November 8, 2023

In This Issue:

Texas Legislature: Governor Calls 4th Special Session
Texas Voters Approve Constitutional Amendment Raising Homestead Exemption, Implementing Other Property Tax-Related Changes
FinCEN Finalizes Rule on Use of FinCEN Identifiers in Beneficial Ownership Information Reporting
TREC Adopts Rules, Proposes New Form, Appoints Members to Committees

Texas Legislature: Governor Calls 4th Special Session

TLTA | Nov. 8, 2023
The 3rd Called Session of the 88th Texas Legislature concluded yesterday, Tuesday, Nov. 7, and Gov. Abbott immediately called legislators back for a fourth special.

The following bills were approved during the 3rd Special and sent to the Governor:

SB 7 related to prohibition of private employer vaccine mandates.
SB 4 related to increasing penalties for operation of stash houses used to enable undocumented immigration.

The call for the 4th special session is currently focused on public education and border security, but the Governor can expand the special session call at any time.

During the just concluded 3rd special session, your TLTA advocacy team monitored the Colony Ridge debate, which had the potential to spur property rights proposals, but there were no proposals impacting our industry's functions and no changes made. The Colony Ridge issue is not included on the 4th special session call as it currently stands.

We also monitored several bills regarding foreign ownership of property, which were filed during the 3rd special despite that issue's absence from the special session call. We continue to expect the foreign ownership debate to resurface in a special session, although its not currently part of the 4th special session call.

Your TLTA advocacy team continues to monitor all developments at the Capitol in Austin and we'll keep you apprised as the special session progresses.

Texas Voters Approve Constitutional Amendment Raising Homestead Exemption, Implementing Other Property Tax-Related Changes

TLTA | Nov. 8, 2023
Texans statewide voted to approve 13 of the 14 constitutional amendments on the ballot yesterday. Among the adopted amendments is a property tax reduction proposition passed by the Texas Legislature during the second special session this summer.

Prop 4, which passed by the widest margin of all the amendments considered, increases the homestead exemption, establishes an appraisal cap system on certain properties, and implements other changes to the administration of property taxes.

A broad explanation of Prop 4 can be found on page 22 of this explanatory document produced by the Texas Legislative Council.

For a title industry perspective on the impacts of these property tax system changes approved by voters, you can purchase the following on-demand webinar featuring TLTA Regulatory Chair, Roland Love:

Property Tax Relief and the Implications for Title (On Demand Webinar) »

FinCEN Finalizes Rule on Use of FinCEN Identifiers in Beneficial Ownership Information Reporting

U.S. Treasury | Nov. 7, 2023
The Financial Crimes Enforcement Network (FinCEN) is issuing a final rule that specifies the circumstances in which a reporting company may report an entity’s FinCEN identifier in lieu of information about an individual beneficial owner.

A FinCEN identifier is a unique number that FinCEN will issue upon request after receiving required information. Although there is no requirement to obtain a FinCEN identifier, doing so can simplify the reporting process and allows entities or individuals to provide the required identifying information directly to FinCEN.

The final rule, which amends FinCEN’s final Beneficial Ownership Information (BOI) Reporting Rule, specifically responds to commenter concerns that the reporting of entity FinCEN identifiers could obscure the identities of beneficial owners in a manner that might result in greater secrecy or incomplete or misleading disclosures. The final rule provides clear criteria that must be met in order for a reporting company to report an intermediate entity’s FinCEN identifier in lieu of information about the individual beneficial owner.

Read FinCEN's Press Release »

TLTA's Editor's Note: BOI Rule reporting requirements will be effective as of Jan. 1 of next year. TLTA along with our partners at ALTA have been commenting on the implementation of the Corporate Security Act and development of BOI reporting rules. A webinar to help you understand how this collection of changes will impact your business and best practices for remaining in compliance is in development under the guidance of TLTA's Regulatory Committee, chaired by Roland Love.

TREC Adopts Rules, Proposes New Form, Appoints Members to Committees

Texas Realtors | Nov. 8, 2023
The Texas Real Estate Commission met November 6, adopting new rules, proposing a new form to be voted on in February 2024, and appointing the inaugural Broker Responsibility Advisory Committee.

Read More »

TLTA Editor's Note: In case you missed it, Scott Kesner, Chair of the Texas Real Estate Commission, will be speaking about new TREC Rules, HOAs, MUDs and more at this year's Texas Land Title Institute. If you haven't already done so, you can register for Institute now.