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AN ACT
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relating to mortgage fraud; providing criminal penalties. |
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�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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�������SECTION�1.��Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.105 to read as follows: |
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�������Sec.�343.105.��NOTICE OF PENALTIES FOR MAKING FALSE OR |
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MISLEADING WRITTEN STATEMENT. (a) �A lender, mortgage banker, or |
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licensed mortgage broker shall provide to each applicant for a home |
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loan a written notice at closing. |
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�������(b)��The notice must: |
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�������������(1)��be provided on a separate document; |
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�������������(2)��be in at least 14-point type; and |
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�������������(3)��have the following or substantially similar |
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language: |
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�������"Warning: Intentionally or knowingly making a materially |
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false or misleading written statement to obtain property or |
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credit, including a mortgage loan, is a violation of Section |
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32.32, Texas Penal Code, and, depending on the amount of the |
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loan or value of the property, is punishable by imprisonment |
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for a term of 2 years to 99 years and a fine not to exceed |
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$10,000. |
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�������"I/we, the undersigned home loan applicant(s), represent |
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that I/we have received, read, and understand this notice of |
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penalties for making a materially false or misleading written |
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statement to obtain a home loan. |
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�������"I/we represent that all statements and representations |
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contained in my/our written home loan application, including |
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statements or representations regarding my/our identity, |
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employment, annual income, and intent to occupy the |
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residential real property secured by the home loan, are true |
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and correct as of the date of loan closing." |
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�������(c)��On receipt of the notice, the loan applicant shall |
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verify the information and execute the notice. |
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�������(d)��The failure of a lender, mortgage banker, or licensed |
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mortgage broker to provide a notice complying with this section to |
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each applicant for a home loan does not affect the validity or |
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enforceability of the home loan by any holder of the loan. |
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�������SECTION�2.��Subchapter B, Chapter 402, Government Code, is |
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amended by adding Sections 402.031 and 402.032 to read as follows: |
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�������Sec.�402.031.��REPORTING FRAUDULENT ACTIVITIES. (a) �In |
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this section: |
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�������������(1)��"Authorized governmental agency" means: |
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�������������������(A)��the attorney general; |
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�������������������(B)��a local or state law enforcement agency of |
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this state or a federal law enforcement agency; |
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�������������������(C)��a prosecuting attorney of the United States |
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or of a county or judicial district of this state; or |
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�������������������(D)��the Department of Public Safety, the Texas |
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Department of Insurance, the Office of Consumer Credit |
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Commissioner, the Texas Department of Banking, the credit union |
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department, the Department of Savings and Mortgage Lending, the |
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Texas Real Estate Commission, or the Texas Appraiser Licensing and |
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Certification Board. |
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�������������(2)��"Fraudulent activity" means any act that |
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constitutes a violation of a penal law and is part of an attempt or |
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scheme to defraud any person. |
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�������(b)��If a person determines or reasonably suspects that |
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fraudulent activity has been committed or is about to be committed, |
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the person shall report the information to an authorized |
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governmental agency. If a person reports the information to the |
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attorney general, the attorney general shall notify each agency |
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with representation on the residential mortgage fraud task force |
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under Section 402.032. If a financial institution or person |
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voluntarily or pursuant to this section reports fraudulent activity |
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to an authorized governmental agency, the financial institution or |
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person may not notify any person involved in the fraudulent |
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activity that the fraudulent activity has been reported, and the |
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authorized governmental agency who has any knowledge that such |
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report was made shall not disclose to any person involved in the |
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fraudulent activity that the fraudulent activity has been reported. |
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Any financial institution or person that makes a voluntary report |
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of any possible violation of law or regulation to an authorized |
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governmental agency shall not be liable to any person under any law |
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or regulation of the state or the United States for such report. |
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�������(c)��This section does not eliminate or diminish any common |
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law or statutory privilege or immunity. |
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�������Sec.�402.032.��RESIDENTIAL MORTGAGE FRAUD TASK FORCE. (a) � |
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In this section, "task force" means the residential mortgage fraud |
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task force. |
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�������(b)��The office of the attorney general shall establish the |
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task force to form a strategic partnership between state, federal, |
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and local law enforcement agencies to better enable law enforcement |
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and state agencies to take a proactive stance towards tracking and |
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prosecuting mortgage fraud and the perpetrators of mortgage fraud |
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statewide. |
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�������(c)��The task force consists of the following persons or |
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their appointees: |
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�������������(1)��the attorney general; |
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�������������(2)��the consumer credit commissioner; |
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�������������(3)��the banking commissioner; |
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�������������(4)��the credit union commissioner; |
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�������������(5)��the commissioner of insurance; |
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�������������(6)��the savings and mortgage lending commissioner; |
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�������������(7)��the presiding officer of the Texas Real Estate |
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Commission; and |
