CHAPTER 13. DEPARTMENT OF SAVINGS AND MORTGAGE LENDING

FINANCE CODE

TITLE 2. FINANCIAL REGULATORY AGENCIES

CHAPTER 13. DEPARTMENT OF SAVINGS AND MORTGAGE LENDING

Sec. 13.001. DEFINITIONS. The definitions provided by Section

31.002 apply to this chapter.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 13.0015. NAME CHANGES. (a) The Savings and Loan

Department is renamed the Department of Savings and Mortgage

Lending and the savings and loan commissioner is renamed the

savings and mortgage lending commissioner.

(b) A reference in a statute or rule to the Savings and Loan

Department means the Department of Savings and Mortgage Lending.

(c) A reference in a statute or rule to the savings and loan

commissioner means the savings and mortgage lending commissioner.

Added by Acts 2005, 79th Leg., Ch.

1018, Sec. 3.02, eff. September 1, 2005.

Sec. 13.002. SAVINGS AND MORTGAGE LENDING COMMISSIONER. (a)

The savings and mortgage lending commissioner is the chief

executive officer of the Department of Savings and Mortgage

Lending. The finance commission, by at least five affirmative

votes, shall appoint the savings and mortgage lending

commissioner. The savings and mortgage lending commissioner

serves at the will of the finance commission and is subject to

the finance commission's orders and direction.

(b) The savings and mortgage lending commissioner must have not

less than seven years' experience in the executive management of

a savings association or savings bank or in savings association

or savings bank supervision.

(c) The finance commission shall set the compensation of the

savings and mortgage lending commissioner. The compensation

shall be paid from money of the Department of Savings and

Mortgage Lending.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 15, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.013, eff. September 1, 2007.

Sec. 13.003. DEPUTY COMMISSIONERS. (a) The savings and

mortgage lending commissioner shall appoint one or more deputy

savings and mortgage lending commissioners.

(b) One deputy savings and mortgage lending commissioner must

have the qualifications required of the savings and mortgage

lending commissioner. During the savings and mortgage lending

commissioner's absence or inability to serve, that deputy savings

and mortgage lending commissioner has the powers and shall

perform the duties of the savings and mortgage lending

commissioner.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.014, eff. September 1, 2007.

Sec. 13.004. EXAMINERS. The savings and mortgage lending

commissioner shall appoint savings association and savings bank

examiners.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.015, eff. September 1, 2007.

Sec. 13.006. OATH OF OFFICE. Before assuming the duties of

office, each deputy savings and mortgage lending commissioner,

examiner, assistant examiner, conservator, supervisor, and

special agent and each other officer or employee specified by the

savings and mortgage lending commissioner must take an oath of

office to discharge faithfully the duties assigned and uphold the

constitution and laws of this state and the United States.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.017, eff. September 1, 2007.

Sec. 13.007. GENERAL POWERS AND DUTIES OF COMMISSIONER. The

savings and mortgage lending commissioner shall:

(1) supervise and regulate the organization, operation, and

liquidation of state savings associations, as provided by

Subtitle B, Title 3, and state savings banks, as provided by

Subtitle C, Title 3; and

(2) enforce those subtitles personally or through a deputy

savings and mortgage lending commissioner, examiner, supervisor,

conservator, or other agent.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.018, eff. September 1, 2007.

Sec. 13.009. CONFLICTS OF LAW. If this chapter conflicts with

Subtitle B or C, Title 3, this chapter controls.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 13.010. CONFLICTS OF INTEREST. (a) In this section,

"Texas trade association" means a cooperative and voluntarily

joined association of business or professional competitors in

this state designed to assist its members and its industry or

profession in dealing with mutual business or professional

problems and in promoting their common interest.

(b) A person may not be a Department of Savings and Mortgage

Lending employee employed in a "bona fide executive,

administrative, or professional capacity," as that phrase is used

for purposes of establishing an exemption to the overtime

provisions of the federal Fair Labor Standards Act of 1938 (29

U.S.C. Section 201 et seq.), and its subsequent amendments, if:

(1) the person is an officer, employee, or paid consultant of a

Texas trade association in a field regulated by the Department of

Savings and Mortgage Lending; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in a field regulated by

the Department of Savings and Mortgage Lending.

