elected Speaker Burrows used chairmanship appointments to return the loyalty favor. But he also exhibited a small amount of diplomacy with Rep. Cook’s 52 republican supporters by appointing four of them to Chair positions. Those four committees included Agriculture & Livestock, Criminal Jurisprudence, Elections, and Redistricting. However, in the past twelve years only two bills have ever passed out of the Redistricting committee.
There are twelve newly created Standing Subcommittees for this session. Chairs of these subcommittees were evenly divided between Democrats and Republicans, with four of these positions also going to Rep. Cook supporters including Rep. Cook himself. In yet another strategic move, Speaker Burrows configured every committee to hold a Republican majority. This leaves little to nothing Democrats can do in stopping legislation that the majority decides to pass despite holding all the newly empowered Vice Chair positions.
With committees formed, bills can now start to be referred out on their first reading. With the Business and Industry Committee being eliminated this session we will have to wait and see if the new Trade, Workforce and Economic Development Committee becomes a major destination for the bills we are tracking.
The always important Pensions, Investments & Financial Services Committee (PIFS) will be chaired by Rep. Stan Lambert who was Vice Chair last session and has served on this committee for multiple sessions. Rep. Lambert also served on the Sunset Committee in 2019 when The Savings and Mortgage Lending Department was under review for consolidation, and he voted to maintain their independence. Two other appointed committee members have prior experience serving on PIFS, but the remaining six committee members include three freshmen and three sophomores in the House will be serving their first time on this committee.
The quote below from these memos two years ago turned out to be true. Let’s hope, with similar committee demographics this year, it proves true once again. “We can only hope that with two-thirds of PIFS members being new to the committee and nearly half of the members being completely new to the entire legislature, senior leadership envisions a quiet session in the world of financial services.”
Weekly Highlight
Foreign Ownership
It is too early to pick a specific bill to discuss, but clearly this is once again a key priority. There have been fifteen separate bills to date that we are tracking that somehow address foreign ownership. They vary from covering foreign individuals, or entities, or governmental control to what type of property is involved such as agricultural land or platted subdivisions.
While the intent of protecting national security interests from bad actors is noble, many issues and problems are raised in implementation. Such as, how to handle individuals from one of these target nations who hold dual US citizenship. When targeting homestead properties how are ECOA and other federal anti-discrimination laws addressed. Many of these proposals place an undue burden on the lenders, title companies and other real estate professionals with an increased compliance burden being created on every mortgage loan file as the citizenship of all borrowers, particularly responsible individuals or beneficial owners of borrowing entities that could be several layers deep will need to be verified.
We will revisit this issue later in the session with a focus on the specific bills moving forward.
To read the full text of any of these bills you can go to Texas Legislature Online.
Bills on the Move
None until committee activity begins in March.
New Bills
HB 2628 Leo-Wilson, Terri Relating to the purchase of or acquisition of title to real property by foreign organizations.
HB 2752 Vasut, Cody Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
Previously Reported Bills
HB 191 Spiller, David Relating to the purchase of or acquisition of title to real property by certain foreign entities. (Companion HB 1566)
HB 243 Spiller, David (HB 243 was previously filed in 88th Session as HB 3470 but both that bill and its companion SB 1441 were left pending in Committee without a vote.) Relating to the authority of the attorney general to acquire by eminent domain certain real property owned by aliens or foreign entities.
HB 287 Harris Davila, Caroline Relating to an annual study by the Texas A&M University Texas Real Estate Research Center of the purchase and sale of single-family homes by certain institutional buyers.
HB 329 Bell, Cecil (HB 329 was previously filed in 88th Session as HB 5133 it was left pending in Committee without a vote.) Relating to a requirement that an appraisal review board rely on an appraisal of residential real property prepared by an appraiser and submitted to the board by the property owner.
HB 360 Vasut, Cody (HB 360 was previously filed in 88th Session as HB 523 it was left pending in Committee without a hearing.) Relating to the authority of an appraisal review board to direct changes in the appraisal roll and related appraisal records if a residence homestead is sold for less than the appraised value.