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�������������(8)��the presiding officer of the Texas Appraiser |
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Licensing and Certification Board. |
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�������(d)��The task force may request assistance from the Federal |
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Bureau of Investigation, United States Secret Service, United |
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States Department of Justice, United States Department of Homeland |
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Security, Internal Revenue Service, and the United States Postal |
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Service. |
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�������(e)��The task force shall focus its efforts in: |
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�������������(1)��sharing information and resources; and |
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�������������(2)��successfully enforcing administrative and |
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criminal actions against perpetrators of mortgage fraud. |
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�������(f)��The agencies of the persons listed in Subsection (c) may |
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share confidential information or information to which access is |
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otherwise restricted by law with one or more of the other agencies |
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of the persons listed in Subsection (c) for investigative purposes |
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described by Subsection (b). Except as provided by this |
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subsection, confidential information that is shared under this |
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subsection remains confidential and legal restrictions on access to |
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the information apply. |
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�������(g)��The task force shall submit to the governor, lieutenant |
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governor, and speaker of the house of representatives an annual |
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report on the progress of each agency of the persons listed in |
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Subsection (c) in accomplishing the purposes described by |
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Subsection (b). |
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�������(h)��The office of the attorney general shall oversee the |
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administration of the task force. The attorney general shall |
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provide the necessary staff and facilities to assist the task force |
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in performing its duties. |
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�������(i)��The attorney general may solicit and accept gifts, |
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grants, and donations of money, services, or property on behalf of |
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the state for disbursement to any state agency or local law |
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enforcement agency to aid the task force in the investigation and |
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prosecution of mortgage fraud in this state. |
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�������SECTION�3.��Subchapter F, Chapter 411, Government Code, is |
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amended by adding Section 411.1407 to read as follows: |
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�������Sec.�411.1407.��ACCESS TO CRIMINAL HISTORY RECORD |
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INFORMATION: CREDIT UNION DEPARTMENT. (a) �The credit union |
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commissioner is entitled to obtain from the department criminal |
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history record information maintained by the department that |
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relates to a person who is: |
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�������������(1)��an individual who applies to incorporate a credit |
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union under Subtitle D, Title 3, Finance Code; |
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�������������(2)��a board member of a credit union incorporated |
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under Subtitle D, Title 3, Finance Code; |
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�������������(3)��an applicant for employment by the credit union |
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department; or |
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�������������(4)��an employee of the credit union department. |
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�������(b)��Criminal history record information obtained by the |
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credit union commissioner under this section may not be released by |
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any person except: |
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�������������(1)��on court order, unless the information is entered |
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into evidence by the credit union department or a court at an |
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administrative proceeding or a civil or criminal action under |
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Subtitle D, Title 3, Finance Code; or |
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�������������(2)��with the consent of the person who is the subject |
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of the criminal history record information. |
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�������SECTION�4.��Section 555.051(a), Government Code, is amended |
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to read as follows: |
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�������(a)��This section applies only to information held by or for |
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the office of the attorney general, the Texas Department of |
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Insurance, the Texas State Board of Public Accountancy, the Public |
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Utility Commission of Texas, [or] the State Securities Board, the |
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Department of Savings and Mortgage Lending, the Texas Real Estate |
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Commission, the Texas Appraiser Licensing and Certification Board, |
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the Texas Department of Banking, the credit union department, or |
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the Office of Consumer Credit Commissioner that relates to the |
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possible commission of corporate fraud or mortgage fraud by a |
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person who is licensed or otherwise regulated by any of those state |
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agencies. In this subsection, "corporate fraud" means a violation |
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of state or federal law or rules relating to fraud committed by a |
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corporation, limited liability company, or registered limited |
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liability partnership or an officer, director, or partner of those |
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entities while acting in a representative capacity. |
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�������SECTION�5.��Section 32.32, Penal Code, is amended by |
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amending Subsections (a) and (b) and adding Subsections (d) and (e) |
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to read as follows: |
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�������(a)��For purposes of this section, "credit" includes: |
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�������������(1)��a loan of money; |
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�������������(2)��furnishing property or service on credit; |
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�������������(3)��extending the due date of an obligation; |
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�������������(4)��comaking, endorsing, or guaranteeing a note or |
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other instrument for obtaining credit; |
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�������������(5)��a line or letter of credit; [and] |
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�������������(6)��a credit card, as defined in Section 32.31 (Credit |
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Card or Debit Card Abuse); and |
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�������������(7)��a mortgage loan. |
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�������(b)��A person commits an offense if he intentionally or |
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knowingly makes a materially false or misleading written statement |
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to obtain property or credit, including a mortgage loan [for
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himself or another]. |
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�������(d)��The following agencies shall assist a prosecuting |
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attorney of the United States or of a county or judicial district of |
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this state, a county or state law enforcement agency of this state, |
