ELECTION RESULTS
Propositions approved by voters
On November 8, voters approved seven of the nine constitutional amendments on the ballot, giving overwhelming support to two in particular: one that would allow courts to deny bail for some accused criminals, and one that would outlaw marriage between same-sex couples. Two of the three amendments impacting the real estate industry were approved as well.

• Proposition 7, authorizes line-of-credit advances under a reverse mortgage; and
• Proposition 8, provides for the clearing of land titles by relinquishing and releasing any state claim to sovereign ownership or title to interest in certain land in Upshur County and in Smith County. Interestingly enough, it drew the lowest number of voters of any amendment.

Proposition 5 which would have uncapped interest rates for commercial loans only received 43.4 percent approval. Although there was no known organized opposition to this amendment, supporters believe that voters were concerned about giving the legislature the authority to uncap interest rates. They also believe voters were concerned about protecting consumers and small business.

Rate hearing update
The Texas Department of Insurance has not yet set a pre-hearing conference to establish a schedule for the rate phase of the pending Biennial Rate Hearing. However, 20 Underwriters and 19 Agents have received subpoenas for information and data which might be used in the rate hearing.  Some of those receiving subpoenas have been given extensions to respond until January 15, 2006.  The subpoenas request information and documents relating to reinsurance and various expenses. 

Governor appoints Texas Tax Reform Commission
Governor Perry has appointed a bipartisan group of 24 Texans who will develop proposals to modernize the state tax system and provide long-term property tax relief, as well as sound financing for public schools. The commission led by former State Comptroller John Sharp will hold public hearings across the state. The committee's first meeting was held on November 21 at the State Capitol. Much of the group's work will focus on business taxes. Governor Perry told the panel that a new business tax system must be fair, broad-based, modern, understandable to taxpayers and competitive with those in other states. Each member of the commission has a strong background in business administration and represents a different industry. The real estate industry is represented by Dennis Patillo of Houston, President of Stewart Title in Victoria and chairman-elect of the Texas Association of Realtors. To see the entire list of members, click here.

Another special session?
Lieutenant Governor David Dewhurst and House Speaker Tom Craddick have agreed to form a joint House and Senate committee to consider state public school reforms before the third special legislative session of 2005-06 is called. Governor Perry has indicated that he would call another special session for school finance once the Texas Supreme Court announced their decision. A ruling last year by state District Judge John Dietz concluded that the current method for financing schools is unconstitutional. The suit was filed by Texas schools, and Dietz's decision was appealed by the state to the Supreme Court. UPDATE: The Court ruled on Tuesday, November 22 that the system is unconstitutional because it constitutes a state property tax, but is not inadequate or inefficient. The Supreme Court set a deadline of June 1, 2006 for the system to be changed.

House issues interim study charges
Speaker Tom Craddick has issued interim study charges for House legislative committees. The following charges will be watched closely by TLTA:

• Joint interim charge with State Affairs and Business Industry on Identify Theft
• Joint interim charge with Business Industry and Land & Resource Management on the powers and practices of homeowner associations in Texas and the possible need for legislation, such as the proposed Texas Uniform Planning Community Act, to address the rules, enforcement, restrictions and other matters within the authority of a homeowner association.
• Financial Institutions to evaluate predatory lending practices involved with subprime mortgage lending within the state, primarily in the border counties including: Study the patterns of mortgage fraud and develop statutory changes to reduce incidences of mortgage fraud and punish violators. Study the relationship between mortgage brokers and residential borrowers including; whether or not the mortgage broker is the agent of the residential borrower; the types of disclosures which should be required; and, the sources and nature of compensation.
• Urban Affairs to examine the home ownership rate for low-income Texans and recommend suggestions on how home ownership rates can be improved for underserved populations.
• Ways & Means to examine alternative business taxes and other methods of finance designed to reduce the state’s reliance on local property taxes to fund public education. Examine the business taxes paid by the various industries.
• Land & Resource Management to determine the appropriateness of non-elected governmental bodies exercising the power of eminent domain to condemn property.

Department of Insurance still in business
The 79^th Legislature postponed Sunset Advisory Commission review of the Texas Department of Insurance (TDI) for another two years. TDI was scheduled to go under Sunset Review in 2007 but because the Legislature moved the Worker’s Compensation division from the Workforce Commission to TDI, they felt the Department needed time to implement the program and work out any problems. Sunset is the regular assessment by the Legislature of the continuing need for a state agency to exist. While most oversight is concerned with agency compliance with legislative policies, Sunset asks a more basic question: Do the agency's functions continue to be needed? The Sunset process works by setting a date on which an agency will be abolished unless legislation is passed to continue its functions. This creates a unique opportunity for the Legislature to look closely at each agency and make fundamental changes to an agency's mission or operations if needed. Agencies are typically reviewed every 12 years. About 20 to 30 agencies go through the Sunset process each legislative session. In other Sunset news, the Texas Real Estate Commission is up for review.  For more information on the Sunset Advisory Commission, click here http://www.sunset.state.tx.us/.

ON THE CAMPAIGN TRAIL
Special election results for Houston house seat
A runoff election will decide who wins the house seat left open after the death of Representative Joe Moreno back in the spring. Attorney Ana Hernandez and administrator Laura Salinas finished first and second in a six-person pack to represent House District 143 in Harris County. The run-off date will not be set until after the votes are canvassed by the Secretary of State's office.