(c) A person may not act as the general counsel to the

Department of Savings and Mortgage Lending if the person is

required to register as a lobbyist under Chapter 305, Government

Code, because of the person's activities for compensation on

behalf of a profession related to the operation of the Department

of Savings and Mortgage Lending.

(d) Before the 11th day after the date on which an employee

begins employment with the Department of Savings and Mortgage

Lending, the employee shall read the conflict-of-interest

statutes applicable to employees of the Department of Savings and

Mortgage Lending and sign a notarized affidavit stating that the

employee has read those statutes.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 337, Sec. 1, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.020, eff. September 1, 2007.

Sec. 13.011. CONSUMER INFORMATION AND COMPLAINTS. (a) The

savings and mortgage lending commissioner shall prepare

information of consumer interest describing:

(1) the regulatory functions of the Department of Savings and

Mortgage Lending; and

(2) the procedures by which consumer complaints are filed with

and resolved by the Department of Savings and Mortgage Lending.

(b) The information under Subsection (a) must be made available

to the public and appropriate state agencies.

(c) The Department of Savings and Mortgage Lending shall

maintain a file on each written complaint filed with the

Department of Savings and Mortgage Lending. The file must

include:

(1) the name of the person who filed the complaint;

(2) the date the complaint is received by the Department of

Savings and Mortgage Lending;

(3) the subject matter of the complaint;

(4) the name of each person contacted in relation to the

complaint;

(5) a summary of the results of the review or investigation of

the complaint; and

(6) an explanation of the reason the file was closed, if the

agency closed the file without taking action other than to

investigate the complaint.

(d) The Department of Savings and Mortgage Lending shall provide

to the person filing the complaint and to each person who is a

subject of the complaint a copy of the Department of Savings and

Mortgage Lending's policies and procedures relating to complaint

investigation and resolution.

(e) The Department of Savings and Mortgage Lending, at least

quarterly until final disposition of the complaint, shall notify

the person filing the complaint and each person who is a subject

of the complaint of the status of the investigation unless the

notice would jeopardize an undercover investigation.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 337, Sec. 2, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.021, eff. September 1, 2007.

Sec. 13.012. SUNSET PROVISION. The office of savings and

mortgage lending commissioner and the Department of Savings and

Mortgage Lending are subject to Chapter 325, Government Code

(Texas Sunset Act). Unless continued in existence as provided by

that chapter, the office and department are abolished September

1, 2013.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 337, Sec. 3, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.022, eff. September 1, 2007.

Sec. 13.013. STANDARDS OF CONDUCT. The savings and mortgage

lending commissioner or the savings and mortgage lending

commissioner's designee shall provide to agency employees, as

often as necessary, information regarding the requirements for

office or employment under this chapter, including information

regarding a person's responsibilities under applicable laws

relating to standards of conduct for state officers or employees.

Added by Acts 2001, 77th Leg., ch. 337, Sec. 4, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.023, eff. September 1, 2007.

Sec. 13.014. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The

savings and mortgage lending commissioner or the savings and

mortgage lending commissioner's designee shall prepare and

maintain a written policy statement that implements a program of

equal employment opportunity to ensure that all personnel

decisions are made without regard to race, color, disability,

sex, religion, age, or national origin.

(b) The policy statement must include:

(1) personnel policies, including policies relating to

recruitment, evaluation, selection, training, and promotion of

personnel, that show the intent of the Department of Savings and

Mortgage Lending to avoid the unlawful employment practices

described by Chapter 21, Labor Code; and

(2) an analysis of the extent to which the composition of the

Department of Savings and Mortgage Lending personnel is in

accordance with state and federal law and a description of

reasonable methods to achieve compliance with state and federal

law.

(c) The policy statement must:

(1) be updated annually;

(2) be reviewed by the state Commission on Human Rights for

compliance with Subsection (b)(1); and

(3) be filed with the governor's office.

Added by Acts 2001, 77th Leg., ch. 337, Sec. 4, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.024, eff. September 1, 2007.