HB 402 Cain, Briscoe Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
HB 414 Leo-Wilson, Terri Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companion HB 1076, HB2105, HB2454, SB 465)
HB 518 Leo-Wilson, Terri Relating to the ownership of agricultural land by nonresident aliens or foreign entities.
HB 533 Cortez, Philip Relating to imposing liens for labor and supplies provided by cleaners.
HB 576 Shaheen, Matt (HB 576 was previously filed in 88th Session as HB 2565 it was left pending in Committee without a vote. Its companion SB1568 passed both chambers but was vetoed by the Governor.) Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion SB 372)
HB 733 Bell, Cecil Relating to verification of citizenship or legal residency for purposes of certain contracts for or concerning the purchase of residential real property located in platted subdivisions.
HB 851 Schofield, Mike Relating to the determination and reporting of the number of residence homesteads of certain property owners for which the owner is receiving certain ad valorem tax benefits.
HB 880 Lalani, Suleman Relating to the reporting of certain information regarding medically necessary debt on a consumer report.
HB 957 Toth, Steve (HB 957 was previously filed in 88th Session as HB 264 passing the House but was not assigned to a committee in the Senate.) Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan.
HB 963 Toth, Steve (HB 963 was previously filed in 88th Session as HB 295 it was left pending in Committee without a vote. It was also filed in the 87th Session as HB 2284) Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
HB 998 Toth, Steve (HB 998 was previously filed in 88th Session as HB 4513 it was left pending in Committee without a vote.) Relating to the authority of an individual, before purchasing real property to be used as the individual’s residence homestead, to request from the chief appraiser.
HB 1043 Bhojani, Salman Relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.
HB 1076 Pierson, Katrina Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB 414, HB2105, HB 2454, SB465)
HB 1104 Cole, Sheryl (HB 1104 was previously filed in 88th Session as HB 1168 it was left pending in Committee without a vote.) Relating to a program to provide housing vouchers to emergency medical services personnel in certain counties.
HB 1129 Lopez, Janie Relating to the eligibility of mental health professionals for the Homes for Texas Heroes home loan program.
HB 1139 Oliverson, Tom Relating to venue in certain actions involving a contract for an improvement to real property.
HB 1243 Guillen, Ryan Relating to the authority of spouses who occupy separate properties as their principal residences to each qualify the property in which they reside as their residence homestead for ad valorem tax purposes.
HB 1566 Patterson, Jared Relating to the purchase of or acquisition of title to real property by certain foreign entities. (Companion HB 191)
HB 1623 Louderback, AJ Relating to the eligibility of certain foreign individuals or entities for a limitation on the taxable value of property for school district maintenance and operations ad valorem tax purposes.
HB 1743 Little, Mitch Relating to the holding or acquisition of an interest in real property by or on behalf of certain foreign individuals or entities.
HB 1753 Manuel, Christian Relating to a court order for the exclusive occupancy of the primary residence or other residential property by a spouse during the pendency of a suit for dissolution of a marriage.
HB 1766 Landgraf, Brooks Relating to a requirement that an appraisal district rely on an appraisal of real property prepared by an appraiser and submitted to the district by the property owner when determining the value of the property.
HB 1849 Hefner, Cole Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities; creating a criminal offense.
HB 2016 Bucy, John Relating to the establishment of the housing Texas fund to be administered by the Texas Department of Housing and Community Affairs.
HB 2025 Tepper, Carl Relating to the filing for record of a plat, replat, or amended plat or replat of a subdivision of real property or a condominium.
HB 2105 Spiller, David Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB 414, HB 1076, HB 2454, SB 465)
HB 2131 Dean, Jay Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants.
HB 2327 Hopper, Andy Relating to eligibility for loans from the Veterans’ Land Board.
HB 2334 Hinojosa, Gina (HB 2334 was previously filed in 88th Session as HB 1057 it was left pending in Committee without a vote.) Relating to restrictions on the purchase of a single-family home by an investment firm.
HB 2389 Kerwin, Helen Relating to prohibiting the purchase of or acquisition of title to real property by and contracts or other agreements with certain aliens or foreign entities.
HB 2454 Toth, Steve Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companion HB 414, HB 1076, HB 2105, SB 465)
HB 2478 Talarico, James Relating to the reporting of certain information regarding medically necessary debt on a consumer report. (Companions HB 880, SB1000)
HB 2483 Curry, Pat Relating to an account for construction retainage.