More legislators to retire
Rep. Todd Baxter (R-Austin) resigned his seat on November 1 to be the Texas Cable and Telecommunications Association’s new general counsel and vice president for government affairs. Gov. Perry has not called a special election for that post. The next non-emergency election date available for that contest is in May. Add Rep. Ray Allen (R-Grand Prairie) to the list of House members not coming back. He’s finishing his seventh term in the House. Rep. Ruben Hope (R-Beaumont) will be retiring after serving his fourth term. For those who are keeping a running list of legislators not returning, the current total is 13.

PAC News
Online auction raises over $10,000!
The TLTAPAC held its first online auction and by all measures, it was a big success!   Participation by TLTA Members in the two-week auction was high and we were very excited to see members bid who have not previously donated to the PAC. The last 48-hours of the auction were very competitive with bidders keeping a close eye on their favorite items. Thanks to everyone who participated and we hope next year's online auction will be just as exciting and successful! Click here to see a list of winners.

We gratefully acknowledge the support of the following members for their generous donations of auction items:

Sheri Asbell, United General Title Company
Marion Dailey, West Texas Abstract & Title
Austin Dishman, Golden Triangle Title Services
Celia Flowers, Arnold Abstract Company
Pat Gerald, Professional Land Title Company
Terry Grantham, West Texas Title Company
Margaret Grynwald, Sherman Title Company
Celia Goode-Haddock, University Title Company
Ed Hill, White Garrison & Hill
Mary Ann Howard, United General Title Company
Jack Jackson, Title Resources Guaranty Company
Jim Johnson, Charter Title Company
Kforce Staffing
Joe Kyle, Lawyers Title Insurance Corporation
Mike Lang, Kendall County Abstract Company
Randy Lee, Stewart Title Guaranty Company
Ed Lester, Stewart Title Guaranty Company
Bruce & Anna Liesman
Roland Love, Winstead
Bert Massey, The Brown County Abstract Company
Eric McNeese, AmeriPoint Title – San Antonio
National Tax Net
Bob Philo, Southern Title Insurance Corporation
Allen Place, Brown Abstract Company
Joey & Tom Prohaska
Jack Rogers, AmeriPoint Title - San Antonio
B.B Schraub
Fred Schraub, Alamo Title Insurance Company
SoftPro
TLTA Education Department
Sally Vetters, United General Title Insurance Company
Glena & Ronnie Yates, Central Texas Land Titles Company

COMPANIES
The Crossings
Harvey Daco
Goodies from Goodman
Mack Trucks
Bodyworks – Colleyville, TX
Silver Fox, III Forks, Cool River
Volvo

National News
New RESPA enforcement tool proposed
The Department of Housing and Urban Development (HUD) filed a “Notice of Proposed Information Collection: Comment Request; Real Estate Settlement Procedures Act (RESPA) Web Site Questionnaire” in the Federal Register on November 8. The proposal states:  “The Real Estate Settlement Procedures Act insures that consumers are provided with greater and timely information on the nature and costs of the settlement process and are protected from unnecessarily high settlement charges caused by abusive practices. The RESPA Web site Complaint Questionnaire will provide for a common website for consumers and settlement service providers to assist in the enforcement of RESPA. Members of the public may submit complaints to HUD. The Federal Government will use the disclosed information to investigate alleged violations of RESPA regulations by settlement service providers.” There is speculation that HUD proposed the creation of the website due to members in the industry urging HUD to improve their enforcement actions.

ALTA/ACSM adopt revision to survey standards
The 2005 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys are effective January 1, 2006. As of that date, all previous versions are superseded by these 2005 standards. Please click here to view the document: http://www.alta.org/industry/ALTA2005Standards.pdf.

House defends private property rights
The House passed legislation that would prevent local and state governments from seizing homes and businesses for use in economic development projects. The bill was in response to a widely criticized 5-4 ruling by the Supreme Court last June that allowed eminent domain authority to be used to obtain land for tax revenue-generating commercial projects. The bill would withhold for two years all federal economic development funds from states and localities that use economic development as a rationale for property seizures. It also would bar the federal government from using eminent domain powers for economic development. About half of the states, including Texas, have changed or are considering changing their laws to prevent seizures for private use. It now goes to the Senate, where Sen. John Cornyn (R-Texas) has introduced similar legislation.

Real estate industry comments on Federal Tax Proposal
The National Association of Home Builders, the Mortgage Bankers Association and the National Association of Realtors have joined together to oppose changes to the tax code proposed by the President’s Advisory Panel on Federal Tax Reform. The real estate trade associations believe the proposed changes would drive down real estate values, have a devastating effect on the housing market and negatively impact the nation’s economy.

House Financial Services Chairman to retire
Rep. Michael G. Oxley (R-Ohio) will retire from Congress after serving 25 years. As Chairman of the House Financial Services committee, Rep. Oxley has passed landmark legislation. The Sarbanes-Oxley Act, the corporate reform legislation passed by Congress in the wake of major accounting scandals, bears his name. Oxley has been a strong believer that competition and free markets make business better and increase choices for consumers. Oxley’s biggest mark has been on the financial services and telecommunications sectors.