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or a federal law enforcement agency in the investigation of an |
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offense under this section involving a mortgage loan: |
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�������������(1)��the office of the attorney general; |
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�������������(2)��the Department of Public Safety; |
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�������������(3)��the Texas Department of Insurance; |
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�������������(4)��the Office of Consumer Credit Commissioner; |
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�������������(5)��the Texas Department of Banking; |
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�������������(6)��the credit union department; |
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�������������(7)��the Department of Savings and Mortgage Lending; |
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�������������(8)��the Texas Real Estate Commission; and |
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�������������(9)��the Texas Appraiser Licensing and Certification |
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Board. |
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�������(e)��With the consent of the appropriate local county or |
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district attorney, the attorney general has concurrent |
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jurisdiction with that consenting local prosecutor to prosecute an |
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offense under this section that involves a mortgage loan. |
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�������SECTION�6.��Article 12.01, Code of Criminal Procedure, is |
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amended to read as follows: |
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�������Art.�12.01.��FELONIES.��Except as provided in Article 12.03, |
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felony indictments may be presented within these limits, and not |
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afterward: |
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�������������(1)��no limitation: |
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�������������������(A)��murder and manslaughter; |
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�������������������(B)��sexual assault, if during the investigation |
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of the offense biological matter is collected and subjected to |
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forensic DNA testing and the testing results show that the matter |
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does not match the victim or any other person whose identity is |
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readily ascertained; or |
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�������������������(C)��an offense involving leaving the scene of an |
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accident under Section 550.021, Transportation Code, if the |
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accident resulted in the death of a person; |
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�������������(2)��ten years from the date of the commission of the |
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offense: |
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�������������������(A)��theft of any estate, real, personal or mixed, |
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by an executor, administrator, guardian or trustee, with intent to |
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defraud any creditor, heir, legatee, ward, distributee, |
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beneficiary or settlor of a trust interested in such estate; |
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�������������������(B)��theft by a public servant of government |
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property over which he exercises control in his official capacity; |
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�������������������(C)��forgery or the uttering, using or passing of |
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forged instruments; |
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�������������������(D)��injury to a child, elderly individual, or |
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disabled individual punishable as a felony of the first degree |
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under Section 22.04, Penal Code; |
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�������������������(E)��sexual assault, except as provided by |
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Subdivision (1) or (5); or |
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�������������������(F)��arson; |
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�������������(3)��seven years from the date of the commission of the |
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offense: |
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�������������������(A)��misapplication of fiduciary property or |
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property of a financial institution; |
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�������������������(B)��securing execution of document by deception; |
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[or] |
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�������������������(C)��a violation under Sections 162.403(22)-(39), |
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Tax Code; |
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�������������������(D)��false statement to obtain property or credit; |
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or |
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�������������������(E)��money laundering; |
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�������������(4)��five years from the date of the commission of the |
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offense: |
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�������������������(A)��theft, burglary, robbery; |
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�������������������(B)��kidnapping; |
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�������������������(C)��injury to a child, elderly individual, or |
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disabled individual that is not punishable as a felony of the first |
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degree under Section 22.04, Penal Code; |
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�������������������(D)��abandoning or endangering a child; or |
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�������������������(E)��insurance fraud; |
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�������������(5)��ten years from the 18th birthday of the victim of |
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the offense: |
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�������������������(A)��indecency with a child under Section |
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21.11(a)(1) or (2), Penal Code; or |
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�������������������(B)��except as provided by Subdivision (1), sexual |
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assault under Section 22.011(a)(2), Penal Code, or aggravated |
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sexual assault under Section 22.021(a)(1)(B), Penal Code; or |
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�������������(6)��three years from the date of the commission of the |
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offense: all other felonies. |
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�������SECTION�7.��The change in law made by this Act to Article |
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12.01, Code of Criminal Procedure, does not apply to an offense if |
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the prosecution of that offense became barred by limitation before |
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the effective date of this Act. The prosecution of that offense |
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remains barred as if this Act had not taken effect. |
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�������SECTION�8.��To the extent of a conflict, this Act prevails |
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over any other Act of the 80th Legislature, Regular Session, 2007, |
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regardless of the relative dates of enactment. |
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�������SECTION�9.��This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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���President of the Senate |
Speaker of the House����� |
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�������I certify that H.B. No. 716 was passed by the House on April |
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4, 2007, by the following vote:��Yeas 140, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 716 on May 15, 2007, by the following vote:��Yeas 139, Nays 0, 2 |
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present, not voting. |
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______________________________ |
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Chief Clerk of the House��� |
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�������I certify that H.B. No. 716 was passed by the Senate, with |
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amendments, on May 9, 2007, by the following vote:��Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate��� |
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APPROVED: __________________ |
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����������������Date������� |
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�������� __________________ |
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��������������Governor������� |