HB 2484 Curry, Pat Relating to an account for construction retainage.
HB 2519 Holt, Janis Relating to disclosures required to record an instrument conveying real property.
HB 2536 Leach, Jeff Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. (Companion HB 1849)
HJR 40 Swanson, Valoree (HJR 40 was previously filed in 88th Session as HJR 124 it was left pending in Committee without a vote.) Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
HJR 71 Schofield, Mike Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes.
HJR 75 Toth, Steve 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.
HJR 102 Gervin-Hawkins, Barbara Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of residential real property.
HJR 108 Goodwin, Vikki (HJR 108 was previously filed in the 88th Session as HJR 188 and SJR 77 neither bill received a hearing) Proposing a constitutional amendment creating the workforce housing fund to facilitate the development of affordable workforce housing.
SB 74 Zaffirini, Judith (SB 74 was previously filed in the 88th Session as SB 2426 it was left pending in Committee without a vote.) Relating to an exemption from residential mortgage loan originator licensing requirements.
SB 103 Hall, Bob Relating to prohibiting the purchase of or acquisition of title to real property by and contracts or other agreements with certain aliens or foreign entities.
SB 208 West, Royce Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state.
SB 234 Johnson, Nathan Relating to the establishment of the workforce housing program by the Texas Department of Housing and Community Affairs.
SB 244 Flores, Pete Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
SB 307 Kolkhorst, Lois Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
SB 372 Campbell, Donna (SB372 was previously filed in 88th Session as SB 1568 it passed both chambers but was vetoed by the Governor.) Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion HB 576)
SB 443 Hinojosa, Chuy Relating to single-family homes held by corporate owners for rental purposes.
SB 465 Campbell, Donna Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants. (Companion HB 414, HB 1076, HB 2105, HB 2454)
SB 477 Middleton, Mayes (SB477 was previously filed in 88th Session as SB1065 it was left pending in Committee without a vote.) Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
SB 534 Kolkhorst, Lois Relating to the statutes of limitations for certain suits to recover real property held by another in adverse possession.
SB 583 West, Royce Relating to lists of public real property suitable for use or to be developed for use as affordable housing by certain municipalities and counties.
SB 585 West, Royce Relating to the reporting of certain criminal history record information on a consumer report.
SB 606 West, Royce Relating to requiring consumer reporting agencies to notify a consumer when inaccurate information in the consumer’s file is corrected. (Identical SB 695)
SB 647 West, Royce Relating to the filing or recording of documents or instruments conveying or purporting to convey an interest in real or personal property.
SB 648 West, Royce Relating to recording requirements for certain instruments concerning real property.
SB 693 West, Royce Relating to creating a criminal offense for the use of a notary seal or counterfeit seal on a fraudulent document or instrument.
SB 695 West, Royce Relating to requiring consumer reporting agencies to notify a consumer when inaccurate information in the consumer’s file is corrected. (Identical SB 606)
SB 696 West, Royce Relating to limitations on the information reported by consumer reporting agencies.
SB 867 Bettencourt, Paul Relating to housing finance corporations.
SB 929 Johnson, Nathan (SB 929 was previously filed in 88th Session as HB 4301 which passed the house but was not taken up in committee in the Senate, identical bills HB4308 and SB2113 both did not receive a hearing.) Relating to deadlines and time of inception for mechanic’s and materialman’s liens.
SB 944 Hughes, Bryan Relating to judicial deference regarding an interpretation of law by a state agency.
SB 946 Hughes, Bryan Relating to the prohibition on certain discrimination in the extension of credit to organizations based on social credit or values-based standards.
SB 949 Parker, Tan Relating to prohibitions on deceptive and unfair practices related to financial institutions discriminating in the provision of financial services to consumers and other persons.
SB 960 Johnson, Nathan Relating to the establishment of the workforce housing program by the Texas Department of Housing and Community Affairs.
SB 1000 Blanco, Cesar Relating to the reporting of certain information regarding medically necessary debt on a consumer report.
SB 1063 Campbell, Donna Relating to prohibiting contracts or other agreements with foreign-owned companies in connection with agricultural land.
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/