By Giddings H.B. No. 1992
74R5557 LJR-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of the consumer credit commissioner and
1-3 to the regulation of certain consumer credit practices; providing
1-4 penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article 2.02A, Title 79, Revised Statutes
1-7 (Article 5069-2.02A, Vernon's Texas Civil Statutes), is amended by
1-8 adding Section (12) to read as follows:
1-9 (12)(a) The Consumer Credit Commissioner may not accept or
1-10 use money offered by an individual, firm, partnership, corporation,
1-11 or association either (i) for investigating or prosecuting a matter
1-12 or (ii) if that individual, firm, partnership, corporation, or
1-13 association is affiliated with any industry under the regulatory
1-14 jurisdiction of the Finance Commission, except in the context of a
1-15 judgment or the negotiated settlement of a claim or action
1-16 threatened or asserted by or on behalf of the Office of Consumer
1-17 Credit Commissioner. The Consumer Credit Commissioner is not
1-18 prohibited from receiving and using money from persons under the
1-19 jurisdiction of the commissioner if expressly authorized by law.
1-20 (b) The Consumer Credit Commissioner may accept money,
1-21 gifts, and grants on behalf of the state for purposes related to
1-22 duties performed by the commissioner or for consumer credit
1-23 educational opportunities unless the acceptance is prohibited under
1-24 Subsection (a) of this section or other law. Money received under
2-1 this subsection shall be deposited in the general revenue fund to
2-2 the credit of an account established for the receipt of those funds
2-3 and may be appropriated only for the purposes for which the money
2-4 was given. Acceptance and use of money under this subsection is
2-5 subject to approval of the Finance Commission.
2-6 SECTION 2. Article 2.06, Title 79, Revised Statutes (Article
2-7 5069-2.06, Vernon's Texas Civil Statutes), is amended to read as
2-8 follows:
2-9 Art. 2.06. ADVERTISING. (1) No person shall advertise or
2-10 cause to be advertised, in any manner whatsoever, any false,
2-11 misleading or deceptive statement or representation with regard to
2-12 the rates, terms or conditions of any loan or credit transaction
2-13 regulated by the statutes listed by Section (1), Article 2.02A of
2-14 this title <Subtitle Two>. If rates or charges are stated in
2-15 advertising they shall be stated fully and clearly.
2-16 (2) A person may not advertise or otherwise perform any act
2-17 or offer any service that would cause another to believe that the
2-18 person is offering to make, arrange, or negotiate a loan or credit
2-19 sale that is subject to the statutes listed by Section (1), Article
2-20 2.02A, of this title unless the person is authorized to perform
2-21 that act or offer that service as:
2-22 (a) a credit service organization under Chapter 18,
2-23 Business & Commerce Code;
2-24 (b) a pawnbroker under the Texas Pawnshop Act (Article
2-25 5069-51.01 et seq., Vernon's Texas Civil Statutes); or
2-26 (c) an authorized lender or a registered creditor
2-27 under this subtitle.
3-1 (3) A person commits an offense if the person violates
3-2 Section (2) of this article. An offense under this section is a
3-3 Class A misdemeanor.
3-4 (4) A person who violates Section (2) of this article also
3-5 is subject to the penalties provided under Chapter 8 of this title
3-6 and to any civil penalties that the Consumer Credit Commissioner
3-7 may assess.
3-8 (5) In each advertisement that purports to offer credit
3-9 subject to the statutes listed by Section (1), Article 2.02A, of
3-10 this title, the advertiser shall disclose the legal or properly
3-11 registered name of the advertiser and the physical address of the
3-12 advertiser's place of business unless the advertisement is located
3-13 on the premises of the advertiser's place of business. This
3-14 section does not apply to a federally insured depository
3-15 institution or to a person engaged in interstate commerce who
3-16 advertises under a generally recognized trade name, abbreviated
3-17 form of a trade name, or logo.
