S.B. No. 870
AN ACT
1-1 relating to the authority of the consumer credit commissioner and
1-2 to the regulation of certain consumer credit practices; providing
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 2.02A, Title 79, Revised Statutes
1-6 (Article 5069-2.02A, Vernon's Texas Civil Statutes), is amended by
1-7 adding Section (12) to read as follows:
1-8 (12)(a) The Consumer Credit Commissioner may not accept or
1-9 use money offered by an individual, firm, partnership, corporation,
1-10 or association either (i) for investigating or prosecuting a matter
1-11 or (ii) if that individual, firm, partnership, corporation, or
1-12 association is affiliated with any industry under the regulatory
1-13 jurisdiction of the Finance Commission.
1-14 (b) The Consumer Credit Commissioner may accept money,
1-15 gifts, and grants on behalf of the state for purposes related to
1-16 consumer credit educational opportunities or to assist local
1-17 governments in the exercise of their police power unless the
1-18 acceptance is prohibited under Subsection (a) of this section or
1-19 other law. Money received under this subsection shall be deposited
1-20 in the general revenue fund to the credit of an account established
1-21 for the receipt of those funds and may be appropriated only for the
1-22 purposes for which the money was given. Acceptance and use of
1-23 money under this subsection is subject to approval of the Finance
1-24 Commission.
2-1 (c) Notwithstanding Subsection (a) of this section, the
2-2 Consumer Credit Commissioner is not prohibited from receiving and
2-3 using money from persons under the jurisdiction of the commissioner
2-4 if expressly authorized by law.
2-5 SECTION 2. Article 2.06, Title 79, Revised Statutes (Article
2-6 5069-2.06, Vernon's Texas Civil Statutes), is amended to read as
2-7 follows:
2-8 Art. 2.06. ADVERTISING. (1) No person shall advertise or
2-9 cause to be advertised, in any manner whatsoever, any false,
2-10 misleading or deceptive statement or representation with regard to
2-11 the rates, terms or conditions of any loan or credit transaction
2-12 regulated by the statutes listed by Section (1), Article 2.02A of
2-13 this title <Subtitle Two>. If rates or charges are stated in
2-14 advertising they shall be stated fully and clearly.
2-15 (2) A person may not advertise or otherwise perform any act
2-16 or offer any service that would cause another to believe that the
2-17 person is offering to make, arrange, or negotiate a loan that is
2-18 subject to the statutes listed by Section (1), Article 2.02A, of
2-19 this title unless the person is authorized to perform that act or
2-20 offer that service as:
2-21 (a) a credit service organization under Chapter 18,
2-22 Business & Commerce Code;
2-23 (b) a pawnbroker under the Texas Pawnshop Act (Article
2-24 5069-51.01 et seq., Vernon's Texas Civil Statutes); or
2-25 (c) an authorized lender under this subtitle.
2-26 (3) A person commits an offense if the person violates
2-27 Section (2) of this article. An offense under this section is a
3-1 Class C misdemeanor.
3-2 (4) A person who violates Section (2) of this article may be
3-3 prosecuted under Section (3) of this article or may be subject to
3-4 the penalties provided under Chapter 8 of this title and to any
3-5 civil penalties that the Consumer Credit Commissioner may assess,
3-6 but is not subject to both prosecution under Section (3) of this
3-7 article and the penalties.
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 or the
3-14 advertisement is broadcast by radio or television. If the
3-15 advertisement is broadcast by radio or television, the advertiser
3-16 shall disclose the legal or properly registered name and the
3-17 telephone number of the advertiser and shall comply with the
3-18 applicable disclosure requirements of Regulation Z (12 C.F.R. 226.1
3-19 et seq.). This section does not apply to a federally insured
3-20 depository institution or to a person engaged in interstate
3-21 commerce who advertises under a generally recognized trade name,
3-22 abbreviated form of a trade name, or logo.
3-23 SECTION 3. Article 2.07, Title 79, Revised Statutes (Article
3-24 5069-2.07, Vernon's Texas Civil Statutes), is amended to read as
3-25 follows:
3-26 Art. 2.07. CREDIT AND LOANS TO INDIVIDUALS. No authorized
3-27 lender <licensee> under Chapter 3 of this Title or other person
4-1 involved in transactions subject to this Title may deny an
4-2 individual who has the capacity to contract credit or loans in his
4-3 or her name, or restrict or limit the credit or loan granted
4-4 <solely> on the basis of sex, race, color, religion, <or> national
4-5 origin, marital status, or age or because all or part of the
4-6 individual's income derives from a public assistance program in the
4-7 form of social security or supplemental security income, or the
4-8 individual has in good faith exercised any right under the Consumer
4-9 Credit Protection Act (15 U.S.C. Section 1601 et seq.; 18 U.S.C.
4-10 Section 891 et seq.). In interpreting this section, the courts and
4-11 administrative agencies shall be guided by the federal Equal Credit
4-12 Opportunity Act and regulations thereunder and interpretations
4-13 thereof by the Federal Reserve Board to the extent that that Act
4-14 and those regulations and interpretations pertain to conduct
4-15 prohibited by this section.
4-16 SECTION 4. Section (a), Article 8.06, Title 79, Revised
4-17 Statutes (Article 5069-8.06, Vernon's Texas Civil Statutes), is
4-18 amended to read as follows:
4-19 (a) Any person who violates the terms of Article 2.07 of
4-20 this Title is liable to the aggrieved individual for the actual
4-21 damages caused by the denial, punitive damages not to exceed
4-22 $10,000 in an action brought by the aggrieved individual <or for
4-23 $50.00, whichever is greater>, and court costs. The liability of
4-24 any person under this Article for a violation of Article 2.07 of
4-25 this Title is in lieu of and not in addition to that person's
4-26 liability under Title VII of the Consumer Credit Protection Act (15
4-27 U.S.C. Section 1691 et seq.). If the same act or omission
5-1 constitutes a violation of Article 2.07 of this Title and of
5-2 applicable federal law, the person aggrieved by that conduct may
5-3 bring a legal action to recover monetary damages either under this
5-4 Article or under that federal law, but not both.
5-5 SECTION 5. This Act applies only to acts done and
5-6 transactions entered into on or after the effective date of this
5-7 Act. Acts done and transactions entered into before the effective
5-8 date of this Act are governed by the law in effect immediately
5-9 before this Act takes effect, and that law continues in effect for
5-10 that purpose.
5-11 SECTION 6. This Act takes effect September 1, 1995.
5-12 SECTION 7. The importance of this legislation and the
5-13 crowded condition of the calendars in both houses create an
5-14 emergency and an imperative public necessity that the
5-15 constitutional rule requiring bills to be read on three several
5-16 days in each house be suspended, and this rule is hereby suspended.