H.B. 1992
By: Giddings 
Committee Report (Amended)


The Legislature has directed the Office of Consumer Credit
Commissioner to educate consumers in the prudent use of credit. 
While the Office of Consumer Credit Commissioner is funded by fees
paid by regulated entities, appropriation authority has not been
sufficient to adequately address consumer credit education.  Though
several grants are available from private foundations, the agency
has no express authority to receive grants and, therefore, has been
unable to apply for them.

State law governing the prohibition of discrimination in credit is
not consistent with the federal Equal Credit Opportunity Act since
it omits three prohibited basis of discrimination; age, marital
status and receipt of public assistance income.


This bill authorizes the Office of Consumer Credit Commissioner to
accept gifts and grants, primarily for the purpose of consumer
education, creates an offense for advertising credit transactions
if a person is not properly licensed or registered, and brings
state law on unlawful discrimination in credit transactions in line
with applicable federal law.


It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.


SECTION 1 - Article 2.02A, Title 79, Revised Statutes is amended by adding Section (12) as

     Section (12)(a) The commissioner may not accept or use money offered by  anyone or any
     company if affiliated with any industry regulated by the Finance Commission.  An exception
     is allowed if the money pays a judgment or negotiated settlement to the Consumer Credit
     Commission.  If authorized by law, the commissioner may accept money from persons under
     jurisdiction of the commissioner.

     Section (12)(b) The commissioner is authorized to accept money, gifts and grants for
     purposes related to the duties of the commissioner or consumer credit education.  Money
     received is deposited in the general revenue fund.  Acceptance and use of the money is
     subject to approval of the Finance Commission.

SECTION 2 - Article 2.06, Title 79, Revised Statutes (Art. 5069-2.06, V.T.C.S.) is amended as

     Article 2.06(1) Restricts false, misleading, or deceptive advertising with regard to rates,
     terms or conditions of loans or credit transactions listed in Section (1), Art. 2.02A.

     Article 2.06(2) Prohibits advertising or acting in a way  that causes another to believe that
     the actor is offering to make, arrange, or negotiate certain consumer credit transactions when
     the actor is not licensed or registered to engage in such activity.

     Article 2.06(3) A Class C misdemeanor offense is created for violation of Section 2 and
     Class A misdemeanor for future violations of the section.

     Article 2.06(4) Subjects violators of Section 2 to penalties provided under Chapter 8 and to
     any civil penalties the commissioner may assess but is not subject to both prosecution under
     Section 3 and the penalties.

     Article 2.06(5) Prohibits blind advertising.

SECTION 3 - Article 2.07, Title 79, Revised Statutes (Art. 5069-2.06, V.T.C.S.) is amended as

     Art. 2.07.  Amends existing state law prohibiting certain types of discrimination in credit
     granting to make it identical to federal law.

SECTION 4 - Article 8.06(a), Title 79, Revised Statutes, (Art. 5069-2.06, V.T.C.S.) is amended as

     Article 8.06(a) Sets the penalty for unlawful discrimination in granting or denying credit the
     same as federal penalties and provides that both state and federal penalties may not be sought
     by an aggrieved person.

SECTION 5 - Provides that this Act applies only to acts done and transactions entered into on or
after the effective date..

SECTION 6 - Effective date.

SECTION 7 - Emergency clause.


The amendment strikes language on page three of the original bill and makes the following changes:

A first offense committed under this Article is amended to be a Class C misdemeanor instead of a
Class A misdemeanor and future violations would be Class A misdemeanors;

Originally, if a licensee committed a violation, they could punished for committing a criminal
offense and penalized under Chapter 8 by requiring the forfeiture of principal or the repayment of
treble damages, the amendment allows one form of punishment or another, not both;

Any advertisement that purports to offer a credit service and is broadcast by radio or television must
disclose the legal name of the advertiser and the phone number of the advertiser.


The committee considered HB 1992 in a public hearing on April 10, 1995.

The following people testified in favor of the bill:
Sam Kelley;
Robert Duke; and
Robert Schneider.

The following person testified neutrally on the bill:
Leslie Pettijohn.

The committee considered an amendment to the bill which was adopted without objection.

The bill was reported favorably as amended, with the recommendation that it do pass and be printed,
by a record vote of: 8 Ayes, 0 Nays, 0 PNV, 1 Absent.