3-18 SECTION 3. Article 2.07, Title 79, Revised Statutes (Article
3-19 5069-2.07, Vernon's Texas Civil Statutes), is amended to read as
3-20 follows:
3-21 Art. 2.07. CREDIT AND LOANS TO INDIVIDUALS. No authorized
3-22 lender <licensee> under Chapter 3 of this Title or other person
3-23 involved in transactions subject to this Title may deny an
3-24 individual who has the capacity to contract credit or loans in his
3-25 or her name, or restrict or limit the credit or loan granted
3-26 <solely> on the basis of sex, race, color, religion, <or> national
3-27 origin, marital status, or age or because all or part of the
4-1 individual's income derives from a public assistance program or the
4-2 individual has in good faith exercised any right under the Consumer
4-3 Credit Protection Act (15 U.S.C. Section 1601 et seq.; 18 U.S.C.
4-4 Section 891 et seq.). In interpreting this section, the courts and
4-5 administrative agencies shall be guided by the federal Equal Credit
4-6 Opportunity Act and regulations thereunder and interpretations
4-7 thereof by the Federal Reserve Board to the extent that Act and
4-8 those regulations and interpretations pertain to conduct prohibited
4-9 by this section.
4-10 SECTION 4. Section (a), Article 8.06, Title 79, Revised
4-11 Statutes (Article 5069-8.06, Vernon's Texas Civil Statutes), is
4-12 amended to read as follows:
4-13 (a) Any person who violates the terms of Article 2.07 of
4-14 this Title is liable to the aggrieved individual for the actual
4-15 damages caused by the denial, punitive damages not to exceed
4-16 $10,000 in an action brought by the aggrieved individual <or for
4-17 $50.00, whichever is greater>, and court costs. The liability of
4-18 any person under this Article for a violation of Article 2.07 of
4-19 this Title is in lieu of and not in addition to that person's
4-20 liability under Title VII of the Consumer Credit Protection Act (15
4-21 U.S.C. Section 1601 et seq.). If the same act or omission
4-22 constitutes a violation of Article 2.07 of this Title and of
4-23 applicable federal law, the person aggrieved by that conduct may
4-24 bring a legal action to recover monetary damages either under this
4-25 Article or under that federal law, but not both.
4-26 SECTION 5. This Act applies only to acts done and
4-27 transactions entered into on or after the effective date of this
5-1 Act. Acts done and transactions entered into before the effective
5-2 date of this Act are governed by the law in effect immediately
5-3 before this Act takes effect, and that law continues in effect for
5-4 that purpose.
5-5 SECTION 6. This Act takes effect September 1, 1995.
5-6 SECTION 7. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended.
5-11 COMMITTEE AMENDMENT NO. 1
5-12 Amend H.B. No. 1992 on page 3, by striking lines 1-17, and
5-13 substituting the following:
5-14 (3) A person commits an offense if the person violates
5-15 Section (2) of this article. An offense under this section is a
5-16 Class C misdemeanor, except if it is shown on trial of a person
5-17 that the person has previously been convicted of an offense under
5-18 this section, the offense is a Class A misdemeanor.
5-19 (4) A person who violates Section (2) of this article
5-20 may be prosecuted under Section (3) of this article or may be
5-21 subject to the penalties provided under Chapter 8 of this title and
5-22 any civil penalties that the Consumer Credit Commissioner may
5-23 assess, but is not subject to both prosecution under Section (3)
5-24 and the penalties.
5-25 (5) In each advertisement that purports to offer
5-26 credit subject to the statutes listed by Section (1), Article
5-27 2.02A, of this title, the advertiser shall disclose the legal or
6-1 properly registered name of the advertiser and the physical address
6-2 of the advertiser's place of business unless the advertisement is
6-3 located on the premises of the advertiser's place of business or
6-4 the advertisement is broadcast by radio or television. If the
6-5 advertisement is broadcast by radio or television, the advertiser
6-6 shall disclose the legal or properly registered name and the
6-7 telephone number of the advertiser and shall comply with the
6-8 applicable disclosure requirements of Regulation Z (12 C.F.R.
6-9 226.1 et seq.). This section does not apply to a federally insured
6-10 depository institution or to a person engaged in interstate
6-11 commerce who advertises under a generally recognized trade name,
6-12 abbreviated form of a trade name, or logo.
6-13 Elkins