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                                                                  S.B. No. 1067




AN ACT

relating to home equity lending and high-cost home loans.                     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 11, Finance Code, is 
amended by adding Section 11.308 to read as follows:
	Sec.  11.308.  INTERPRETATION OF HOME EQUITY LENDING LAW.  
The finance commission may, on request of an interested person or on 
its own motion, issue interpretations of Sections 50(a)(5)-(7), 
(e)-(p), (t), and (u), Article XVI, Texas Constitution.  An 
interpretation under this section is subject to Chapter 2001, 
Government Code, and is applicable to all lenders authorized to 
make extensions of credit under Section 50(a)(6), Article XVI, 
Texas Constitution, except lenders regulated by the Credit Union 
Commission.  The finance commission and the Credit Union Commission 
shall attempt to adopt interpretations that are as consistent as 
feasible or shall state justification for any inconsistency.
	SECTION 2.  Subchapter E, Chapter 15, Finance Code, is 
amended by adding Section 15.413 to read as follows:
	Sec. 15.413.  INTERPRETATION OF HOME EQUITY LENDING LAW.  
The commission may, on request of an interested person or on its own 
motion, issue interpretations of Sections 50(a)(5)-(7), (e)-(p), 
(t), and (u), Article XVI, Texas Constitution.  An interpretation 
under this section is subject to Chapter 2001, Government Code, and 
is applicable to lenders regulated by the commission.  The Finance 
Commission of Texas and the commission shall attempt to adopt 
interpretations that are as consistent as feasible or shall state 
justification for any inconsistency.
	SECTION 3.  Subchapter C, Chapter 343, Finance Code, is 
amended by adding Section 343.206 to read as follows:
	Sec. 343.206.  CHARGE PROHIBITED FOR PRODUCT OR SERVICE NOT 
RECEIVED.  A lender, in connection with a high-cost home loan, may 
not charge a borrower an amount for a service or product if the 
borrower does not receive the service or product.
	SECTION 4.  Subsection (b), Section 343.102, Finance Code, 
is repealed.      
	SECTION 5.  This Act takes effect on the date on which the 
constitutional amendment proposed by the 78th Legislature, Regular 
Session, 2003, authorizing a home equity line of credit, providing 
for administrative interpretation of home equity lending law, and 
otherwise relating to the making, refinancing, repayment, and 
enforcement of home equity loans takes effect.  If that amendment is 
not approved by the voters, this Act has no effect.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1067 passed the Senate on 
May 15, 2003, by a viva-voce vote.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1067 passed the House on 
May 25, 2003, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor